Refinancing our hous
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Refinancing our hous
| Fri, 04-14-2006 - 11:56am |
We are looking into refinancing our house. We need to. We are on a 1/1 arm. right now we have a good rate but if it goes up next year it will be super high....and I feel 100% certain rates are going to continue to go up. So we need to refinance this year.
We are looking at a 5/1 that is at 6% there are closing costs but they are pretty low and if rates DO go up we will more than save our closing costs on interest next year alone.
I know some other people out there recently refied and are buying so I was wondering what kind of rates you are getting, who you are using, what we need to know. We like the 5/1 arm because we know we willbe gone in 3 years or less and the rates are more attractive.
Thanks!!

Whiz-
I might not have a clear understanding of what an arm is. If we get a 5 year arm doesn't that mean we will have the same interest rate for 5 years? We know we are moving within the next 3 years so if that is the case it would work well forus.
If you(or anyone) can clarify what a 5/1 arm is I would appreciate it. We are on a 1/1 arm right now and our interest changes every year....
You're right 2loca, a 5/1 ARM would provide you the fixed rate for the next 5 years and then the rate would change after that. 5/1 ARM makes perfect sense since you fully intend to leave that house in 3 years. The issue Whiz is referring to is that lots of people used ARMS to qualify for their homes and intend to stay. They are going to be in big trouble if they can't afford their payments at the higher interest rate. I'm in a 7/1 ARM and fully intend to be out of this house before the fixed rate expires.
Peg