Mortgage - ING Direct

i listen to clark howard and this is one of the companies that he recomends.

i viewed their site and spoke to a rep this morning. i am quite impressed w/ their offerings:

- 5.375% for a 7/1 ARM (standard rate regardless of loan amt)
- no pts
- no pre-payment penalty
- no tax escrow required
- 120 rate lock
- no application fee
- low closing costs
- rate adjusts annually after fixed to 5% cap in 8th yr, 2% cap 9th-30th yr, 6% lifetime cap
- $500 credit if application is filed and approved by march 31st

any experience w/ this company (pos/neg)?

TIA

Re: Mortgage - ING Direct

DH advises STRONGLY against an adjustable rate mortgage. An ARM is good if:

1 - You anticipate interest rates going down.
2 - You can't afford a conventional 30 yr mortgage.
3 - You plan on selling the house before the rate changes.

1 - If interest rates go down, you can always re-finance.
2- We have a 6% mortgage, fixed for 30 years, which is not much more than 5.375%.
3 - I don't think you are thinking of selling within 5 years...

Re: Mortgage - ING Direct

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Posted by skew

i listen to clark howard and this is one of the companies that he recomends.

i viewed their site and spoke to a rep this morning. i am quite impressed w/ their offerings:

- 5.375% for a 7/1 ARM (standard rate regardless of loan amt)
- no pts
- no pre-payment penalty
- no tax escrow required
- 120 rate lock
- no application fee
- low closing costs
- rate adjusts annually after fixed to 5% cap in 8th yr, 2% cap 9th-30th yr, 6% lifetime cap
- $500 credit if application is filed and approved by march 31st

any experience w/ this company (pos/neg)?

TIA

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The caps are usually that percentage OVER what the loan originally was... so for example, your lifetime cap is 11.375%

Re: Mortgage - ING Direct

One thing I said in the FM to her was... that rate could be good for a Jumbo loan (greater than 322k).

I haven't been following the rate trends recently... but I think Jumbo fixed 30yr is over 6% now.

And believe it or not... on a 350k loan... .625 percent difference in interest could mean a couple hundred dollars a month.

But if you only plan on buying this house and staying there... a fixed loan would be a better option.

Re: Mortgage - ING Direct

the loan amount is over 359,650 and currently the rates for a 30yr fixed jumbo is 6%+. other lenders have quoted me 5.5%+ for a 7/1 jumbo ARM.

Re: Mortgage - ING Direct

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Posted by skew

the loan amount is over 359,650 and currently the rates for a 30yr fixed jumbo is 6%+. other lenders have quoted me 5.5%+ for a 7/1 jumbo ARM.

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ETA: we don't know how long we plan to stay in the home, but thinking about 7-10 yrs.

Re: Mortgage - ING Direct

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Posted by skew

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Posted by skew

the loan amount is over 359,650 and currently the rates for a 30yr fixed jumbo is 6%+. other lenders have quoted me 5.5%+ for a 7/1 jumbo ARM.

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ETA: we don't know how long we plan to stay in the home, but thinking about 7-10 yrs.

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We did a 10-yr ARM, we plan on maybe 7 years too.

Re: Mortgage - ING Direct

FM