Mortgage Trend

happee asked:


We’re planning to refinance our 7-year ARM (5.125%, expires 12/2011) and 7.9% 2nd mortgage. Right now, we can get it at 6.25% in one mortgage, but we were hoping for a 6.125 or 6% mortgage (since we’re not in a huge rush to refi, but want to play it safe since rates are pretty decent on 30-year loans).

I know the Fed might drop rates again before the end of the year, but I know it doesn’t directly affect rates as much as stocks, bonds, and the Treasury Bill. These are the aspects of the market I am clueless about…

What do YOU predict will happen or what would you recommend we do? We would be paying less than we pay now, no matter what, so we’re gonna refi, it’s just a matter of when.

Thanks SOOOOO much for your help! If you give the best/most accurate prediction or recommendation, I’ll send you a box of goodies (7-layer bars, cookies, brownies, or your choice)! And they’ll be awesome, I promise!
FYI: We do plan to stay here for AT LEAST 10 more years. Otherwise, we wouldn’t consider switching.

Our loan would be for $320,000.
I should also point out that our mortgage payment would DROP from $2428 to $2358 (at 6.5%). Our second mortgage at 7.9% on 90,000 is the reason…

We’ve paid $9,000 in principal in the past 33 months and our home is valued at $380,000 (appraised).
Buying down the rate actually costs more, even long-term, so we won’t be doing it again.
Thank you so much, everyone, for all of your thought-out answers! I’d love even more…
I think we can afford to wait a few more months–if needed–to catch a slightly better rate. Our credit is good (700+), so I think we can get a decent loan.