Decided not to hijack the other thread...
Ok question.... sorry to jump in the thread but with a few loan real estate guys on I thought I would get a real answer without having any stake in it:
I have a 3 year ARM that comes due in November of 2006, and am not sure exactly what to do.
My intentions are to only live in this house another 1-3 years, depending on market and value increase of house as both my wife and I are around 30 miles away form our positions, and would like to shorten our commute in the cities as well as we want a house with more rooms.
So on to the questions:
Should I refinance now while the rates are lower to another ARM and then pay the prepayment penalty of I have with the 3 year arm?
Should I wait until next year to refinance and close in November to avoid the prepayment penalty, but potentially get a higher rate? (Even though it would be only a couple of years at most.)
Another idea we had was to refinance now, take out an addtional $15,000 to remodel part of the house, and a short trip to Hawaii understanding my payments would stay roughly the same even with closing and prepayment penalties rolled in?
I guess ultimately I am looking for which one (understadning I am taking out 15k in the thrid scenario, would put me in the best financial situation over the next few years, as I truly do want to maximize what I can make on the house etc...
If needed the current loan loan value is 220k, appraisal between 245k to 260k on a 2200sq ft two story, with finished basement.
Looking forward to the answers from the experts....
TSI
Ok question.... sorry to jump in the thread but with a few loan real estate guys on I thought I would get a real answer without having any stake in it:
I have a 3 year ARM that comes due in November of 2006, and am not sure exactly what to do.
My intentions are to only live in this house another 1-3 years, depending on market and value increase of house as both my wife and I are around 30 miles away form our positions, and would like to shorten our commute in the cities as well as we want a house with more rooms.
So on to the questions:
Should I refinance now while the rates are lower to another ARM and then pay the prepayment penalty of I have with the 3 year arm?
Should I wait until next year to refinance and close in November to avoid the prepayment penalty, but potentially get a higher rate? (Even though it would be only a couple of years at most.)
Another idea we had was to refinance now, take out an addtional $15,000 to remodel part of the house, and a short trip to Hawaii understanding my payments would stay roughly the same even with closing and prepayment penalties rolled in?
I guess ultimately I am looking for which one (understadning I am taking out 15k in the thrid scenario, would put me in the best financial situation over the next few years, as I truly do want to maximize what I can make on the house etc...
If needed the current loan loan value is 220k, appraisal between 245k to 260k on a 2200sq ft two story, with finished basement.
Looking forward to the answers from the experts....
TSI
