Question by lemichele101: Chances of Getting a Decent Mortgage When I Refinance?
Yes, I was an idiot and was talked into a 5 year intrest only ARM. The broker pretty much lied to me about how refinancing worked, and I bought into it without doing my research. So please no lecturing about my idiocy.
I bought a house 3 years ago – purchase price was 5k, in the city, good location. I put 55% down (yes, I know, weird, but was left inheritence that was slated only for purchasing a house), so I only owe around 0k. Credit score is 710. Never borrowed on the equity of the home. I want to live in this house for the rest of my life, so no in-and-out.
Does anyone have any ballpark-ish idea about the interest rates I could get for a 30 year fixed? I know, every case is different, but I’m just wondering. Right now I have a rate of 4.75%. I know I won’t get near this for a 30 year fixed!
Thanks!
Best answer:
Answer by Judy
The best interest rates available right now for a fixed mortgage are a bit over 6%. With your credit score, and the equity you have, you might come close to something like that.
Good luck.
As with only interest loans I would bet you owe more than 160K call your lender and find out. With that equity and credit score you would most likely be looking at around 6 – 6-1/4 %
Ditech is offering a low APR rate now of 6.112.
Every one else is offering about 6.5 APR.
These are for 30 year fixed. That’s what I’m looking for now too.
You will have to pay closing costs to refinance, but that is worth it to not have your rate jump up. And from what I’m hearing these rates are gonna be going up soon. Like in 3-6 months I bet you’d be luck to get under 7. So do it now!
You did the best you could with the information you had at the tiime, and yes some research would have been nice, but it didn’t happen, at least you are in a position where you can refi out of the ARM. So that is the bright spot.
I am hearing alot of very low 6′s being quoted from lenders, Don’t forget to check out the closing costs, all mortgage loans have them, and you will either pay them up front, roll them into the loan or pay for them through a higher rate and points.
Contact as many bankers or Mortgage lenders as possible face to face. You have a good crdit rating and I am sure you should be able to get a great refinance rate. Hold off until you can. Forget your mistakes in the past and work hard to find the right mortgage co. Take a longer term for a lessor amount but sure get a fixed not a floating.
shop around, with that much equity and a 710, I wuld think you could get 6.0% or just below.
I got a 4.25% for 5 years. I have one year left. Was the best thing I did. Saved $1000′s even if I refi at 6%
First off, I totally respect and admire that you have taken full responsibility for yourself. It is a very good idea to get a conventional loan. That 4.75% was just an illusion and wont last too long. You only got that rate because it was just a marketing promotion, the bank knew they wont get 4.75% return for so long. With your good credit score a ballpark estimate of the interest would be in the 6′s. You will be in far better hands with a fixed rate as opposed to a volitile ARM. Your payment will be steady and the same each month, while an ARM can raise your payments by hundreds and even thousands. Find a loan that covers these two facors: 1. lowest upfront charges and 2. lowest interest rate.
Don’t worry! There is nothing wrong with your current ARM… for a while.
If it is based on the 1 Yr LIBOR (likely), it won’t adjust to much more than 2 or 2.5 + 3.16375 (last 1yr LIBOR). In otherwords when your ARM resets it will likely be 5.1625% or 5.6625%… then in 6 months it CAN go up another 1%.
Rates are up this week. I am quoting 6.5% for a scenario like yours.
So, get with a mortgage professional and set yourself up for that 30 yr fixed when rates go down again.
Best of luck!