|
Souk--
If it were me, I'd jump on the 5.25% +/- RIGHT NOW and be done with your adjustable. As turbo6bar rightly notes, treasury rates are at historical lows.
Question(s) you have to ask yourself are:
What happens to your 4.85% loan in a year? Is it a balloon payment or does it reset to something (higher) and if so, for how long?
Can you afford the increase in above?
Where's your comfort zone? - locking in a fixed rate now for the term of your loan or saving a few dollars for the next year with a chance that you may pay (substantially) more a year for now.
Personally, I'm a big believer in fixed-rate mortgages, never having to worry about payments going up. Then again, I make extra principal payments automatically each month to pay it down even faster. I'm debt-averse and I don't want to sweat mortgage payments if I lose my job or decide to retire early.
|