Super excited because I wasn’t sure everything would go through—it seemed too good to be true, but it’s official! Just got the final approval and need to sign the paperwork. I worked with a local credit union, secured a 4.875% rate, no points, a $3,000 lender credit, and a 3/3 ARM with no PMI. I might recommend them, pending if they have a referral program.
I refinanced at 1.275% with no other details shared.
Please reconsider taking an ARM right now.
Delaney said:
Please reconsider taking an ARM right now.
Why do you think an ARM is risky at this point?
Delaney said:
Please reconsider taking an ARM right now.
Why do you think an ARM is risky at this point?
There’s a lot of uncertainty in the market. People expect rates to drop, but the 10-year treasury yield is still high. The Fed recently suggested rate cuts might pause if inflation picks up unexpectedly. The economic outlook remains uncertain.
Delaney said:
Please reconsider taking an ARM right now.
Why do you think an ARM is risky at this point?
The current climate is volatile, especially with potential changes in government policy. It might not be the best time for an ARM.
People refinancing into ARMs feels reminiscent of 2008. Banks might be capitalizing on this with enticing offers as rates and prices stay high.
Drew said:
People refinancing into ARMs feels reminiscent of 2008. Banks might be capitalizing on this with enticing offers as rates and prices stay high.
Not sure how it’s trickery when the terms are disclosed upfront.
Can you provide more details? Is it a 3-year adjustable?
How did you manage a 4.875% refi when rates are higher?
Owen said:
How did you manage a 4.875% refi when rates are higher?
It’s an ARM.
Rates probably won’t drop below 4.875% in the next 3 years. Your ARM could become problematic down the line. This type of loan requires careful monitoring.
What’s the structure of the ARM? Adjustment intervals, cap percentages? Congrats if it works for you! Personally, I prefer the stability of my 5.12% fixed rate.
Lian said:
What’s the structure of the ARM? Adjustment intervals, cap percentages? Congrats if it works for you! Personally, I prefer the stability of my 5.12% fixed rate.
Did you get your rate through a credit union too?
@Elliot
Mine was from a large national lender specializing in mortgages. It could have been lower if a different bank hadn’t messed things up.
Lian said:
What’s the structure of the ARM? Adjustment intervals, cap percentages? Congrats if it works for you! Personally, I prefer the stability of my 5.12% fixed rate.
A fixed rate would have been nice, but we reduced our payments significantly thanks to the credit, saving about $600 a month. Our ARM is a 3/3, adjusting at the end of the 3 years with a max change of 1.5%.
If anyone’s unclear, just Google ‘what is a 3/1 ARM’ for a quick explanation.
Despite what others say, if you’re prepared, ARMs can work just fine.