Posted on: 23rd May, 2011 12:50 am
Hi,
This is a great forum, I've learned a lot. I have been approved for a 3 year ARM at an interest rate of 2.99; after the 3 year period, it will increase to 4.99.
I'm using the loan right now to complete a new construction. Question: Should I try to refi to a 30 year fixed mortgage at current market rates immediately when construction is completed in a few months? Or should I ride out the 3 year period and then refi to a 30 year fixed loan? I'm wondering if by the end of 3 years, the rates may be much higher than 4.99. Or, at the end of 3 years when I try to get a 30 year loan, the bank may say the house's value has dropped.
Any help would be appreciated.
This is a great forum, I've learned a lot. I have been approved for a 3 year ARM at an interest rate of 2.99; after the 3 year period, it will increase to 4.99.
I'm using the loan right now to complete a new construction. Question: Should I try to refi to a 30 year fixed mortgage at current market rates immediately when construction is completed in a few months? Or should I ride out the 3 year period and then refi to a 30 year fixed loan? I'm wondering if by the end of 3 years, the rates may be much higher than 4.99. Or, at the end of 3 years when I try to get a 30 year loan, the bank may say the house's value has dropped.
Any help would be appreciated.
once the construction is complete, you will have to refinance the mortgage into a normal conventional loan. it is better to refinance the loan immediately rather than waiting for 3 years. it will be your discretion whether or not you'll go for a 15 year loan or a 30 year loan.