Monday, May 4, 2015

Interest Rate Locked In

You may be asking why in the world are you locking your interest rate in so early... It's because we have too.

If you read my earlier blog posts, you will know that we are using the Ohio Housing Finance Agency's (OHFA) Grants for Grads program (www.myohiohome.org).  Since my two year anniversary* for graduating from college is May 5th, this had to be done now, or lose out on the 2.5% down payment assistance.

The rate is good for 70 days, with a 0.375% fee for a 30 day extension.  Our settlement date is closer to 60 days from now, but I will pay the ~$1200 fee in order to get $8000+ of free money, if it comes to that.

We're weighing the 0.25% rate increase to get 1% (~$3000) for closing cost assistance.  This will add about $46 extra a month to the mortgage.


* I spent 8 years going to college part-time, while working full-time.

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