Mortgage money and college money?

I have a 5/1 ARM mortgage and my daughter will go to college in year 2009. The mortgage will increase in year 2010. I have saved some money for my house in case the mortgage interests rate is too high in year 2010. Then, I can put the money into my principal to low my monthly payment. However, if the money stays in bank, I will be forced to use it to my daughter閳ユ獨 education. What should I do? Should I move my money to my mortgage now?

Gratefully,

needknow

Mortgage money and college money?

well, you have 2 years to gamble on long term interst rates. right now they are lower than short term so refinaince now is a good option. Your payment probably won%26#039;t go up if you refy now. Then you can keep the money for college. You might consider an education IRA at your bank. since we are talking about needing money in a year, a safe investemnt like a CD would be a good idea. I think you can get one for like 5% now. I%26#039;m not sure of the rate though because I%26#039;m not buying CD%26#039;s right now. The IRA prevents you from paying some taxes. The impact would be low though because we are only talking one year%26#039;s worth.

Mortgage money and college money?

You should refinance and get a fixed rate mortgage!

Mortgage money and college money?

Refi your mortgage as soon as you can!!! The mortgage WILL raise your interest rate the maximum amount at the earliest possible moment, and every opportunity after that.

An ARM is designed (if used wisely) to get you INTO a house...PERIOD. You must refi before the rate can go up. It will go up. Trust me on this.

Use your money to REFINANCE. Please. Have I made my point?