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Do you foresee rates going lower on 5-1 ARM or should we refi now?

I am thinking the rates wilkl continue to stay low. Even half a point would be good. Do you think there is room for more slide on 5-1 arm or this is it? I want to catch it at lowest for our refi. by Philip_728_295 from Tarzana, California. Feb 3rd 2012 Reply


Michael Creed (MichaelCreed)
#20 ranked lender in Wisconsin - 16 contributions

Now's the time to get moving on it! They probably will stay low, like you said, but the probably will not get much, if any, better. Today along has not been great for rates. If interested in completely free analysis of your situation with proposed new options compared to it contact me. My contact information is all at http://www.CloseWithMichael.com/contact I hope you have a great weekend! - MC

Feb 3rd 2012
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,550 contributions

I'm a firm believer in the "here and now" rather than the "if, come, maybe"... if the savings is there now take it.. you can gain more by taking advantage of today's rates, then gambling on what tomorrow's rates might be... you stand to loose more than you would gain... by the way.. today was a terable day in mortgage rates... and things got a little bit worse than yesterday... WilliamAcres.com

Feb 3rd 2012
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Kevin Walton (kwalton)
#461 ranked lender in California - 5 contributions

Catching the lowest rate on a refi is similar to knowing when to sell your stock at the highest price. It's tough to time the market. As of yesterday with the positive economic news, long term interest rates (mortgages) spiked. Good news on Wall Street = bad news for mortgage rates and conversely when there's bad news on Wall Street, that's generally good for mortgage rates. I think rates will stay low for awhile, but there's more room for them to go up than down, and at this moment they're going up some. Very few people are able to get the rate at its lowest. I would start the refi process, get your home appraised and your loan approved and than float your rate. Your appraisal is good for awhile, as is your documentation you supplied. Than if the rate dips in to where you want it, than the rate can be locked. Feel free to contact me if you have any questions or concerns, and I wish you the best and have a nice Superbowl weekend. Kevin Walton. http://www.affordableloansbykevin.com

Feb 3rd 2012
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,819 contributions

It doesn't matter what we think, because we all use the same fuzzy crystal ball. Rates are about as good as they are going to get. Could they go lower? Sure. But there are many more things that could happen that will cause rates to rise then there are that could push them lower. Do you want to be the guy kicking himself because you waited too long and missed the opportunity, or do you want to take advantage of what you can get now? Every day you wait, is another day you are paying too much interest. Another 6 months at your bad rate will cost you more in extra interest than getting that extra 18th of a percent, that may never show up.Work with a local Mortgage Banker/Broker. In addition to being Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, meaning they will have access to programs and rates that will likely beat the rate of any one bank you walk into. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Feb 3rd 2012
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Dr. Shab Kavandi (skavandi)
#470 ranked lender in California - 53 contributions

Dear Phillip I believe in your situation the main question you need to ask yourself to determine the right decision is: "if the rate do go down how much more you think they can go down". The rates are very favorable right now and the probability of rising the rates despite the low level of the current market rates are very low than increasing the rates! And also you may want to find out how much will cost the refinance to you and what is the monthly saving you accrue if you do refinance! Currently there are options in the market, where you can refinance with NO COST! The question is with that option what will be your saving and since the whole fun will NOT COST YOUR ANYTHING! You may want to take advantage no cost financing right now and secure the low rate as of now and if there is any decrease again you may do it gain since the whole fun did not cost you anything ? You can call me any time to get you free no obligation consolation to evaluate your situation with the mentioned options I did talk about! My very bestShab KavandiAmerican Select Funding, Inc.1-714-639-6694

Feb 3rd 2012
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Blake Kleckner (BlakeK)
#389 ranked lender in California - 257 contributions

Hi Philip: If you like playing Russian Roullette, then wait for theinterest rates (IRs) to decline more. However, my advice to you is strikewhile the iron is hot. Time is always of the essence in this business. Youalready cost yourself .5% on your loan by not getting it done before thebeginning of this month because the $36+ billion, 2 month payroll taxholiday extension signed into law last December caused Fannie and Freddie toforce all lenders to add this cost to every loan they do. That equates to$1,500 on a $300K loan. Right now IRs are at the lowest they have been inrecorded history. Currently, it's feasible to get a 5/1 ARM in the mid tohigh 2s, and possibly with a no, or very low, cost loan depending upon theloan amount. If, for instance, your mortgage balance is $300,000 and youcould get the 5/1 at, say, 2.75% (now, that is ridiculously low, wouldn'tyou agree?), which is .5% below the consumer prime rate of 3.25%, your newloan payment for a 30-year fixed rate loan would be $1,225/mo. It is highlyunlikely that we will ever see a .5% decline in this IR, but if it didhappen, and you could get the loan at 2.25% your monthly payment would be$1,147, saving you $78/mo. On the other hand, if IRs rise .5% to 3.25% andnever decline to 2.75% again, you would have to pay $1,306/mo., or $81/mo.more. Is it worth the risk? Not in my book, but that is something you willhave to decide for yourself. The last thing you want to do is lament thefact that you didn't take advantage of the incredible IRs when you had thechance. As the economy goes, so go IRs. Typically, economy growing--IRsup, economy declining-IRs down. Today the Dow Jones average closed at itshighest level in 3 years, the NASDAQ closed at its highest level in morethan a decade, it was reported that there was an increase of 243,000 nonfarmjobs across America in January 88,000 more than the "experts" expected, andunemployment dropped nationally to 8.3%. These are hardly signs of aneconomy getting weaker, consequently, IRs rose about .125% today (roughly$20/mo. on a $300,000 loan), and are certain to continuing rising in thecoming weeks and months. Why run the risk of waiting until IRs might golower when all indicators point to the fact that they are going to gohigher? Give me a call 16/7, or email me, and I'll be happy to discuss themany alternatives available to you with ARM loans. To learn more about meand our mortgage brokerage, click on my picture. When the next page popsup, click on "Website" and you will be redirected to ours. We workexclusively in CA and get loans done fast, typically in less than 30 days,at low interest rates and costs. Representing 39 quality lenders that offermore than 1,000 loan programs, we definitely have something for everybody.

Feb 4th 2012
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Joe Metzler (JoeMetzler)
#2 ranked lender in Minnesota - 3,852 contributions

LOCK NOW... Hurry up. Don't wait... Then laugh everytime you make a mortgage payment and see the rate you are paying. I bought my first house in 1981, and paid 16% for an FHA 30-yr fixed. If you want to gamble, go to Vegas. Remember, the biggest hogs get slaughtered first!

Feb 4th 2012
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Joel Lobb (kentuckyloan)
#3 ranked lender in Kentucky - 192 contributions

I think rates will stay low until the Federal Reserve starts to increase the Fed Funds Rate. Chairman of the Federal Reserve, Ben Bernake, in his last meeting advised that rates will stay near zero until 2014-

Feb 5th 2012
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Jay Patel (jaypatel)
#572 ranked lender in California - 5 contributions

Philip,It all depends on your particular situation as far as long term planning goes. Hard to answer you question without knowing some more pertinant details. Although, i can say if you want to get the lowest rate then go with a 5/1 arm. I would also recommend to go with paying the lowest possible closing costs so if the rates were to go lower then you can refinance againg with very minimal closing costs. I am not a big beleiver in paying closing costs every time you get a loan. Looking at athe big picture, I do feel that the rates are historically extremly low so please do take advantage of them ASAP. Hope this helps. www.0pointloan.com

Feb 6th 2012
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