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a.k.a EZC
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Looking into refinancing my mortgage. Trying to decide between a fixed and an ARM. Suggestions/comments?

Also, if you are happy with your loan officer, please let me know names and numbers so I can contact them for a quote.

Thanks.
 

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Call the Canadiangirl....she helped everyone I sent her 100% TOP NOTCH JOB
(Even on the messy ones)
 

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DONT do the ARM, the rates are so low now that the benefits of an ARM dont add up. The adjustable rate WILL go up, probably the max (usually 2%) in the first year, then who knows. The initail ARM rate is a sucker rate (thats how I feel about it). You will be stuck with not knowing how much your payment will change year to year.

If you are only staying in your house less than 5 years another alternative to an ARM is a 5 or 7 year balloon. Rates are typically lower on these than 15/30 year fixed. You have to pay off the entire loan (or refinance) at the end of the 5th or 7th years, but the payments are amortized over 30 years.

I am fixing up my house and plan on moving in a few and have a 7 year balloon.
 

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World Savings ~ I did a 3 year arm.

1st year = 3.5%
2nd year = 4.5%
3rd year = 5.25%

After my 3rd year is up, I'll go to a conventional mortgage, but the 1st and 2nd year of the loans more than paid for themself...at the time I got it rates were 6.25, so it definietly benefitted me.
 

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QUOTE(Taxman @ Jul 11 2003, 10:22 AM)Call the Canadiangirl....she helped everyone I sent her 100% TOP NOTCH JOB
(Even on the messy ones)

Thankyou Joe...


Arms are are fine, depending on the terms and how long you plan on staying in the home!... they won't adjust until the initial term is up, could be 1, 3, 5, y years.... depending on which product you choose. If you choose a balloon product, you must refi and payoff the balance at the time the term has ended. If at the time, the interest rates are at 10%(who knows where they'll be)... you'd would have been better off with the arm... make any sense????
 

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Anybody know if there is any way to refinance without closing costs....??

Not rolled in, not anywhere?

I'd like a lower rate.
 

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EZC, how long do you plan on staying in your home??? If only a couple years go the Arm route. If I remember right you originally went through GMAC mortgage. I believe they will refinance existing customers at no or little to no cost. That might be your best bet. It doesn't make sense to refi paying a couple thousand in closing costs etc if you only plan on staying in your home for a year or two. I can run the numbers for ya if you want.
My new house I'm probably going with a 3/1 arm because I plan on selling in it in about 2 years and building a bigger one. Hope this helps.
 

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I didn't realize Canehdiangirl did this till we had already went with Dana. Dana did a great job for us!!!!!! I'm sure Canehdiangirl does a great job as well! At least you have very good choices at LSCN!!
 

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a.k.a EZC
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Discussion Starter · #10 ·
Yeah, I'm with GMAC right now. I originally was going to go with another 30 year fixed (6.375%) and had my loan officer send me the paperwork. She said it'd "no cost" at 5.75%. Looking through it last night, I found that the "cash from borrower" is $1700! WTF?
Just started looking at the 5/1 ARM today. Don't plan on being in the house that long, so most likely I'll go that way.
 

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With the rates the as low as they are I went with a conventional, but I'm planning on staying for awhile. I locked in a 5%. I don't see the rates going much lower then that. You would save a few bucks now with an ARM, but when its over and you need to refinance again I think it will cost you a lot more then you'll save now. I just don't see these rate staying this low for another 5 years. Thats just my opinion and you know what they say about opinion. Its a crap shoots. "So you got to ask yourself one thing do I feel lucky" Good luck.
 

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QUOTE(pauligan @ Jul 11 2003, 12:36 PM)Anybody know if there is any way to refinance without closing costs....??

Not rolled in, not anywhere?

I'd like a lower rate.
I'm sure you have great credit so you can go direct to the lender....check the sunday paper in the homes section and look for a schedule of lenders rates and make a few loan application packages go shopping!

Beter do it before you start looking for a new job <_<
 

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I say.. if you paln on staying in the home for a long period, you're right Mister D.. go the fixed route.. however, if you don't plan on staying as long, the arm product is absolutely fine...

just depends on the circumstances.....
 

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I've refinanced for the fifth time in a little less than 15 years now. I'm no expert but do have a couple of pointers.

The most important thing for me is to find a company that services their own loans. Even though every loan company has the right to sell your mortgage, they are most likely going to hang on to your loan for the life of the loan. There are alot of fly by night mortgage companies out there and sometimes they can really screw up your mortgage.

My mortgage was sold 3 times in one year once and it turned into a bunch of headaches for us. One time the mortgage company that bought the loan did not accept auto payments which is how we were paying the loan off in the first place. Part of my pay check went into the account that paid the mortgage payment, and once a month the payment was automatically made. I never noticed that the payments were not being paid, and they waited until my mortgage was 90 days behind and sent me nasty letters threatening to foreclose <_<

Standard Federal services their own mortgage loans and we have been pretty happy with them so far. So did First Federal, but they changed their name and I don't know how they are to work with.

Our standard federal rate that we are about to close on in a few days is 5.375% (at least last week it was)

If you can't afford a 15 year note, take the 30 year and try to make the 15 year payment. You'll pay it off earlier, and won't be commited to the higher payment every month.


good luck!
 

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I agree with Top Gun. That's why I'm with Standard Federal (ABNAMRO). There rates are competitive. I know someone that had a problem with there loan after it was sold a few times and he had to got to NC to get it straightened out. Another thing is even if you can't make a 15yr payment on a 30yr loan by just making one extra payment per year you can cut about a third of the time of i.e. 30yrs to 20. I just rounded my payment up the the next $100 figuring it will cut of a few years anyway. 13 is better then 15.
 

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My main dis-like about the arm is that you get comforatable with you $1000 a month payment, and then the next year you get to have the $1100 payment. I'm not familiar with all the ARM products but the one I had was max 2% up per year and max 6% total increase over life of loan, adjusted annually. Most information I've heard is that it's a 4-5 year time span where you will save money with an ARM and after that you are better off with a fixed.

True with a ballon you have to refinance or pay it off at the end of the term, but if you know for sure you are not staying in the home for the 5 or 7 years, then what does it matter, you will have to pay off your fixed, arm, or balloon regardless when you sell.

If I was living in the house long term, 15 yr. fixed for sure, if you can afford the extra payment for a 10 year, do that. The rates are so good that picture yourself paid off and 100% equity in 10 years.


I work with a lot of mortgage brokers and companies so I usually don't recommend anyone - dont want to step on any toes or p-off anyone. Have't heard anything but good about c-girl and dana. To avoid playing favorites I did my last 3 through mortgage.com, it is Standard Federals/ABN AMRO site. Very fast, very efficient, lower rates cause they are trying to promote online, and they quote you one fee in the beginning that is guaranteed and is quite nice (one fee mortgage).

Be wary of the "good faith estimate" on closing costs. Although they try to do their best (some are cons), there is NO regulation as to what they have to show on the estimate and this can change big time by the time you sit down for closing. That what is different at the mortgage.com, one flat fee quoted up front.

Also, be careful when refinance and rolling in your costs. You may end up with a lower payment but just chewed up a bunch of equity and extened your payoff time. Got to weigh the benefits vs. the costs.
 

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I agree with most, if you plan on staying go with a fixed rate. Especially now with the rates so low. The shorter the term the better. BIG INTEREST SAVINGS. I refi'd this spring and went with a 10year fixed. It started out with the principal being bigger than the interest in the payment


Myself, I would NEVER pay points to lower the interest rate, takes WAY too long to break even.

My .02
 

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C~girl did ours and we are very happy. She was quick also. We got a great rate, cheap closing costs, and she even came to our closing to make sure we understood everything and answered all our questions.
 

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Going through it right now, actually getting a home equity loan to payoff the mortgage. 4.74% fixed rate (which is not as common) and zero fees or costs. Could have gotten a slightly lower rate for a conventional mortgage, but the other associated costs made it more overall.
 

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QUOTE(Deuce-Five @ Jul 11 2003, 12:10 PM)Have't heard anything but good about c-girl and dana.
... and they both are HOT too!!!
 
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