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My 5/1 arm will reset in 18 months, should I refinance home mortgage now, or wait for few more months?

Written By: admin on September 17, 2009 One Comment

Current rate of ARM interest is 5.125%. Would it better to go for 6.75% mortgage refinance at no closing costs, if I am plotting to live in the same house for next 7 to 10 years?


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One Response to “My 5/1 arm will reset in 18 months, should I refinance home mortgage now, or wait for few more months?”

  1. Gary Smith, Realtor® on: 17 September 2009 at 12:07 am

    DeeDee, what does your mortgage indicate? Is there a pre-payment or other penalty? Has your homes value decreased? Do you have equity in the home.

    If your home is in a declining area, your lender may require a 5 percent payment available from the equity of your home. (95 percent LTV)

    I would check all your paperwork and speak to your current mortgage company. None of us know what will happen to interest rates or home values in the next 18 months.

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