Compare Mortgage Quotes

dalonso66 · Joined: 26 Nov 2009 Posts: 2 1.63 Dollars($)

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.

smithsussane · Posted: Thu Nov 26, 2009 8:14 pm Post subject:

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 Smile

Feel free to ask if you've further queries.

Sussane

Posted: Fri Nov 27, 2009 9:04 pm Post subject:

Thanks Sussane!

Danny

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

If you can get a rate like this then grab it with both hands - pretty low against historic averages.

cupplesjonathan71 · Joined: 04 Nov 2009 Posts: 82 0.00 Dollars($)

yes. interest Rates & property rates both are at historical low. do a good martket survey for both.

jveenstra · Posted: Tue Dec 01, 2009 8:37 am Post subject: Refinance

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.

dalonso66 · Joined: 26 Nov 2009 Posts: 2 1.63 Dollars($)

Thanks for all the great advice. Loan funded today, so I'm a happy guy.

jveenstra · Posted: Tue Dec 01, 2009 3:04 pm Post subject: Refinance

Congratulations. Wise choice.

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

Nice to see someone biting the bullet and acting! Congrats dalonso66

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

Refi now or let mortgage adjust in March