I have a interest rate of 5.0% 10 year arm right now that does not expire until August 2014, would you hold on

Asked by Jessica Reyes, 93021 Tue Jan 27, 2009

to this or try and refinance now since the interest rates are low right now?

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Tue Jan 27, 2009
Good answer Lynn. I would say it depends mostly on your timeframe for living in the home. Rate for the best-qualified borrowers are right around 5% now, so the only advantage you gain by refinancing now is locking in a low rate for the duration of the loan. In 2014, you will be faced with a decision on the loan - let it adjust to market levels OR refinance to lock in a fixed rate or another ARM. The unknown variables are that you don't know where rates will be then or what approval guidelines will be. Lending guidelines are constantly changing.

I would speak with your lender of choice (hopefully someone local and REPUTABLE, no internet slappy's) and have them review your loan to work with you and determine if it makes sense.

In my opinion, if you plan on staying in the house another 7-10 years then it makes sense to refinance now. You won't save much if anything on your rate, but if you can lock in a low fixed rate and you were going to pay the costs to refinance anyway at some point, then why not do it now while rates are low and you can get approved.

If you think you might move sooner than that, I would hold off and ride out the term of your ARM. No sense paying closing costs to refi now when you may not need to refinance at all

Good luck,
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Dallas Texas, Agent, Dallas, TN
Tue Jan 27, 2009
When you refi, the charges are rolled into backside of loan, Contact a mortgage broker depends on short / long term goals owning property.

Example I have 3 properties selling in next 12 months, I am a realtor & loan officer however does not benefit me refi any of those homes.
Web Reference:  http://www.lynn911.com
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