Refi or Not to Refi

Financing, Hard Money Lenders, Private Money
1

Hey Guys, I have a 2 family house in NYC. I am currently in year 2 of a 5 year ARM (not an option ARM). I am looking to refi to get a 30 year fixed and also lower my monthly payment (currently $3550). I am working with a broker who can do the refi, but it will increase my mortgage balance $9K. So basically it’s costing me $9k to go from an ARM to a fixed mortgage.

My dilemma is should I wait it out and run the risk of the comps in my area getting worse and having a tougher time refinancing in the future, or get myself out of the adjustable now?

Oh yea, there’s no pre-payment penalty on my existing loan, or the new loan if I decide to move forward.

As always, I appreciate any insight or advice.

2

How long do you plan on keeping this property?

3

I don’t have a set timeframe, but I anticipate I will have it another 4 years.

4

I would get out of that ARM and into a fixed rate now. You may want to ask the broker you are working with if he has a relationship with Wells or anoter bank that offers a no closing cost option and see if that works better for yoiu numbers wise.

5

I would wait a little while longer. when the $15B rescue money hits the market the lenders are going to move and pricing is going to get a lot better.
15 years experience tells me.

Matthew Giegerich
The Specialist