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LTV 110%. 10/1 ARM?

I would like to know if anyone knows whether or not it would be possible under any circumstances to refinance a 5 year old mortgage (on a current 15-yr fixed term) to a 10/1 ARM with an LTV of approximately 110%??  Thank you for you input!
  • June 12 2012 - US
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Answers (4)

The 10/1 ARM is typically going to have a rate very close to a 30yr fixed rate.  If you goal is to pay this down as quickly as possible, then stick with the 15yr fixed rate.  The rate will be lower and since you are already in one, there will not be any payment shock.
  • June 12 2012
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Profile picture for user2305423
Hey Joe,

Thanks for a reply!  I'm actually in a bit of a financial bind mainly due to schooling for the kids and business taking a hit (as is the case all over).  Also I have investments that will pay off in approximately 3-4 years and allow me the flexibility to pay off the loan much more aggressively.  However for now I'm just looking to lower my mortgage "temporarily" as much as possible so my daughter can afford a decent college education.

Do you think it's worth contacting lenders regarding a 10/1 ARM with my LTV situation?  Or do you think it'll bear little fruit?  Thanks once again!
  • June 12 2012
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If that is your intentions, stick with the 30yr fixed so that should things change at all you have that safety net.  Plus you will be going through the HARP program given your LTV. I am not sure you are allowed to go from a fixed rate to an ARM. 

  • June 12 2012
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Profile picture for JAY BECKER Sothebys
Wow we are going back to 2005 break out the champagne
  • June 12 2012
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