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Message
5/1 ARM
Posted on 8/4/11 at 8:08 pm
Posted on 8/4/11 at 8:08 pm
Anyone have experience with this type of mortgage?
My current rate is 5% with 28 years remaining on the loan. Its highly doubtful I stay in my home for another 5 years so I wouldn't be risking the rate jump during the remaining years. I can get a a rate around 3% and shave about $200 off the monthly note.
My current mortgage is FHA with PMI tacked on. Wouldn't likely have to fork out much money to transfer the loan.
TIA.
My current rate is 5% with 28 years remaining on the loan. Its highly doubtful I stay in my home for another 5 years so I wouldn't be risking the rate jump during the remaining years. I can get a a rate around 3% and shave about $200 off the monthly note.
My current mortgage is FHA with PMI tacked on. Wouldn't likely have to fork out much money to transfer the loan.
TIA.
2
Posted on 8/4/11 at 8:40 pm to lsugolfredman
5 years interest savings (plus loss of interest write off) makes a 2% IR savings not a good deal. Your refi closing cost will makes this idea a bad one. Hang on to the 5% Mortgage. Ours is 4.25% with 9 years left
Posted on 8/4/11 at 8:49 pm to lsugolfredman
quote:
Its highly doubtful I stay in my home for another 5 years
Well this is key. If you are only going to be in for another year or two, it's probably not worth it. Work on getting rid of the PMI for real savings without any added costs due to closing. Some banks have zero fee refi's to fix some bad paperwork on their part. Check on that first.
Best thing is just to write down costs for both a refi and current mortgage and figure out the break even point. Then decide if you are going to be in that long.
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