I have a 30-year FRM, 4 years into it at 5.25% rate, I've paid off about roughly 30% of the initial 280k loan, and I'm considering of taking advantage of the cheap rates of an ARM for the next five years and then refinance again. Do you suggest a move like this? Or would it be better to simply refi into another 30 year FRM?
Lubbock,TX | Dec 7th 2011
by grace._...
Answer
by BradySm...
I suggest simply refinancing your 30 year FRM to a lower rate unless you plan to move in the next five years. Rates are at a near all time low and the chances of them doing anything but moving up in the next 5 years is very unlikely. In a worst case scenario you may be stuck with a rate around 7 or 8% even with refinancing the ARM.But if you plan on selling the home in the next 5 years, then the ARM is a great product. Dec 7th 2011
by TeamBes...
Hi Grace, I totally agree with Brady. The rates will likely only go up in the future. I would only go with a fixed loan unless you plan on selling your home within the next 5 years or how ever long of a Arm you would get. You could also check out a 15 or 20 year fixed mortgage as well. If you would like to discuss further contact us. Michelle & Benny 201-962-3555 TeamAmbassador@BestMortgageOption.com Dec 7th 2011
by CaPortf...
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