Question by deedee: My 5/1 arm will reset in 18 months, should I refinance home mortgage now, or wait for few more months?
Current rate of ARM interest is 5.125%. Would it better to go for 6.75% mortgage refinance at no closing costs, if I am planning to live in the same house for next 7 to 10 years?
Answer by Probanker
A much lower rate with cosing costs wrapped into the loan would save you thousands in the long run. Unfortunately, I cant predict what rates will do in the future but can tell you they are the lowest Ive seen them in a few years.
I am employed by one of the largest mortgage brokers in the country. We work with over 350 lenders to bring you the best rates and programs. I welcome the opportunity to help. Please feel free to shoot me an email anytime with any questions you may have.
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DeeDee, what does your mortgage indicate? Is there a pre-payment or other penalty? Has your homes value decreased? Do you have equity in the home.
If your home is in a declining area, your lender may require a 5 percent payment available from the equity of your home. (95 percent LTV)
I would check all your paperwork and speak to your current mortgage company. None of us know what will happen to interest rates or home values in the next 18 months.
Try using http://Refinance-Today.info to get refinance quotes from the top lenders. It only took me a few minutes.