It's called "Easy Orange"... 80% or less, LTV. No points, but 1/2% Loan Origination Fee. Yeah that sucks, but the rate makes up for it. I had a 4%, 5/1 ARM.... refi with this Easy Orange saves me $55,000 net, over 5 years after closing costs... a "no brainer". If you're taking the risk of going the ARM route, might as well get the best rate. FWIW...
Great deal. However the ARM scares the shit outta me. What if rates "hockey stick" around the globe? Good luck either way.
The only way rates sky around the globe is if everybody dumps ALL paper money for hard assets. If so, both the housing market and employment in the US are SCREWED even worse than they are now. (Government likely to pull out all the stops to prevent.) Odds are, 5 years from now "things" will be approximately where they are now, IMHV. Again.. if you're "taking the ARM risk", better to get the best rate. In my case, I'm getting paid $55,000 to take that risk for [only] the next 5 years. (And if compared to a 15-yr fixed Jumbo at 4 5/8%, I'm getting paid $116,000 for the same 5-years. If rates go against me, I've got the savings from the 1st 5-yrs to cushion any rate adversity. That's an OK risk to take).
I have a 7/1 ARM for 3.32.....rate tops at 7.95 worst case...I dont plan on living in the same house for more than 7 years....whats not to like about these rates!
That's one side of the coin. The other is that if you have any money, you're missing out on a $HUNDREDS OF THOUSANDS IN INTEREST EACH YEAR when strategically in cash between risk trades. I'd rather have that than a cheap mortgage.
That giant sucking sound is ZIRP. Just wait until we have another stock market collapse and all those "chasing yield" have it crash on their heads for the umpteenth time. ZIRP sure as shit has done wonders for the housing market. Just an all around brilliant policy [/sarc]
What is in the note saying how much % up allowed in 6th year? Of which index + margin amount are they tell you they use for calculation of new rate?
Easy Orange are FIXED rate loans, not ARMs. Thought you would have known that. Also, they require you to make bi-weekly electronic payments. Max loan amount is $750k http://home.ingdirect.com/products/products.asp?s=EasyOrange
---------------------------------------------------------------------------- And you can see on this link this loan is only 5 or 10 years loan. For first 5 year you no guarantee to renew this loan. So you have to pay (IN FULL) this balance after the 5 years if the ING tell you not approve to renew. I read the poster scataphagos posts, he is not stupid. I think he is joking on this thread.