Mason asked in Business & FinanceCredit · 1 decade ago

We took out a $105,000 mortgage loan and got a 5/1 arm for five years with a interest rate of 4.8%?

its now been 3 years into the 5/1 arm...Our monthly mortgage payment is $792 thats including our escrow........MY QUESTION IS

How much will our monthly Mortgage be after the five years is up???

Based on todays interest Rates?????

Note: Our house is worth about $284,000 and we have about $179,000 in Equity>

Update:

Note> Our principal balance is $99,000.

3 Answers

Relevance
  • 1 decade ago
    Best Answer

    Today's mortgage rate is irrelevant - you need to check your papers and find out what the index base is for the adjustment. Then someone can figure out the projected payments based on today's rate.

    Now, if you are asking how much a payment would be if you refinanced at today's rate, that is a different question...with a principal balance of 105,000 (making believe you rolled the closing costs into the new mortgage) for 30 years at 5.99% (today's average rate according to bankrate.com), you P&I would be $629 - add in the taxes )which you can get off your statement under the escrow part) and you have your payment for the next 30 years.

    if you were to finance for 15 years, your P&I payment would come out to $866. The obvious advantage to being able to afford the higher payment is the great savings in interest you would receive.

  • 4 years ago

    There are a lot of factors that go into your rate besides just you FICO: how long have you been on your job? What's the loan amount? What's the LTV? What's your income? How can you prove your income? What's your mortgage or rental history like? In this market, there are no "cookie cutter" answers - each rate has to be taylor-made to fit your situation. Also, a 5/1 ARM means you will have a fixed rate for 5 years. After that, your rate will adjust every year after that. The common adjustment caps are 3/1/6: that means your initial adjustment could be 3%, your other annual adjustments could be 1%, and the lifetime cap is 6% over the origional interest rate. Here's what it looks like for a 5/1 ARM with a 3/1/6 cap structure: Initial rate is 7% At the start of year 6, your rate is 10% (rate +3%) At the start of year 7, your rate is 11% (rate + 1%) At the start of year 8, your rate is 12% (rate + 1%) At the start of year 9, your rate is 13% (rate +1%), and since that is 6% over your initial rate, it won't adjust anymore. That's a standard 5/1 ARM with the 3/1/6 cap, but you have to look at YOUR loan to see if that's the case for you. Talk to your broker or bank about a fixed rate program. If the other pieces of your situation fit, that might be the very best option for you. You have the security of knowing your rate will not move, no matter what happens in the market place.

  • Anonymous
    1 decade ago

    Who knows what rates will be in the future? Now is the time to refinance the mortgage. Make sure you get a fixed rate open end which means you can pay down the mortgage without being penalized. Whether you go 15 or 30, the first half of the loan you pay about 70% in interest. Request an amortization that will give you a complete break down between interest/principal. Better to be safe noe than sorry later.

    Source(s): Retired bill collector 35 years
Still have questions? Get your answers by asking now.