7-year ARMs

locolocal

locolocal

New member
Say you got one of those 7 year ARMs in 2005 and it was scheduled to reset in a couple months, would your payments be more or less than they were?

I seem to remember back in the IHB days that the consensus was that housing was going to implode around now.  But I don't think anyone guesses that interest rates would be at historic lows seven years later.
 
locolocal said:
Say you got one of those 7 year ARMs in 2005 and it was scheduled to reset in a couple months, would your payments be more or less than they were?

I seem to remember back in the IHB days that the consensus was that housing was going to implode around now.  But I don't think anyone guesses that interest rates would be at historic lows seven years later.
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Today your rate would reset to about 3.375% or 1-year LIBOR (rounded up to the nearest 1/8%) + 2.25%. 
 
I'm assuming they are less.

Even mid 2000 OptionArms loans are less now because the rates are so low... I recall the teaser rates were in the 4s or 5s... which is where 30yr rates are now.
 
irvinehomeowner said:
I'm assuming they are less.

Even mid 2000 OptionArms loans are less now because the rates are so low... I recall the teaser rates were in the 4s or 5s... which is where 30yr rates are now.
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HAMP 2.0 is allowing even folks who are underwater to refi to rates in the mid 3s. 
 
irvinehomeowner said:
I need to get on this HAMP 2.0 or is it HARP 2.0? So confusing.
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The program even lets your refi rental properties so long as the loan is owned by Fannie of Freddie.  I'm refi'ing one of my rentals down from 5% to 4.25%.
 
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