Can this be for real? A low mortgage going down?

[WatchingThemGrow]

My 7yr ARM from 2003 went from 4.5% to 3.125% for the next year. Is that for real? It says that it isn't scheduled to be adjusted until 4/2011.

Should we be trying to buy this year instead of next year? We were set to hold off, get more stable in terms of having 3DC under 4, wait until next spring.

Should I just be thankful and content here?

[codex57]

Well, maybe it is tied to fed interest rates, which would have gone down from 2003. Most have a mandatory increase, but not all do so maybe you got one of the "good" loans.

[tylersmama]

My 5 year ARM adjusted last year for the first time and went down. I kind of expected it to go up a little or stay the same this year, but I just got the letter, and it's decreasing again. Not as much (last year, it went down over $100/month, this time only about $12/month), but I'll take it! I'm not in a position to refinance until I get out of school and re-enter the workforce, so it's a very good thing for me!

[AnnieW625]

WOW! Our 5/1 goes adjustable in June and we are thinking of at least refying the first (we don't have enough equity to do both), that's great news! Our interest rate is currently 5.25%. However I still we should talk to someone about refinancing permanently. It will then review again in June, 2011 and then be adjustable month to month after that.

If we don't refi and our payment goes down I still plan on paying the same amount and just putting the extra towards principal since was have an interest only loan.