Need Advice on ARM

Arm products are great tools for short term financing, when you know you will have a change in your future finance needs or when rates are high. The current market is very low and if you have long-term plans for owning that home without any possible need for refinancing with exception of rate, then it would be in your best interest to look at locking in the rate on a 15 to 30 year term. Don't forget to take the cost of the refinance into consideration as that is also a key piece of the puzzle. If you want to discuss your situation in further detail I would be happy to help you with some comparisons. Professionally Yours,John SchweerMortgage Banker since 1998Generations Bank 7200 W. 132nd Street, Suite 220 Overland Park KS 66213toll-free: 877-788-3520 x6187direct: 913-928-6187fax: 913-800-7876 (private)email: john.schweer@bankwithgenbank.comRemember expert mortgage advice only costs more if you don't get it.

I agree with the other lenders as it is impossible to know where interest rates are going to be in 3 years from now never mind where they are going to be in an hour from now. The best advice I can give you is to get with a lender that you trust to run some figures on switching the loan over to 30 year term to see what interest rate you would qualify for. At that point you need to look at your overall plan of owning the home. Are you planning on living there for at least another 10-15 years? Or do think you may be moving in 3- 5 years? The answers to these questions will help you determine if jumping into a 30 year term would be financially sound. If you want to take the conservative route then jumping into a 30 year term as soon as possible would make the most sense, because 30 year rates are in the mid to high 4's depending on your credentials. Please let me know if you have anymore questions!

i have been in this business for over 23 years. It all depends on your fico score, and no one can predict what will be in store in 3 yrs.. If it was up to me, I would choose the 30 fixed loan option. And it all depends how your first loan is set up, sometimes a construction loan, has a one step close, and some are a 2 step close. Linda 602-330-1598

Just like Linda said, no one can predict the future. If you qualify and can afford the 30 year payment, take it. Rates are really low, close to the lowest they have been. If you get a loan in the 4's, you are in good shape. You dont want to spend all this money on the loan, moving in, and paying for monthly payments, then having the housing tank and not be able to get out of the ARM. If house appreciates, and rates drop, you could refi from your 30 year, to a lower rate if there is a benefit to you.

hi there: As mentioned no one can predict the rates as you are aware. In my opinion, I tend to have my clients look at their over financial situation (job status, assets, kids in college) etc and then make a financial best interest wise decision. Also contemplate on how many yrs you plan to live in the house, will you be refinancing in the long run to withdrawal any cash etc. All these factors should be considered.....Any questions, please contact me. (Mike 703 505 5300--mconvin@stconvininc.com). We are a federally chartered bank lending in 49 states.