When should I refinance?
2007-12-13 04:44:14 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Tim:
There is no problem. If fact the rate I have now is very good. APR = 4.375
But is the rate jumps to 7+ I will not be able to afford any more.
2007-12-13 04:54:32 · update #1
Hey there -
With a 5/1 ARM, your current rate is fixed until 2009 and then it becomes an adjustable rate mortgage (ARM) where then your current rate will reset every year. It appears that you have a very low rate right now, and you would want to currently keep your low rate. You really need to make sure that you refinance before your ARM adjusts in 2009 so that you don’t have payment shock.
It would be a really good idea to begin looking at your refinance options in 2008, and think about how long you plan on living in your current home. If you plan to stay where you’re at for a while, it may be wise to look into locking into a 30-year fixed rate. That way you would have security in a rate that will never go up. However, if you plan on moving in a couple of years, you could also get into another ARM.
Including a link for you. If you've got other questions, let me know. Best of luck!!
2007-12-13 07:06:03 · answer #1 · answered by Quicken Loans 5 · 1⤊ 0⤋
YES!! You should refinance before your rates reset in 2009. Rates are fairly low now so it's not a bad time at all. If you do not refi before your 5 year anniversary, you will see a dramatic increase in your mortgage payments. this is what the current credit crunch is all about.
2007-12-13 04:49:57 · answer #2 · answered by Jay P 7 · 0⤊ 0⤋
What is wrong with now.
The problems is that no one knows how rates will be in 6 months. Depending on where you are currently and the cap, I would look at re-fi now.
2007-12-13 04:49:36 · answer #3 · answered by Tim 7 · 0⤊ 0⤋