Mortgage Broker or Lender, Laguna Niguel, CA
Yeah, I am with Chad, seems difficult to get mortgage insurance on the condominium project you live in - the 5/1 ARM sounds like it's from a portfolio lender who doesn't abide by Fannie Mae & Freddie Mac guidelines, so perhaps they also self-insure their own loans. Still, at that loan-to-value (90%) it seems pretty difficult to get financing on your situation because of the property. If you have the funds to dispose/pay down your balance anyway, and you will be in the loan long enough to recoup your closing costs in the form of a lower payment, then it's likely worth it. It'll come down to the numbers making sense on paper as well as your comfort level with having an ARM in general (like what if you can't sell in 5 years, would you be able to continue making the payment?). ARM's are a good loan program for those who are financially responsible.