I'm wondering if I should ride out the next year at 5.875 and gamble that rates will come down the next time my mortgage adjusts in another year. Just wondering what you think rates will go to?
2006-06-19 09:42:33 · 10 answers · asked by stevenpdk2000 1 in Business & Finance ➔ Renting & Real Estate
I agree with Realestatelawyer on this one. There would be a clause in your mortgage that would not allow it to go any higher than 9.875%. As far ARMS being dangerous???? That is just not true. They are only dangerous for the dumb witted person that has no idea what they have gotten themselves into. Use them right and they will be your best friends.
I would ride out the 5.875%. Maybe add some extra payments onto the mortgage this year as well. I doubt that rates with be anything like they were in the next two years, but we never know what could happen.
Good luck with that. If you still are considering refinancing, feel free to contact me and I could help you out with that. You can contact me at timothy.kazee@americanhm .com. Have a great night!
2006-06-19 15:21:30 · answer #1 · answered by Kaz 3 · 1⤊ 2⤋
You cannot refinance more than 97% of what the home is worth (100% financing no longer exists and you definitely can't do more than that) and for such a large loan most lenders would probably require 10% equity in the home if in a declining market. For this example we'll say 97%, if it appraised at 660, your max loan amount would be $640,200 so you'd have to pay up front $109,800 to payoff the original mortgage in order to refinance. This is the reason why there are so many foreclosures for jumbo loans people took out ARMs they would eventually not be able to afford the adjustment and with no equity cannot refinance.
2016-05-20 02:54:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
ARE YOU sure ..about the 3.875 sound like a neg am mortgage
Even back couple years ago the best arm out there was 4.25. Check your paperwork . Also look to see if you have a pre-payment . Run your credit report and get all three score. What are your long term plans? If you are selling in a couple of years then stay in the arm. If you plan to stay put for the next 30 years then look at the fix rate loans
2006-06-19 17:48:41 · answer #3 · answered by jon g 3 · 0⤊ 0⤋
Does your mortgage provide that it can never go up by more than 2% per year and 6% over the entire term of the loan? If so, then the rate can never go higher than 9.875% based on what you've told us.
In Sept. I expect that fixed rates will be at least 7% so you will still be below the market. If you continue for another year at 5.875% then the following September (2007) your rate may climb as high as 7.875%. If fixed rates are below that rate then you can refinance then.
If you choose not to refinance and if your rate cannot exceed 9.875% over the entire term of the loan, your rate in 2008 may still be below the market fixed rate. So it may be a good idea to wait at least another year before considering a refinance.
2006-06-19 09:52:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No one can tell you actually what the rates are going to be in coming year. The only thing you can do here is anylize the market. I am in to this business since last seven years and i believe the interests will go more higher next year and will reach same as they were a 1980's at around 10% or so... So i think this is the best time for ya to refinance and get a fixed loan. 15 Year fixed loans are affordale these days. You can drop me your information at willclose4utoday@yahoo.com and i will get back to you.
Good Luck
2006-06-19 09:44:04 · answer #5 · answered by Mohit Madaan 4 · 0⤊ 0⤋
Mortgage rates are going up. Lock the 5.8 in now. It won't get any better than that for a fixed mortgage in the foreseeable future.
2006-06-19 09:46:34 · answer #6 · answered by freedomnow1950 5 · 0⤊ 0⤋
There was an article in my local paper today about all of the expected foreclosures this year from people who have ARMs and can't get refinanced because their property values have gone down since they purchased, but now their rates are adjusting and they can't afford their payments anymore. If you can get refinanced now, please do it. Rates are not expected to come down anytime soon. If property values in your area come down your house may not appraise for as much as you owe, and you won't be able to refinance later.
2006-06-19 10:24:07 · answer #7 · answered by Sharingan 6 · 0⤊ 0⤋
rates will go up up up
2006-06-19 09:46:38 · answer #8 · answered by seeker100 3 · 0⤊ 0⤋
YES THE SOONER THE BETTER.
2006-06-19 10:25:14 · answer #9 · answered by ? 4 · 0⤊ 0⤋
get out now!!!! ARM's are dangerous
2006-06-19 09:47:23 · answer #10 · answered by wolfball 2 · 0⤊ 0⤋