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Should I refi now or not worth it?

I have a jumbo loan for 660K and property value is 820K. I have a interest-only 5-1 ARM with 2 years left on it, interest rate is 3.25%. Should I refi to a fixed rate now to extend the life and give myself a longer runway ? I intend to move but just not sure if it will be before 2 years. it could be a little longer or may be a lot longer. Not sure if I should refi into another 5-1, 7-1 or even 30 year or just hope that we move into a bigger house and take the risk. WHat do you think? by mortgageshopper987 from Grapevine, Texas. May 22nd 2013 Reply


Jeff Riley (JRILEY)
#0 ranked lender in Massachusetts - 17 contributions

Rates are still low so I would contact someone on here that is licensed in TX.

May 22nd 2013
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Henry J Daniels, CMPSI, CMHS (HenryJDanielsNationalMortgage)
#14 ranked lender in Texas - 133 contributions

On the Surface I would say no. I see two options here. In both cases you would incur the cost of a refi. 1) if you refinance into a shorter term like a 5/1 you may save money. If you break even you will merely extend the current rate and incur the cost of a refinance. It depends on what Index your ARM is based on. If LIBOR odds are that it will not move substantially. I would be happy to do a no credit check mortgage analysis for you to weigh the benefits. Feel free to contact our office and I would be delighted to assist you. Henry J Daniels, Sr Mortgage Banker and Certified Mortgage Professional

May 22nd 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Yes,m get with a Lender411 loan officer to analyze your situation.

May 22nd 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

Simple, If you stay longer then 2 years then yes. If not then no

May 23rd 2013
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Mary Chris Gallo (MaryChrisGallo)
#48 ranked lender in Minnesota - 116 contributions

WHENEVER I discuss options for refinancing with a borrower I provide them with a detailed analysis of their options. This analysis compares their current mortgage with the options available based on a few scenarios tied to their estimate of how long the financing will remain in place. The breakeven point on any option is disclosed so the prospect can best determine what option they like best.

May 23rd 2013
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Jason Vondrak (jvondrak)
#219 ranked lender in California - 1,741 contributions

If you are planning on staying in your home long term, then you should definitely consider refinancing into a fixed rate while rates remain relatively low. You will get a rate that's higher that the 3.25% percent you currently have your ARM, but you will avoid having a rate that might be even higher when your ARM adjusts. If you are planning on selling your home before the ARM adjusts, then staying with the low interest ARM is the best move. Find a lender licensed in Texas that give you a quote for a fixed-rate loan.

May 23rd 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,915 contributions

There are many questions that go into "Should I Refinance?" But the answer is always the same. Factor in the savings divided by the costs. If you are going to be there long enough to pay the costs back and see savings, it is worth it. www.Streamline-Refinance-MN.com

May 23rd 2013
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Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 198 contributions

Refinance NOW if there is any chance that you will be in the property past the 2 year period left.

May 23rd 2013
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Josh Lund (Josh_Lund)
#46 ranked lender in Minnesota - 113 contributions

All great answers! If you're going to be saving then why not!

May 23rd 2013
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J.D. Peck (MortgageColoradoSprings)
#45 ranked lender in Colorado - 77 contributions

You'll need to get with local lender to go over all of your options with you. Rates have jumped quite a bit in the past 24 hours therefore, you need to know what is available to you right now, and because you know you intend to move but do not know when, you will want to know the amortization schedule as well so that you know where you will stand at each annual interval, and what your break even point will be.

May 23rd 2013
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Lynn Bossi Kinsel (LynnKinsel)
#39 ranked lender in Virginia - 61 contributions

It's worth a phone to call to discuss your options. Call a local mortgage loan officer to discuss your situation.

May 23rd 2013
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