- This topic has 245 replies, 21 voices, and was last updated 15 years, 11 months ago by
NicMM.
-
AuthorPosts
-
May 8, 2008 at 1:13 PM #201492May 9, 2008 at 10:36 AM #201763
NicMM
Participant30 yr Fixed or 5 yr ARM? This is a question I want to consult the mortgage experts and shrewd Piggs here.
Given 30 year fixed as 5.875% (no fee no cost) for a conforming jumbo loan and 5 year ARM as 5.375% (no fee no cost), what should people choose when they need to refinance?May 9, 2008 at 10:36 AM #201811Participant30 yr Fixed or 5 yr ARM? This is a question I want to consult the mortgage experts and shrewd Piggs here.
Given 30 year fixed as 5.875% (no fee no cost) for a conforming jumbo loan and 5 year ARM as 5.375% (no fee no cost), what should people choose when they need to refinance?May 9, 2008 at 10:36 AM #201834Participant30 yr Fixed or 5 yr ARM? This is a question I want to consult the mortgage experts and shrewd Piggs here.
Given 30 year fixed as 5.875% (no fee no cost) for a conforming jumbo loan and 5 year ARM as 5.375% (no fee no cost), what should people choose when they need to refinance?May 9, 2008 at 10:36 AM #201861Participant30 yr Fixed or 5 yr ARM? This is a question I want to consult the mortgage experts and shrewd Piggs here.
Given 30 year fixed as 5.875% (no fee no cost) for a conforming jumbo loan and 5 year ARM as 5.375% (no fee no cost), what should people choose when they need to refinance?May 9, 2008 at 10:36 AM #201897Participant30 yr Fixed or 5 yr ARM? This is a question I want to consult the mortgage experts and shrewd Piggs here.
Given 30 year fixed as 5.875% (no fee no cost) for a conforming jumbo loan and 5 year ARM as 5.375% (no fee no cost), what should people choose when they need to refinance?May 9, 2008 at 11:10 AM #201778cv2
ParticipantHi Contraman,
You need some really good references to backup your claims. If the banks are willing to reduce mortgage principals without sinking the borrower’s credit score, it will encourage people to take on more risk than they can manage. This is the last thing lending agencies would like to see.
May 9, 2008 at 11:10 AM #201826ParticipantHi Contraman,
You need some really good references to backup your claims. If the banks are willing to reduce mortgage principals without sinking the borrower’s credit score, it will encourage people to take on more risk than they can manage. This is the last thing lending agencies would like to see.
May 9, 2008 at 11:10 AM #201849ParticipantHi Contraman,
You need some really good references to backup your claims. If the banks are willing to reduce mortgage principals without sinking the borrower’s credit score, it will encourage people to take on more risk than they can manage. This is the last thing lending agencies would like to see.
May 9, 2008 at 11:10 AM #201876ParticipantHi Contraman,
You need some really good references to backup your claims. If the banks are willing to reduce mortgage principals without sinking the borrower’s credit score, it will encourage people to take on more risk than they can manage. This is the last thing lending agencies would like to see.
May 9, 2008 at 11:10 AM #201910ParticipantHi Contraman,
You need some really good references to backup your claims. If the banks are willing to reduce mortgage principals without sinking the borrower’s credit score, it will encourage people to take on more risk than they can manage. This is the last thing lending agencies would like to see.
May 9, 2008 at 12:20 PM #201803HLS
ParticipantNic,
What are YOU thinking ??
As a mortgage professional, I tell people that it’s just gambling to get a 5 YR ARM, unless you are 90% sure that you won’t have that loan in 6-7 years.
If you plan on keeping the property for more than 7 years, in my opinion it would be very foolish to get the ARM.
You cannot put a price on the stress that many people face because their ARM will be adjusting in 12-24 months. (Some are freaking out, as they don’t qualify for a refi today)
The security of a 30YR fixed is cheap insurance.You have no idea what any of the following will be in 5 YRS:
a) Interest Rates
b) Property Value
c) Your credit score
d) Your ability to qualify for a loanMortgage rates are historically low NOW. WHY GAMBLE ?
(For .005% for only 5 yrs ?)If you plan on keeping the property, you think that rates will be lower in 5 years ? Even if you are right then you have the added expense of refinancing again.
If you can predict interest rates, who cares what your mortgage rate is. You can make a fortune trading bonds on Wall Street and pay cash for your house.
At today’s rate, I don’t think that anybody is offering you a “no fee no cost” loan at 5.375%/5.875%.
Please correct me if I am wrong.Do you understand that if you plan on keeping the loan for more than 4-5 years, getting the “no cost” loan is a poor decision ? There are no FREE loans. You pay a higher rate for the life of the loan.
FNMA 5 YR JC ARM’s are a HIGHER rate than 30 YR Fixed.
Yes it is dumb. (Cheaper 5 YR ARM’s are only available below $417K)I cannot believe the number of people who want to play games with the largest financing decision of their lives, and some make choices based on the words out of a hotties mouth on CNBC or a misleading commercial.
May 9, 2008 at 12:20 PM #201850ParticipantNic,
What are YOU thinking ??
As a mortgage professional, I tell people that it’s just gambling to get a 5 YR ARM, unless you are 90% sure that you won’t have that loan in 6-7 years.
If you plan on keeping the property for more than 7 years, in my opinion it would be very foolish to get the ARM.
You cannot put a price on the stress that many people face because their ARM will be adjusting in 12-24 months. (Some are freaking out, as they don’t qualify for a refi today)
The security of a 30YR fixed is cheap insurance.You have no idea what any of the following will be in 5 YRS:
a) Interest Rates
b) Property Value
c) Your credit score
d) Your ability to qualify for a loanMortgage rates are historically low NOW. WHY GAMBLE ?
(For .005% for only 5 yrs ?)If you plan on keeping the property, you think that rates will be lower in 5 years ? Even if you are right then you have the added expense of refinancing again.
If you can predict interest rates, who cares what your mortgage rate is. You can make a fortune trading bonds on Wall Street and pay cash for your house.
At today’s rate, I don’t think that anybody is offering you a “no fee no cost” loan at 5.375%/5.875%.
Please correct me if I am wrong.Do you understand that if you plan on keeping the loan for more than 4-5 years, getting the “no cost” loan is a poor decision ? There are no FREE loans. You pay a higher rate for the life of the loan.
FNMA 5 YR JC ARM’s are a HIGHER rate than 30 YR Fixed.
Yes it is dumb. (Cheaper 5 YR ARM’s are only available below $417K)I cannot believe the number of people who want to play games with the largest financing decision of their lives, and some make choices based on the words out of a hotties mouth on CNBC or a misleading commercial.
May 9, 2008 at 12:20 PM #201875ParticipantNic,
What are YOU thinking ??
As a mortgage professional, I tell people that it’s just gambling to get a 5 YR ARM, unless you are 90% sure that you won’t have that loan in 6-7 years.
If you plan on keeping the property for more than 7 years, in my opinion it would be very foolish to get the ARM.
You cannot put a price on the stress that many people face because their ARM will be adjusting in 12-24 months. (Some are freaking out, as they don’t qualify for a refi today)
The security of a 30YR fixed is cheap insurance.You have no idea what any of the following will be in 5 YRS:
a) Interest Rates
b) Property Value
c) Your credit score
d) Your ability to qualify for a loanMortgage rates are historically low NOW. WHY GAMBLE ?
(For .005% for only 5 yrs ?)If you plan on keeping the property, you think that rates will be lower in 5 years ? Even if you are right then you have the added expense of refinancing again.
If you can predict interest rates, who cares what your mortgage rate is. You can make a fortune trading bonds on Wall Street and pay cash for your house.
At today’s rate, I don’t think that anybody is offering you a “no fee no cost” loan at 5.375%/5.875%.
Please correct me if I am wrong.Do you understand that if you plan on keeping the loan for more than 4-5 years, getting the “no cost” loan is a poor decision ? There are no FREE loans. You pay a higher rate for the life of the loan.
FNMA 5 YR JC ARM’s are a HIGHER rate than 30 YR Fixed.
Yes it is dumb. (Cheaper 5 YR ARM’s are only available below $417K)I cannot believe the number of people who want to play games with the largest financing decision of their lives, and some make choices based on the words out of a hotties mouth on CNBC or a misleading commercial.
May 9, 2008 at 12:20 PM #201902ParticipantNic,
What are YOU thinking ??
As a mortgage professional, I tell people that it’s just gambling to get a 5 YR ARM, unless you are 90% sure that you won’t have that loan in 6-7 years.
If you plan on keeping the property for more than 7 years, in my opinion it would be very foolish to get the ARM.
You cannot put a price on the stress that many people face because their ARM will be adjusting in 12-24 months. (Some are freaking out, as they don’t qualify for a refi today)
The security of a 30YR fixed is cheap insurance.You have no idea what any of the following will be in 5 YRS:
a) Interest Rates
b) Property Value
c) Your credit score
d) Your ability to qualify for a loanMortgage rates are historically low NOW. WHY GAMBLE ?
(For .005% for only 5 yrs ?)If you plan on keeping the property, you think that rates will be lower in 5 years ? Even if you are right then you have the added expense of refinancing again.
If you can predict interest rates, who cares what your mortgage rate is. You can make a fortune trading bonds on Wall Street and pay cash for your house.
At today’s rate, I don’t think that anybody is offering you a “no fee no cost” loan at 5.375%/5.875%.
Please correct me if I am wrong.Do you understand that if you plan on keeping the loan for more than 4-5 years, getting the “no cost” loan is a poor decision ? There are no FREE loans. You pay a higher rate for the life of the loan.
FNMA 5 YR JC ARM’s are a HIGHER rate than 30 YR Fixed.
Yes it is dumb. (Cheaper 5 YR ARM’s are only available below $417K)I cannot believe the number of people who want to play games with the largest financing decision of their lives, and some make choices based on the words out of a hotties mouth on CNBC or a misleading commercial.
-
AuthorPosts
- You must be logged in to reply to this topic.