We're looking to sell about 1 1/2 years after the arm is set to expire. Don't necessarily want to refinance at this point.
Is extending the ARM a possibility?
2007-07-30 13:27:37 · 5 answers · asked by f150 2 in Business & Finance ➔ Renting & Real Estate
The short answer is NO. I am going thru exactly this right now. My Interest Only ARM rate shot up (and I mean UP!!) and I spoke to the bank. Their answer "was we can try to refinance you but since you were only paying interest, you don't have enough equity, so on second thought, we CAN'T refinance you".
So at this point, here I am trying to sell the place and at the same time, refinance with another interest only loan. My idea here is to sell the place quickly if I can or if I can't, leave it on the market and refinance.
2007-07-30 14:58:46 · answer #1 · answered by shacker2762 3 · 0⤊ 0⤋
Never heard of them extending an arm at the rate it is currently at...
Im sure you have a better rate than what it out there now, but it won't be when it adjusts. I can understand that if you are planning on moving in the next year, you may not want to dish out for closing costs right just to refinance but I would recommend a no closing cost loan. Your rate will usually be about a quarter percent higher than if you paid your own closing costs but it will likely still be a lot lower than what you will have after your adjustment...
I would refinanca and fast... rates are shifting everyday!!!
2007-07-30 17:01:06 · answer #2 · answered by peachpop 2 · 0⤊ 0⤋
ARM extensions do not exists. However, you CAN do a no closing costs refinance so your mortgage balance does not go up.
In your case, the best loan option would be a 3yr Interest only ARM because you are planning on moving in about 1.5 to 2 years. Depedning on the loan amount, LTV, and FICO score... for a no-closing costs 3yr IO ARM you would be looking at 6.5% to 6.875%.
I am a nationwide broker, please email me through Yahoo! Answers if you would like a free quote or have any other questions.
2007-08-02 10:17:23 · answer #3 · answered by KpoBanker 1 · 0⤊ 0⤋
The ARM will be extended, of course, but at the rates which the lender chooses, according to any limits set in the original contract. If you're asking if they will continue at the current rates, the answer is a flat NO.
2007-07-30 13:35:47 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
Unfortunately no, that's why we have all these foreclosures.
2007-07-30 13:37:45 · answer #5 · answered by frankie b 5 · 0⤊ 0⤋