Mortage Refinance (fixed rates, interest rate, 2010, credit score)

[atlbravo]

Sorry folks , to some the questions may sound very naive, but I am in the process of gathering information

Here is my situation:
1) Got a mortgage for 210K after putting 20% on my home at 5.25% for a 5/1 arm in Nov 2005.
2) Home value are pretty stable
3) My ARM would reset in 2010.
4) Have credit score about 780, when I check about 2 months ago. Would have the ability to withstand some fluctuation in interest rates, but would prefer to pay the least amount possible.

My question is
1) Is it wise to refinance to a 30 year fixed, although I have no intention of staying in this house for a longer period of time, but given the dead housing market, I may not have an option.
2) If I want to refinance to a 30 year fixed, how good are the "no closing cost option" and what interest rate can I realistically expect at this time.


Thanks in advance for your suggestions.

[TimtheGuy]

Originally Posted by atlbravo

Sorry folks , to some the questions may sound very naive, but I am in the process of gathering information

Here is my situation:
1) Got a mortgage for 210K after putting 20% on my home at 5.25% for a 5/1 arm in Nov 2005.
2) Home value are pretty stable
3) My ARM would reset in 2010.
4) Have credit score about 780, when I check about 2 months ago. Would have the ability to withstand some fluctuation in interest rates, but would prefer to pay the least amount possible.

My question is
1) Is it wise to refinance to a 30 year fixed, although I have no intention of staying in this house for a longer period of time, but given the dead housing market, I may not have an option.
2) If I want to refinance to a 30 year fixed, how good are the "no closing cost option" and what interest rate can I realistically expect at this time.


Thanks in advance for your suggestions.

1) No. .

[atlbravo]

Originally Posted by TimtheGuy

1) No. .

Thanks,
I was hoping for details regarding prevailing 30 year fixed rates. I know bankrate and others provide a clue,but rarely do you get the total closing cost and the rate unless you are very much deep into the process.

[renriq02]

rates are going up again...around 6% today...they were 5.625% last week.

I wouldnt refinance......I would wait till they drop...or sell the home!

You have 2yrs left!

[renriq02]

by the way...

6% is YOU paying closing costs.
6.375-6.5% is the lender paying the closing costs.

stay put with your ARM!

[atlbravo]

Originally Posted by banker0679

by the way...

6% is YOU paying closing costs.
6.375-6.5% is the lender paying the closing costs.

stay put with your ARM!

Banker,
Thanks, I intend to do the same. Just needed opinion of wise folks here to reinforce my thoughts.

[renriq02]

well if you have a rate of 5.25% rate..and it's going to adjust in 2yrs...then i would recommend you wait.

if it's adjusting soon then you wont have any choice but to refinance...

[TimtheGuy]

Another thing you should know is what index your ARM is tied to and what is the margin. You can find this on an ARM disclosure in your closing packet. Before you look into any new mortgage you want to know where your ARM actually stands.

You can find the current index rate on Bankrate. That is about all it is good for.

[jeffselan]

Just give yourself plenty of time to sell before your ARM resets. Talk to a good Realtors to help with curb appeal, that sort of thing. It might be better to sell a little early than to risk a steep ARM adjustment.