OP here...thanks for the replies. 12:55, are you going to ride it for another 3 years? We just reset, so we are at 3% until next April. DH says when rates start going up, we should pay the mortgage off (about $200K). Which would be great because I hate paying interest for anything. But part of me says to look at the big picture and refinance now to keep access to cheap money (for investing).

Anonymous wrote:Rates have only one way to go. The US has a functioning monetary transmission mechanism, construction, employment etc. are recovering well, so unless the repubs screw everything up - which is very possible - you could look for rates to be 200-300 basis points higher by the end of next year.

Yeah the DEMS never fuck anything up right?

Rates have only one way to go. The US has a functioning monetary transmission mechanism, construction, employment etc. are recovering well, so unless the repubs screw everything up - which is very possible - you could look for rates to be 200-300 basis points higher by the end of next year.

Anonymous wrote:We have been riding the low libor rate for the last 4 years and have stayed close to 3% on our ARM. Any finance people out there know how volatile this number is? Where do you see it in a couple of years?

Wait, did I write this?? I was JUST discussing this with DH. We too have an arm tied to the one yr libor. Our current total rate 3.25%. Have had the loan for 7 yrs and it has done well by us. It resets every August. I checked libor forecast this morning and it looks like its going to go down. When we recast lat year it went from .85 to 1.075. Aug forecast is for .73.

I do think that rates are going up in 2014 though. We plan to sell in 3 yrs.

If anyone knew they would be rich, but the general consensus is the low rate environment can't last forever. Rates come down slow and go up fast. I would refi into a fixed, but I'm somewhat risk averse. If you have enough income to service the debt at the cap your rate can hit, maybe you want to take the gamble. I also intend to hold my RE long-term.

We have been riding the low libor rate for the last 4 years and have stayed close to 3% on our ARM. Any finance people out there know how volatile this number is? Where do you see it in a couple of years?