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Lender rating
Since January 2009
I think it's a waste of time! You have no idea what rates will be in 7 years and no idea what it will cost in points to buy the rate down. It would cost far more in points to buy the rate down 3%.
I'm a statistic, like the average American I refinance every 1.8-2.5 years. In the past 6 years I've never had a loan fixed for more than 5 years. If the rates on a 30 yr fixed were lower than a 7 yr fixed I would take the 30 to be safe. It's not so I would take the 7 yr. When the rates were 17%, everyone somehow managed to afford their home.
Lender rating
Since January 2009
it's pointless because you are trying to assign values to unknowns. Rates and points 7 years from now. regardless of the numbers you use they are random and offer no real value in a comparison.
i haven't been seing a 100 basis point difference in these products... seem much closer to me.
I'm looking at statistics. I will for ever be mortgaged to 80% LTV I/O as long as it still exists. Like I have said in previous posts, READ MISSED FORTUNE 101 DOUGLAS R. ANDREWS... I'm paying 6% interest on my loan and making 10 percent interest in investments. I'm also getting massive tax deductions for the amount of interest I pay. These tactics are called equity repositioning, you may call it financial leverage. It's used by the wealthy...
Lender rating
Since January 2009
It would work for the financially disciplined.
However in order for it to work you have to be disiplined to invest and not spend the savings.
Three frogs are sitting on a log one decided to jump off the log how many frogs are left?
3.....just because you decided to do somthing doesn't make it happen. Many would have the intention of investing but how many would actually follow through. All you can do is present the option. If a client knows themself well enough to know that they would not invest then to do what you are doing wouldn't work for them.
Rates are not far apart.
How long are you going to stay in the home? What will your income be in 7 years? What will the market be in 7 years?
There is a big reason why fixed and adj rates are so close and EVERYONE is suggesting to lock for 30. To much unkown going on.
Tony Grego - Indiana Mortgage Broker
These longer term ARM loans are just putting bandaid's on the Mortgage problem. Here's an Email I received from a lender:
Here’s something to think about: Right now, the lowest interest rates available are on mortgages called “Hybrid ARMs." Simply put, a Hybrid ARM gives you a secure fixed rate for 5 to 7 years, and then turns into an adjustable-rate mortgage right around the time homeowners typically move or refinance.
So many people who get approved for this loan could end up with the same problems that are occuring in today's market but in 7 years from now. I'm not saying that everyone will run into a problem but for me, I'm definetely going to do a 30 year fixed on my next mortgage.
Go to ING, they have the best rates on a 7 year.....
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7ARM vs 30yr fixed, 255K loan, 0% down.
Marcinisko
Contributions: 18
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what do you think of the following scenario. Let's say I can take 7ARM at 5.35 or 30yr fixed at 6.35. Take any amortization calculator and you will see that over 7 years you will pay 90K in interest (7ARM) or 108K in interest (30 yr fixed). so you "save" 18K in interest. Let's say at the end of yr 7th you need to refinance and the rate is 9%...well .. then you pay 4K in closing cost and you can use say 5K-7K to pay points to bring the rate to 6ish level. is it feasible ?
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