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Old 09-16-2008, 01:00 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,093,116 times
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May have to refinance ASAP!
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Old 09-17-2008, 09:29 PM
 
Location: Sacramento, Ca
94 posts, read 296,591 times
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Curious, I have a ARM tied to a LIBOR. My current rate is 5.25% and will remain that way until April 2010. By then, my wife and I will be out of our home. But curious, how would that effect my rate if my rate was to adjust say next month ? I was told by my lender I had a margain of 2.25%. My mortgage couldn't go below 3.5% or higher than 10.5% If you know what would be great.
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Old 09-18-2008, 12:01 AM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,435 times
Reputation: 249
those are your cap rates, typically each adjustment period cant go up more than 2%
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Old 09-18-2008, 06:09 AM
 
Location: Plano, Texas
1,676 posts, read 6,332,679 times
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Quote:
Originally Posted by CMKM-Miller View Post
Curious, I have a ARM tied to a LIBOR. My current rate is 5.25% and will remain that way until April 2010. By then, my wife and I will be out of our home. But curious, how would that effect my rate if my rate was to adjust say next month ? I was told by my lender I had a margain of 2.25%. My mortgage couldn't go below 3.5% or higher than 10.5% If you know what would be great.
There are several libor rates your loan could be tied to, the 1 month libor, 3 month, 6 month libor or 12 month libor. Currently these range from 2.75 to 3.15. So, if you have a margin of 2.25 and lets say you are tied to the 12 month libor, your rate would be 2.25+3.15=5.4%, so your loan would adjust to 5.4%. There are several sites you can visit to get current libor rates just google libor rates or look in your newspaper in the business section.
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Old 09-18-2008, 09:10 AM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,435 times
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you need to find out what your adjustment period is, 6 month or 12 month. but you good for a few more years
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Old 09-18-2008, 09:11 AM
 
Location: Sacramento, Ca
94 posts, read 296,591 times
Reputation: 49
Thanks Victor !! That was helpful. I have a 12-month LIBOR. Again, not that we'll be in our home come April 2010 but should for some horrible circumstance we remain so, knowing it would only adjust to 5.4% (at current market rate) is somewhat reassuring. I was imagining it skyrocketing to 7.5% or something like that and us being in a position where our mortgage payment would increase by about $450/month.
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Old 09-18-2008, 09:14 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,093,116 times
Reputation: 1007
rates dropped this week to 5.375% for a 30 year fixed.
(they gone up to 5.75% with most lenders)
of course you would need to have very good equity, and 700+ credit score.

i read somewhere that refinance applications have gone up 80%!!!!

i know most of the guys here are busy getting calls

Quote:
Originally Posted by CMKM-Miller View Post
Thanks Victor !! That was helpful. I have a 12-month LIBOR. Again, not that we'll be in our home come April 2010 but should for some horrible circumstance we remain so, knowing it would only adjust to 5.4% (at current market rate) is somewhat reassuring. I was imagining it skyrocketing to 7.5% or something like that and us being in a position where our mortgage payment would increase by about $450/month.
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Old 09-18-2008, 09:34 AM
 
Location: Sacramento, Ca
94 posts, read 296,591 times
Reputation: 49
Unfortunately, Refinancing isn't an option as we're upside down on our current home. It had crossed my mind simply to alleviate the possibility of the rate adjusting but I don't think anyone would touch us know. My wife and I have near flawless credit. Last time we had our score done in early '07 it was roughly 760 for each of us and nothing has changed since then. The real estate market has absolutely tanked in California. Even though we bought it in 2003 before it hit it's peak in 2005, the bottom has dropped so far we couldn't do it. We're lucky when we do sell family will be able to help us with the difference.
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Old 09-18-2008, 11:08 AM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,435 times
Reputation: 249
Quote:
Originally Posted by renriq02 View Post
rates dropped this week to 5.375% for a 30 year fixed.
(they gone up to 5.75% with most lenders)
of course you would need to have very good equity, and 700+ credit score.

i read somewhere that refinance applications have gone up 80%!!!!

i know most of the guys here are busy getting calls
yeah, our inbound call center has been getting dropped calls for the last few weeks because of the amount of people all trying to refinance. we had to scramble to hire 80 more people to handle these. we are averaging 1 call every 2 mins.
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Old 09-18-2008, 08:41 PM
 
Location: NJ
1,408 posts, read 2,920,134 times
Reputation: 1486
Default arm

I have a 5 year arm that adjusts in may 2009, my ltv when i refi will be about 75. the only thing im concerned about is when i go to refi that i qualify with a dti about 55 and credit scores for me and my husband 700-750. how would i know if i have a libor? would it be on any of my closing papers?note,mortgage?
thanks
deb
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