Posted on: 01st Dec, 2009 09:18 am
My loan will adjust in March of 2010 and I called Indymac to get an idea of how my payment would adjust and they don't have any idea yet. I have a Conventional ARM that is at 5.375% interest. The index is based on CMT 1 YR Weekly AV. On my statement it has an index rate of 0%, margin of 2.75% and rounding factor of .125%. She told me that the most it could go up was 5% and that the most it could go down was 2.625%. Does anyone know, base on the current CMT, what my interest rate will adjust to?
My current principal is $348,242.35 with principal & interest payment of %1559.84 (initial loan was $350,000 interest only).
Thanks for your help.
My current principal is $348,242.35 with principal & interest payment of %1559.84 (initial loan was $350,000 interest only).
Thanks for your help.
The one year MTA is at .544 today. Add to that the 2.75 margin and if adjusting today rate would be 3.39 rounded to 3.375 or 4.000 (not sure if rounding up or neast .125%)
The one year CMT is .37 today which wopuld be a rate of 3.125%.
NOt sure exactly which index you have.
What matters, usually, is wht the index is 45 days befor adjustment date which would be mid-January if adjustment is effective March 1st.
The one year CMT is .37 today which wopuld be a rate of 3.125%.
NOt sure exactly which index you have.
What matters, usually, is wht the index is 45 days befor adjustment date which would be mid-January if adjustment is effective March 1st.
Interest rates are much better then that today, ksolomon. They've recently come down and I would look into financing into a lower fixed rate if I were you.
>> I am not sure I will be able to because we now owe more than what we purchased for.
You won't be able to refinance, you'll have to absorb the higher payments. A lot of people across the country are in the same situation and it's resulting in record foreclosures.
You won't be able to refinance, you'll have to absorb the higher payments. A lot of people across the country are in the same situation and it's resulting in record foreclosures.
I stated that wrong, we don't owe more than what we purchased for, our house is worth less than what we purchased for.
with rates as low as they are, it would seem that sitting tight and waiting on the change to come won't be hazardous for you, ksolomon.
Thank you. I think I'll just relax and enjoy Christmas.
now that sounds like a pretty reasonable plan.
Good idea, enjoy Christmas.
Did you by any chance check with Indymac and ask them if your present mortgage is owned by Fannie Mae or Freddie Mac?
If not, ask them.
There are special mortgage refinance programs that started in April of this year that permit refinancing even if house values dropped. The catch is, the present mortgage must be owned by Fannie Mae or Freddie Mac.
If it is owned by one of them, ask Indymac what the fixed rate would be if you refinanced.
If it is not, go back and enjoy Christmas.
Did you by any chance check with Indymac and ask them if your present mortgage is owned by Fannie Mae or Freddie Mac?
If not, ask them.
There are special mortgage refinance programs that started in April of this year that permit refinancing even if house values dropped. The catch is, the present mortgage must be owned by Fannie Mae or Freddie Mac.
If it is owned by one of them, ask Indymac what the fixed rate would be if you refinanced.
If it is not, go back and enjoy Christmas.
If you do refinance, then I would shop around. Indy Mac traditionally has high fixed rates.
Here's the joke. My wife and I both have FICO scores over 850. Never been late on a payment on anything in 30 years. Had two slow years of work, burned through my savings on the house. The cheapest we could find in the market 5 years ago. First house. All lenders said no worries, rates will be great for years to refinance. The year I got in I made over $160,000. Close to $200,000 combined. Combined both my wife and I make over 70,000 normally. Never went to Hawaii, all cars paid off, no cable TV. Need a bit of help and none of our creditors will even so much as let me skip one month payment to catch bills up. Joke is many of our friends who have been footing the bill for this country for 30 years are all scrambling for apartments. Well, I guess at least that way we'll have more in our pocket to keep bailing out the banks. We're walking from it all. Not worth the headaches. Quality of life is more important than a crappy house. The great American nightmare. Unless you are super wealthy or have help. Do the Deed in lieu. Short sale is nightmare.
P.S. Out of all of our friends who have done short sales, Deed in Lieu, begged for (or paid) to get a modification and gone into foreclosure not one of them or myself has had the bank come back and say, ll help you with a modification. Do you see any posts here referencing that? We have been trying to get a modification for 9 months. They string you along saying hey you forgot to check this box or dot that so they can squeeze every last cent out of you before the ship finally sinks. Do yourself a favor; find a nice apartment while your credit is still intact if it is and take care of your survival first because no one will be there to help when you are out on the street and homeless.
P.S. Out of all of our friends who have done short sales, Deed in Lieu, begged for (or paid) to get a modification and gone into foreclosure not one of them or myself has had the bank come back and say, ll help you with a modification. Do you see any posts here referencing that? We have been trying to get a modification for 9 months. They string you along saying hey you forgot to check this box or dot that so they can squeeze every last cent out of you before the ship finally sinks. Do yourself a favor; find a nice apartment while your credit is still intact if it is and take care of your survival first because no one will be there to help when you are out on the street and homeless.
there's a shifting in the attitudes of the american psyche, and this apparently is indicative of it. more and more seem to be thinking in terms of having a place to live as opposed to the american dream of owning one's own home. as it becomes more difficult for those whose thoughts of modification were prevalent to achieve it, we see that there are plenty of folk just giving up on the house and moving on.
of course, it's been true that the fastest and easiest way to achieve wealth was to invest in one's own home and real estate in general. i believe it is as true these days as it was earlier. i don't wish to pay someone else's mortgage by renting, and no matter how far "under water" a house might be (mortgage versus value), there is always light at the end of that tunnel. there have been boom times before, and there have been times like these before (not to this extent, of course).
there is truly nothing new under the sun. but of course if one's philosophy is not to own, there's nothing wrong with being a tenant. i and most i know prefer ownership...and i think that's quite sensible.
of course, it's been true that the fastest and easiest way to achieve wealth was to invest in one's own home and real estate in general. i believe it is as true these days as it was earlier. i don't wish to pay someone else's mortgage by renting, and no matter how far "under water" a house might be (mortgage versus value), there is always light at the end of that tunnel. there have been boom times before, and there have been times like these before (not to this extent, of course).
there is truly nothing new under the sun. but of course if one's philosophy is not to own, there's nothing wrong with being a tenant. i and most i know prefer ownership...and i think that's quite sensible.