Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Refi 5yr arm yes no
Old 01-14-2010, 10:06 PM   #1
Dryer sheet aficionado
Raygun99's Avatar
 
Join Date: Oct 2007
Location: Rockwall,
Posts: 41
Refi 5yr arm yes no

OK Looking for a 2nd opinion. Quickly I have a 350K home with 200K left to pay 25 more yrs at 5.25% . I want it paid off in 5 years prior to SS. If I re-fi on an ARM I might get 3.5-4% zero points. Lower the interest and make same or larger payments over the next 5 years with balloon to pay at the end. I have the money in 401K that has regular tax load but no penalty to make these payments. I estimated saving aprox 10K per year in interest for 5 years.. Is it a sound plan?
__________________

__________________
Zacchaeus Come Down From That Tree
Raygun99 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-14-2010, 11:49 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,913
I wouldn't want to be tied to a baloon payment, if the contract recalculates your payment at each reset it might work. None of us knows what the future holds, most have a max 2% increase at reset.
__________________

__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 01-15-2010, 12:06 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
Quote:
Originally Posted by Raygun99 View Post
OK Looking for a 2nd opinion. Quickly I have a 350K home with 200K left to pay 25 more yrs at 5.25% . I want it paid off in 5 years prior to SS. If I re-fi on an ARM I might get 3.5-4% zero points. Lower the interest and make same or larger payments over the next 5 years with balloon to pay at the end. I have the money in 401K that has regular tax load but no penalty to make these payments. I estimated saving aprox 10K per year in interest for 5 years.. Is it a sound plan?
if you go from 5.25% to 4% on $200k isn't it more like $2500 interest savings/year? Not that that's to sneeze at....

I'm thinking of PenFed's 5/5 4% ARM - resets once at the end of 5 years and for no more than 2% - been thinking about it myself, but my 4.99% current PenFed loan doesn't qualify for a refi - Drat!
__________________
calmloki is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Pen Fed 5/5 ARM on special again brewer12345 FIRE and Money 46 05-13-2010 08:37 AM
DH broke his arm today Purron Health and Early Retirement 44 07-25-2009 08:12 AM
Morgage shopping, ARM or 30 Fixed? semtex FIRE and Money 21 05-16-2008 04:11 PM
LIBOR ARM: I think I broke mine! : ) Mary_From_Georgia Young Dreamers 4 01-06-2008 09:00 AM
Upper arm/Shoulder exercises calmloki Health and Early Retirement 4 04-27-2007 10:16 AM

 

 
All times are GMT -6. The time now is 03:19 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.