Patrick
Full time employment: Posting here.
Hello, all. Well I finally retired and moved to Florida. After 8 months here, I am considering refinancing my mortgage.
I currently have a $537,600, 5/1 30 yr. ARM @ 6.25%, which I have had for 18 months. It's interest only for the first five years and can adjust a max of 5% at five years, and 2% every year thereafter. It's capped at 11.25%. I know this is not a good loan, but I took it because it was all I could get at the time due to other real estate I owned. I have since sold some of the other properties.
I'm thinking of refinancing to a 30 yr fixed in order to lock the rate and start paying principal. Rates on these loans seem to be about 6.25% right now. I live in Florida and will have to pay about $3,000 in tax stamps to make the move.
Am I better off doing the refi or sticking with the loan I have and making additional payments to start paying down the principal, and/or using the $3K I would have paid in taxes to pay down my current loan? I intend to stay in the property for at least 10 years.
Any other ideas?
Thanks very much for your help,
Patrick
I currently have a $537,600, 5/1 30 yr. ARM @ 6.25%, which I have had for 18 months. It's interest only for the first five years and can adjust a max of 5% at five years, and 2% every year thereafter. It's capped at 11.25%. I know this is not a good loan, but I took it because it was all I could get at the time due to other real estate I owned. I have since sold some of the other properties.
I'm thinking of refinancing to a 30 yr fixed in order to lock the rate and start paying principal. Rates on these loans seem to be about 6.25% right now. I live in Florida and will have to pay about $3,000 in tax stamps to make the move.
Am I better off doing the refi or sticking with the loan I have and making additional payments to start paying down the principal, and/or using the $3K I would have paid in taxes to pay down my current loan? I intend to stay in the property for at least 10 years.
Any other ideas?
Thanks very much for your help,
Patrick