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Replies (5)
- Brian Goetz, "bri_gets"
- Contributions:295
look at your original papers from the lender who gave you the original loan. That way you can determine what the index used and the margin are. You may find that your rate may drop when it adjusts. Otherwise, you could look at a 97% loan with mortgage insurance.
- Refi Help in AL
- Contributions:3
It's fixed to increase by $282.00
- Justin Coleman, "UtahLoanProfessional"
- Contributions:72
I am just curious, you mentioned that it is a 10/1 ARM originated in 2006? If this is the case you will not be adjusting in rate. Perhaps it is a 5/1 ARM?
- Refi Help in AL
- Contributions:3
I was wrong it is a 5/1 ARM.
- Chris Hacker, "thelendingcoach"
- Contributions:130
The 97% is purchase only I believe. You can go to 95% rate and term conventional because the second was used to purchase the home. You can go to 97.75% with FHA. Both have mortgage insurance, but in your situation it's better than the ARM.
Another option is to refinance the first mortgage and subordinate the second. The CLTV can be over 100% with FHA.
Other options in the event that you are very close to getting them both in to one mortgage but a little short to close are (based on scores and income this shouldn't be difficult)
1. take out a 401K loan to bring cash to close to cover the difference, the loan doesn't affect your balance and there is no penalty or taxes, just pay it off with your savings from the refi
2. use cash to pay off the difference
3. you can cash out an IRA account and not have any penalties as long as you repay the money within 30 days or so depending on the plan
4. use an unsecured credit line (you would have to draw on this line 60 days prior to close for seasoning purposes)
5. receive a gift of money from a family member which requires no seasoning
Hope that helps, best of luck. A lot of people are in this situation so you can get it done.
Another option is to refinance the first mortgage and subordinate the second. The CLTV can be over 100% with FHA.
Other options in the event that you are very close to getting them both in to one mortgage but a little short to close are (based on scores and income this shouldn't be difficult)
1. take out a 401K loan to bring cash to close to cover the difference, the loan doesn't affect your balance and there is no penalty or taxes, just pay it off with your savings from the refi
2. use cash to pay off the difference
3. you can cash out an IRA account and not have any penalties as long as you repay the money within 30 days or so depending on the plan
4. use an unsecured credit line (you would have to draw on this line 60 days prior to close for seasoning purposes)
5. receive a gift of money from a family member which requires no seasoning
Hope that helps, best of luck. A lot of people are in this situation so you can get it done.
Refinance Help!
I have a 10\1 Arm interest only 80/20 Loan. Bought the house in 06 planned to move after 4 years. Now we are staying and the first adjustment is coming in July. I want to refinance. The market here in AL is very soft, so I am worried about the appraisal. We didn't put a down payment on the house so the current balance is near the loan total (260,000). 800 credit score houeshold income 140,000. The loans are not backed by Freddie or Fannie. Any advice?
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