My ARM will be done with the 5 year next year, how much of an increase am I looking at?

Asked by Ty, San Diego, CA Wed Nov 14, 2007

4.75 rate int only. I have been paying some extra each month. I have some cash flow right now should I re-finance or pay on this loan? We bought early enough that we are not owing more than it is worth, but condo is unsellable due to horrible management.

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Debt Free Da…, , 85260
Wed Nov 14, 2007
You need to look at your margin and what the index is. This will be your new rate. Depending on who did it, it may not be that bad. I just did an arm with a 1.5 margin. If the loan adjusted now, the rate would actually be lower than the fixed adjustment period.
Web Reference:  http://GetPrequalified.com
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Bill Snyder, , Yuma County, CO
Wed Nov 14, 2007
TY
PUT YOUR CASH IN THE BANK . YOU COULD BE LOOKING AT A 3% RISE IN INTREST RATE CHECK YOUR ORIGINAL NOTE . RE-FINACE DON'T BE LATE ON ANY LOAN PAYMENTS AND YOU MUST HAVE A CREDIT SCORE OF 650 + AND ON NO OWNER OCCUPIED MAY REQUIRE A HIRE SCORE DEPENDING ON 20 % OF EQUTY ASK YOUR LENDER GET A GOOD FAITH ESTIMATE AND THEN DECIDE .
0 votes
Steve, , 32818
Wed Nov 14, 2007
I'd refi and get a fixed interest rate. It may be a little more, but if your property is not sellable, its much easier to deal with a fixed payment if you rent it out than if the rate changes
Web Reference:  http://frontyardview.com
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ILONA POKA, Agent, Chandler, AZ
Wed Nov 14, 2007
Hi Ty
I actually depends on the terms of your specific loan. You'd need to contact your lender and they could tell you. Or if you have your all the docs you signed at closing it will also be in there. I suggest contacting your lender directly. They can look up the terms a lot easier then you will be able to find it in those stack of papers! If you have equity in the house your best bet will be to refinance to a fixed mortgage. Your lender could probably even refinance you and with a lot less closing costs.
CAll your lender, they are more willing to help people in the market that we are in.
Best of Luck!
Ilona Poka
Web Reference:  http://www.ilonapoka.com
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