Two Loan Rates to Choose
Looking for some opinions on two VA loan options for a primary home purchase.
Loan amount: $900K
Option 1:
• 5.99%
• $6,000 lender credit
• Lower cash to close
Option 2:
• 5.625%
• About 0.099 points (~$1,100 cost)
• Higher cash to close due to losing lender credit
Difference in upfront cash ends up being roughly $7k+ between the two options.
I believe it’s about $210 differential in each monthly mortgage payment.
I’m leaning toward preserving liquidity because:
• have extra reserved savings
• eligible for va irrrl; giving flexibility on refinancing early as 7 months but no later than 23 months to be stay even.
At the same time, part of me thinks maybe I should just lock the lower rate now and not gamble on future refinancing.
Curious what others would choose in this market and why.
Thanks everyone.