No Closing Cost Adjustable Rate Refinance Program
ARM REFINANCE – Trade in your old (ARM) Adjustable Rate Mortgage for a new No Closing Cost (ARM) Adjustable Rate Arm
If or when your current ARM adjusts, or is already on its annual adjustment, you may want to consider a Zero Closing Cost or a No Closing Cost (ARM) Adjustable Rate Mortgage Refinance. The worst mistake in playing the ARM Game is not playing. You can refinance to another longer term ARM or a Fixed Rate with low to No Closing Cost often below where your current arm will adjust. Simply trade in your old Adjustable Rate Mortgage for a New Adjustable Rate Mortgage. This will save you money, secure a longer period of time, and save you from annual adjustments.
Most current (ARM) Adjustable Rate Mortgage clients will see their interest rates adjust up to 4.125% or higher. Also with the Fed on the move this could be even greater in the upcoming months. Since 1996 First Meridian Mortgage has provided NO Closing Cost (ARM) Refinancing. This is the best way to lock in a piece of time for free and if the rates fall, then you can refinance again.
Note: I get asked all the time what do I do if my ARM is about to adjust? My answer is, to trade in your old Adjustable Rate Mortgage for a New Adjustable Rate Mortgage with no closing cost. This gives the home owner more security by fixing the mortgage at a lower rate for a longer period of time than the 1 year adjustable rate mortgage they now have.
Current ARM Adjustable Rate Refinance example
Example: Value of home $400,000 with loan at $300,000
Current loan was a 5/1 ARM and the initial 5 years has past and now is adjusting yearly. If you have a 2.25% Margin tide to the Libor index (currently at 1.75) rounded up an .125 the loan will adjust to 4.125%
New loans options:
Fixed rate would be at 4.00% APR with a credit of $3375.00 toward Closing cost.
7/1 ARM 3.75% rate 3.882% APR with lender credit of $4272. This would be a NO CLOSING COST 7/1 ARM Refinance. See example
5/1 ARM 3.500% rate 3.822% APR with lender credit of $3510.00. This would be a NO CLOSING COST 5/1 ARM refinance. See example
AVG Closing cost on $300,000 are $3469.00 in Virginia.
Other options: On ARM rates if you do want to pay a portion, or all of the closing cost, the interest rate is substantially lower usually by .500% or half of a percent. You will save money vs the no cost program paying closing cost but the recoup time is longer, therefore, at risk. If the market drops and you can do another refinance you might have wasted your money. Only time will tell which way is right.
The key is to refinance your used one year adjustable rate mortgage to a lower rate longer term fixed 5/1, 7/1 or 30 yr fixed for free at the very least. If rates go down you just do it again or fix it for a longer term. Please call Kevin Retcher at 703-799-5626 for more information on the Adjustable Rate Mortgage -No Closing Cost Refinance Program.
Rates as of 7/7/2017 and subject to change.
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VA MC-928 | MD4272 | DCMLB3295 | KEVINS RETCHER 116922