Thieroff
fight the power my brother
Going through the same issue as we speak. I opted for the ARM over paying PMI. Found a place...now sit and wait...currently waiting on an appraisal.
Good luck mang.
Good luck mang.
2002XLT
5,000+ posts
Thats right bishes...
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Went through underwriting sht in oct. They ****. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif
Its because of all the azzholes getting foreclosed on that really could not afford it and went out and got mortgages with 0% or 3% down.
It went from one extreme of allowing anyone to get one to the opposite where you have to jump hoops to get approved now.
It went from one extreme of allowing anyone to get one to the opposite where you have to jump hoops to get approved now.
Here's how I broke it down. In the worst case it will still be cheaper to be in the ARM until year 5. Essentially, I have one year to sell the home under worst case. I plan to move by then anyway so it's not that big of a deal. If the economy is much much worse, then I may not have to suffer bad adjustments due to low rates.
But yes, I am speculating two things....one the economy will be good enough to sell a home in four years and I will have enough money to make the payments if not. If my wages stay the same (meaning no raises or promotions) I can afford the house until year seven of the worst case scenarios. After that, I will have to cut discretionary purchases.
I'm in the same process, found a 3 year Arm for 4.65% and up to 1% increase/year with a cap of +5%.. Gosh some of the houses going for almost 450k a few years ago are coming down to the 220ish range. It's a really good time to buy in my area!
I think we have the exact same loan...same interest rate,cap, etc.
The 1% is annual...so beginning of the year, they get one shot. I assume they'd increase it by the full 1%...but it says it is tied to the 1 year index.
But my rate is locked for 3 years before adjusting.
My house is 118k...I am teh poor.
yeah mine is locked for 3 years too, still waiting for the loan processing to be completed to make sure I'm approved. Are you going through a credit Union?
Yes, it's a Credit Union...
The choice was a 30 year fixed a 6.15 or this.
I do have the choice of a 7 @ 5.15 year baloon which would work great because I plan to move in 5 yrs...but that requires me to withdraw about $8k from my Roth...I still have that option open....I just would rather not.
The choice was a 30 year fixed a 6.15 or this.
I do have the choice of a 7 @ 5.15 year baloon which would work great because I plan to move in 5 yrs...but that requires me to withdraw about $8k from my Roth...I still have that option open....I just would rather not.
Anyone buying a home goes through it. If I was going to hand over a shit load of money for someone, I'd make sure they have the discipline to jump through some hoops as well.
**** that. I would pay a PMI over an ARM. That's ridiculous in my eyes. I am not one for surprises that ARMs can have down the road.
I would suggest that it all depends upon your expectations for the future. Do you expect interest rates to rise and do you expect to be in the same home for more than 10 years.
I do expect rates to rise but our loans are capped at 1% a year and I don't expect to be in the house for longer than 5-7 years. So what happens to the amoritization of years 8-30 I don't care about. All I care about is minimizing my interest and initial payments and maximizing my opportunity to build equity and enjoy price appreciation.
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