Originally Posted by LRDave
My Penfed 5/5 ARM adjusted from 2.5% to only 2.625%. I assumed back when I got the 2.5% rate that it would adjust to the max for the next 5-year period. I had it budgeted that way and honestly forgot about it (which is silly).
We should be selling this suburban boat anchor within the next adjustment period.
I had re-fied into the PenFed 5/5 ARM product back in 2011 or so, when it was (I think) 3.375%. I have several long-term options, and there is only a smaller chance that I'll be living in this exact house long-term (will likely either move or tear down and rebuild). So to avoid rolling the dice with the 5 year reset (since I knew
rates just had to be higher 5 years later!
), I refied a year later into their 1.99% 5 year Home Equity loan.
Good to hear that your reset was miniscule! Enjoy the next 5 years! But not silly at all on assuming rates would max-out, since that's what I had initially assumed (since the max rate increase was, I think, 2% increase, to 5.375%).