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Tucker14
Joined: 23 Oct 2006
Posts: 2
|  Posted: Mon Oct 23, 2006 6:56 am Post subject: Should I refinance now or later? Have I missed my chance? |  |
| Two years ago, I refinanced my existing home to borrow against the equity of the home. In doing so, I continued with the 80/20 style loan to avoid mortgage insurance and now have a 5 yr. ARM with a rate near 10%, which has virtually increased every month.
The value of my home at the time was $175K. Right now I owe $134K on the 1st (30yr FRM) at 6.5% and $17K on the 2nd (5yr ARM) at 9.75% interest. Zillow.com indicates the value of the home to be $185K, whereas 2 years ago it was at $165K ($10K less than appraised value).
My question is, should I move forward with refinancing my loans to a single 30 yr FRM? I'm growing tired of watching the 5yr ARM increase all the time. It's grown by 2+% in 2 years. I would need my appraisal value to be no less than $190K and could avoid the insurance. I plan to be in our house for 3-7 more years.
Please help me decide if I should begin working with lenders. Thanks.
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| | Back to top | |  | Tucker14
Joined: 23 Oct 2006
Posts: 2
| | Posted: Mon Oct 23, 2006 6:58 am Post subject: | |
| Correction: the 2nd is an interest only loan
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| | Back to top | | | The Mortgage-Pro
Site Admin
Joined: 19 Jan 2005
Posts: 2248
| | Posted: Wed Oct 25, 2006 11:30 pm Post subject: | |
| It might make allot of sense for you to refinance into a fixed rate mortgage.
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