cancel
Showing results for 
Search instead for 
Did you mean: 

Is a one year ARM good deal - should rates go down next year (election year?)

tag
Anonymous
Not applicable

Is a one year ARM good deal - should rates go down next year (election year?)

Hi - I have been shopping to refinance my mtg.  I have been quoted on the phone 6.5 or 6.75 for 30 yr fixed - but one loan officer said that he also had 1 yr arm at 5.25% suggesting that rates should be much lower next year.  Thanks!  Lynn
Message 1 of 4
3 REPLIES 3
chartley3
Frequent Contributor

Re: Is a one year ARM good deal - should rates go down next year (election year?)

Go with the fixed loan. If rates do indeed drop then you can easily refi it to get the better rate. ARM's can be nice but if rates go up you will end up paying $100's of dollars more per month. This is what has lead to the high rate of forclosures in the real estate market.
Message 2 of 4
Anonymous
Not applicable

Re: Is a one year ARM good deal - should rates go down next year (election year?)

Way too much risk at this time. A 5 year or 7 maybe. But a 1 year when lots of lenders are closing up shop and for such a small difference? Go fixed.
Message 3 of 4
Anonymous
Not applicable

Re: Is a one year ARM good deal - should rates go down next year (election year?)



@Anonymous wrote:
Way too much risk at this time. A 5 year or 7 maybe. But a 1 year when lots of lenders are closing up shop and for such a small difference? Go fixed.




Agreed.
Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.