Interest Rates?

[whitetail]

What do you guys think with happen to mortgage rates in the next 2 years? I am 5 years into a 7 year arm and with rates as low as they are I am seriously contimplating getting it over with now.
Seems like a no brainer, but with property values they way they are I am guessing I will have to come up with 10-15k to make it go through which I am not too enthused about doing. Question is, do I want to gamble and assume in 2 years rates will still be this low? On one side, I figure the way the economy is going how could the rates go up. On the other, look at history and the rates never stay at all time lows for long.

I do not plan on selling this place anytimesoon either, great 2 family. $1900 total mortage between the regular and equity line and I get $2700 total in rent.


Just feeling out peoples opinions, thanks

[FUZO]

Re: Interest Rates?

eventualy the economy will recover but who knows. We are going to refinance soon

[trip]

Re: Interest Rates?

very hard to go negative from here, we are at zero

if you're going to stay, can you get a 15 yr. mortgage? typically they are 1/2 pt below

[JsJs24]

Re: Interest Rates?

I would opt for sooner rather than later. What if interest rates are significantly higher in two years and remain that way for several years? I understand nothing is certain but why not put the money down on if you have it and get it refinanced, then you can be assured you are in good for the long run. Also, imo interest rates will go up in the next two years, it just doesn't seem plausible for them to remain so low. The massive spending has to be retracted at some point from the economy or else we will face extreme inflation which would not be good. Just my 2 cents.

[JsJs24]

Re: Interest Rates?

very hard to go negative from here, we are at zero

if you're going to stay, can you get a 15 yr. mortgage? typically they are 1/2 pt below

15 yr on an investment 2nd home is what I am looking at doing to purchase my next home. As of a couple weeks ago my bank quote me 4.5%.

[Michelle Hayden]

Re: Interest Rates?

I think they will get lower, but not in the near future.cities are loosing revenue and wanting to raise mills, but ppl are kinda stuck right now..cant afford to move cause they cant get market value on their homes. bad situation still. worse in others. It wouldnt hurt tho to check aroundl.

[trip]

Re: Interest Rates?

15 yr on an investment 2nd home is what I am looking at doing to purchase my next home. As of a couple weeks ago my bank quote me 4.5%.

yeah, looking back in time, with hindsight always better than foresight, in our minds we think 15-30 years is a long time, yet, past 30 it starts to go fast, with a 15 yr mortgage, imho, is always the better buy, a little bit of forced discipline, and the numbers are quite sweet, especially from a cash flow positive perspective on an investment home

good for you, another thing we agree on, lol

[deepsouth]

Re: Interest Rates?

bottom line-m if you can gain min. 1-1.5%- do it and do it for as short a period of time as possible and don't forget your bi-monthly payments

[whitetail]

Re: Interest Rates?

I have two years left on a %4.86 then adjustable. If I go with a 30yr fixed right now I will get around a %5.20. Little higher which does make a big differenece but, if I wait til D-day on the arm and rates are at %6 I am going to cost myself 100k in the long run because I am not selling this place.

The 15yr mortgage would be great and I could swing it, but I want to try to accumilate 3 properties over the next few year and don't think I can spare the cash flow.

thanks for input

[bowbow]

Re: Interest Rates?

I would opt for sooner rather than later. What if interest rates are significantly higher in two years and remain that way for several years? I understand nothing is certain but why not put the money down on if you have it and get it refinanced, then you can be assured you are in good for the long run. Also, imo interest rates will go up in the next two years, it just doesn't seem plausible for them to remain so low. The massive spending has to be retracted at some point from the economy or else we will face extreme inflation which would not be good. Just my 2 cents.

My thoughts as well.

I just took out a loan for for a new grain storage facility and some barn roof maintenance. 15 years at 4.5%, Hard to go wrong with that right now

[jamescb77]

Re: Interest Rates?

please get out of your ARM these are the worst ideas ever. Rates are low take advantage and never look back. ARM's are half of the reason so many people have lost their houses. They use ARM loans to get people in houses that they cannot afford.

[skinnyman]

Re: Interest Rates?

I would get out of the arm as well.

Looks to me like you have a great return on your investment property. Remember, you will pay an additional spread on an investment property however not as much on a second home.

[deepsouth]

Re: Interest Rates?

I have two years left on a %4.86 then adjustable. If I go with a 30yr fixed right now I will get around a %5.20. Little higher which does make a big differenece but, if I wait til D-day on the arm and rates are at %6 I am going to cost myself 100k in the long run because I am not selling this place.

The 15yr mortgage would be great and I could swing it, but I want to try to accumilate 3 properties over the next few year and don't think I can spare the cash flow.

thanks for input

Try a 20-25 it doesn't normally change payments that much

[trip]

Re: Interest Rates?

I have two years left on a %4.86 then adjustable. If I go with a 30yr fixed right now I will get around a %5.20. Little higher which does make a big differenece but, if I wait til D-day on the arm and rates are at %6 I am going to cost myself 100k in the long run because I am not selling this place.

The 15yr mortgage would be great and I could swing it, but I want to try to accumilate 3 properties over the next few year and don't think I can spare the cash flow.

thanks for input

fwiw, cash flow is a problem with 3 properties, renters move, f'up the place, repairs this repairs that, economy goes bad and place not rented for x number of months

sound like u read rich dad poor dad

real estate historically rises, yes, but historically in big gaps over 25 years, not like clockwork

good luck

[deepsouth]

Re: Interest Rates?

I do believe we are in waters never seen before and I'm not sure History will repeat itself this time