One of the Realtors I work with sent a Seller to me since they were having second thoughts about the lender they were working with for the property they were buying in Arizona. I reviewed their estimate and discovered their proposed loan had a prepayment penalty that they were not aware of. Long story short, they decided not to buy (not just because of the lender…I believe their house did not sell in time and they were "bumped"). I’ve told their story in a previous post.
They recently contacted me wanting to know if they should refinance. They have 5 years left on their 7 year ARM which is currently at 5.5%. Since their mortgage is not set to adjust until the summer of 2012 and they still hope to move from their current residence, I recommended that they do not refinance at this time. Even though I’m not her original loan originator, she asked me if I would mind watching her rate and keeping tabs on her ARM. Managing mortgages is part of my standard business practice for my clients. I added her information to my database and told her I will gladly add her to the mortgages that I care for…even though I did not originate her current mortgage.
It got me thinking… if you or someone you know have an adjustable rate (or actually mortgage) and you don’t have a Mortgage Professional who is helping you manage that debt (watching current mortgage interest rates and trends, keeping tabs on when your mortgage payment may adjust), and you’re in the beautiful Washington state, I’m glad to include include your existing mortgage to my database. No refinance required. If you’re satisfied with your Loan Originator, then ask them to manage your mortgage for you. I’m sure they’ll be happy to do so (again, no refinance is required).
Now if I could only figure out a way to be paid for all the times I’ve talked people OUT of refinancing! Seriously, if you have an adjustable rate mortgage, please contact a Mortgage Professional to review the terms.