Posted on: 20th Sep, 2010 09:20 am
My wife and I renovated a colonial home dating back to 1913. It has allways been a dream of ours. We ended up with $220,000 in the total project. We live in a very rural community and can get no comps for our appraisal. We are currently on a 5 year ARm with our local bank. We only owe on 1 vehicle and the house. Our combined credit score is around 775 with combined yearly income of around 105K. We can not get a mortgage. Any help would be great
but kris, you do have a mortgage, do you not? that 5-year arm may not be such a bad thing, you know. rates are historically low, and that means you're reaping a benefit at this time, i'd have to figure. your best bet to ensure continued success in retaining the home without the need to refinance would be to prepay the existing loan as rapidly as you're able.
before i finish this, i guess i'd better ask if you've only now encountered this $220,000 cost. by that, i mean, is it only now that you need to borrow that sum of money, and refinance an existing balance as well as that? if so, what i've said likely carries no value. i'm hoping my first instinct was right - that you only owe $220k now with the 5-year arm as your mortgage.
before i finish this, i guess i'd better ask if you've only now encountered this $220,000 cost. by that, i mean, is it only now that you need to borrow that sum of money, and refinance an existing balance as well as that? if so, what i've said likely carries no value. i'm hoping my first instinct was right - that you only owe $220k now with the 5-year arm as your mortgage.
yes, I only owe the 220 but My Arm is ta 6.25. Should I refinance with another Arm at a lower rate?
Well, you definitely ought to lose that 6.25% if you can - fixed is certainly a great option now, and you won't have to sweat it out later. If you have a comfort level with adjustable (it appears that you really don't, though), then a 5-year arm likely wouldn't hurt too bad either.