Is it a good idea to refinance my 5.85% 3 yr ARM now, or wait until 3 yrs are up (Aug07)?

Answer 1

How about a 1.5% rate fixed for 5 years?

www.lendingsolutionsnetwork.com

Answer 2

30-year mortgage rates right now are hovering at or below 6%.
I would say RUN to a lender you trust and have them do the numbers for you. You should be able to grab a fixed rate comparable to the adjustable you have now.
Once you have that information, then decide whether you want to refi now, or gamble tat rates will go down.

My advice: I think it is highly unlikely that rates will be going down in the next year, much less be low enough to make the gamble worth the risk.
Take a fixed rate at today's rates and smile as everyone else waits too long to get out of their ARMs

Answer 3

It depends how long you plan to stay in the house. Interest rates are low right now. If you plan to stay, you should consider refinancing right now to a fixed rate. Most ARMs go up significantly when they reset and the borrower is in for a shock. Find out exactly what index your lender uses and what rate the loan would reset set to if it where to convert today. You maybe shocked at the number.

Answer 4

Are you a gambler? Interest rates are going up - slowly but up. It is probably best to refinance now. The banks and some online banking (i.e ditech, lending tree) are very competitive right now. You never know when this may change. Start shopping around and I mean shop. Don't just accept any banks offer.

Answer 5

if the reason you are refinancing, is just to get a lower rate, then don't do it, whay would you, put yourself, in another 30 years of debt, for more money then you ever were in debt for before, and lose the 20 to 50 thousand that you already paid? now, if you are in debt, or you need, cash, or you need to refi, because you need a mortgage with structure and function, that will pay for itself, then i can help you. if you would really like some sound advice, talk to an expert, call me. 203-729-8900, or 203-410-4427, ask for david powell.

Answer 6

do you realize what your interest value is now? What state are you in? in the adventure that your value is at a great low it particularly is particularly helpful to hold off to maintain your fee low, no count if it particularly is at a so-so value re-fi now's stable , costs are actual ok now and many times while costs alter it particularly is as much as two% and you will probable get into yet another ARM with a cost close to to the place you at the instant are only cuz you in no way understand the place costs would be in 4-6mos.

Answer 7

I'd defiantly be looking at refinancing sometime in the near future, next six months or so. I won't predict interest rates, but I do not see a reason to rush, mortgages usually go "on sale" in spring.

Cheers,

r

Answer 8

Rates have gone down a lot in the last 2 weeks I would see what you can get now. 30 year fixed loans are at 5.5% right now.

Matt
http://www.diversifiedlender.com
http://www.homemortgageminnesota.com/
http://www.refinance-second-mortgage.biz
http://www.minnesota-mortgage-rates.net

Answer 9

If you intend to stay in the home, today you can get a 7 year term for the cost of 3. In 2007, rates will be worse. I would consider it today to ensure long term savings.

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