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Answers (9)
- Erik Samaniego, "Erik Samaniego"
- Contributions:47
To start, when saying "I'd like to move in...." versus actually setting a definite course to move, this in itself would be a large difference. By all means you would need to see the numbers of what it has cost you so far with the exisiting loan cost and then your new loan costs as compared to what you are then looking at changing into for savings. Please keep in mind that it cost you something to get the loan your into now as compared to the monthly cost associated with the interest rate so each time you are looking at moving into a "new loan", more cost are then associated with such.
There are a variety of easy to use calculations which are present on the Internet in checking the cost savings of going from one loan to the next. Just make sure you do your homework first and try to work off of definites.
There are a variety of easy to use calculations which are present on the Internet in checking the cost savings of going from one loan to the next. Just make sure you do your homework first and try to work off of definites.
- sunnyview
- Contributions:25139
Rates are so low right now, I would stay away from an ARM since it is pretty likely to reset higher than current fixed rates. There is a calculator here that will allow you to run numbers ARM vs fixed rate and lots of other mortgage calculators to crunch numbers with here.
That site also has a mortgage payoff calculator so you can consider that option vs doing an ARM. Hope it helps.
That site also has a mortgage payoff calculator so you can consider that option vs doing an ARM. Hope it helps.
- Justin Coleman, "UtahLoanProfessional"
- Contributions:72
What you need is a Total Cost analysis that weighs your current mortgage against a lower fixed rate and a 7/1 ARM. We can dial it it to see what your net savings will be between the two of them in the time frame that you feel comfortable with. This will give you a true picture of the tangible benefit of doing a refinance if there is one.
I would love to assist you if you would like. Here is a sample report so that you have an idea of where I am coming from:
[website removed by moderator]
I would love to assist you if you would like. Here is a sample report so that you have an idea of where I am coming from:
[website removed by moderator]
- Brenda Graves, "Brenda Graves"
- Contributions:1
There are so many uncertainties in this market I would not suggest an ARM for that length of time. Refinance to a lower interest fixed rate loan. You don't know if in the next 3-5 years your home's value will go up or down or if it will sell when you want to go. So play it safe and have the option to rent it if its a Conventional loan. Keep in mind, an FHA loan must be on your primary residence. But be aware that you will be adding the closing costs to your payoff unless you pay it out of pocket.
- Wayne Brown, "SDMortgagefinder"
- Contributions:1433
Talk to a local broker. My recommendation would be no.
That said......run the numbers and costs associated with the new proposal, and make your decision.
Good Luck.
That said......run the numbers and costs associated with the new proposal, and make your decision.
Good Luck.
- shapiroamg
- Contributions:3058
You should do something. You could refinance to a new 30 yr fixed in the low 4s. 5 yr arms are around 3 and I looked at one of my lenders that was in the high 2s. The arm only makes sense though if you are 100% sure you are out of the house in that time, otherwise I would suggest staying with the 30 fix and take that monthly savings.
- Mike Bjork, "MortgagePlannerMike"
- Contributions:346
If you are for certain that you will be moving within that timeframe, then it may be worth your time to see if an ARM is advantageous for you. I'd suggest looking at your closing costs and your monthly savings to determine how long it will take to re-capture the the cost of the loan with your savings to determine, if it's worth your while. Good luck!
- James Peters, "JamesRPetersSr"
- Contributions:98
If you are certain of the higher income and move then absolutely look at a 7 year arm. Most people do not keep there loans for 30 years any way.
- Dave Skow, "daveskow"
- Contributions:1105
only move to an ARM if you are 100% certain that you will laon paid off or have moved and sold befor the adjustment time
why not refinace to another fixed rate ?
why not refinace to another fixed rate ?
Should I refinance from a 30-yr fixed to an ARM?
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