I have a 3 yr ARM that is going to adjust early next year, do you think is time to refinance?
Answer:
yes
yes
That depends on your personal situation. See an adviser or email me :)
definitely not. the federal funds rate has been held steady for two meetings of the federal reserve, and unless inflation gets really bad, the economy will slow down and they will have to lower the federal funds rate to encourage growth, (to help banks loan more money to business and individuals). Depending on which index your ARM is tied to, more than likely in a few months rates are going to be what they are today or lower.
Do you know what your interest rate is now? What state are you in? If your rate is at a super low you may want to hold off to keep your payment low, if it is at a so-so rate re-fi now is good , rates are actually ok now and usually when rates adjust it can be up to 2% and you can probably get into another ARM with a rate close to where you are now just cuz you never know where rates will be in 4-6mos.
BE VERY CAREFUL about the hidden fees in a refinance. I know someone personally who refinanced his house, got shafted on the "closing fees", has paid in over $90,000 in five years, and now owes more on the house than he did when he bought it, and is looking at selling his house at a loss because of the ridiculous payments.
Get an attorney, or someone that knows real estate and that you TRUST to review any contract before you sign it.
depends on the value of your property versus your interest rate. also, keep in mind if you have a prepay penalty?
if you want more detailed answer, you can email me and we can discuss it further (i'm a realtor in the San Fernando Valley)
Absolutely. You will have to pay closing costs when you refinance, but its worth it to get into a fix rate loan.
http://obe231.blogspot.com
Yes, fix rate mortgage has almost the lowest rate in 40 years. Hurry and refinance.
Yes. The forcast is for rising rates. I'm a nationwide mortgage broker with 20 years experience and markets like this are unusual. I'm guessing you have a lower rate than what is available today, but to hold on for a few months savings, you'll end up paying more for the next 3-5+ years by waiting. Not a good gamble. And if you are considering long term, currently you can get a long term fixed rate for nearly the same price as one of the short term 3 or 5 year hybrid ARM loans anyway.
Feel free to contact me with any questions and I would be happy to assist.
http://www.slarson.com/contact or steve@slarson.com
Regards,
Steve
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