When should I think about refinancing my home loan?

Hey everyone… I’m currently looking at a housing loan with a 1.5% interest rate from my company, but I’m worried about being stuck with them for 30 years. I’m planning to leave in about 3-5 years. Do you think it’s worth changing jobs if I have to refinance at 3% later? I heard it’s better to go with the 30-year option, but I don’t really get why… any insights?

Honestly, I think it’s a tricky situation… What are the repayment terms if you leave your job? Do you have a grace period?

Jamie said:
Honestly, I think it’s a tricky situation… What are the repayment terms if you leave your job? Do you have a grace period?

Yeah, I’m curious too. And FYI, I’ve heard a lot about 3% rates lately.

I think if your rate just jumps to the normal rate after leaving, you might wanna stick with the 1.5%. Just be ready for the higher rate later. Have you thought about negotiating a cash option instead of that low rate?

@Corey
That’s a good point… But what do you mean by negotiating cash?

Quade said:
@Corey
That’s a good point… But what do you mean by negotiating cash?

Oh, I meant seeing if you could get some cash compensation when you leave instead of sticking to that 1.5% loan. Just a thought!

I’m a bit skeptical too… Are you sure they really offer 1.5%? That sounds super low. They might be talking about points instead?

Alden said:
I’m a bit skeptical too… Are you sure they really offer 1.5%? That sounds super low. They might be talking about points instead?

I get what you mean… It is confusing. I think they’re just set on 1.5% for now, but yeah, I could be misunderstanding.

Dude, if you’re getting a good deal at 1.5%, take it! You can always deal with refinancing later.

Parker said:
Dude, if you’re getting a good deal at 1.5%, take it! You can always deal with refinancing later.

That’s what I was thinking… Just worried about the long-term commitment.

Honestly, if it’s 1.5% now, jump on it! Just plan for that 3% later if you leave. It’s way better than paying more upfront.