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View Full Version : Should I refinance?


torinsmom
12-15-2008, 05:25 PM
I have a 2 year ARM which will adjust next summer(and every 2 years) It is at 5.75% right now. I owe $104,000 on a $130,000 house. I know nothing about mortgages, but I know I am hearing that ARMs are bad and that rates are low for mortgages right now. My credit isn't the best, but it is decent(mortgage has been paid on time for 4 years, other bills--except one medical bill--are on time. I don't have any money to put into a refinance either. I just want to do what's right to help me in the long run. Any help would be appreciated.

Marsha

mmexpress
12-15-2008, 05:39 PM
YES!!
Get away from the ARM because when this economy turns around interest rate will jump.

RitaE
12-15-2008, 05:43 PM
You need to get away from the ARM, but I don't think you need to do it right this second.

There is a huge push to get those 30 year interest rates under 5%. I'd start tracking them now. Maybe use this time to find a good reputable mortgage broker. Have him/her run your credit reports and offer advice on what you can do to qualify for the best rates. Then have him/her track and contact you as soon as the rates drop to the level you decide.

auroralark
12-15-2008, 05:45 PM
Yup, I agree. You should definitely try to refinance before your rate changes. Do your homework before rushing into anything, though. You have time.

torinsmom
12-15-2008, 05:51 PM
Thanks! How do I find a mortgage broker? I have always just gone through my bank.

Marsha

mmexpress
12-15-2008, 05:53 PM
Check with your local banks,(corporat banks tend to have better rates)
Also check with local brokers and be aware of fee comparison between the two.

robb01
12-15-2008, 05:57 PM
the time is now to refinance

mmexpress
12-15-2008, 05:59 PM
I'm close to doing it myself as soon as I can lock in at least 1.5 points less than what I am now.