Adjam5 Posted July 31, 2012 Report Share Posted July 31, 2012 Hey guys...The rates are pretty dang low and it is a great time to consolidate any loans and save some dough on the mortage payment. I just went from 5% to 3 1/8% in a 7/1 arm. Did a little cash out and paid off the wifes truck also. Will get my closing costs back in the first year of the mortgage. I used Chase this time around. Good credit and low debt are necessary. Just something to consider while the rates are so low. How much more can you expect rates to go down to where it will not be worth the banks to lend? Quote Link to comment Share on other sites More sharing options...
Ohiobucks Posted July 31, 2012 Report Share Posted July 31, 2012 Filling out a loan app right now myself. Going from a 30 year 5.125% to a 15 year 2.875%. Doesn't make sense not to act on it... Quote Link to comment Share on other sites More sharing options...
Tominator Posted July 31, 2012 Report Share Posted July 31, 2012 Hoping to do this maybe next year or the next. I'd hate to know what my credit rating is right now. We've had some late payments on the medical end because of how Aetna handles our dependant care payments. It's pretty frustrating, but the whole credit rating system is way over valued IMHO, and holds families for ransom. It borders on extortion. Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted July 31, 2012 Report Share Posted July 31, 2012 Hey guys...The rates are pretty dang low and it is a great time to consolidate any loans and save some dough on the mortage payment. I just went from 5% to 3 1/8% in a 7/1 arm. Did a little cash out and paid off the wifes truck also. Will get my closing costs back in the first year of the mortgage. I used Chase this time around. Good credit and low debt are necessary. Just something to consider while the rates are so low. How much more can you expect rates to go down to where it will not be worth the banks to lend? Great time for sure, but there is no way I would take any kind of an adjustable rate Anthony. We paid a fee and converted our loan down back earlier in the year, wish I had waited a little while longer, farm credit was offering a 3.45 fixed on their 15 year when I checked a week or so ago, which is .40 down from where we converted. I considered checking to see if we could convert again, but think we are limited to once a year. I just looked and they are back up to 3.65 today on a 15 year fixed. Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted July 31, 2012 Report Share Posted July 31, 2012 Hoping to do this maybe next year or the next. I'd hate to know what my credit rating is right now. We've had some late payments on the medical end because of how Aetna handles our dependant care payments. It's pretty frustrating, but the whole credit rating system is way over valued IMHO, and holds families for ransom. It borders on extortion. Those insurance claims/payments should be able to be disputed Chris and should not end up hurting your credit. We had all kinds of trouble with billing with the hospital and associated charges with this last child, got delinquent payment notices over insurance non payments and took some time to get it straight, but it did not effect our credit in any way. Health insurance co we are covered under is aetna as well. Quote Link to comment Share on other sites More sharing options...
The Bug House Posted July 31, 2012 Report Share Posted July 31, 2012 Great time to refinance home Gotta agree with wtnhunt on the ARM, however my sister and her husband initially had an adjustable rate and did quite well. I'm about 5 years into a 30 year fixed and want to refi into a 15 year. I've put some sweat equity into the place (new kitchen) but the market is still down enough that it will asses for just about what I paid for it. We're committed to living from one income as to have Mama home with the babies, so payments on a 15 year would be steep. Thinking that another 30 yr at a lower rate would lower current payments enough to make a couple extra payments a year. Quote Link to comment Share on other sites More sharing options...
The Bug House Posted July 31, 2012 Report Share Posted July 31, 2012 Still paying off the Anesthesia bill from my 6 year olds delivery. Purposely let it go to collections due to the fact it had no bearing on our credit. Quote Link to comment Share on other sites More sharing options...
WHISKEYSWAMP Posted July 31, 2012 Report Share Posted July 31, 2012 I refinanced a couple years ago at 3.875 / 15 year... I didn't think it would would go much lower than that, guess I was wrong. I don't think it would make much sense for me to do it again unless I could go to a 10 year. I also pay biweekly so it automatically pays an additional principal payment every year... something you might want to consider if you want to pay off the mortgage a couple years earlier. Quote Link to comment Share on other sites More sharing options...
Adjam5 Posted July 31, 2012 Author Report Share Posted July 31, 2012 I wasn't crazy about the arm either. I have always opted for fixed loans. But for me it will make sense. I am looking to pay off the house in a short time. I am borrowing less than 100k, and in 7 years...my balance will be about 40k. With the ARM they can raise the borrowing rate once the 7 year fixed rate, of 3.125 is over. Then whatever the Libor is will dictate. With such a low balance...If it goes to 8% big deal or I can re fi again. Quote Link to comment Share on other sites More sharing options...
dbHunterNY Posted July 31, 2012 Report Share Posted July 31, 2012 i bought my house a few years ago... i started with a fixed 4.5% 15 year. i don't believe i'd save much at all. Quote Link to comment Share on other sites More sharing options...
Leo Posted July 31, 2012 Report Share Posted July 31, 2012 I wasn't crazy about the arm either. I have always opted for fixed loans. But for me it will make sense. I am looking to pay off the house in a short time. I am borrowing less than 100k, and in 7 years...my balance will be about 40k. With the ARM they can raise the borrowing rate once the 7 year fixed rate, of 3.125 is over. Then whatever the Libor is will dictate. With such a low balance...If it goes to 8% big deal or I can re fi again. Make sure there is NOT a balloon payment that gets added to your principle after the seven year ARM. A lot of ARM loans have a big hand on the end of them that slaps the crap out of you. We went from a 30 yr fixed to a 20 yr fixed. Saved us more than $100/month and we will be paid off a few years earlier. This was bottomline even after including the closing costs into the refi. Lower payment, shorter term and no out of pocket. Shop around folks, in this economy the only raise you'll likely get is one you get for yourself by doing a smart refi. Quote Link to comment Share on other sites More sharing options...
Adjam5 Posted August 1, 2012 Author Report Share Posted August 1, 2012 Make sure there is NOT a balloon payment that gets added to your principle after the seven year ARM. . I checked Leo...There is no balloon payment at any time during the loan. Thanks for the tip! I have 3.25 fixed for 7 years. Then the bank can move the rate depending on what the LIBOR dictates. My principal at that point will be so low, that even if they bump me another 3 points. My note would still be quite manageable on the unpaid principle. I'll be paying off my wifes truck that was at 5.75%($350/mo) and lowering my monthly mortage by over $400. Can you say happy? . Quote Link to comment Share on other sites More sharing options...
Leo Posted August 1, 2012 Report Share Posted August 1, 2012 I checked Leo...There is no balloon payment at any time during the loan. Thanks for the tip! I have 3.25 fixed for 7 years. Then the bank can move the rate depending on what the LIBOR dictates. My principal at that point will be so low, that even if they bump me another 3 points. My note would still be quite manageable on the unpaid principle. I'll be paying off my wifes truck that was at 5.75%($350/mo) and lowering my monthly mortage by over $400. Can you say happy? . I'm glad to hear it. I've seen people loose houses over that balloon at the end of an ARM. Quote Link to comment Share on other sites More sharing options...
Mach1 Posted August 2, 2012 Report Share Posted August 2, 2012 My wife and I are closing on a home in two weeks, 30yr 3.375% fixed. On our first house we'd bought back in '07, our rate was over 5%. We relocated 2+ years ago and decided it was time to get back to home ownership with these rates. Also have purchased two vehicles in the last year and a half, both out of necessity. One because we went from 3 to 4 in our family and the other because my truck was totalled. Both have rates under 3%. Like others have said, its a great time to get low rates. Quote Link to comment Share on other sites More sharing options...
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