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Have the rates already hit their bottom? Did i miss out to refi?

I have a 5.25% ARM, I keep waiting for the rates to go back in the 4's and it is not happening? Should I wait to refi or should I cut my losses and refi now? Please be honest about your opinion. by JaredGueller from Perris, California. Aug 20th 2009 Reply


Andrew Vierra (Andrew Vierra)
#116 ranked lender in California - 12 contributions

The larger risk than not hitting bottom (on a $300,000 loan amount the a .250% difference in rate equates to only $46) is not being able to refinance at all due to falling home values. 5.25% is a great rate. If you're home value is such that you could refinance now, I'd do it...30 year fixed rates are in the low 5's anyway.Another big risk is interest rates rising due to inflation caused by the huge amount of borrowing the Federal Government is doing to finance the recovery. Additionally, the Feds are currently "subsidizing" the mortgage rates by purchasing mortgage backed securities. The money to do this will run out by the end of the year. That fact alone--based on Economics 101 and supply/demand--means rates are due to increase.If you want to discuss your options further, reach me at:Andrew VierraMortgage PlannerBranch ManagerWealthWise Mortgage Planning916-932-7160Andrew@WealthWiseMortgage.com

Aug 20th 2009
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Timothy P. Volk (tvolk@mortgageshq.com)
#190 ranked lender in California - 1 contribution

If you have a credit score over 740 and you are borrowing less than 80% of the value of your home, then you can still easily get 4.875%.Mike Mobleymmobley@themortgageshq.com

Aug 20th 2009
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Ken Gunn (Ken Gunn)
#118 ranked lender in California - 19 contributions

That is a great question! I think it all depends on what you want to do with your property in the near future. If the plan is to stay and the trends are telling us that we will have a swing in the wrong direction you might want to lock in a long term rate. if you are lloking at moving with in 5 years this may change your structure. rates are great right now on long term loans so if you would like 4.875% or lower please give me a call. Ken Gunn 714-374-3799 Geneva Capital Network. ken@gcnhomeloans.com

Aug 20th 2009
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Steve Russell (Steve Russell)
#14 ranked lender in Florida - 4 contributions

Jared, the worst thing about finding the bottom in any market is you can only see it in the rear view mirror. That said, I agree with Ken on this one. It really depends on what your long term goals are with the house, and how far away the adjustment is on your current mortgage. If your rate is adjusting soon and you plan to keep the house for a while (right now is the worst seller's market in history), then I would refinance as soon as possible. www.steverussellonline.com

Aug 24th 2009
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