Real Estate and Home Mortgages - Refi now or wait?
Doityourself.com community forum was created to provide answers to all questions related to home improvement and home repair. Doityourself community can help you find information about how-to topics on small fixes to large remodeling projects. With comprehensive how-to content and expertly moderated community forums DoItYourself.com makes it easy to tackle even the most complex home improvement projects.View Full Version : Refi now or wait?
keniz138
02-06-08, 01:38 PM
What is the name of your state? Rhode Island
Hi all, I am really on the fence here. Currently have 2 loans:
1. $260K 30 year 7/1 ARM that I owe $246K on, 5.5 rate, fixed rate ends in 3 years
2. $65K 15 year loan that I owe $64K on, 6% fixed rate, balloon pmt at 15 year mark
Off the cuff, my house is worth $375K, so I'm only at about 15% equity. For argument's sake, let's say we plan to stay in the house for another 10 years.
I have been offered several options for a consolidated refinance.
1. A 30 year fixed lender paid PMI loan at 6.125
2. A 30 year 7/1 ARM at 5.375
My payments with both of these options would be roughly the same as what I am paying now (actually the ARM is about $100/month lower), but I am hesitant because of the several thousand dollars in closing costs as well as the possibility of the rates going down even further. The paranoid side of my personality, however, is worried that rates in 3 years (when my fixed rate expires) are going to be much higher than now.
Thoughts?
Hi all, I am really on the fence here. Currently have 2 loans:
1. $260K 30 year 7/1 ARM that I owe $246K on, 5.5 rate, fixed rate ends in 3 years
2. $65K 15 year loan that I owe $64K on, 6% fixed rate, balloon pmt at 15 year mark
Off the cuff, my house is worth $375K, so I'm only at about 15% equity. For argument's sake, let's say we plan to stay in the house for another 10 years.
I have been offered several options for a consolidated refinance.
1. A 30 year fixed lender paid PMI loan at 6.125
2. A 30 year 7/1 ARM at 5.375
My payments with both of these options would be roughly the same as what I am paying now (actually the ARM is about $100/month lower), but I am hesitant because of the several thousand dollars in closing costs as well as the possibility of the rates going down even further. The paranoid side of my personality, however, is worried that rates in 3 years (when my fixed rate expires) are going to be much higher than now.
Thoughts?