Brooklyn, NY · Member since 2014 · 4 posts · 0 votes
I was looking online for mortgage quotes but quickly found that every single site requires email and contact numbers. I hate getting spam and unwanted phone calls so I thought I would call upon the bigger pockets community to get a ball park figure and idea of best companies out there. You lot are investors so you know the best deals :) .
I am in New York and have 20% down on ~$650,000 property (1st primary residence / multi family home, credit score of upper 700's). What are the best 30yr rates in your opinion.
Would any of you risk ARM's as I don't anticipate paying off the property for at least 20 years. Of course I know ARM rates could in theory go up to 10-12% but is that likely in next 20 years? Is it worth the gamble?
Why don't you check out www.bankrate.com They have a good section on mortgages and comparing rates.
I am not an expert on ARMS but I can't understand why you wouldn't want to lock in these low mortgage rates now? In theory, Fed Funds rate has been at 0 for almost 4 years. We have seen several rounds of QE already. So QE in combination with Fed funds target rates of 0 have kept rates extremely low. This also has the effect of increasing inflation. Based on what Yellen's comments have been recently she would be more willing to adjust rates higher using Employment as a key indicator and not inflation. Obviously the economy and markets are cyclical in nature so rates go up and down. Given I, as well you are not an interest rate strategist I don't think we should play conjecture on where rates will be in 20 years. I am in the market to buy something and would very happily lock in a 30yr mortgage at these rates.
I guess some people use ARMs to increase cash flow and then just re-fi out later? If you plan on holding property long-term (which is what I plan on doing as well) maybe a 30 yr at these rates is a good idea.
The ARM question was just a side question. I was curious as the rates seem to be up to 2% lower (in some cases) so makes the re-payments nicer haha. The gamble is I would go bankrupt if they went to 10% so I guess I am answering my own question that at around 4.5% maybe I should lock it in for 30 years.
I just wanted to see what rates were possible for these circumstances as our bank quoted 4.4% so wanted to know if that was competitive. No point in jumping in if I can get it for 4.2 or 3.9 etc.