Should I refinance my ARM into a fixed rate mortgage now or wait?
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Currently (April of 2008), the 30 year fixed par rate, the rate a good shopper could get, is around 5.75%. This is a good rate to “fix in” for the long haul. Given our current administration “likes” the dollar at all-time lows, sooner rather than later, rates will have to rise. Getting caught in an increasing ARM could be disastrous.
Keep in mind refinancing away from the ARM in future should you wait could be impossible. If property values in your area are dropping eventually your loan-to value could stand in your way of a refinance. If that were to happen, you’d be trapped in ever increasing mortgage payment should rates start climbing again.
PS: To get the “par” fixed rate, you’ll need an ethical mortgage provider. Check out our Mortgage Advantage to learn just how to find such a provider.
Feel free to comment on my answer, add your take or experience in the Comments Box below….however, to ask your own question in this category, return to the previous page.
Teresa,
As I said above, it’s not about “getting a referral” when it comes to finding a local, ethical mortgage provider who will treat you fairly…it’s about “getting educated”…properly.
It’s your knowledge of the industry thas insures the fairness of your next loan which is why we wrote the Mortgage Advantage…check it out here:
http://themortgageinsider.net/the-mortgage-advantage/
RKB
April 20th, 2008 at 9:04 amI am looking to refinance my home. Home value have not went down in our neighborhood. The subdivision is only 2 years old and there are still builing homes. We have a 80/20 loan the 80 loan is arm which has already increased and the 20 is a fixed loan. We want to refiance within 5-6 months we are working on increasing our credit score and would like for you to recommend a par fixed rate ethical mortgage provider to help with out refinance.
April 20th, 2008 at 3:11 amLeave a Comment