gregorygarver.com

bluddy_well_pissed · Joined: 25 Sep 2004 Posts: 5

Thankfully, my mortgage is fixed rate. For those out there who are getting pounded by their balooning adjustable payments, do they have an option to refinance their property with a fixed rate mortgage?

JackK · Joined: 16 Jul 2006 Posts: 5

yes!!!!

bostonianinmo7345 · Joined: 27 Sep 2005 Posts: 5

Most do. Sometimes they have to wait a year if there is a clause in their mortgage. Some people do not have substantial credit to do a refi. The rules have tightened on loans now.

PaulaRevere · Joined: 15 Oct 2004 Posts: 4

Sure they can, all mortgages can be redone. Since they do not usually adjust for 2 years the homeowner has time to get their credit rating up to qualify for a great mortgage rate.Of course it seems that most people do not use the time of a low mortgage rate to clean up their credit. But this is a free country, you are free to have bad credit or good credit, which ever you want.No one is "being pounded" by surprise, they all knew this would happen and exactly which day it would happen if they did not make some other arrangement.

MrTaco · Joined: 17 Aug 2004 Posts: 7

They can refinance those ARMS, if they qualify to do so. The problem for many folks, however, is that their ARM balance is now more than their property is worth, due to declining real estate values. Thus, in order to refinance, they will have to show up at closing with the cash to make up the difference between current value and the amount of their ARM loan.

spacedude4 · Joined: 18 Apr 2006 Posts: 4

Sure if there credit qualifies them, and the house actually has equity. This is the major problem, most bought when values were really high, and now can not refi to the amount needed.

private15ft3886 · Joined: 08 Dec 2003 Posts: 5

They do if they can qualify now that credit standards are tighter and if they do not now owe more than the value of the house. Some of these teaser ARMs also have prepayment penalty clauses.

ThirrinT · Joined: 18 Jan 2005 Posts: 5

Yes, you can.However, the reason most of these borrowers opted for ARM's in the first place is because ARM's, at least initially, result in lower monthly payments than fixed rate loans. The borrowers couldn't qualify for the higher payment fixed rate loans, so they took out ARM's.So, if they couldn't qualify for fixed-rate three years ago, then they aren't going to qualify now, unless they are now earning significantly more income.