Time to Refinance?

By
Mortgage and Lending with Steve Thorne NC Mortgage Experts

refinance cary ncIf you closed on your mortgage loan with National Mortgage in May of 2005 or May of 2003 - you are probably going to get a call from me in the next week.

It's time to consider refinancing your home, because your mortgage will reset in the next 60 days.  WHAT DOES THAT MEAN??  When your mortgage resets it means that the payment is going to change.  If you have a 4.5 percent interest rate (and many of the 3 and 5 year arms had those start rates) the mortgage holder will take your Index and add the Margin and then calculate the new payment.

Many of the loans we made have 2 percent caps on the payment adjustment, meaning your 4.5 percent loan will likely go to 6.5 percent for the next year. PLEASE CHECK because some of the loans we made through Wells Fargo have 5/2/5 caps.  THIS MEANS that your First Year Adjustment could go up as much as 5 percent!!

Most of the loans we made have LIBOR as the base Index.  Unfortunately, it has not gone down in recent months. THIRTY YEAR fixed rates, however, are near 5.5 percent!  All of the bad news for the economy is working in YOUR FAVOR!

The other thing to consider is legislation pending in the Senate.  The new Predatory Lending Legislation has a provision that PROHIBITS no cost refinances...

So - when I call be ready to talk about what your new payment is going to be and let's see if it's time to refinance!

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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Eleanor,

I like ING Direct's 7 year ARM both for the lower-than-anyone rate, and for the fact that their first adjustment is only 2%.  Thanks for posting.

Mike in Tucson

Jan 03, 2008 06:29 AM #1
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Eleanor Thorne

Cary Mortgage Loans 919-649-5057
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