Mortgage Rates

cashqueen · #1 (**permalink**) 04-21-2008, 10:04 AM

Ok, ok...please don't stone me. We have a 5 year ARM that is due to increase in October. We didn't plan on staying here for more than 5 years (actually we were only planning on 2 yrs). It goes from 4% to 6% and will stay there for a year (maybe 2 I can't remember offhand). After that it can to 8% and cap at 10% after that. Obviously, we really are not looking to keep this loan up to that point.

Due to DH's indifference I think we've missed our window to refinance into a 30yr fixed at a lower rate. We have excellent credit, only debt is mortgage and student loans, lots of equity in our house and good assets. Does it make sense to refinance now (I'm waiting on a quote but I'm assuming it will be somewhere around 6.25%) or stay at the 6% and THEN refinance. I know we're kind of taking our chances with interest rates. I was begging DH to act when rates were down around 5.25 and now I feel like I need to do some research and not let him drag his feet any longer. I'm ok with sitting on the 6% for the short term if it makes sense to do so, but I feel like we're really taking our chances.

Brokemofo · #2 (**permalink**) 04-21-2008, 10:09 AM

IF, you are selling in the next 2 years, I would leave it alone. IF you are staying another 5 years, it may make sense to refi.

NO! You haven't missed the window of opportunity. Rates are still at historic lows today.

Maybe look into a 5/1 ARM if you are sure you are moving in 5 years or less.

cashqueen · #3 (**permalink**) 04-21-2008, 10:12 AM

I guess I should clarify. When we bought the house we thought we'd only have it for 2-5 yrs (which is why we went with a 5 yr fixed ARM). Now it looks like we're staying a while. I'm just irritated that we waited so long and now our refinance will be more than what it will adjust to.

jIM_Ohio · #4 (**permalink**) 04-21-2008, 10:19 AM

Over under is probably 3 years. If you stay more than 3, you may want to lock in or pay off before rates go upward. If under 3, keep current mortgage.

You should find 30 year fixed loans around 5.75% now, I think.

cashqueen · #5 (**permalink**) 04-21-2008, 10:22 AM

Quote:

Originally Posted by jIM_Ohio

Over under is probably 3 years. If you stay more than 3, you may want to lock in or pay off before rates go upward. If under 3, keep current mortgage.

You should find 30 year fixed loans around 5.75% now, I think.

I'm assuming at this point we will be here for quite a while. I've been looking around for quotes and I'm seeing 6.25% at the low end. If you have any ideas where I can check for 5.75% I'm all ears! Thanks.

jIM_Ohio · #6 (**permalink**) 04-21-2008, 10:24 AM

Quote:

Originally Posted by cashqueen

I'm assuming at this point we will be here for quite a while. I've been looking around for quotes and I'm seeing 6.25% at the low end. If you have any ideas where I can check for 5.75% I'm all ears! Thanks.

see this thread
Anyone know a website...

Brokemofo · #7 (**permalink**) 04-21-2008, 10:27 AM

Quote:

Originally Posted by cashqueen

I'm assuming at this point we will be here for quite a while. I've been looking around for quotes and I'm seeing 6.25% at the low end. If you have any ideas where I can check for 5.75% I'm all ears! Thanks.

Lendingtree dot com.

Keep in mind the best interest rate is not always the best deal. Ask what the A.P.R. will be. That is the rate plus any fees.

Cylenchar · #8 (**permalink**) 04-21-2008, 11:17 AM

You may want to check with the company that holds your arm, if they know you will be refinancing with another lender, they may be more willing to negotiate.

sweeps · #9 (**permalink**) 04-21-2008, 11:55 AM

Check penfed.org.

jIM_Ohio · #10 (**permalink**) 04-21-2008, 12:23 PM

rates do appear to be going up- the 5.xx% rates I see are with points.

project15 · #11 (**permalink**) 04-21-2008, 06:40 PM

Quote:

Originally Posted by jIM_Ohio

rates do appear to be going up- the 5.xx% rates I see are with points.

Rates went up this past week. I supposedly got locked in on Monday at 5.875% with no points, but the bank didn't actually lock it in. My mortgage broker found this out and switched to another bank, but it was a little too late and now I'm at 6% with no points. Sucks.

humandraydel · #12 (**permalink**) 04-22-2008, 04:06 AM

Thanks to subprime and falling house prices, investors are demanding a larger risk premium, which results in higher interest rates.

sweeps · #13 (**permalink**) 04-22-2008, 07:07 AM

The fear of inflation is the biggest cause of mortgage rates going up.