Zillow Advice: Refinance - Refinancing into an 7/1 ARM with 8 years left? http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ Zillow Advice | Zillow Real Estate Sounds like a smart move. ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ Sounds like a smart move. 7/1 Arm or maybe even a 5/1 ARM depending on your mortgage payment. Wed, 13 Jul 2011 23:44:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2011-07-13T23:44:00Z Clay is spot on, I agree... ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ <p>Clay is spot on, I agree... UNLESS your lender pays your closing costs for you.&nbsp; How about a slight rate increase and no closing costs.&nbsp;&nbsp; This is definitely the way to go over a 7/8 year horizon.&nbsp;&nbsp; And yes it almost definitely makes sense then as long as you strictly adhere to that same payment plan.<br/><br/>If the closing costs pay for themselves over the 7 years (which the undoubtedly do) consider that too.&nbsp;&nbsp; &nbsp;</p> Thu, 07 Jul 2011 22:10:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2011-07-07T22:10:00Z Hi all,Wow, I never knew ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ Hi all,<br/><br/>Wow, I never knew I had any replies until now (about a year later).&nbsp; Thanks for all the posts.&nbsp; I actually ended up do a no cost / no fee&nbsp;refi with Amerisave for 10 yrs at 4%. I took a higher interest rate that had enough rebate to cover most of my closing costs.&nbsp; But with an interest rate at was still lower than my current mortgage.&nbsp; However, I will never work with Amerisave again.&nbsp; They are very unresponsive and I had too a lot legwork to get the process moving along.<br/><br/>So currently I am paying the same amount monthly to finish my mortgage sooner.&nbsp; Correctly I do loss some tax write off, but I save more my paying less interest. I will save about $7,500 in interest. Savings is not as much as Clay's example above, becuase my loan amount is lower than his example.<br/><br/>Cheers. Thu, 07 Jul 2011 04:32:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2011-07-07T04:32:00Z Hi KloueyI"m working on the ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ Hi Klouey<br/><br/>I"m working on the same scenario right now with a client.&nbsp;We also looked&nbsp;at a&nbsp;no cost 10 year fixed because the plan to pay off the loan in less time. <br/><br/>call me if you have questions. <br/><br/>If you pay less interest and pay off early it's worth it. <br/><br/> Sun, 20 Jun 2010 18:35:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2010-06-20T18:35:00Z The best conforming&nbsp;7/1 ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ The best conforming&nbsp;7/1 rate I see is 3.25%. Using an original loan amount of 600K and refinancing&nbsp;the balance&nbsp;after 84 payments, 373,460, plus $6,000 in closing costs, the loan will payoff after 91 payments ( using the original 15 Yr payment )&nbsp;plus&nbsp;$518 so 5 payments = $23,525 less $518 = $23,007. Interest paid on new loan = $49,252 vs $78,244.&nbsp;The total savings is still greater after factoring out the loss in tax writeoff and the refi is worth doing if you can get a 7/1 rate around 3.25% without paying discount points or a&nbsp;high origination fee. &nbsp; Sat, 19 Jun 2010 12:40:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2010-06-19T12:40:00Z Without any add'l info other ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ Without any add'l info other than what you provided, what difference would a lower rate make if both pymts AND payoff timeframe remain constant? You'd be out the closing costs w/ the same end result...8 yr payoff. &nbsp;You may also lose some tax benefit on a lower rate depending on amortization. You might check w/ your tax advisor re: that.<br/><br/>Am I missing something here? Sat, 19 Jun 2010 07:26:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2010-06-19T07:26:00Z Talked to Rudi, we are comparing ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ Talked to Rudi, we are comparing notes Fri, 18 Jun 2010 15:18:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2010-06-18T15:18:00Z klouey, what is your loan ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ klouey, what is your loan balance?<br/><br/>Rudi, Clay is spot on.&nbsp; An I/O won't pay off any quicker than a regular ARM and it does cost more.&nbsp; I agree with Clay's advice.&nbsp; Fri, 18 Jun 2010 14:50:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2010-06-18T14:50:00Z @Clay,&nbsp;Paul &amp; Adam,Clay, ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ <p>@Clay,&nbsp;Paul &amp; Adam,<br/><br/>Clay, I'm sorry to say, you are wrong. Please call&nbsp;me. I'll explain in detail. Then you can come back to this thread and make whatever comment you wish.<br/><br/>Paul, no&nbsp;not a HELOC. A fixed rate I/O for term. About 1%&nbsp;lower than current rate.&nbsp;Paying the "exact amount,"&nbsp;as OP stated,&nbsp;pays off sooner than current. This is also taking all Settlement costs into equation.<br/>&nbsp;<br/>Adam, you need to read the "rules."Responding to questions, if the OP wants to contact you, they'll&nbsp;go to your "Profile." You are not permitted to put "Contact Information" within your comments. You'll find out it's better that way. .... Happy funding, Rudi</p> Fri, 18 Jun 2010 13:59:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2010-06-18T13:59:00Z Rudi, are you speaking 'Heloc'? ... http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ Rudi, are you speaking 'Heloc'? <br/><br/>Adam <em>who</em>? (dust under zillow sandles) Fri, 18 Jun 2010 05:24:00 GMT http://www.zillow.com/advice-thread/Refinancing-into-an-7-1-ARM-with-8-years-left/354293/ 2010-06-18T05:24:00Z