Refi Offer

[BooBoo]

I currently have a mortgage @2.875% which is scheduled to adjust in 7 months by a maximum of 2%. The bank has offered to refi for $250 to a rate of 3.0625%. Both rates are 5 year adjustable rates. Any takers ?

Boo

 

[Gotadimple]

I currently have a mortgage @2.875% which is scheduled to adjust in 7 months by a maximum of 2%. The bank has offered to refi for $250 to a rate of 3.0625%. Both rates are 5 year adjustable rates. Any takers ?

Boo

Take the 3%. Lowest rate I see for 5 year ARM refi is 3.622% at Bankrate.com.

You don't mention the index your ARM is based on. It may be the bank knows they will be increasing closer to the 2% mark if you leave it alone, taking you to 4.875% - totally non-competitive.

Rita

 

[HarveyS]

Will the refi add to the final pay-off date? That is, are you adding years of additional payments? I always suggest to refi to a lower interest rate and a shorter term!

 

[ERD50]

3% sounds good, but it's adjustable in 5 years. Can you get a 15-30 year fixed near that rate? A quick google say ~ 3.4% for 15 yr; 3.6/20; 3.9/30? I'd certainly consider locking in the longer terms if you plan to stay in the home more than 5-10 years.

-ERD50

 

[Scuba]

3% sounds good, but it's adjustable in 5 years. Can you get a 15-30 year fixed near that rate? A quick google say ~ 3.4% for 15 yr; 3.6/20; 3.9/30? I'd certainly consider locking in the longer terms if you plan to stay in the home more than 5-10 years.



-ERD50

Agreed. I think anything under 4% for a 30-year fixed is an excellent long-term rate if you plan to stay in the home and if your cash flow supports the monthly payment. We chose to refi a 3.25% 15-year fixed to 3.375% 30-year fixed several years ago as we preferred to invest our funds in the market and have a lower monthly payment.