Comments on: Time to revisit my Option-ARM http://www.livelearninvest.com/time-to-revisit-my-option-arm/ Living life to its fullest by generating passive income through investments Thu, 02 Feb 2012 03:11:13 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: monarchcrest http://www.livelearninvest.com/time-to-revisit-my-option-arm/comment-page-1/#comment-114 monarchcrest Thu, 29 Jun 2006 04:18:00 +0000 http://www.afterreadingrichdadpoordad.com/?p=128#comment-114 trisha, If you are going to sell it's almost always a losing proposition to refi. Refinancing is always a simple math formula. All you have to do is plug in the numbers. If you are selling in May, it is 8 months. So take 8 months and multiply by the dollars saved per month by the lower refi payment. If that amount is greater than your closing costs for refinancing then go for it. That being said, a typical refi may cost you $3,000 so you're payment would have to be at least $330 lower to make it worthwile. trisha,

If you are going to sell it’s almost always a losing proposition to refi. Refinancing is always a simple math formula. All you have to do is plug in the numbers. If you are selling in May, it is 8 months. So take 8 months and multiply by the dollars saved per month by the lower refi payment. If that amount is greater than your closing costs for refinancing then go for it. That being said, a typical refi may cost you $3,000 so you’re payment would have to be at least $330 lower to make it worthwile.

]]> By: Trisha#1 http://www.livelearninvest.com/time-to-revisit-my-option-arm/comment-page-1/#comment-113 Trisha#1 Thu, 29 Jun 2006 02:49:00 +0000 http://www.afterreadingrichdadpoordad.com/?p=128#comment-113 I have a similar dilemma with the house we live in. We used an ARM to buy the house, but have had to wait to refi until the pre-payment penalty expires, which is this October. The issue is this--we want to sell in May. So, is it worth it doing a refi??? I don't know. I'm waiting until September to decide. I'm passing the buck onto my future self. I have a similar dilemma with the house we live in. We used an ARM to buy the house, but have had to wait to refi until the pre-payment penalty expires, which is this October. The issue is this–we want to sell in May. So, is it worth it doing a refi??? I don’t know. I’m waiting until September to decide. I’m passing the buck onto my future self.

]]> By: Steve http://www.livelearninvest.com/time-to-revisit-my-option-arm/comment-page-1/#comment-112 Steve Wed, 28 Jun 2006 13:58:00 +0000 http://www.afterreadingrichdadpoordad.com/?p=128#comment-112 I have an Option-ARM on my rental as well. It has a 1yr soft prepay, and I am thinking of converting it to a fixed rate loan when the year expires in August. I can't recall the starting point, but it has crept up 1/8% to 1/4% every month since last August. It's now at 8%. It was nice for that short time, but my broker then was hailing it as the best thing since sliced bread. At this rate, I'll be paying 11-12% by this time next year! No thanks! I have an Option-ARM on my rental as well. It has a 1yr soft prepay, and I am thinking of converting it to a fixed rate loan when the year expires in August. I can’t recall the starting point, but it has crept up 1/8% to 1/4% every month since last August. It’s now at 8%. It was nice for that short time, but my broker then was hailing it as the best thing since sliced bread. At this rate, I’ll be paying 11-12% by this time next year! No thanks!

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