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Refinance or ride the low APR

My 5/1 ARM is coming to an end in Sept. 2009. Most refinancing options I have looked at (Bankrate.com) are asking for points or >2k in closing costs. I am apprehensive since we not stay in this house for >2 yrs from Sept. Should I just ride the market APR come October or look harder at refinancing?

Thanks

Sm
P.S: Are there good refinancing rates available ....
  • March 18 2009 - Downtown
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Answers (5)

Keep the ARM, don't refinance in October unless it is no cost with the APR and the rate being the EXACT same.
  • March 31 2009
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Profile picture for Big Johnnie
mukatira, also depending on your exact loan situation, consider FHA as those loans are assumable which may help you sell your home down the road when you have a 5% interest rate and the prevailing market rate is 8% or more because of inflation and the massive amounts of money the federal gov't is spending.
  • March 31 2009
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Muk,

I suggest you put a loan request in on Zillow.  See what rates are offered to you.

There are a lot of variables when it comes to how a rate is determined. Credit score, loan to value,etc. 

Since rates are historically low, I think you would most likely benefit in refinancing. 

Good Luck
  • March 31 2009
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There are costs you must weigh in refinancing, and it might take a couple of years to recoup those costs. However, with the ARM ending in September, I'd probably look at refinancing unless you plan to move by the end of the year. A good lender will help you weigh those costs vs. benefits.
  • March 31 2009
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M,

You looked at Bankrate,  see what ZMM offers. Post a loan request. ... Good luck, Rudi
  • March 18 2009
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