SECU 2-Year ARM now 3.75 percent (mortgage, refinance, loans)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Has anyone noticed that SECU's (http://www.ncsecu.org/Loans/AdjustableMortgage.html - broken link) rate on their 2-Year ARM is now 3.75 percent? That must be a historic low.
Has anyone out there with a SECU mortgage refinanced or paid their mortgage modification fee to capture this rate?
Last edited by Nelson919; 02-20-2009 at 01:00 PM..
People...it is a TWO YEAR adjustable rate. Do you know how quickly 2 year's passes? Then what?
Vicki
Well SECU is pretty good about their ARMs. MAx rate on this loan could be up to 12% and the 3.75 is an initial rate, with an APR of 4.67. This is a good deal if and only if rates stay low or you will be done with the mortgage in a few years, as you will not be over 6% until the 4-6 year range (1% max increase every 2 years).
On my last home I used the SECU 2yr arm and at that time it was around the same rate. It can only go up 1% every 2 yrs and there is a max out, but I can't recall what it was.
I understand your point...however, isn't this what has gotten so many people into trouble today?
So many took the adjustable rate mortgages with the first year being so low but each and every year, the rate went up. They QUALIFIED on the first year's monthly payments. By the 3rd year, because their income didn't go up, they were having a hard time making the payments.
So...I say this to those that are contemplating this...know the best AND the worst case senerios when deciding how much monthly payment you can afford.
Originally Posted by VickiR
People...it is a TWO YEAR adjustable rate. Do you know how quickly 2 year's passes? Then what?
After year two the rate will adjust to a maximum rate of 4.75 percent for years two through four. For years four through six, the worst case scenario is 5.75 percent. So that's six years at a maximum average rate of 4.75 percent. That's the worst case scenario.
Six years is a reasonably long planning horizon for a mortgage. If after six years, there's no good option available (sell and move on, refinance, pay down the loan), then we probably have worse problems to worry about than our mortgage interest rates.
I understand your point...however, isn't this what has gotten so many people into trouble today?
So many took the adjustable rate mortgages with the first year being so low but each and every year, the rate went up. They QUALIFIED on the first year's monthly payments. By the 3rd year, because their income didn't go up, they were having a hard time making the payments.
So...I say this to those that are contemplating this...know the best AND the worst case senerios when deciding how much monthly payment you can afford.
Vicki
Sure thing, all around.
But for the person who can qualify at 5.5% or 6%, and has the discipline to manage finances, 90% funding @ 3.75% or 100% @ 4.25% with no PMI can be compelling.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
