Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Refinancing Timing
Old 03-06-2009, 09:47 AM   #1
Recycles dryer sheets
Join Date: Apr 2008
Posts: 223
Refinancing Timing

For those with ARMs or interest-only loans, how do you decide when to refinance? Do you pay attention to the LIBOR on a weekly or monthly basis and when it gets low enough refinance?

Also, how do you get the best interest rate? Is it possible to get the national average rates that publishes on their website every day?

I am entering into a 5/1 ARM right now and while I could wait 5 yrs to refinance wouldn't it make more sense to refinance in the 3rd or 4th year, perhaps to a 30 yr fixed or a new 5/1 ARM?
inquisitive 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 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 03-06-2009, 05:26 PM   #2
Thinks s/he gets paid by the post
DblDoc's Avatar
Join Date: Aug 2007
Posts: 1,224
I don't think you will find many on this board that have either of those flavours of mortgages. Given we are seeing some of the lowest rates ever I wouldn't hold my breath for lower rates 3-4 years down the road...

DblDoc is offline   Reply With Quote
Old 03-06-2009, 05:48 PM   #3
Thinks s/he gets paid by the post
OAG's Avatar
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
Actually, we have a 15 year interest only HELOC that is adjustable at -.5 on the Prime Rate (currently paying 2.75%, before tax deduction). We do have the cash to pay it off but as long as we can get an after tax rate that beats that we plan to keep it.

Currently, I believe PENFED ( has the best rates for fixed or adjustable mortgages.. You can join, if not otherwise qualified, for a $20 membership as indicated on their web site.

BTW I would take Bankrate information with a "grain of salt" - they tend to ignore credit unions which IMO have better rates (both mortgages and savings).
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 03-09-2009, 10:38 AM   #4
Thinks s/he gets paid by the post
Join Date: Oct 2006
Posts: 1,005
I have two interest-only 5/1 ARMs; took them out in 2006, each with different interest rates and each has different interest only periods. (One has a ten-year interest only period). Both of them re-set rates at 2011, initially, at 275 BP above one-year Treasuries, which are now at .75 percent; I'm looking at refinancing (and thus paying down principle to get in line with LTV standards)) one and floating with the other one, unless rates begin to jump on me the next few years.

I think there are so many invidualized considerations about refinancing these products that it makes little sense to generalize. Here's a decent article that I found helpful about interest-only ARMs. The Principal Facts of Interest-Only Mortgages - HSH Associates Library of Mortgage Information
Someday this war's gonna end . . .
ChrisC is offline   Reply With Quote
Old 03-09-2009, 11:21 AM   #5
Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 1,543
there is no way you could convince me to take out an ARM loan now with rates so low the government is literally paying the banks
al_bundy is offline   Reply With Quote

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
What we learned from our refinancing Nords FIRE and Money 15 03-19-2009 05:59 PM
Refinancing options utrecht FIRE and Money 9 06-05-2008 09:18 PM
Refinancing Mortgage Question (first post) stephenandrew Young Dreamers 11 07-17-2007 04:06 PM
Swell timing cute fuzzy bunny Other topics 22 12-29-2005 07:22 PM

» Quick Links

All times are GMT -6. The time now is 01:11 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.