“I purchased a home 4 years ago with the assistance of your agency. In early/mid 2008, my 5 year fixed loan rolls to an adjustable rate. Currently, my APR is 4.875%, in ’08, it will go to 6.875%. I am watching interest rates skyrocket every day…the best I could find today is 7% with a 0 points loan. My question…do I “jump” now and refinance, or hold out a few more months and take the risk?
***ANSWER:
I’m receiving a lot of calls and emails like yours right now.
Fortunately, you don’t have one of those “exploding ARMS”. With those, often without being told (though it was buried in a 1-inch-thick set of loan papers), the rate jumps up 20-50% in just one to three years.
Personally, I’d refi now, probably into that fixed rate. But I would talk with a good lender to find out if you have better options, such as another 5-year fixed at an attractive rate. (Call me at 858-457-KENT and I can recommend a good lender to you.)
The big question for you is: would you be OK financially if you waited until next year and the rate was higher? If not, then definitely refi now. And if rates drop enough down the line, you can always refi again.
Hope that helps…
hHow most people invest in real estate
