Mortgage Blog

I got a few loans and lots of inquiries for the ARM refinance recently, even when the rate is at 4 months high. The main is the higher ARM rate. It is very interesting that people are more eager to refinance when the rate is high.

Seems like Fed will increase the Fed rate for another 0.25% this Dec, and this caused the ARM rate much higher than expected. One client called me yesterday saying that they got a letter from the lender that their new ARM rate reset to 3.875%. I do not know the new rate is so high. Anyway, we are doing the refinance now with ARM rate 2.75% for 5/1 ARM with no closing cost at all.