inquisitive
Recycles dryer sheets
- Joined
- Apr 7, 2008
- Messages
- 223
I've got a 5/1 ARM that I'm looking to refinance within the next 5 years so that I won't be at the mercy of prevailing rates at the time. Some questions:
1. How long do I need to demonstrate investment income from the property before I can use it on a mortgage refinancing application as part of my total income?
2. For the timing of the refinance, in order to save the most money, do I look at the 30 yr fixed rates or the LIBOR? Are they related at all? In 5 years my ARM will adjust based on the LIBOR but I don't think this affects refinancing rates. I remember David Bach mentioning in his book that interest rates fell substantially on one particular day and he called his agent and refinanced from Hawaii and saved thousands of dollars on his mortgage. What interest rate was he following? Does anyone follow interest rates daily?
3. To compare companies to get the best deal, can I just look at the interest rate and the time period (with new mortgages, looking at just the interest rate/time period is inaccurate because of varying closing costs, which can make the lower interest rate the more expensive loan in the long run, but all closing costs can be wrapped into the loans for refinancing)?
4. What is the role of the appraisal in the process? I just have to show that the house is worth at least the amount of the mortgage and can choose the cheapest appraiser to do this, right? If the house is worth more than the mortgage I'll just get refinanced to the amount of the mortgage.
5. Does Penfed have the best rates for mortgages or should I check into other places?
6. Does the deal I get depend on anything besides my credit score and the current rates? Do they look at the amount of equity I have (I am paying only interest right now)?
Thanks in advance for your insightful comments.
1. How long do I need to demonstrate investment income from the property before I can use it on a mortgage refinancing application as part of my total income?
2. For the timing of the refinance, in order to save the most money, do I look at the 30 yr fixed rates or the LIBOR? Are they related at all? In 5 years my ARM will adjust based on the LIBOR but I don't think this affects refinancing rates. I remember David Bach mentioning in his book that interest rates fell substantially on one particular day and he called his agent and refinanced from Hawaii and saved thousands of dollars on his mortgage. What interest rate was he following? Does anyone follow interest rates daily?
3. To compare companies to get the best deal, can I just look at the interest rate and the time period (with new mortgages, looking at just the interest rate/time period is inaccurate because of varying closing costs, which can make the lower interest rate the more expensive loan in the long run, but all closing costs can be wrapped into the loans for refinancing)?
4. What is the role of the appraisal in the process? I just have to show that the house is worth at least the amount of the mortgage and can choose the cheapest appraiser to do this, right? If the house is worth more than the mortgage I'll just get refinanced to the amount of the mortgage.
5. Does Penfed have the best rates for mortgages or should I check into other places?
6. Does the deal I get depend on anything besides my credit score and the current rates? Do they look at the amount of equity I have (I am paying only interest right now)?
Thanks in advance for your insightful comments.