Comments on: ARM’s in Chicago, Should I Refinance Now or Later? http://greaterchicagorealestateblog.com/2008/03/19/arms-in-chicago-should-i-refinance-now-or-later/ Wed, 08 Sep 2010 01:30:26 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Lkng4refi http://greaterchicagorealestateblog.com/2008/03/19/arms-in-chicago-should-i-refinance-now-or-later/comment-page-1/#comment-422 Lkng4refi Sat, 28 Jun 2008 07:06:11 +0000 http://greaterchicagorealestateblog.com/2008/03/19/what-to-do-if-your-arm-is-due-in-the-next-12-months-around-chicago/#comment-422 I need some advise, I have a 5/1 that adjusts once every year no higher than 1% my current interest rate is at 6.35 and I am wondering if I should refi. I also have a HELOC with a current rate of 7.75 I would like to get these two combined into one fixed rate loan. What are my chances, I have a heavy debt load with credit cards and student loans. What are my chances of getting a good 30 year fixed rate. Any advice will be greatly appreciated! I need some advise, I have a 5/1 that adjusts once every year no higher than 1% my current interest rate is at 6.35 and I am wondering if I should refi. I also have a HELOC with a current rate of 7.75 I would like to get these two combined into one fixed rate loan. What are my chances, I have a heavy debt load with credit cards and student loans. What are my chances of getting a good 30 year fixed rate. Any advice will be greatly appreciated!

]]> By: Sean Lowry http://greaterchicagorealestateblog.com/2008/03/19/arms-in-chicago-should-i-refinance-now-or-later/comment-page-1/#comment-417 Sean Lowry Fri, 30 May 2008 19:57:04 +0000 http://greaterchicagorealestateblog.com/2008/03/19/what-to-do-if-your-arm-is-due-in-the-next-12-months-around-chicago/#comment-417 The most recent surprise news in the mortgage industry, that has everyone talking, is about HELOCS (home equity lines of credit). The disturbing buzz here is that people who have these equity lines are being given notice of the lenders intent to revise the terms and loan limits and in some cases, the lender will actually advise of their intention to close the line involuntarily immediately. Most of the lines they involuntarily close have had small balances or have no balance at all. Most have been condominiums, but not all. People who have small balances are being asked to pay off that balance by a certain date or the lender implies it will freeze the account and address as needed. Others have been advised of their loan limits being substantially reduced and are calling to ask us if they need be concerned. Our opinion is that this will become more widespread and is tied to loan-to-values on properties that banks have become uncomfortable with. For those of you who have equity lines on properties that you have rented or leased, it would appear these are of greatest concern. Equity line lenders are selling default second mortgages for 5 cents(or less) on the dollar where properties have begun foreclosure so it is our opinion that the equity lines most in danger of recall are those on properties that are not primary residences. We have seen a substantial decrease of lenders willing to do second mortgages for new home purchases too. Many buyers have long been advised of the benefits of using 80/10/10 mortgage products to purchase their homes. Our recent experiences suggest that PMI will once again be considered the option most certain of success. Mortgage insurance will once again be considered the safe option for home buying success because of the skittishness of banks in this continued declining market environment. If you advise your clients or if they remark to you their wish or desire to only buy a home using a 1st. and 2nd. mortgage product, PLEASE be advised they may be disappointed with the result of that wish. Give them balance in their expectation and you'll be the better agent for it. Let's hope things get better soon and that this blip is short lived and temporary in our market. Mike I thought this might be helpful to some of your readers. Realtors and attorneys need to know what the reality is out there too. Have a nice day, Sean The most recent surprise news in the mortgage industry, that has everyone talking, is about HELOCS (home equity lines of credit). The disturbing buzz here is that people who have these equity lines are being given notice of the lenders intent to revise the terms and loan limits and in some cases, the lender will actually advise of their intention to close the line involuntarily immediately.
Most of the lines they involuntarily close have had small balances or have no balance at all. Most have been condominiums, but not all. People who have small balances are being asked to pay off that balance by a certain date or the lender implies it will freeze the account and address as needed.
Others have been advised of their loan limits being substantially reduced and are calling to ask us if they need be concerned. Our opinion is that this will become more widespread and is tied to loan-to-values on properties that banks have become uncomfortable with. For those of you who have equity lines on properties that you have rented or leased, it would appear these are of greatest concern. Equity line lenders are selling default second mortgages for 5 cents(or less) on the dollar where properties have begun foreclosure so it is our opinion that the equity lines most in danger of recall are those on properties that are not primary residences.
We have seen a substantial decrease of lenders willing to do second mortgages for new home purchases too. Many buyers have long been advised of the benefits of using 80/10/10 mortgage products to purchase their homes. Our recent experiences suggest that PMI will once again be considered the option most certain of success.
Mortgage insurance will once again be considered the safe option for home buying success because of the skittishness of banks in this continued declining market environment. If you advise your clients or if they remark to you their wish or desire to only buy a home using a 1st. and 2nd. mortgage product, PLEASE be advised they may be disappointed with the result of that wish. Give them balance in their expectation and you’ll be the better agent for it.
Let’s hope things get better soon and that this blip is short lived and temporary in our market.
Mike I thought this might be helpful to some of your readers. Realtors and attorneys need to know what the reality is out there too.

Have a nice day,
Sean

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