Should you refinance your ARM into a fixed rate?

By
Mortgage and Lending with Guild Mortgage Co - Oak Harbor WA

There has been a lot of discussion about how the adjustment period of ARMs are going to have a major detrimental effect on the housing market as people with adjustable rates that they got over the past 2-3 years will be seeing their payments skyrocketing as these ARMs adjust. Well, it is just possible that this is not going to happen. The major index for ARMs, the LIBOR has dropped dramatically lately and those adjustments may not be coming the way someone would think.

Please read the whole story here. Now, I think that it is best for most people to get into a fixed rate, but not necessarily for everyone, especially if you have lost equity. My best suggestion, give me a call. Pull out the note and adjustable rate rider that went with it. Let me go over your options with you. Think before you make a major jump!

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Rainer
55,339
Cecily Parks
iMove Group, Knipe Realty NW, Inc. - Salem, OR

Hi Fred. I have two arms.....I think I need an adjustment. The left one is shorter than the right one and is giving me fits...hee..hee.

Jan 22, 2009 03:17 AM #1
Rainer
171,765
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Hmmmmmmmmmm, short arm and long arm. Where do we go from here? You are too funny. rofl

Jan 22, 2009 03:20 AM #2
Rainmaker
1,086,367
Greg Nino
RE/MAX Compass, formerly RE/MAX WHP - Houston, TX
Houston, Texas

I read the title and said.. Duh, well yeah, you should. Then I read the rest.. ;)

Jan 22, 2009 03:25 AM #3
Rainer
171,765
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Greg - It isn't as simple of a question as one would think, is it? Thanks for your comment.

Jan 22, 2009 03:37 AM #4
Rainer
179,139
Mark MacKenzie
Phoenix, AZ

I can think of a lot of good reasons to lock into a 30year and not many to stay with an ARM.

As home values decline, with rates near historic lows, and with a rebound in housing uncertain, the safe best is to lock in.

Jan 22, 2009 06:45 AM #5
Rainer
171,765
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Mark - I couldn't agree with you more, however, if you are one of those that is upside down in value right now, you might be in better shape than you thought you were in when the ARM does start adjusting. It could give some extra time to those that are concerned and that is my primary point.

Jan 22, 2009 06:50 AM #6
Rainmaker
671,751
Sandy Shores FL RealtorĀ®, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County Real Estate, Florida's Space Coast

Hi Fred, Thanks for always keeping us posted on what is going on in the world of finance. Today, I would prefer to be locked in to a 30 year fixed rate.

Jan 23, 2009 10:43 PM #7
Rainer
171,765
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Sandy - I agree, but for those folks that can't refinance out of their ARM, it isn't quite a bad as they might think.

Jan 24, 2009 06:07 AM #8
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Rainer
171,765

Fred Chamberlin

Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant
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