Refinance - ARM? Thoughts....

[AJ]

Rates should hit 5% again as the standard by early to mid 2014, then look for 6/7% to be a possibility by late 2015 depending on the economy as a whole.

The door is closing on being a buyers market as well. Across the U.S. home prices are up 12% from this time last year, and up around 20% in some key cities already. That sucks, but it's still cheaper than buying at the top of the market 6 or so years ago (like I fuck'n did).

[Murlo26]

I like the idea of the 15 year fixed so we will see if I can't make that happen. I don't necessarily care as much about saving money monthly, just want to get a good rate now before I am forced to refinance in 1.5 years.

I will wait to hear back from my guy on how everything looks.

Thanks everyone.

[goodhart]

Originally Posted by Murlo26

I don't necessarily care as much about saving money monthly, just want to get a good rate now before I am forced to refinance in 1.5 years.

Isn't the entire reason of getting a low rate to save money monthly? Why else would you want a low rate?

[Murlo26]

Originally Posted by goodhart

Isn't the entire reason of getting a low rate to save money monthly? Why else would you want a low rate?

Read the rest of what I have been saying....

Yes, getting a lower monthly would be awesome. But in 1.5 years I HAVE to refinance no matter what as my 5 year balloon mortgage is up (30 year loan essentially that only lasts five years). So no matter what I have to get something then, so instead of waiting until rates are way higher I mind as well try to do something now.

By the way, I checked and I am at 5.75% right now. So yes, even 4% would be awesome.

[A//// Guy]

Getting a low rate is all about monthly rates as well as long term interest savings. The amount of interest you pay in 15 years, is hugely different than a 30 year loan. If you can rock it, do a 15 year loan even if the % is a little higher. Unless you plan to move in a couple years.

[asshanson]

We have looked at 15 year loans, and those are actually the best rates as well (still under 4%). Few hundred more dollars per month, but half the loan term. HUGE savings long term.

[Halon]

If you can swing a 15 year go for it. You'll pay it off sooner, and get a slightly better rate than with a 30yr.

We thought about it but ended up getting a 30 year. We plan to pay extra every month so we pay it off sooner than 30. We tend to plan for the worst so we decided we liked the lower required monthly payment a 30yr offers, just in case we were to lose our jobs or something, then the amount we "have to pay" is less than a 15yr. But when times are OK, we will pay extra.