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 dalonso66
Joined: 26 Nov 2009
Posts: 2
1.63 Dollars($)
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 Posted: Thu Nov 26, 2009 12:36 pm Post subject: Refi now or let mortgage adjust in March |
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In March of 2010 my current 5-year I/O loan will adjust to the 1 year Libor + 2.250. I paid $435,000 for my condo in 2005, put 20% down. My current loan amount is $348,000 and it was appraised this month for $351,000, so I'm 84k in the red.
I've signed all the docs for a new 30 year fixed loan at 5.40 that I qualified for through the H.A.R.P program. The refi cost me about $3000
My question is: Am I doing the right thing here? Should I have let it adjust to a projected 3.4 for a year (taking the 1-year libor into account) and see where the market is at in 2011? What are people doing these days? I have until Sat the 26th to cancel the docs I signed 2 days ago.
Thank you. |
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smithsussane
Joined: 18 Sep 2008
Posts: 4241
Location: Alaska
395.98 Dollars($)
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| Posted: Thu Nov 26, 2009 8:14 pm Post subject: |
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Hi dalonso!
Welcome to forums!
Whether or not you would go with the Home Affordable Refinance in order to make the loan affordable would be totally your discretion. In my opinion, it would be good to refinance the loan to a 30 year fixed with new rates and terms provided you're planning to stay in the property for the next 7-9 years. This will also help you in off-setting the closing costs and other related costs. We never know how the market would be in 2011. So, it's better to go with the option that you're getting right now.
Happy Thanksgiving 
Feel free to ask if you've further queries.
Sussane |
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Guest
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| Posted: Fri Nov 27, 2009 9:04 pm Post subject: |
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Thanks Sussane!
Danny |
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riseabove
Joined: 09 Nov 2009
Posts: 169
29.28 Dollars($)
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cupplesjonathan71
Joined: 04 Nov 2009
Posts: 82
0.00 Dollars($)
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| Posted: Sun Nov 29, 2009 7:50 pm Post subject: |
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| yes. interest Rates & property rates both are at historical low. do a good martket survey for both. |
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jveenstra
Community Experts
Joined: 10 Nov 2008
Posts: 486
Location: River Edge, New Jersey
116.07 Dollars($)
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| Posted: Tue Dec 01, 2009 8:37 am Post subject: Refinance |
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Short term, you will be ok with the ARM for the next 15 months. After that, no one knows, but, inflation has to kick in sometime and if and when it does you will not be happy with the ARM
Long term, do the refinance. IF you plan to stay there two years or longer, do the refinance.
_________________
John Veenstra
Senior Mortgage Consultant
Approved Funding Corp
41 Grand Avenue
River Edge, NJ 07661
800-475-0123 Ext 278
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dalonso66
Joined: 26 Nov 2009
Posts: 2
1.63 Dollars($)
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| Posted: Tue Dec 01, 2009 2:51 pm Post subject: |
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| Thanks for all the great advice. Loan funded today, so I'm a happy guy. |
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jveenstra
Community Experts
Joined: 10 Nov 2008
Posts: 486
Location: River Edge, New Jersey
116.07 Dollars($)
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| Posted: Tue Dec 01, 2009 3:04 pm Post subject: Refinance |
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Congratulations. Wise choice.
_________________
John Veenstra
Senior Mortgage Consultant
Approved Funding Corp
41 Grand Avenue
River Edge, NJ 07661
800-475-0123 Ext 278
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riseabove
Joined: 09 Nov 2009
Posts: 169
29.28 Dollars($)
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