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View Full Version : OT: what do you think mortgage rates will do over the next year or so?



angusyoung
05-13-2013, 09:25 PM
trying to decide between locking in on a 30 year fixed or a 7/1 ARM. Ive got 20% on the down payment so no PMI.

Thoughts?

Esmerelda Villalobos
05-13-2013, 10:27 PM
trying to decide between locking in on a 30 year fixed or a 7/1 ARM. Ive got 20% on the down payment so no PMI.

Thoughts?

I think they possibly start rising in June, slowly. Thing is, if you can get a 15 year at 2.6, do you put 20% down (rate is less than inflation)? If so, why? You can get a 30 year fixed rate, right under 3.5. That is with only putting 5% down. Id think hard about just putting that down and paying PMI for 8 years. I mean, you're getting cheap money. Just something to think about.

Fact is, they cant go any lower really. I think everyone will agree with that.

Edit - Id stay away from ARM

sandwolf
05-14-2013, 09:36 AM
trying to decide between locking in on a 30 year fixed or a 7/1 ARM. Ive got 20% on the down payment so no PMI.

Thoughts?

I'm definitely no expert, but I think it would be completely insane to go with an ARM. I see virtually no chance of mortgage rates 7 years from now being lower than they are today. As Ennis said, the rates really cannot get any lower.