13 December 2011

Public Service Announcement

During the spring/summer of 2009, when we first started thinking about the whole crazy buy/tear down/design/rebuild plan, we talked to a few different lenders about our unusual situation. (We weren't buying a habitable house, so we couldn't get a regular mortgage, but we weren't buying unimproved property, so a lot loan was out, too.) One potential lender wasn't interested in financing our project because, he said, rates were too good right then, so it didn't make sense to wait a year or two to lock in a permanent loan. He advised us to abandon the build plan and just buy something right then. We couldn't count on those 5-6% rates lasting forever, he warned us.

Not only was he wrong -- we locked in our permanent loan at 4.375% last spring -- but they've kept falling. Have you seen interest rates lately? They're in the threes and low fours, with the possibility of getting even lower if things go badly in Europe. If you've considered refinancing -- or even if you haven't -- now might be the time.


  1. Hmmm... we're in the design phase of building our dream house. So you're saying we've hit a good historical moment?

  2. Yes. Even if rates aren't at their very lowest by the time you finish construction and lock your permanent loan, they should still be really, really good.