GaryD

This Can't Be Helping Real Estate

ksmithdc, if you are paying 6.5% on a mortgage that you signed last year, you paid too much. I hope they didn't tack on a bunch of points as well!

This Can't Be Helping Real Estate

Mark, many ARMs are set to adjust based on the LIBOR rate plus some percentage (maybe about 2%). Unlike the Fannie Mae mortgage rate, the LIBOR rate has not moved up significantly recently and is still very low. Many of the boilerplate agreeements for ARMs had the LIBOR clause in them. People with ARMs should be aware of that since the banks may try to stick them with a much higher mortgage interest rate upon reset. If you are unsure, you should read through your ARM contract carefully. Not doing so could end up costing you 10's or 100's of thousands of dollars over the life of your mortgage. If the bank attempts to foist a higher rate rate on you, you should fight it tooth and nail. Current money rates are available daily from the Wall Street Journal (search for "Money Rates" at wsj.com).