Refinance Out of an ARM

 The Mortgage U! Mortgage Education Made Easy

For all your mortgage needs:
Dave Zwierecki
Phone 888-418-4467

 Home  |  About Us  |  Calculator  |  Contact Us  |  News   |  Blog  |  Sitemap 

 

Google
 
 
Refinance Out of an ARM
An unprecedented number of loans currently are set to adjust from the fixed portion of the loan to an adjustable rate. How do I refinance out of an ARM? What should I know about my ARM that is about to adjust? What are my options to refinance out of my Adjustable Rate Mortgage?

When refinancing out of an ARM you should also consider the rate you will be adjusting to in the future rather than solely your current rate. ARM rates can adjust anywhere from 1% to 5% on your initial adjustment.

Refinancing out of an adjustable rate mortgage (ARM) can usually save you money because the interest rate and your payments will increase on an ARM after the initial period.

When refinancing out of your current adjustable rate mortgage, just remember that your long term fixed programs will generally be much higher in payment due to the fact that principle is being paid down with each monthly mortgage payment.

If you are looking into refinancing out of your Option Arm program, remember to ask your Loan Officer whether or not you have a pre-payment penalty on the loan. He/she will know whether you do or not by ordering the payoff.

You should take a look at your loan papers to determine if you have a prepayment penalty. If you do, you will want to know for how long the term of the prepayment penalty is and how much the prepayment penalty will cost you. If you do not have a cpy of your note, you may want to call your loan servicer.

If you are refinancing out of an ARM then you should really look at fixed rate mortgages. Interest rates have recently increased and rates are still relatively low.. By switching to a fixed rate mortgage you will give yourself long term stability as opposed to an ARM.

Current market conditions make the option of refinancing an expiring Adjustable Rate ARM mortgage to convert to a fixed rate and fixed payment mortgage more attractive than ever. Adjustable rates are at 5 year highs, and fixed rates are currently a bargain.

 

Contact Us
If you have any questions regarding our products, you can contact us by calling or e-mailing us and we'll get back to you as soon as possible. Thanks!


Name
Current Address
City, State, Zip Code
Phone
E-Mail
Purchase/Refinance/Debt Consolidation

Comments/Questions/:



 
 
 Information listed above is to be used for educational purposes only and is not guaranteed

Home | Contact Us | News | About | Sitemap | Bad Credit | Homebuyer | Sitemap3 | Sitemap4 | Sitemap5 | Sitemap6 | Sitemap7 | FS Home Loan | No Money Down | First Security | Blog| Privacy Policy

Copyright 2007 First Security Financial Services, Inc.  All Rights Reserved... First Security Financial Services is a full service mortgage provider offering  mortgage educational tools in addition to hundreds of mortgage programs.                                                                                                                     Mortgage Broker | BANKRUPTCY is bad FORECLOSURE is worse | Super Jumbo Mortgage | Credit after Bankruptcy | What is Underwriting a Mortgage | Quiken Loan