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Profile picture for romasuave48

What is my expected new payment?

ok guys, need you to dust off the crystal ball and let me know what you think. I have a 5/1 ARM that adjusts in Jan 2015, my current rate is 4.375% on a 415k loan, payment is $2075/month. The loan is based on the 1 year index, my margin is 2.25% and the cap is 2%, it will adjust every year after 2015. Based on trends, what do you foresee the rate and payment adjusting to? I would think it would go lower to the 3%+ range, thoughts?
  • June 29 2012 - Los Angeles
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Answers (2)

Profile picture for funds2

Even if you plan on only keeping property for 3-4 yrs, it would seem that a refinance on a 30,20, or 15 yr fixed would be best option.  Save $4,500 plus over next 3 yrs net if you do a lender paid closing cost refinance.
Additional $1,500 annually if t bill index is higher in 2015.
Appears to be all risk to wait til 2015 and hope all time historic index is still pertinent.  If if stays at today's level, you can refinance again........win-win

  • June 29 2012
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Why do you want to keep the 4.375% adjustable rate with the high risk in the future? it is better if you refinance (now) at 3.25% fixed rate (15 years term) with no closing cost.
  • June 29 2012
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