October 5, 2008

JUMBO FIXED vs ARMs

As a result from the Bank of America and Countrywide merger, we decided to aggressively price jumbo fixed loans and steer away from ARMs.
I decided to post this because of all the requests for refinancing I have been getting after only a few months of closing at 5/1 ARMs. When you can get a jumbo 30 year fixed in the mid 6% range with 0 points it is worth considering. The 5/1 ARM rates may be appealing but it isnt worth the risk unless you are absolutely positive that you can sell within 5 years. Some will agrue against me and they may have a valid point. If the spread betwen the jumbo 5/1 arm and 30 year fixed is a lot then it may be worth considering. However, the spread has narrowed. If the place you are buying is going to be your home, go with a fixed product. There are the occasional few that might be better off with an ARM. But for the majority, fixed is the way to go.

We can finance 90% up to $729,750, 80% up to 1.5M, and 75% up to 3M.

Sunny Hong

Posted by shong1 at 11:58 PM | Comments (1)
Categories: Mortgage

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