Down below by the hour glass is a blog I wrote back in October of 2009 Talking about the Adjustable Rate Mortgage discussing the philosophy of when to consider refinancing out of your current ARM loan And moving to a  fixed rate loan. I am Andrew Hahn and as  a Refinance Specialist located in Commerce City Licensed in the state of Colorado its time to up date that old post and point out that NOW is more than likely that time to make the move to the fixed rate loan. For those of you who have ARM loans you need to know your Index and your Margin; this is the information you need to be able to calculate what your interest rate is going to be. There are two main index’s that are used, either the LIBOR (could be 6 month or 1 year) or the 1 year treasuries CMT, It makes a big difference you need to know this information. If you don’t know you can search through your old closing documents or to make it easy on yourself and call your loan servicer and ask them for this information, OR you can always contact me Andrew Hahn and I’ll help you; you need to write it down and keep where you can check it from time to time, ALTHOUGH NOW IS THE TIME TO KNOW THIS INFORMATION. Ask them what your index is; ask them what the margin is (you add the margin plus the index to figure out what your interest rate well be) another important bit of information is ask them in what month do they calculate your interest rate. Generally its one month before your ARM is set to adjust. So if your loan is set to adjust in December they well use the index from November and your January payment would be the 1st month of your newly adjusted interest rate.  Although now what you need to consider is that those index’s are not moving up as fast as the mortgage interest rates so your loan could adjust down yet another time or two. You need to think that if your true intention is to lock in the lowest fixed rate that time would by all indication be now and that the absolute best rates might be behind us now. So in order to not lose any more ground regarding catching those fixed rates I feel now is the time. I don’t think we are going to see the 30 fixed rate below 5% again or at least for anytime in the foreseeable future. In fact the prediction is to see interest rates in the low to mid 6% by the end of this year. Since the end of December rates have been creeping up; a loan that I could have locked before Christmas at 4.875% would now be at 5.25%. One of the most important thought here is that if your looking to stay in your real estate and want the better rates NOW IS THE TIME in the long run Mortgage interest rates could go way back up due to inflation that is bound to happen from all the bailout money that has been printed over the past year. If you have any question or want to talk to me about your refinance strategy give me a call or write me a comment or email  me which ever works best but don’t just sit there and think rates are going back down I don’t think that is going to happen.Visit my business website all my information is there CapitalAdvantageMortgage.com or my personal website Andrew-Hahn.com

Refinance Philosophy for those with ARM loans

In today’s chase for the best rate, for those who have a *conforming Adjustable Rate Mortgage or to be more specific a loan owned by Fannie Mae or Freddie Mac the chances are your ARMs interest rate has been going down and is lower than today’s fixed interest rate loans. If you want to get out of the uncertainty of an ARM and want a fixed rate loan have you a decision to make. More than likely to make the move to a fixed rate loan your rate is more than likely going to be higher and therefore your payment is going to go up. Now the challenging aspect is going to be timing. You want to take advantage of your lower rate as long as possible yet when you make the move to a fixed rate loan you want to lock in at the lowest rate you can. Timing the market is always a tough call and trying to guess when the 30 year fixed rates are going to reach their lows is even more difficult given the challenges in the markets today. Unless there is another sizable drop in the market we might have seen the all time lows and rates are starting the trend back up. Now could be the time to start watching the rates to try to catch them on a dip and get locked in, in the upper 4%’s to low 5% range, at this time 4.75% or lower doesn’t appear to be in the stars; unless you buy the rate down (not usually money well spent unless paid by some else). So what I recommend is that we start crunching the numbers now to determine a strategy and to be at the ready when rates get to your sweet spot. To sign up for my rate quote click here.

* Non conforming loans such as subprime loans or portfolio loans (some institutions keep their loans) are probably seeing their rates go up and are not eligible for loan programs created by Fannie Mae and Freddie Mac.

Don’t waste this opportunity to get in to that fixed rate loan; Contact Andrew Hahn your refinance expert located in Commerce City Licensed in Colorado Mortgage refinance in Denver and the entire State of Colorado.

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