We have 1st mortgage fixed 7.75 and second mortgage ARM. Before my husband gets laid off, should I refinance?
Question by karliedee7: We have 1st mortgage fixed 7.75 and second mortgage ARM. Before my husband gets laid off, should I refinance?
I don’t know what to do with the banks nad economy in such upheaval. My husband wants to refinance before he gets laid off. He’s afraid of the ARM interest rate will go high and we won’t get good intererest rate if he’s laid off. It will cost thousands to refi. We don’t know what the future holds. Our payments total are about $ 1,400 a month. I haven’t found a job yet. What to do? Thanks for your opinions.
We have excellent credit. All our money is in this house. Selling it now is not an option. I don’t have anyone to move in with.
Best answer:
Answer by src50
Whether you can refi is going to depend on your husband’s income/credit score and how much equity you have in the house. You need to shop around for a lender – it doesn’t have to cost “thousands.”
Add your own answer in the comments!
Tags: ARM interest rate, credit score, Equity, excellent credit, Income, Refinance
Sell the home. If he gets laid off, you won’t be able to refinance at all. And it sounds as if you don’t have thousands to spend. Besides, the payback period on a refinance often is a couple of years. As you note, it costs thousands to refi. Sometimes you can include those costs in the mortgage, but that isn’t a great deal, either. If you see problems on the horizon, then sell, rent cheaply, and keep looking for a job.
For some free quotes with no obligation try http://NewHomeLoanNetwork.com this way you can talk to some professionals without making a commitment and you can see what your options are. This website has a network of different lenders and is very useful as a tool in finding a loan. This was a great resource for me when I was looking for a loan. I ended up using on of the companies that called me and I am at a 6.25% from a 9 1/2% Good Luck!
Ask yourself…. this should you throw good money at bad? If the house is worth less then what you owe there are options especially with the loss of a job. Consult a real estate professional in your community. I specialize in these areas in my community here in the Los Angeles Area.
sell now if you can and rent cheaper or move in with family for a while I know not the best answers but I am in the same boat as you
Brokers make money in 2 ways:
1. Points and fees they charge upfront
2. By increasing the rate they have available to them and getting a rebate from the lender.
Shop around for the best rate without having to pay any fees or points. Once you refinanced and just before your husband loses his job, call your new lender and ask for a forbearance agreement.
Look, your husband is right about refinancing while he has income.
You could try to refinance – getting rid of the ARM would be a real good idea if you can.
Good luck
Consolidating your two loans into one with a fixed rate could be a good idea, if you can do so with the markets in such upheaval right now. Getting just one payment instead of two and getting rid of the the ARM is a good idea. Whether you will be able to do so, depends on your home value and how much equity you have in your home. Talk to your lender and ask them about the possibilities of doing something with them. Some lenders are doing loan modifications now, changing ARMS to fixed rate after 2-5 years, see if your lender is. BEFORE doing anything, check out your options, don’t take the first lender’s word for anything, and it needn’t cost thousands to refi.
I work for one of the major banks. If you have excellent credit and have enough income to qualify, do it right away. Closing costs will be low if you go with a bank. Some banks also offer protection insurance for mortgage in case you get laid off. They will pay up to 12 months of your mortgage payments. You can respond to my email if you want me to help.