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Should I wait till my 4.25% ARM due next Jan and renewal, or refinance now?

Profile picture for bjqq
Contributions: 5
My current 4.25% ARM will due next Jan. I am considering about refinancing it by 15yr Fix. But the townhouse is an investment property now(rent out) so I have to pay higher rate than that on regular house plus fees and closing costs. If I wait and renew, how much renewal cost would be?  Will the lender check the property status when renewing? thanks
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October 08 - Montville
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Getting in on the tail end, if you know you are going to hold onto the property, I can't imagine why anyone would want to speculate with rates as they are today.
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6 days ago
Profile picture for White Picture
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Since March 2009

and locked right away -> and locks right away
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October 10
Profile picture for White Picture
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"Rate will not be any higher than it is right now for the next few years."
I doubt it!
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October 10
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Many lenders see the rental property is the vacation home if it is the 2nd house, and the rate is same as primary resident, when do the application, let them know that "it is rental property and I want the rate as same as the primary resident's rate" and locked right away.

4506-T
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October 10
Profile picture for tchau_99
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 bjqq,

Your ARM is at 4.25% and your next adjust should around 4%.

A typical one year ARM is lower than 5yrs, 10yrs, 15yrs, 20yrs, and 30yrs fixed rates.  It will always be at its lowest rate compares to 15 years fixed rate. But, the catch is that you MUST be current on all your payments on your mortgage. If you maintain your mortgage at CURRENT level, you should not worry.

If you follow the tips above, you will save allot of money.

Rate will not be any higher than it is right now for the next few years.

Now, you should keep shopping for a good deal but you not rush into one.



 
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October 10
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Depends on your personal risk taking.  Will rates be higher in January?

I assume "renewal" means refinance.

Refinance costs should be the same in Jan as they are now.  The rate may be different.

My advice is to grab these low rates now.  ARMS are at 3.625%.
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October 09
Profile picture for White Picture
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Hi newmildew.
Why don't you work as the psychics for the living, I'm not 'IMPLY" anything, in fact I have some rental properties, and I do the refinancing as same as my above post was state, due to I don't want the problems in the future, I rather talk the truth with the banks before I do the application.
PS. if you don't understood this post then you need not answer.
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October 08
Profile picture for Martin Wareing
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bjqq,

I would accurately guess that the Lender will require "proof" that the townhouse would be a 2nd home more now than ever verus leaning on the 2nd home same as primary thing.  When your "tenant" loaded with furniture opens the door for the appraisal  (INVESTOR)... when the Hazard Insurance is a landlord policy  (INVESTOR).. if the property is within 50 miles of your home.. (INVESTOR).. If your last 2 years of 1040's show Schedule E (Rents)... INVESTOR....  The cost for INV is in the pricing for the exact same rate... and yes it can have a little sting to it, but it is a 1 time cost and then you are done.  In an attempt to avoid such pain, have you inquired with your servicer?  Perhaps they hold the magical key to getting a fixed rate with the least costs.  If they are a NO GO, then I would urge you to see what is ready right now.  The reasons:  Your property value may still be slightly decreasing... and who knows what rates will be in 90 days, but they have really been right around where we are since last DEC give or take .25% lower to .375% higher... than what is on the board... That is like saying a stock is $22 today... a yr ago ... $20   2 months ago  $25....  but really very close...Check your options and pull the trigger... By the way... you know it is INV... and so will we.. :)  Good luck.
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October 08
HOANGCHAUPHAN

Many lenders see the rental property is the vacation home if it is the 2nd house, and the rate is same as primary resident, when do the application, let them know that "it is rental property and I want the rate as same as the primary resident's rate" and locked right away.

Not only is this poorly written but it also sounds like you imply they should lie to the bank.

Instead of giving bad advice can you post your recipe for polk flied rice?
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October 08
Profile picture for Caveat Emptor
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there is no reason to plan to refinance 3 months from now. if you are going to refinance, do it now.

now as to the lender checking to find out if the property is owner occupied, you should tell them. not telling them could lead to a very bad day.
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October 08
Profile picture for White Picture
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There is the easy way, if you don't understand then don't read.
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October 08
HOANGCHAUPHAN

Can you put that in English this time so that we can all understand what you are saying?
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October 08
Profile picture for White Picture
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NOW, Many lenders see the rental property is the vacation home if it is the 2nd house, and the rate is same as primary resident, when do the application, let them know that "it is rental property and I want the rate as same as the primary resident's rate" and locked right away.

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October 08
Refinance into a 15 year fixed now.  Take advantage of the current market.  Why have the uncertainty looming till next year.  Good luck.

jay
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October 08
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NOW!  If you wait I wouldn't be suprised if your rate was well into the 6's.
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October 08
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On a 15 Yr Fixed, the investment property adjustment is eliminated by moving from 4.25% to 4.5%, then the closing costs will be the same as if you were doing a primary residence. Act now.
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October 08
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I wouldn't wait either.  Everything I am hearing is indicating that rates are only going to go up.
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October 08
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refinance now
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October 08
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Refinance now.
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October 08
 

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