I hold a 5 year ARM mortgage and i have need of proposal on refinancing to a fixed rate mortgage?
When I bought my house it was worth 291,000 where I made a down money of 20,000 and now I am having an appraisal getting done and near the housing market as it is, i'm sure its worth much less. I originally have a 5 year ARM mortgage at a 5% rate but am now looking to refinance to a longer fixed rate mortgage. What are my options?
Answers:
You may be fine putting 20k down on the loan, but how long have you be in the home? Is it (a) the 5 year mark? You should consider an FHA 30 year fixed because they will refinance your home up to 97.75% of the pro for a rate & term mortgage.
If you have adequate time left on the mortgage, you could ride it out until the market comes fund. Not really able to give recommend unless we know how long ago you purchase the home, what the current value is. With an assumption you purchased the home with within the last year, and you're in a dilapidated market, you're probably up side down.
5% rate is a great rate. If you can wait out the souk, wait it out.
Call your mortgage servicer. The LIBOR index is DOWN. Your rate may not adjust UP! Or not impressively much. Find out what the current MARGIN and INDEX are on your current mortgage.
As long as the LIBOR stays low (which won't be for more than say 2 years) it might be better keeping your current mortgage.
It may not be worthwhile to pay refi closing costs to grasp a somewhat higher fixed rate. Today's rates are 6.5% 30yr fixed on FHA 97.75% refis today (600+ credit).
Best of luck! Source(s): Mortgage professional.
Related Questions:
If the mortgage rate is 6.2%, is that apr or apy? ?
also, why do they always talk going on for average rate, and not the best current rate one could qualify for? 6.2% would actually be the interest rate The other common number that you would see is APR (annual percentage rate)...
Answers:
You may be fine putting 20k down on the loan, but how long have you be in the home? Is it (a) the 5 year mark? You should consider an FHA 30 year fixed because they will refinance your home up to 97.75% of the pro for a rate & term mortgage.
If you have adequate time left on the mortgage, you could ride it out until the market comes fund. Not really able to give recommend unless we know how long ago you purchase the home, what the current value is. With an assumption you purchased the home with within the last year, and you're in a dilapidated market, you're probably up side down.
5% rate is a great rate. If you can wait out the souk, wait it out.
Call your mortgage servicer. The LIBOR index is DOWN. Your rate may not adjust UP! Or not impressively much. Find out what the current MARGIN and INDEX are on your current mortgage.
As long as the LIBOR stays low (which won't be for more than say 2 years) it might be better keeping your current mortgage.
It may not be worthwhile to pay refi closing costs to grasp a somewhat higher fixed rate. Today's rates are 6.5% 30yr fixed on FHA 97.75% refis today (600+ credit).
Best of luck! Source(s): Mortgage professional.
Related Questions:
If the mortgage rate is 6.2%, is that apr or apy? ?
also, why do they always talk going on for average rate, and not the best current rate one could qualify for? 6.2% would actually be the interest rate The other common number that you would see is APR (annual percentage rate)...