I'm currently in the process of refinancing my home. A different loan company gave me an option of a 5/1 ARM, 1 org pts, and at 6.125%. The papers are ready to sign, but I just checked my credit union and I found a 5/5 ARM, 0 org pts, and at 5.625%. What should or can I do?
2007-10-12 10:48:22 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Ask both of these individuals to give you a Truth-in-lending or a good faith estimate.
With these two documents you will be able to tell which is the loan that will cost you the least.
Now some will be no fee no points. This,in all cases are not the best loans that will benefit you.
What most of these no point no fee loan people will no tell you is that some fees and points are tax deductible over the life of the loan.
Then the no point,no fee loans are normally have an increase in the interest rate. (Only the interest is deductible)
Where you have points and fees deducted (you deduct the interest from your taxes and the fees are also deductible.
Make sure you see or check with your tax consultant.
This is why consumers are so confused, they have a host of rates and terms to select from, but all appear to be different.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-10-12 11:08:44 · answer #1 · answered by loanmasterone 7 · 0⤊ 0⤋
You fail to mention what state you are in. Many states have a 3 day right of rescission for the benefit of the borrower in a refinance. What that means is that you have a right to cancel your transaction within 3 days. If you have not signed the papers, your credit union is a better deal , but not by far. I, personally would NOT do an option ARM right now, I would do nothing but a 30 year fixed rate, but that is my opinion. If you choose to do an option arm-the benefits only need to outweigh where you currently are and the time frame should not be very much longer as title work and appraisal work should already be done. It may cost you a week or two, but if the benefit is worth it, two weeks is nothing compared to paying for 30 years. It's your call from here.
2007-10-12 11:01:06 · answer #2 · answered by mcandrea2001 2 · 0⤊ 0⤋
I wouldn't sign those papers, I would go and check out the credit union program first. If the current lender gives some crud about losing out if you wait, it's better to move on now. That lender probably isn't telling you the whole truth anyway. But I do caution you on an adjustable rate loan and how it works. There isn't any reason you couldn't get a fixed rate FHA without points, unless you have credit issues. Check it out further.
2007-10-12 10:56:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
you can get a 30yr fixed with 1origination fee and 6.125-6.25% depending on the loan amount
the 5.625% is fake....otherwise the WHOLE US will be lining up at the union trying get a mortgage there.
you have the right of rescission which is a federal law not a state law.
2007-10-13 12:31:04 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Usually a credit union will offer the best deal- I'm thinking fixed rate too if you can get one!
2007-10-12 11:05:38 · answer #5 · answered by helprhome 5 · 0⤊ 0⤋
Neither stay away from the ARM's they are what are causing all the foreclosures going on right now.
2007-10-12 10:53:41 · answer #6 · answered by Pengy 7 · 0⤊ 1⤋