samantha25
Pearl Clutcher
Posts: 2,914 
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Post by samantha25 on Aug 13, 2017 1:43:44 GMT
My mortgage will adjust in Nov. and am in the process of getting quotes, etc and trying to do research to be an informed consumer.... We will move in 2 years, so I'm looking for a no-cost closing, maybe not the lowest rate. My question: should I stay in the ARM and pay the adjustment rate? I'm not sure. I got a Loan Estimate from Loandepot and their P and I is more than what I pay now and the total amount of loan is $60,000 less than what we did in 2010. I have an inquiry to my original broker. TIA
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michellegb
Pearl Clutcher
Posts: 3,915
Location: New England and loving it!
Jun 26, 2014 0:04:59 GMT
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Post by michellegb on Aug 13, 2017 10:16:17 GMT
If you are going to move in 2 years, I wouldn't go through the hassle or cost of refinancing. A no-cost closing still costs you money - you just finance it. So you will be paying for it, just not up front.
I have had an ARM mortgage for the past 15 years and my interest rate has always been lower than what is being offered in the market. It just re-adjusted and although the rate went up to the highest it's been in 15 years, my payment went down because they calculate the new payment on the lower loan balance.
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Post by mikklynn on Aug 13, 2017 11:15:45 GMT
Often what is quoted as a no-cost closing means the costs are added to your mortgage balance. If you are only staying two years, it's probably cheaper to just adjust to the new rate without refinancing.
You'll have to get quotes and do the math.
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