Rob Cochems's Discussions

 Mike in a historical perspective 5.625% is dirt cheap, enjoy it.

Mike

30ashopper, I just don't operate that way.  Right now the thing that is really helping us stay afloat, is helping borrowers modify their current terms.  I hate it, seeing people in way over the head, and the stress and pain it causes in their life.  Luckily lenders are finally facing the reality that there is a problem and they need to do something.

Can't argue that one Spleng, especially 2005, 2006.  The loans lenders were approving, it was flipping retarded.  It was just a dominoe effect, one lender loosend standards here, so another loosend there.  For crying out loud companies were writing Pick a Pays to subprime borrowers because there income was "iffy" and this type of loan was a great way to smooth out the "rough times." 

Bette DeFarm, My profession will be around for years to come.  If you actually find yourself a good broker, you will realize how much banks are screwing people on their mortgages.  In the last couple of years there have been a lot of shadow brokers and lenders, and many have paid the price of not considering the future ramifications of their actions. Also the majority of loans done in this country are through brokers.  Why would you got to a bank with one product and one extremely high price, when a broker can shop around and you find you the best deal? If you go to a broker and they push you on one product, instead of explaining all the options available to you, you are not working with a good broker. You do realize at banks the "loan officers" have no training and are no way near as regulated as a broker?  They are not even reuired to disclose have the things we are.  Bank and Lenders are a scam, and work very hard to give brokers a bad name.

christyv_ling Your index is more then likely the 6 month Libor, which currently is at 2.99%.  Now you add your 5.40% margin to that.  So your rate after your adjustment would be 8.4%.  As far as the question on wether or not to refinance...this is going to depend on your credit score, loan balance and your property value.  Those factors will determine what potential loan program you could qualify for.  If you qualify for a rate at least 1% below your current interest rate, it may make sense to refinance.  Depending on how long you are planning to stay in the home.

With you only staying in the property for one more year, I wouldn't recomend a refinance.

California, has always had unstable real estate it is a finicky market with large upswings, and large downswings.  These other states had unusual price gains that are not supported by their local economies.  California will crash faster and recover faster.

christyv_ling Here is a link to track you index, it does change so keep an eye on it.  However if your rate is set to adjust on July 1st, the will calculate the new interest rate 30 days before hand.  You basically need to track it for another month, but it is not very likely to change that much by then. http://www.moneycafe.com/library/6mlibor.htm Let me know if you have any questions

Cause 30a only paid attention to last couple of paragraphs