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Started By
Message
Home refinance Arm Vs Fixed
Posted on 4/20/18 at 7:25 pm
Posted on 4/20/18 at 7:25 pm
I was provided this option and not sure what is best option:
Currently have ARM 7-1 rate at 4.125 over thirty years with change date in 2022.
Was contacted to refinance and offered a 30 year fixed at current rate of 4.625% this would lower note around 215 including getting rid of pmi.
Possibly 500 dollar charge for appraisal plus 62 dollars in closing fees due to 1750 dollar lender credit.
Should I hold off and try for lower interest rate in a few years before 2022 or take the offer and refinance now?
Currently have ARM 7-1 rate at 4.125 over thirty years with change date in 2022.
Was contacted to refinance and offered a 30 year fixed at current rate of 4.625% this would lower note around 215 including getting rid of pmi.
Possibly 500 dollar charge for appraisal plus 62 dollars in closing fees due to 1750 dollar lender credit.
Should I hold off and try for lower interest rate in a few years before 2022 or take the offer and refinance now?
This post was edited on 4/20/18 at 7:36 pm
7
Posted on 4/20/18 at 7:58 pm to Dotherightthing
Damn that’s a tough one. I’ve always heard get a secure rate. But I don’t know shite other.
Posted on 4/21/18 at 8:31 am to Dotherightthing
In the next 5 years, do you think rates will go up? If you do then re-fi and lock it in. If not ride it out.
I think rates are in the way up. I do not think we will ever see rates this low again.
I think rates are in the way up. I do not think we will ever see rates this low again.
Posted on 4/21/18 at 8:38 am to Spec1
i guess what has me questioning is locking at .5% higher but if rates hit 5% in a year or two then it would be a deal
Posted on 4/21/18 at 8:41 am to Dotherightthing
I agree with the poster above. These are very low rates that I don’t think we will see anytime soon.
I don’t have a mortgage it have been thinking of a refi just to grab cash while it’s cheap.
I don’t have a mortgage it have been thinking of a refi just to grab cash while it’s cheap.
Posted on 4/21/18 at 8:48 am to Spec1
quote:That's quite the prediction there
I do not think we will ever see rates this low again.
Posted on 4/21/18 at 10:09 am to Dotherightthing
quote:
Currently have ARM 7-1 rate at 4.125 over thirty years with change date in 2022.
Was contacted to refinance and offered a 30 year fixed at current rate of 4.625% this would lower note around 215 including getting rid of pmi.
Lock it in. I'm not saying rates will never bottom out again, but it isn't likely in the near term. By the time you have to wrestle with this decision again, a 30-year could be considerably higher. I do feel like you might be able to do better than 4.625%, though.
Posted on 4/21/18 at 2:19 pm to Dotherightthing
Rates could go to 5% this year, even. I would lock this in now.
Posted on 4/21/18 at 3:33 pm to S1C EM
The minimal closing cost is enticing to lock it in but the ARM doesn’t expire to 2022. My only thought would be to knock out some debt increase credit score and go for better rate than 4.625.
I have gone back and forth on this.
I have gone back and forth on this.
Posted on 4/21/18 at 3:56 pm to Dotherightthing
Are you very likely to still live in the house in 2022?
If not, you may not want to refinance.
No one knows what interest rates will be in 2022. If it gives you peace of mind, lock the rate.
However, it's likely that the economy will cool in the next 3 years so interest rates may come back down. I would guess in the next year or 1 1/2 rates will rise.
If not, you may not want to refinance.
No one knows what interest rates will be in 2022. If it gives you peace of mind, lock the rate.
However, it's likely that the economy will cool in the next 3 years so interest rates may come back down. I would guess in the next year or 1 1/2 rates will rise.
Posted on 4/22/18 at 10:19 am to Dotherightthing
We are at all time lows in interest rates. Fixed is the only way to go unless you plan on moving before 2022
Posted on 4/23/18 at 10:41 am to ELVIS U
I’ve got a similar scenario- my ARM adjusts in July 2019, but my rate is at 2.875%, so i’ve been watching rates to see what’s going to happen. Worst case scenario for me is that my rate jumps to 4.875 in 2020- 2% per year, max of 5%, so I think I’m going to stick it out and take advantage of the low note
Posted on 4/24/18 at 7:15 am to Dotherightthing
if You don’t foresee moving anytime soon, I probably lock. We are moving to 5%-6% rates, which is historically where rates need to be for a healthy economy. To everyone who has locked up 15-30 year money under 4%, way to take advantage!
Posted on 4/24/18 at 11:15 am to ItNeverRains
Hopefully this has some effect on housing prices. Home prices in my area are very inflated.
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