Refinance Question?

Question

Is it possible to refinance an ARM mortgage for a 30-year fixed after you've owned a property for three years?

Answer 1

Absolutely, I have been helping people in your situation. Most of the ARM mortgages that are coming out of their fixed term have payments that are increasing dramatically. As long as you credit qualify you should not have a problem. A lot of the ARM mortgages do have a prepayment penalty. You need to check your copies of the loan to see if there is a penalty and how it is calculated. I have refinanced loans with a prepayment penalty and still saved my clients money. If you have adequate equity in the home you can even roll the closing costs into the new loan without out of pocket expense. Email me at [e-mail] , and I will be glad to help you.

Answer 2

it will keep adjusting way up, never down....EVER. regardless of how long you stay there I'd say stick with the 30 fixed. since you're not going to be living there forever, no need to invest into something short term and pay larger monthly dues than necessary. 30's now can get you around 6.5 with the point you're looking for quite easily. depending onyour credit obviously. in reality a 30 can be paid off in about 17-18 years if you were to make an additional 2-3 extra payments a year. saving you at least 100k in finance charges. should you choose you could also get the cash out for personal or savings use and save it for later. up to you really but don't invest into anything short term. if you do then look into something like an interest only loan which will yield you the lowest monthly payment. you could then refinance again once your time there is up and move into something more permanent

Answer 3

This depends on whether you still have a prepay and if you do, if paying the prepay makes sense. It would also depend on the amount of equity in your home and if you have good credit and the ability to prove income( not necessary in some cases). Do you plan on keeping this home for more than 7 years? Most people refinance every 7 years app. Does making the higher payments make more sense for your situation than investing the money elsewhere?

Answer 4

Yes, the lender will look for a 12 month history to see that you have paid on time. I am a lender in the business for 7 years. If you need referrals, email me, and I can get you a ton of information. The thngs you will need for the approval are reasonable credit, two year trackable income, and equity in the house.

Answer 5

Yes, but if you are really smart you'll save yourself literally thousands and thousands of dollars if you find a way to make the slightly higher payments on a 15 year mortgage.

Try this link: http://ray.met.fsu.edu/~bret/amortize.html
and play with the number of payments. Most notably see the difference in total interest you will pay to the bank over the life of the loan on 360 payments (30 years) versus 180 payments (15 years). It makes a powerful statement!

Answer 6

Yes, In fact, if you don't have a second mortgage or equity line of credit you may be able to do it without an appraisal or supplying income documentation and have it closed within a week or so.

Feel free to email me for details.

Answer 7

YES. I did just that, with spending even less time in the home. You can refinance at any time, and as many times as you want to; just remember there are closing costs involved in all loans.

Answer 8

Sure. Just watch out for any prepay penalties and costs associated with the refinance. You need to talk to several lenders for this one....

Answer 9

Absolutely! Just make sure there aren't any horrible pre-pay penalties for paying off the ARM too early.

Answer 10

yes it is possible but you should make sure you don't have a pre-payment penalty a lot of arm programs have pre-pay also look for the best rate and shop around