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a $400 / mo. savings even after $200K applied to the balance? for some reason the math doesn't make sense? Should me more than that even raising rates to almost 6% from where you're at? Must be a pretty big balance, but if that is "a small condo payment" afterwards, ouch!
Considering that your mortgage money is *still* cheap maybe reinvest it somewhere else, buying down a cheap rate mtg doesn't make sense IMHO. If you can handle the payment simply refi the balance to fixed if you're worried about the rates in the next few years.
or-
Ride out the remaining term of the ARM and refi into another arm when it's term is up. Even if you go adjustable after the term is over there's no guarantee it'll rise up and if so, it's at a slower pace. It still may be cheaper to hold on-
after your $200K has had a chance to appreciate elsewhere? Then if you need to dump, buy down your balance then. Even if you stick it in a CD for the next few years you're still better off than paying down now.
Just a thought
rjp
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Last edited by RANDY P; 12-20-2004 at 06:15 PM..
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