I entered an ARM in June of last year. Past credit indiscretions made it the best option available at the time. (Mid score was sitting at 590) Over the last 15 months I have done things right. I just got my FICO scores and am now sitting at 727 - 731 - 744. I want to refinance the $222k left on the ARM in to a 30 yr fixed.
I would appreciate any insights people can provide on the rates I can expect in the current environment. Based on the myfico charts for my state it looks like I may be somewhere in the 6.3% range. Can anyone verify or comment? Thanks.
With your excellent FICO scores (and congratulations on your awesome efforts to raise your scores from 590 territory!), you will easily be able to jump into a fixed 30 at 6.3%, or even LOWER. I would wait till next week to see how much of a Fed rate cut happens on Tuesday (more than likely, only 25 basis points, but maybe 50). If you can also pay a point on your mortgage, I would to get your interest rate even below 6%. Next week will be very interesting, but you are definitely sitting in the catbird seat (so long as you're doing a fully documented mortgage). If I were you, I might also look into discussing doing business with a credit union too, since you may get the best possible rates from them, as opposed to your bank or mortgage broker. **bleep** luck and way to go!