Posted: 9/2/2009 5:17:20 PM EDT
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I'm refinancing an ARM. My current ARM rate is 4.375% and is scheduled to adjust to 3.375% in Oct. I was approved for a fixed 4.375% loan. Take it or keep the ARM? Is 4.375% a good rate these days? |
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Fix rate.
Fix rate Fix rate. Fix rate Fix rate. Fix rate Fix rate. Fix rate Fix rate. Fix rate Fix rate. Fix rate Fix rate. Fix rate People with arms are partly to blame for the financial crisis. Interest rates are going to rise next month. Banks always give ARM's a better interest rate to lure you in, then stick it to ya later. Edit: A fixed rate that low is the best. Since I dont know you, im saying you are full of crap and full of lies!!! Sounds too good to be true. But if you arent lying, FIX RATE!!!!!!!!!!!!!!!!!!!!!!!! |
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Quoted: 4.375% is a damned good fixed rate given that the average is 5.25% per bankrate.com, so I'd look for the hidden gotchas in it. Are there closing costs? Points? Prepayment penalty? Is the term 15 or 30 years? Read the fine print carefully. It's a 30 year. All the costs are being added into the loan. Not sure what points are and there's nothing about any prepayment penalties. Offer is from Bank of America -if that tells you anything. |
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Quoted:
It's a 30 year. All the costs are being added into the loan. Not sure what points are... Points are pre-paid interest (1% of the principal paid up-front) and are typically used to buy down the interest rate. So if the loan amount is for $150,000 and you pay 1 point, $1500 will be added to your closing costs. Offer is from Bank of America -if that tells you anything.
I personally wouldn't use their services since they're still on the hook to pay back TARP money, and the only way they can really do that is to charge high interest rates and fees on their customers. |
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Quoted:
Quoted:
It's a 30 year. All the costs are being added into the loan. Not sure what points are... Points are pre-paid interest (1% of the principal paid up-front) and are typically used to buy down the interest rate. So if the loan amount is for $150,000 and you pay 1 point, $1500 will be added to your closing costs. Offer is from Bank of America -if that tells you anything.
I personally wouldn't use their services since they're still on the hook to pay back TARP money, and the only way they can really do that is to charge high interest rates and fees on their customers. THAT IS A GREAT RATE!!! I TOTALLY AGREE W/BUBBLES.................look for the gotchas***BOA sucks imo but you never know, ask a learned person in the field at another bank maybe to match it or review it for you. |
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I would go with a fixed rate 30 year loan and make sure there are no prepayment penalties. Since the economy is tight, you will be happier with the lower payments, especially if you or your spouse (if you have one) gets laid off.
If you have an Arm (which you are at the lowest rates you will ever see) the only way it will reset is on the way up. and you may see your payments double or triple. ( I have seen it done!!!!) With ARM loans you can actually have a negative amortization!! http://www.inman.com/InmanINF/leelaplante/news/64740 |
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Quoted:
Fixed Rate 15 year loan!!!!!! Get a 30 year and make extra principal payments. The rate difference on a 15 year is not enough to be stuck with the higher monthly payments. If you have any financial problems you can always drop back to the 30 year payment, if only temporarily. Make sure you have at least 6 months of expenses (in cash) before even considering extra payments. |