suggestion on refinance

Guest 0.10 Dollars($)

I have a 30 fixed rate mortgage @5.8%., amount being 265k. Recently I got a call from a lender offering me to refinance with a five year fixed variable @2.75. He is telling my monthly payments will be reduced considerably by almost $280 for 5 years. At the end of the five year period I need to refinance. Thus I can save about $30,000 in 5 years. The charges for refinancing are not included in it.

But I have a doubt. At present the market rate is growing every day and I have seen alarms raised everywhere. In that circumstance the market should be much higher in the next 5 years an even after getting the 5 year variable it is going to be higher than the current rate that I have. Can anybody kindly suggest me?

Guest 0.10 Dollars($)

Don't listen to him. You have got a good rate. These are people may be looking for commission from the lenders by trapping borrowers. I too get these kind of offers frequently and if I acccept them people would calling me mad, lol.

Samantha · Posted: Thu Jun 08, 2006 10:54 am Post subject: suggestion on refinance

Hi Andrew,

I think they are probably trying you for an interest only loan. The reduction in payments is due to the reason that you will be paying the interests initially and your principal balance will not be touched.

The rate you have is excellent and there is no reason for you to think of refinancing. Stay back with what you have.

You might have been contacted by people as Douglas mentioned "looking for commission". Whatever may be their intentions you can simply ingnore it now.

God bless you.

For MortgageFit,
Samantha

blue · Posted: Thu Jun 08, 2006 11:11 am Post subject:

Hi,

You can check with the other companies and you will get similar offers which may look attractive.

What others said is absolutely correct you have a great rate and need not worry on it.

Blue

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