Anyone currently have a Short Term ARM Home Loan about to reset soon? I would like to hear your story.?

Question

Is it going to reset soon if not already? or how many more months/years till it resets? Is it just going to be a hurdle once it resets or are you going to get slammed by the rate increase? I would like to hear your story/advice/or even your rants. From the deciding factor to signing up for the "suicide" loan till now. Have you refinanced yet? Please let it all out...I would like to know.

Answer 1

i refi'd in dec 04. on an arm with ameriquest. a bad deal all the way around. currently under litigation to get it righted. stay away from an arm. mine will prbably go up at least 3% on the interest and if i don't get something done soon, i will lose my home...if you can afford to go with a fixed rate note do it. refi if the rates go down after a while

Answer 2

ACTUALLY, an arm is not a bad loan. The thing you have to understand about it is that it is NOT a long term solution. The average length of time a person stays in one home is 5 years. With that being said if you are staying in a home for 5 years, why would you want to finance it for 30 years? An arm would make more sense. Or if you are in a position where you just need to get into the home until your credit scores come up then just refi it before the fixed period ends, that is another very common use for it. I have had plenty of borrowers get arms and NONE of them have had any problems with it. You just need to know what you are going to do and understand that if you decide to stay in the home for a longer length of time later, then you need to refi to a fixed rate loan.

Daniel, it sounds like you are in need of a refi pretty soon, I can take care of that for you if you would like (I am a loan officer). I have been doing a lot of refi's for people lately who are coming out of arms who will be staying in their home long term. Let me know if I can help.

Answer 3

I have short term memory lose. Does that count?

Answer 4

no