ARM vs 30 Yr

[Ravi860]

1 minute ago, Sonu_Patel said:

Austin lo antha prices petti waste vayya.. 

Frisco/Prosper/Celina lo chustunna

Akkada cheap aa uncle? I see Austin prices came down nicely last month also incentives 

[Sonu_Patel]

2 minutes ago, Ravi860 said:

Akkada cheap aa uncle? I see Austin prices came down nicely last month also incentives 

cheap emi ledu..  Austin tho compare chestey Lifestype and employment propspects dallas lo ekuva options unnae.. 

 

[guntoor_rathaiah]

10 hours ago, Sonu_Patel said:

cheap emi ledu..  Austin tho compare chestey Lifestype and employment propspects dallas lo ekuva options unnae.. 

 

frisco, prosper  lo inka bids vesthunaru. em thaggaledu ikada 

[Jaggadonga]

On 3/21/2023 at 2:16 PM, Sonu_Patel said:

DCU lo 4.875 undi for 5 ARM

Arm lo initial interest vs APR ante enti. Do we pay initial interest rates for 5 years and then the APR?

[Thokkalee]

2 hours ago, Jaggadonga said:

Arm lo initial interest vs APR ante enti. Do we pay initial interest rates for 5 years and then the APR?

ARM loans lo limits untayi.. first change and subsequent changes ani.. assuming the initial rate is 5% and the first change is 2% and subsequently change is 1%, the lender can increase the interest rate from 5 to 7% after the initial term (5/1 lo 5 years ki) and then upto 1% every 1 year after that… there is also a max rate that he can charge, usually double or more the initial rate..

oka friend ki 10% undi max rate.. that means the lender can change the rate upto 10% depending on the market rates.. for eg if the lender decides to change it to max allowed increase,

first 5 years - 5%
6th year - 7%
7th year - 8%
8th year - 9%
9th year - 10% (capped at 10%)

[Jaggadonga]

48 minutes ago, Thokkalee said:

ARM loans lo limits untayi.. first change and subsequent changes ani.. assuming the initial rate is 5% and the first change is 2% and subsequently change is 1%, the lender can increase the interest rate from 5 to 7% after the initial term (5/1 lo 5 years ki) and then upto 1% every 1 year after that… there is also a max rate that he can charge, usually double or more the initial rate..

oka friend ki 10% undi max rate.. that means the lender can change the rate upto 10% depending on the market rates.. for eg if the lender decides to change it to max allowed increase,

first 5 years - 5%
6th year - 7%
7th year - 8%
8th year - 9%
9th year - 10% (capped at 10%)

Thanks. If we can refinance within 5 years then arm is good right? If we get low interest rate

[Thokkalee]

1 minute ago, Jaggadonga said:

Thanks. If we can refinance within 5 years then arm is good right? If we get low interest rate

Refinance is not easy.. it costs a lot to process a loan.. may be around 10K or so.. usually we cover that using realtor cash back when we buy a home.. but if we refinance, you have to pay out of your pocket.. 

if you try zero cost refinance, you won’t get a good rate (usually 0.5 to 1% higher).. interest rates don’t change much (like it did in the past 3-4 years) usually for loan refinance to make sense.. 

[sureshkonda]

5 minutes ago, Thokkalee said:

Refinance is not easy.. it costs a lot to process a loan.. may be around 10K or so.. usually we cover that using realtor cash back when we buy a home.. but if we refinance, you have to pay out of your pocket.. 

if you try zero cost refinance, you won’t get a good rate (usually 0.5 to 1% higher).. interest rates don’t change much (like it did in the past 3-4 years) usually for loan refinance to make sense.. 

you can take cash out of your appraised value of the property to refinance.

[Jaggadonga]

17 minutes ago, Thokkalee said:

Refinance is not easy.. it costs a lot to process a loan.. may be around 10K or so.. usually we cover that using realtor cash back when we buy a home.. but if we refinance, you have to pay out of your pocket.. 

if you try zero cost refinance, you won’t get a good rate (usually 0.5 to 1% higher).. interest rates don’t change much (like it did in the past 3-4 years) usually for loan refinance to make sense.. 

Okay....I have closing in June. Any hopes of interest rates getting down? Is it best to lock the rate by Mid may or better to do it 60 days advance?

[Thokkalee]

17 minutes ago, sureshkonda said:

you can take cash out of your appraised value of the property to refinance.

Lol.. home prices don’t increase all the time.. they are mostly stagnant.. for you to take cash out, the home price has to increase significantly, interest rates should go down significantly and your loan amount will also increase (so does your monthly mortgage) if you do a cash out loan.. 

last few years of home price increase and low interest rates is not common.. 

[Thokkalee]

9 minutes ago, Jaggadonga said:

Okay....I have closing in June. Any hopes of interest rates getting down? Is it best to lock the rate by Mid may or better to do it 60 days advance?

No idea bro.. we can only guess.. but I would recommend not to spend any money to lock down the rates.. one friend got an offer to lock down the rate at a low rate if he pays 20K.. it didn’t make any sense to pay 20K just to lock down the interest rate.. 

instead, you can go with a builder who is offering low interest rates.. in Dallas area, some builders are offering 4% or 5% loans if we buy a quick move in home from them.. 

[Jaggadonga]

32 minutes ago, Thokkalee said:

No idea bro.. we can only guess.. but I would recommend not to spend any money to lock down the rates.. one friend got an offer to lock down the rate at a low rate if he pays 20K.. it didn’t make any sense to pay 20K just to lock down the interest rate.. 

instead, you can go with a builder who is offering low interest rates.. in Dallas area, some builders are offering 4% or 5% loans if we buy a quick move in home from them.. 

My builder is offering 14k if I go with their financial company. But the interest rate is 7.25

[Thokkalee]

12 minutes ago, Jaggadonga said:

My builder is offering 14k if I go with their financial company. But the interest rate is 7.25

Forget about it.. it is way too high.. 

[Jaggadonga]

5 minutes ago, Thokkalee said:

Forget about it.. it is way too high.. 

I thought the same. Waiting for few more days to see if the rates come down a bit