“Hello Front Steppers,
We bought our SFR in 2004 and have a 3/1 ARM of $600K on a $1mil home. We can pay the newly adjusted amount without really changing our lifestyle, but we would like to refinance before the next rate adjustment in 10 months. With all that is going on in the mortgage industry right now, how will that affect a refinance? Both our FICO scores are around 770.
Thanks for any insight you can provide.
M”
My first bit of advice would be to read this post so you have a bit of an understanding of the “true” state of the industry. You might read this post as well.
Then it seems to me from your question you’re concerned about a) being able to refinance, and b) getting a good rate. Given the limited information you provided, I’d have to say you should be okay with a refi as long as you can afford payments at the new rates. All the shake ups in the industry really come down to financial qualifications, whether it be a refi, or purchase. Money will no longer be lent to people that shouldn’t be borrowing in the first place, and of course rates are most likely a fair bit higher than what you are paying currently.
The long and short is as long as you can provide documentation, have good credit, and deal with the right people (brokers), you should be okay. But I will be the first to admit I am not a mortgage expert. The best advice I can give is to pick up the phone and call a few mortgage brokers, or maybe a few will chime in. If you need numbers, feel free to email me again.
Thanks for reading, asking, and hanging out on theFrontSteps. Hope this helps.
alex