Financing in Alexandria>Question Details

Gina, Home Owner in Alexandria, VA

Can we refi our Freddie Mac backed loan - its a rental in Alexandria, VA?

Asked by Gina, Alexandria, VA Mon Feb 27, 2012

We moved to PA 3 years ago and have been renting out our condo in Alexandria - we did an arm and its up this summer and the payment will skyrocket - we HAVE to refi or let it go...... saw something about Open Access loans for a rental..... can anyone point me in the right direction?

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Gina, here is some more information on the HARP 2 program: http://www.trulia.com/blog/elliott_r_oliva/2012/02/harp_ii_r…

Feel free to contact me for more questions or details. Thank you and have a great day!

Elliott R. Oliva
Mortgage Banker | nmls#353884
Stearns Lending, Inc.
202.681.1636 direct
novamtg1@gmail.com
"Se Habla Espanol"
0 votes Thank Flag Link Tue Feb 28, 2012
Thanks for all the replies - I will call and find out what the arm will be once it resets - but honestly we still need it to go DOWN! We are at 6.5% right now and our payment is $3200 - renter pays $2200 so we are shelling out money every month..... looks like a HARP refi would be prefect for us!
0 votes Thank Flag Link Tue Feb 28, 2012
Gina,

Find a lender who is going to do HARP -starting next month, if you have a current loan ( no more than one late in 12 months )A Fannie or Freddie loan and was purchased by Fannie or Freddie before May 2009. If you believe your loan met these requirement - then it does not matter if your home is underwater ....

Gina when calling lenders about this refinance ask very clearly if they do HARP because - this home affordable program will work and save you money. They got it right this time for almost 8 million homeowners, you may be one of them.

Check it out

I hope it works out for you
0 votes Thank Flag Link Tue Feb 28, 2012
As the others ask: What will your ARM adjust to? Most of the rates on which ARMs are based are very, very low. Your concern may be misplaced.

Also: Are you sure you're $60,000 under water? Yes, you could be. According to NVAR (Northern Virginia Association of Realtors), the year-end sales price of a condo in Alexandria in 2007 was $363,131. The Average condo price in Alexandria in January 2012 was $267,144. But obviously, the numbers vary depending on location, condition, size of unit, etc. See http://nvar.com/market-statistics/housing-market-statistics

Further, the market's been recovering. From January 2011 to January 2012, the average price rose from $251,162 to $267,144. That's a 6% increase--certainly heading in the right direction.

So: Make absolutely sure your assumption is correct that "the payment will skyrocket." I strongly question that assumption. Second, determine what your condo is currently worth. It may be more than you think. And third, make sure you're charging market rent.

Hope that helps.
0 votes Thank Flag Link Mon Feb 27, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Gina, I would be more than happy to assist you with your refinance. As Annette mentioned your payment may not be skyrocketing but it depends on the margin and more importantly the index your note rate was based on. There are some people who are doing well with an ARM and some that are not.

Either way I would be happy to show you what your options are with the HARP2 program if you would like to find out more. Thank you and best wishes.

Elliott R. Oliva
Stearns Lending, Inc.
202.681.1636 direct
0 votes Thank Flag Link Mon Feb 27, 2012
Gina, contacxt mew the end of March for a HARP2 refi.
0 votes Thank Flag Link Mon Feb 27, 2012
Additonal details:

We had a 5 year arm when we bought in 2007
We are under water - 60K under based on what we could sell it for today vs what we owe
No, the rent doesnt cover the mortgage which is another reason we would love to refi -
0 votes Thank Flag Link Mon Feb 27, 2012
Unless you had a monthly negative amortization loan (and paid minimum) your monthly payment should not go up much.
Is your rental under water? If not a rate term can be done. If it is under water, the new HARP2 will allow you to refinance.
0 votes Thank Flag Link Mon Feb 27, 2012
Gina - Have you tried calling you mortgage person whi helped with the purchase/re-fi? They should be an excellent source here.

Does the property have an equity in it? Is the rent covering the mortgage?

ARM's are still very low right now, so I wouldn't expect your payments to skyrocket. Many people who purchased in an ARM 3 years ago will benefit with lower payments if their loan resets now.
0 votes Thank Flag Link Mon Feb 27, 2012
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