Gang-

We're 3+ years into a 5/1 ARM 30 yr. mortgage with an interest rate of 6.25%...

Through the terms of our mortgage loan, we're entitled to one loan modification before we hit month 60, when a max of 3 points can be added to our interest rate for the loan.

Its not a question of should we do this, but when?

Currently, our financial institution's 30 year notes are at 4.75%, which is 1.5% lower than our current rate.

Some "expert analysts" feel the 30 yr. interest rates will drop close to 3.5% by the Summer.

This is our first home, so we're new to this. Should we take the 4.75% and run or wait and watch what happens?

Thanks!

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Bill in Dayton

[This message has been edited by Bill in Dayton (edited 01-12-2009).]

How about thos Eagles?

[This message has been edited by Dnj (edited 01-12-2009).]

Stay with the ARM.........but only if your doctor has given you two weeks to live.

chas

Nice...

Couple of guys with nothing better to do than goof me on a Monday morning...



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Bill in Dayton

I'm not a financial expert by any means, but a mortgage fixed for the next 30 years at 4.75% would be wonderful when you look at interest rates historically, and would be a substantial saving on your current payment.

I heard that the current interest rates take into account future fluctuations; the base rate can't go much lower, so I would be interested to hear who is speculating that rates will go so low as 3.5%.

In your situation I believe I would be taking the bird in the hand.

Chas is serious...get out of the ARM..

Bill really this personal business shouldnt be discussed on an open forum.

Don...should some harm come to me as a result of posting this question I will make sure I hold you harmless, ok?



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Bill in Dayton

Like I said, Fran...it's not a question of if, but when?



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Bill in Dayton

I've heard a few of the guys on CNBC comment that after Obama gets in, they may go down even further.

Also, our own financial advisor says this may not be the bottom on mortgages just yet.

I can't go wrong by doing it now...but, with 2+ years to go before I have to do anything, maybe I should sit tight for a month and see what happens.

Either way, I don't see us waiting past Spring to do this...

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Bill in Dayton