ARM Mortgage

[Chief Tutor]

I am new and dont know if this is the correct forum and I apologize in advance if it isnt. I have a couple questions on my ARM loan morgage and was wondering if anyone can help.

Its a 3 year and it expires in 2008 but I wanted to know if there are strides I can take now to assure a good rate when it comes time?

I got it at 4.75%, am I pretty much assured and screwed that my mortgage is going up?

Any help would be greatly appreciated!
Thank you!


Posted by : James79
(http://www.realestateforum.com/member.php?u=5479)

[subprimealta]

You may try to negotiate a deal with the current lender but they will give you today's rates. If your prepay is up you should refi sooner than later. With great credit and qualified income you may still get a rate in the 6's - other than that, you cannot insure a better rate tomorrow

[JoeT]

Your best bet would be to get a locked in rate. If you chose to stay in that loan, your rate will adjust for the remainder of the life of the loan. If rates happen to go up in the next few years, your payment can go up significantly. There's many different options though, you don't have to do just a 30 year fixed, there's other programs that will give you a locked in rate for the life of the loan.
As the person above me said, its wiser to refinance sooner than later. With a high credit score, assets, full documented income, not too high of a loan to value amount rates can be in the low 6's. If you're interested in going over your options, feel free to contact me with no obligation. you can email me at jtorto@topdot.com. I work for Topdot Mortgage which is a direct lender and we deal with wholesale rates. Let me know if you need help.

Joe

[Business_with_Greg]

I think it would be wise to look at the facts, compare them, and then make a decision.

1st I would suggest pulling out your mortgage papers for this loan and see what your note and/or adjustable rate rider says. Look for the maximum amount the change in rate can be, how frequently it can change, and what the highest rate the loan could be is.

Post that.

Then Have a mortgage professional get you some options on what a new loan would end up being. If you can give an estimated credit score, an estimated value, an estimated balance of your mortgage(s), and let me know if you have a W2 job. I could try to give you a round about estimate.

Then we can compare things.

How long do you plan on staying in this home?
Is there a prepayment penalty? You should be able to see this in your note or a pre-payment rider in your loan papers.

Let's weigh out the facts and make an informed decision...

[OregonLO]

Greg is on point here...I would find out what it can adjust to and the stipulations to the loan then compare that with what a current loan would be. Rates are definitely not THAT low anymore.

[MortgagePro]

You would want to:

1. Check your credit often and be sure to have the highest score possible when refinance time comes.

2. Don't make any large purchases unless with cash 6mo.-1yr. before time comes.

3. If you think rates are going to be even worse next year, find out if it would be better to just refi now.
a. Because if you know you are going to refi you are just paying interest to the bank for nothing.
b. Even if it is at 4.75% If you are going to eventually be paying 6% why not start now. Here is my logic.

Your going to finance the same amount of money a year from now. So if your payment is $1000. Then in order to save every month you would pay out $12000 to the old bank and then pay 6% on basically the same amount for 30 years anyway. Why not get started paying it off now.