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You have an ARM 5.875 fixed for 3 years and you still have 2 more years left on your ARM you are planning to sell house in 2 years Is it worth to refinance for fixed interest rate?
Wiki User
∙ 16y ago
Just from the information you have provided, I would not think so. If there are 2 more years to go on the original rate, and you are planning on selling by the time it is scheduled to increase, what advantage would you have?
The lowest interest rates on fixed loans aren't much lower than you already have. If you need to try to lower your payments, then it might make sense, but with the closing costs, most financial advisor's agree that you don't usually pay off the extra costs until several years (usually 5) after the refinance.
Don't forget to find out if your taxes will go up with a refinance.
There are many excellent, free sites on the internet that can do the calculations for you, so I would advise you to try several different plans and see how they would work for you.
Be sure you are aware of what the appraisals are in your area, so you won't have any unpleasant surprises.
Wiki User
∙ 16y ago
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Why do people Refinance a house?
People refinance a house because they need money quickly. They might need money for a sudden illness, unexpected home repair or job loss. They also might refinance if the interest rates are low enough.
Are refinance mortgage rates fixed or adjustable?
Yes they are fixed and adjustable, if you are expecting bigger income soon or selling the house in the next 5 years then adjustable is recommended, otherwise its much easier and simple to have a fixed rate.
What do you have to do to refinance your mortgage?
You have to go to the bank that has the loan on your house. They will have you fill out a bunch of paperwork. After that they will refinance your house.
Can I refinance my mortgage if I have low equity in my house?
Yes it is possible to refinance your house if you have low equity. But you must have at least 20 percent equity before your refinance will be apporoved.
What describes how a fixed rate mortgage works?
A fixed rate mortgage is a loan to buy a house and/or property in which the interest rate charged is 'fixed' or does not change. For instance, if you take out a 30-year fixed rate mortgage, you will have the same interest rate for the first payment as you will for the last payment, 30 years later.
Why do people Refinance a house?
People refinance a house because they need money quickly. They might need money for a sudden illness, unexpected home repair or job loss. They also might refinance if the interest rates are low enough.
When is it a good idea to refinance your home?
When your interest rate will go down, when your house is worth more then you paid for it or when your remodeling or updating your house.
Are refinance mortgage rates fixed or adjustable?
Yes they are fixed and adjustable, if you are expecting bigger income soon or selling the house in the next 5 years then adjustable is recommended, otherwise its much easier and simple to have a fixed rate.
What do you have to do to refinance your mortgage?
You have to go to the bank that has the loan on your house. They will have you fill out a bunch of paperwork. After that they will refinance your house.
If Ted wants to buy a house and believes that interest rates will rise he should?
If Ted wants to buy a house and believes that interest rates will rise, he should apply for a fixed rate mortgage.
Can I refinance my mortgage if I have low equity in my house?
Yes it is possible to refinance your house if you have low equity. But you must have at least 20 percent equity before your refinance will be apporoved.
What describes how a fixed rate mortgage works?
A fixed rate mortgage is a loan to buy a house and/or property in which the interest rate charged is 'fixed' or does not change. For instance, if you take out a 30-year fixed rate mortgage, you will have the same interest rate for the first payment as you will for the last payment, 30 years later.
What would my fixed mortgage be on a $100,000 house?
The amount of a fixed mortgage is based on principal, interest, taxes and insurance. For a $100,000 loan with a 6.5% interest rate and a 1.5% property tax rate, the payments would be 777.90. If mortgage insurance is required, that would be additiona.
How can a person get a refinance mortgage?
An individual can get a refinance mortgage on their house by applying from one. Not everyone would be accepted though because their are some qualifications.
What kind of loan do you get when you refinance your house?
u get a pot load of money
When should you refinance your house?
Disclaimer: have not worked in this field for over 20 years.The rule of thumb used to be that you refinance your home when prevailing interest rates fall 2 percentage points or more below the rate at which your home is currently financed. In other words, if you financed your home at 7% interest, and the rate today is 5% or less, you will save money by refinancing. This answer does not take into account offers to refinance your home without fees, or with reduced fees. Take extra care to find out how the lending institution makes money on refinancing you if they don't charge any fees. They would not be offering refinance unless they make money somehow. Be careful who you refinance with. Some companies will sell your mortgage to other finance companies, and some promise never to do that. The disadvantage to you if they sell your mortgage to another lender is that you may get crappy service, or the new lender may not have payment terms as good as the original lender. Be smart and avoid adjustable mortgages (ARM's). Pay as large a down payment as you can, and accept only fixed term, fixed rate mortgages. Bear in mind that you want to stay in a home at least 7 years if you want to break even on the sale, if you decide to sell.
How can I try and refinance my house?
The best thing one can do when it comes to refinancing their home is to shop around to different financial institutions to get the best rates. Different banks have different interest rates and fees so shop wisely.
