I bought my condo 2.5 years ago with a 5/1 arm. I thought I'd be out of here by year 5, but with the market the way it is, it might not happen. I don't even know if I CAN refinance an arm. Does anyone have any suggestions so I don't get saddled with the adjustable rate come 2.5 years? Thanks!
2007-12-18 03:13:46 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
You probably can refinance your ARM. The question is should you. If you cannot improve upon your current rate, chances are you should do nothing at present.
You have plenty of time remaining prior to your 1st adjustment, but look at the rider in the closing documents that gives you the index and the margin. Look at what the fully indexed rate would be. Chances are that it would be the same as a thirty year fixed is going for now if it was an Agency (FNMA or FHLMC) ARM.
I would keep an eye on fixed rates between now and whenever they dip lower again for a point at which you may be advantaged in converting to a fixed rate program.
The chances are that you could be worried about nothing at this point.
2007-12-18 05:49:33 · answer #1 · answered by Dale H 4 · 0⤊ 0⤋
You should be able to refinance, but you probably want to build a little more equity before you do. Don't sweat it until you are nearing six month out, then think about doing it. Sure the rate may change, but then the housing market very well may change by then.
2007-12-18 11:27:18 · answer #2 · answered by Griffin 4 · 0⤊ 0⤋
yes you should refin and i would be out shopping for a loan right now!!!!
2007-12-22 10:28:15 · answer #3 · answered by mister ed 7 · 0⤊ 0⤋
talk to several mortgage people
2007-12-18 11:20:48 · answer #4 · answered by THE CROP KICK CHICK 4 · 0⤊ 0⤋