5-1ARM ???'s

[Anonymous]

We have a home in Texas purchased April 2004 on a 5-1 ARM, current rate 4.125% with a cap to 9.125%.  As this is a 5 year adjustment, when is the recomendation to begin refi?  Feb?  Mar?

Thanks.

Message Edited by daWorm on 09-10-2007 08:51 PM

[Anonymous]

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@Anonymous wrote:

We have a home in Texas purchased April 2004 on a 5-1 ARM, current rate 4.125% with a cap to 9.125%. As this is a 5 year adjustment, when is the recommendation to begin refi? Feb? Mar?

Thanks.

Message Edited by daWorm on 09-10-2007 08:51 PM

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Pre-payment penalty?
LTV?

[Anonymous]

No-prepayment penalty

House value = 300K

Outstanding amount 201K

I won't be pulling any money out - just setting to a fixed term.

Thanks.

[Anonymous]

OK-
If I am reading correct-You have 1.5 years before the first adjustment.

What is the max yearly adjustment?

Google "refinance arm calculator" to figure it out.

[Anonymous]

I have 1.5 years but it will be here before I know it.

My max adjustment is 5% and 9.125% is my maximum rate cap.  I expect it will adjust the full 5% as I have been so low for awhile.