Morgage shopping, ARM or 30 Fixed? - Page 2

Animorph · 05-15-2008, 03:46 PM

Look at Compare Mortgage Rates | CD Rates | Home Equity Loans Mortgages Quotes Best Rate Calculator Bankrate.com for some rates. You can probably google some other comparison places.

Dan

Urchina · 05-16-2008, 03:11 PM

We just refinanced out of a 5/1 ARM and into a 30-year fixed, after pre-paying 1/3 of our original loan amount. The ARM reset to 7.5%, but worse (IMO), was that it re-amortized. Because the bank gets its money up front, we ended up paying $500 more in interest each month than before the reset, even though the monthly payment was $200/month lower (though, because of the 7.5% interest rate they bumped us up to, not as low as we thought it should be).

Unless I have to (and with interest rates almost guaranteed to go up), I'll never get an ARM again. It may be nice from some standpoints, but the predictability of the fixed loan (especially with these low interest rates) is great.

05-16-2008, 03:11 PM	#22
Urchina Recycles dryer sheets Join Date: Feb 2008 Posts: 121	We just refinanced out of a 5/1 ARM and into a 30-year fixed, after pre-paying 1/3 of our original loan amount. The ARM reset to 7.5%, but worse (IMO), was that it re-amortized. Because the bank gets its money up front, we ended up paying $500 more in interest each month than before the reset, even though the monthly payment was $200/month lower (though, because of the 7.5% interest rate they bumped us up to, not as low as we thought it should be). Unless I have to (and with interest rates almost guaranteed to go up), I'll never get an ARM again. It may be nice from some standpoints, but the predictability of the fixed loan (especially with these low interest rates) is great. __________________ "I was given love, education, and hope. That's my birthright." -- Barack Obama

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05-15-2008, 03:46 PM	#21
Animorph Recycles dryer sheets Join Date: Jul 2005 Posts: 158	Look at Compare Mortgage Rates \| CD Rates \| Home Equity Loans Mortgages Quotes Best Rate Calculator Bankrate.com for some rates. You can probably google some other comparison places. Dan

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