subject: Should I Refinance my Adjustable Rate Mortgage Now or Wait for the Interest Rates to Drop? [print this page] With interest rates are on the rise, many people ask if they) their variable-rate mortgage (ARM should, especially since the refinancing of approximately one of four mortgages reset their interest rates will have in 2006 or 2007. This means that your interest rate adjustment, and probably sooner than you think, especially if you are 2 / 28 or 3 / 27 hybrid ARM are operating. You know your payment is always, perhaps as much as $ 300 per month, as prices continue to rise. So, now theQuestion is whether they refinanced into an interest-only mortgage, ARM or another to go with a fixed rate mortgage. If you only plan to stay a few more years, you may want an interest only mortgage or any other ARM, that a longer period determined prior offers adjustable time to consider increasing interest rates.
The introductory rate may be higher than your old loan on average about 6.09% for a 1-year arm, and 6.59% for a 5-year arm, compared to about 5.2% this time last year ,pay but probably much less than what you when your rate adjusts.
If you stay for a long time to plan, you might want to get 30 years or 40 years fixed mortgage fixed rate loan. The average cost for a 30-year fixed-rate loan rose to 6.93% in Interest.com recent survey, the Federal Reserve and borrow the phrase charged banks to borrow another quarter-point last week. 40 years fixed rate mortgage is likely to lead you anywherehigher by one quarter to one half of one percentage point. They are more for other fixed-interest loans to pay and after Interest.com, climbed the national survey of lenders: 15-year loans to 6.57% after holding in the 6.3% range for the past month, from 5.23 % a year earlier. 30-year jumbo loans (over $ 417,000) rose to 7.11%, 5.89% from this time last year.
