Posted on: 08th Jan, 2011 06:33 pm
my 5/1 arm is set to expire end of this year. my house which my mortgage was initially for 160k is now appraised at 155k and my remaining balance is about 143k. i moved out and have been renting it out so now it is an investment property. trouble is finding someone to refinance me without having 20% equity. i do have the option to extend my current rate for another 5 years if i pay a fee, basically one month's mortgage payment. is there a 30 yr fixed refinance solution, should i extend my rate, or take my chances that the rate will be lower when it expires?
thanks
thanks
Hi roylee,
Your property does not have equity in it. In such a situation, you won't be able to get a refinance. Unless there is equity in your property, the lenders will not be ready to consider you for a mortgage.
Thanks
Your property does not have equity in it. In such a situation, you won't be able to get a refinance. Unless there is equity in your property, the lenders will not be ready to consider you for a mortgage.
Thanks
What is the current rate?
What is the INDEX for the ARM?
What is the MARGIN for the ARM?
Refinancing as an investment property is not possible. We can not answer the other questions unless we have some idea as to the answers to the questions I asked.
What is the INDEX for the ARM?
What is the MARGIN for the ARM?
Refinancing as an investment property is not possible. We can not answer the other questions unless we have some idea as to the answers to the questions I asked.
INDEX is LIBOR 1yr
current rate is 6%
margin is 2% a year after the fixed period, and 6% lifespan
Based on a google search of predicted libor rates end of this year it might look like that my rate will actually drop?
current rate is 6%
margin is 2% a year after the fixed period, and 6% lifespan
Based on a google search of predicted libor rates end of this year it might look like that my rate will actually drop?
Yes, the rate may actually drop.
Have to wait a while to see what happens.
If the rate drops you get that rate another five years and that would be good. You can not refinance anyway, so, waoit and see and be prepared to pay to extend the rate if the rate will go up
Have to wait a while to see what happens.
If the rate drops you get that rate another five years and that would be good. You can not refinance anyway, so, waoit and see and be prepared to pay to extend the rate if the rate will go up