Posted on: 15th Jun, 2010 09:01 pm
Hi all,
I have a 7/1 ARM at 6.5% that is due to adjust in 2014, and an adjustable HELOC that essentially functions as a 2nd mortgage (can't take money out) currently at 4%. The two of them together are about 100% of my home's value. Both of these are interest-only loans. We have a good, solid income and excellent credit (high 700s) and manageable personal debt with no credit card debt.
(It's a long story---we never intended to be in a situation like this, but in short, the financial crash hit us at a time when our leverage was most exposed while we were building our dream house, and we couldn't sell the old house for 3 years.)
I am very worried about what might happen to interest rates in the next 4 years, and our rates are killing us. Should I try to refi now and hope that the house can appraise higher than I think it will? Wait a year and hope the value goes up and rates stay down?
thanks
I have a 7/1 ARM at 6.5% that is due to adjust in 2014, and an adjustable HELOC that essentially functions as a 2nd mortgage (can't take money out) currently at 4%. The two of them together are about 100% of my home's value. Both of these are interest-only loans. We have a good, solid income and excellent credit (high 700s) and manageable personal debt with no credit card debt.
(It's a long story---we never intended to be in a situation like this, but in short, the financial crash hit us at a time when our leverage was most exposed while we were building our dream house, and we couldn't sell the old house for 3 years.)
I am very worried about what might happen to interest rates in the next 4 years, and our rates are killing us. Should I try to refi now and hope that the house can appraise higher than I think it will? Wait a year and hope the value goes up and rates stay down?
thanks
Hi jefro,
You need to check out whether or not you've equity in your property. If there is around 20% equity in your property, then you would be able to refinance your home loan. Thus, you would be able to combine both the loans into one and would be liable for a single mortgage payment.
Thanks
You need to check out whether or not you've equity in your property. If there is around 20% equity in your property, then you would be able to refinance your home loan. Thus, you would be able to combine both the loans into one and would be liable for a single mortgage payment.
Thanks