Posted on: 12th Nov, 2010 02:44 pm
I have 4 years and 3mos. left on a 15yr mortgage at 5125%
loan balance 25,634
would it be advantageous to swcith to an ARM for 4 years ?
loan balance 25,634
would it be advantageous to swcith to an ARM for 4 years ?
Hi nicfic ,
Welcome to mortgage fit,
If we assume that in coming 4 yrs mortgage interest rates are not going to increase significantly then we can say that changing from fixed to ARM would be an advisable proposition......
But if .......demand for real estate increases over coming 4 yrs obviously interest rates are going to increase and it may cross your existing interest rate fixed 5.125 %..........then you will be at loss......
So there is no perfect answer to your question but only guesswork and some guideline can be marked...According to me you should go for ARM only if you are getting more than 1 % interest difference at this moment....
Feel free to ask any further query if you have..........
DIPA
Welcome to mortgage fit,
If we assume that in coming 4 yrs mortgage interest rates are not going to increase significantly then we can say that changing from fixed to ARM would be an advisable proposition......
But if .......demand for real estate increases over coming 4 yrs obviously interest rates are going to increase and it may cross your existing interest rate fixed 5.125 %..........then you will be at loss......
So there is no perfect answer to your question but only guesswork and some guideline can be marked...According to me you should go for ARM only if you are getting more than 1 % interest difference at this moment....
Feel free to ask any further query if you have..........
DIPA