mortgage 5 years

Rates on 15 and 30 year loans have been fairly stable over the last month. In contrast, mortgage rates at 5 and 1 year ARMS were falling. 1 years ARMS decreased from 5.22 to 5.06 this week. This the lowest is 1 years weapons have been since early March. It is a little strange, given banks lose a lot of money for weapons from people in foreclosure, if the arms back. One would think that banks would refrain from the people, 5 and ARMS 1 years due to the problems they are adopted by people who have Arms in recent years. Instead of a full point difference between the 30th year celebrations weapons and one year they seem to be pushing ARMS on potential borrowers. Here is a history of mortgage rates in recent weeks.

Jun 5.2008
30-year 6.09 15-yr 5.65 5-yr ARM 5.51 1-yr ARM 5 / 06

May 29.2008
30-year 6.08 15-yr 5.66 5-yr ARM 5.62 1-yr ARM 5.22

May 22.2008
30-year 5.98 15-yr 5.55 5-yr ARM 5.61 1-yr ARM 5.24

15. May 2008
30-year 6.01 15-yr 5.60 5-yr ARM 5.57 1-yr ARM 5.18

8. May 2008
30-year 6.05 15-yr 5.60 5-yr ARM 5.67 1-yr ARM 5.29

39569
30-year 6.06 15-yr 5.59 5-yr ARM 5.73 1-yr ARM 5.29

With a mortgage calculator can run some numbers and see what the prices would be in today and a month ago. The 15 years mortgage is higher because the loan is paid off in a shorter period. In contrast, the 5-year ARM has an interest rate of only 5 years, but is designed so that paid off in 30 years.

5. June
30-yr $ 1210.69
15-yr $ 1650.11
5-yr ARM $ 1136.83
1-yr ARM $ 1080.98

8. May 2008
30-yr $ 1205.53
15-yr $ 1711.46
5-yr ARM $ 1157
1-yr ARM $ 1109.36

A few months ago I wrote about how it makes sense to create a 30-year a 5 years fixed ARM, because it's not a big difference in the monthly mortgage payment you would before. Until today that is not true anymore. On a 200k loan, there is a $ 73.86 difference in monthly mortgage payment between a 30-year fixed and a 5-year ARM. I'm still not as ARMS, because your mortgage payment if you are not prepared for them. For example, I have stories of people losing their jobs in the week before the mortgage is based on a higher number. But the big difference in today's prices it's hard to ignore, the cost would be with a 5 year ARM. When you consider an ARM, I advise saving the difference of $ 73.86 per month, and setting when the ARM sets. In this way, if the ARM is based on a higher cash reserve that has doubled in the last 5 years, the payment of potentially higher mortgage payments. If you sell before your ARM uses can you think that saving a bonus.

Escapeso Real Estate is a small, independent broker for Austin Texas Real Estate. They have information on the mortgage-interest rates and a free mortgage calculator.