O/T Bankers or Mortagage brokers
#1
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O/T Bankers or Mortagage brokers
Just looking for a little insight on how best to finance a new home we are looking at. Is an ARM the best way to go right now? We always pay extra every month on our mortagages, try to average about $500 month extra, so if we continue to do that, is there any benefit to go with a 15 yr. vs. 30 yr. mortgage?
Any input would be greatly appreciated.
MD
Any input would be greatly appreciated.
MD
#2
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Location: Grand Haven, MI USA
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I have been a Mortgage Broker for 17 years. In that time I have never seen fixed rates this low. I would stick with a 15 year fixed if you pre pay that much. Very few ARMs have as low a rate and only set you up for a possible problem when they adjust. At that time for many ARMs there is no cap on the adjustment so if rates go crazy you are stuck. If you plan on a short time within the lock period you could be OK but if you change your mind later and stay you are at the mercy of the economy. You can call me at 616-546-6309 for more.
#3
With the interest rates as low as they are I personally wouldnt go with anything but fixed. I would also take the 30yr and make the extra payments to "principle" and cut down the term that way. If you do that, you will be prepared for any unforseen situation that you may need extra money.
Im not a broker or banker but that would be my chioce.
Im not a broker or banker but that would be my chioce.
#4
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Originally posted by MitchStellin
I have been a Mortgage Broker for 17 years. In that time I have never seen fixed rates this low. I would stick with a 15 year fixed if you pre pay that much. Very few ARMs have as low a rate and only set you up for a possible problem when they adjust. At that time for many ARMs there is no cap on the adjustment so if rates go crazy you are stuck. If you plan on a short time within the lock period you could be OK but if you change your mind later and stay you are at the mercy of the economy. You can call me at 616-546-6309 for more.
I have been a Mortgage Broker for 17 years. In that time I have never seen fixed rates this low. I would stick with a 15 year fixed if you pre pay that much. Very few ARMs have as low a rate and only set you up for a possible problem when they adjust. At that time for many ARMs there is no cap on the adjustment so if rates go crazy you are stuck. If you plan on a short time within the lock period you could be OK but if you change your mind later and stay you are at the mercy of the economy. You can call me at 616-546-6309 for more.
Pete
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Pete
Pete
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Dean,
I would DEFINITELY talk to Mitch. He is a great guy. You may also wish to consider taking the 1 or 30 year and making bi-weekly payments. This cuts a significant amount of time off your payment period.
Good luck.
Shane
I would DEFINITELY talk to Mitch. He is a great guy. You may also wish to consider taking the 1 or 30 year and making bi-weekly payments. This cuts a significant amount of time off your payment period.
Good luck.
Shane