Fixed Rate or Adjustables Q: Many people seem to be concentrating on fixed rate mortgages these days -- even when it seems ARM loans would make better sense for qualifying. Is there any place for adjustable rate mortgages in this fixed-rate environment?
View Answer Q: Can you explain again the difference between fixed and adjustable rate loans, and how the adjustables work?
View Answer Q: Is there a difference in a 7-year balloon and a 7-year ARM? I am confused. Are these advisable for a 34-year old, single, buying a townhouse thinking he will only be there about 7 years?
View Answer Q: I bought my house for $127,000 in 1998, now valued over $200,000. I refinanced just over a year ago and got a new 30-year at 5.85%, down from 7.125%. But I look at those ARMS and wonder if I should refinance again. My lender keeps after me to refinance with them. I usually add about $50 each month to reduce principal, and I plan to stay in the home for the long term. I've been doing some reading, but don't know what to do. If interest rates go up in coming years I could just refinance yet again into a fixed rate, couldn't I? I have excellent credit.
View Answer Q: We are located in Southern California and are considering a 3/1 loan fixed at 4.25%. Then we were told it is will be based on the adjustable index after three years. Can you tell me what this is and the projected rate (and present rate) for this?
View Answer Q: We are considering an adjustable rate mortgage because of the rising interest rates going on now, but they are very confusing. Which adjustable rate index is best?
View Answer Q: I am a single mother of three, interested in purchasing a home. The lender has offered me a 2/28 ARM @ 8% interest. They said that in 2 years after paying on time I could refinance and lower my interest and possibly my payments also. Is this true? Is it advisable, or should I just wait and fix my credit? I have a really good job now that I did not have. I have done some research and this seems to be okay, but I need more info.
View Answer Q: I hear a lot lately about mortgages called "Pay Options ARMs." Could you explain some of the details please because we are considering the alternatives open to us, and it gets very very confusing.
View Answer Q: My wife and I have been reading about refinancing our mortgage. We have a short-term fixed with 3-1/2 years left, which then changes to an adjustable, but I see a payment at current fixed rates would be higher than the "interest-only" amount we are now paying…by nearly $800 per month if we go full principal and interest. 1) Is it counterproductive to be in an interest-only if you are getting a 30-year fixed and want some day to pay off the house? 2) Would you recommend changing from ARM to Fixed Rate if the increase is $10,000 per year in payments but the savings is nearly $45,000 over the life of the mortgage?
View Answer Back to FAQs |
