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I'm in a 5/1 interest only at 5.50% and in my 2nd year. I currently have my house on the market with little activity and nothing on the horizon as far as buyers.
We fully intend to sell and my concern is we won't be able to for a while due to market conditions so I'm trying to think ahead and get a plan in place in case we have to wait it out for a couple more years. My concern is runing to the end of the 5/1 and facing double digit interest rates and being hosed or waiting even another year and rates take off. What I was thinking was doing a refi into a 30 yr assumable if possible thinking that the single digit rates can't and won't last forever. BTW, we have way over 20% equity in the property and close to or above 800 fico.
Suggestions????
How far into your 2nd yr. are you?
What is the loan balance?
Where is your home located?
Unless you expect the market to still be bad/horrible in your market in 3-4 years, I would not consider refinancing. Also you cannot refinance a home that is listed or has been listed in the last 90 days (varies among investors).
The only good assumable loan I know of is the FHA and to avoid the mortgage insuarance you would have to do a 15yr. FHA.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,846,184 times
Reputation: 958
Quote:
Originally Posted by heydade
walk away.
That is one of the dumbest things I have ever read. You seriously want the OP to walk away from their equity? I appreciate that you have an agenda, but your grudge against the banks has you spewing venemous advice that is not only ridiculous in nature, but could be very dangerous were someone simple minded enough to take you seriously. Maybe we should all walk away from our cash as well. It's losing value daily as well, right? Why don't you leave the advice to the professionals.
I'm in a 5/1 interest only at 5.50% and in my 2nd year. I currently have my house on the market with little activity and nothing on the horizon as far as buyers.
We fully intend to sell and my concern is we won't be able to for a while due to market conditions so I'm trying to think ahead and get a plan in place in case we have to wait it out for a couple more years. My concern is runing to the end of the 5/1 and facing double digit interest rates and being hosed or waiting even another year and rates take off. What I was thinking was doing a refi into a 30 yr assumable if possible thinking that the single digit rates can't and won't last forever. BTW, we have way over 20% equity in the property and close to or above 800 fico.
Suggestions????
What's the loan amount? I'm asking specifically if it's jumbo or conforming. What's your annual cap? If you have a modest rate cap (1%) then you're not totally screwed. If you have an exploding arm (3%) rate adjustment then I'd worry.
I'm in the first quarter of the second year of a interest only conforming loan. I'm not sure on the rate cap, will have to look when I get home from this trip.
When I refied I fully expected to sell the house within the 5 years for many reasons so I didn't want to pay the rate hit on a 30 yr and waste money.
As for "walking away", even though this doesn't deserve a response, it's not like we can't make the payment, we can. We just want to live elsewhere at this point.
That is one of the dumbest things I have ever read. You seriously want the OP to walk away from their equity? I appreciate that you have an agenda, but your grudge against the banks has you spewing venemous advice that is not only ridiculous in nature, but could be very dangerous were someone simple minded enough to take you seriously. Maybe we should all walk away from our cash as well. It's losing value daily as well, right? Why don't you leave the advice to the professionals.
The OP may have to face the reality that the 20% of "equity" might not exist anymore. Some people overpaid for their homes, so the down payment was lost. If that's true, there's no way to get it back.
The OP may have to face the reality that the 20% of "equity" might not exist anymore. Some people overpaid for their homes, so the down payment was lost. If that's true, there's no way to get it back.
True enough but since we built the house ourselves I know we have more than the 20% at this point. Our area hasn't seen the drops that some have seen, more of a flatening out of the market. I know I could sell it tomorrow for what we owe without a problem.
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