should i lock in my variable rate 2nd mortgage now to a fixed rate, or wait for interest rates to fall more?

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I have been paying only interest on an ING Orange mortgage for months, on 56,000. loan, and i can convert it to a fixed rate 15 year loan anytime i choose. my payments would be about $ 450.00 mo if I do it now. any smart suggestions on waiting for lower interest rate in few months or doing it now? (I’ve Googled trends and frankly it is confusing).

2 Comments
  1. Reply
    Judy
    January 26, 2011 at 6:37 am

    I honestly don’t see interest rates getting any lower.
    Eventually they will start shooting up.
    If you can get a 5% FIXED loan rate, I would do it now.

    I read in Money Magazine that interest rates just on 1 year cd’s could easily double by December.
    Keep this in mind – and don’t wait too long.
    Remember, you will be paying penalties for paying off your old mortgage early.
    It’s not about what your monthly payment will be, its about what is right for your financial future.
    If you are extending the length of your mortgage by too much – it could be a bad move.
    /

  2. Reply
    David M
    January 26, 2011 at 7:15 am

    Waiting for interest rates to go lower? Have you been reading the papers or watching the news lately? Have you seen the huge multi-trillion dollar deficits the “great one” is running up? Obama is about to bring about huge interest rates and the collapse of the dollar. Now is the time to lock in low interest rates. They will not get any lower. If you can swing it, do it now. Good luck.

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