I have a 5 year arm which can ride out for 2 more years at 5.8%
The 15 year rate is about 6.0% and be refinancing i would also eliminate PMI and be making $550+ payments towards principal...
The flipside is to ride out the 5 year arm, contact the lender to remove pmi, and start paying $500+ plus towards principal for the remaining 2 years in hopes that interest rates fall again.
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swordfish01 said:I have a 5 year arm which can ride out for 2 more years at 5.8%
The 15 year rate is about 6.0% and be refinancing i would also eliminate PMI and be making $550+ payments towards principal...
The flipside is to ride out the 5 year arm, contact the lender to remove pmi, and start paying $500+ plus towards principal for the remaining 2 years in hopes that interest rates fall again.
Any help?
Thanks Assuming you're planning to stay in the house for more than 2 years, you should refi now at 6% (assuming low fees). If rates drop a lot you can always refi again. You'd be giving up 0.2% interest for the certainty of fixed rates and the elimination of PMI.
I'm working with Lending Tree dot com on this deal. Seems to be a good route to go...
I have considering doing a 30 year mortgage since the rate difference is from 6.0 to 6.3 and then just agressively pay the loan at a 15 year payment.. This way if I every get in trouble I can pay the 30 year amount for that month.
However Im pretty confident in my ability to pay the 15 year... it is about 400 dollar difference...
Im giong to pay about 3000 in closing cost and then about 800 in state taxes to make this happen, but will roll it into the loan...
Sound like a good thing to do? any comments on using lending tree?
Lending Tree is almost never the cheapest. Have you checked PenFed and some other lenders? The airline miles you get by going with Lending Tree are never enough to make up for the higher rate.
How quickly do you think you'll prepay / repay the loan? We don't know your outstanding balance so can't judge the impact of the $500/$550 prepayments.
I am going to call the current mortgage lender (ASC) and see what it will cost to get reappraised and the PMI removed. If it is no big deal. I can get it taken off ($108) and then make larger payments towards principal on the current rate of 5.8%.
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