The California Association of Realtors weekly Mortgage Update contains information about hybrid adjustable-rate mortgages; home equity lines of credit; reverse mortgages; lenders that have signed up for President Obama’s mortgage plan; and new fees for some borrowers.  

A recent article “Low Rates Put Some Borrowers In a Quandary ” in the.Real Estate section of the Wall Street Journal (Printed April 16, 2009 in The Wall Street Journal, page D1) discusses a topic that is on a lot of homesowners minds who hold ‘Hybrid’ ARMs - whether they should rely on resetting lower rates, or should they take advantage of the low interest rates and refinance now?

Low rates put some borrowers in a quandary

Borrowers with hybrid adjustable-rate mortgages – loans that carry a fixed-interest rate for a certain number of years and then reset annually to rates tied to market benchmarks – are questioning if they should refinance to lock in a low rate for the long term, or if they should keep their adjustable-rate mortgages, currently at interest rates lower than their initial fixed rates.

Some mortgage experts say it’s best to refinance out of adjustable-rate mortgages if the borrower plans to live in the home for more than two years.  Adjustable-rate mortgages are tied to myriad indices, and today’s low rate could jump as the economy recovers and inflation kicks in.  The increase would result in borrowers paying more in the long term for an adjustable-rate mortgage than they would if they refinanced into a fixed-rate mortgage.

To read the full story paste the following link in your browser http://takeaction.realtoractioncenter.com/ct/hpsswkK1eEY5.

Carter Properties Realty services Placer and Sacramento Counties.  Your real estate goals are our focus.

(916) 543-9584