ARM Mortgage?

We are on an adjustible rate mortgage. It had risen twice in the last two years. It was set to rise again in October, but instead stayed the same. We are set for another possible increase in April. My question is if the Federal Interest Rate has gone down, will our mortgage go down, stay the same, or go up?

Thanks!!

ARM Mortgage?

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www.loansafe.org

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ARM Mortgage?

The fed interest rate is tied to short term rates. It wont affect your mortgage too much because the rate is not much of a change. I think you should lock in your rate when it is about 5-7%. When you have a fixed rate, the risk is on the lender. When you have variable rate, the risk is on the borrower(which is you). Curious to know what your rate is. Mine is 6.25% fixed.

ARM Mortgage?

You have to see if your ARM is tied to the Fed funds rate or not. If it is an Option ARM or HELOC it may be, otherwise probably not. You should look at refinancing now while rates are extremely low. This isn%26#039;t a sales pitch, it%26#039;s reality. Refi now before it%26#039;s too late.

Response to additional info:

As I said, refi now, that rate is insane.

ARM Mortgage?

The answer to your question is in your loan documents. I nearly went blind trying to make sense of mine, but on the 3rd reading, I finally made sense of them. It is spelled out for you there, it%26#039;s just wading thru all the legalese. Remember; for awhile there, they were coming up with some new-fangled mortgage product/loan every 3 mos or so. They%26#039;re all potentially different.

ARM Mortgage?

probably go up since they are designed to go up. with all the problems the mortgage companies have right now, they don%26#039;t necessarily depend only on the Fed rates; there are alot of factors that affect the moving of arms; i don%26#039;t really ever remember arms going down from a set starting point just because the fed rate went down, there were usually other factors involved and it takes awhile for the trickle down effect to reach u. i would get a fixed rate if you qualify - since the rates are so low.

ARM Mortgage?

you have a rate of 10.625% and you%26#039;re wondering if you should refinance? You%26#039;ve got to be kidding me. The highest rate that you could get today is almost 3 points lower than what you currently have. What the hell are you waiting for?

ARM Mortgage?

It will more than likely stay the same. But rates are for the most part at 6% or under, you may want to look into possibly refinancing. It is very possible that you could save a great deal of money and get your rate where you know it will stay the same. It may be worth checking into if your credit is good. Good Luck!