2007-09-12 12:59:52 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Mine and my husband's credit scores are excellent.
2007-09-12 13:08:08 · update #1
The loan started out at 6.25%. It has obviously adjusted ...
2007-09-13 04:13:05 · update #2
Depending on your financial situation do whatever you can to get out of that loan. Either refinance or pay it off if you can.
Even if you could afford the 9.25% rate, it will continue to get worse each time it re-adjusts.
2007-09-12 13:09:47 · answer #1 · answered by John W 3 · 3⤊ 0⤋
If you bought a house 5 years ago with excellent credit and ended up with a 9.25% rate you got taken to the cleaners by your mortgage company. I'd look to refinance now if you have excellent credit for a 30 year fixed rate loan. You should be able to get a rate around 7%.
If you have excellent credit, why would you have gotten an ARM in the first place?
2007-09-13 09:03:48 · answer #2 · answered by dfrank04401 3 · 0⤊ 0⤋
I don't know what your loan amount is, but 9.25% is REALLY high, especially around 4 years ago. I recommend refinancing now, because I'm sure you will be able to get a lower rate now, and something fixed longer term too. according to yahoo finance and bankrate.com, a 30 year fixed is a little under 6%.
I suggest talking to a few mortgage places to find out what they can do for you. ask about about what the ballpark rate is, but don't get caught up trying to get the lowest rate. find some one who can provide the best service to you, and aren't trying to bamboozle you into something that doesn't fit your needs. Those are the ones who have the best relationships with banks and can close your loan quickly and painlessly. Also, check to see if your mortgage officer is licensed and for how long. This will give you an indication of how knowledgeable they are. You can usually look those up at the state's department of real estate.
2007-09-13 02:01:53 · answer #3 · answered by Vicky L 2 · 0⤊ 0⤋
Provided that you both have good credit as you do say, you should be able to get a rate in the 6 range instead of the 9. This will save you big money both in the short and long term. 3% on a 100,000 loan is $3,000!
Definitely shop for loans. See what kind of rates you are offered. Now is the time as the Fed is talking rate cut.
2007-09-12 21:08:50 · answer #4 · answered by Jay P 7 · 0⤊ 0⤋
If your credit score has improved, talk to another mortgage lender about refinancing with a new fixed rate loan - hopefully it will be less than 9%, it should be if your score is over 650 and you've made your 4 yrs worth of payments on time - or try and get a new 5 yr adjustable if your credit score needs more time to improve
2007-09-12 20:05:20 · answer #5 · answered by Anonymous · 2⤊ 0⤋
Refinance with a fixed rate, 15 year maximum mortgage with a payment of no more than 1/4 of you combined take home pay. For even better advise, go to daveramsey.com.
2007-09-12 20:14:44 · answer #6 · answered by starfishltd 5 · 0⤊ 0⤋
Refinance into a fixed rate principle and interest loan. If your scores are "excellent" (750 or higher) you should be able to get a good interest rate (7%).
2007-09-12 22:56:35 · answer #7 · answered by Sarah 1 · 0⤊ 0⤋
Refinance now to a fixed rate mortgage.
2007-09-12 20:13:00 · answer #8 · answered by soaplakegirl 6 · 0⤊ 0⤋