February 4th, 2010 10:02 PM by Eric Fang
Questions:Hi, Eric, I am looking to refinance my primary single family home (worth around 900K) for a loan of around 350K. Please let me know the rates for 7/1 ARM, 15 fixed and 30 fixed.
Answer: I think you are interested in long term loan programs. Since 7/1ARM rate is not that good recently, I would like to recommend either 15 yr fixed or 10/1ARM. And I will recommend 10/1ARM. For this kind of loan, 15 yr fixed rate 4.375%; 10/1ARM 4.5%; and 30 yr fixed 4.875% to 5%(10 yr fixed 4.125%) -- all for no cost.
And among them, 10/1ARM is the best. It has the minimum mortgage payment and maximum flexibility.
If you want to make payment as 10 yr fixed or 15 yr fixed, it's a 10 yr fixed or 15 yr fixed loan.
And if you don't want to make extra payment(or any future plan changes), your payment is more affordable.
And I am glad this borrower is doing refinance with me for 10/1ARM.
Please post your comments here if you like.