ARM background. we bought a fixer with 5% down. we had no debts, no loans, sterling credit. bought under the market value in ’03, lower by 100k. put in that extra 100k in extensive remodeling. taking out those loans however, dinged our credit really badly. that left us in a temporary debt hole and we had to ultimately settle for a refinance with a 2/1 ARM that resets this fall and has a 6 month prepay. the bank has a reputation for being the worst of the subprime lenders.
i have taken care to keep track of my reset period, though i believe i’m not the typical ARM holder. it helped me come out of my temporary construction debt. i have kept an amount aside for the ‘missing’ principal. the house value has meanwhile gone up to twice our outstanding loan. it seems as good a time as any. but i wonder if already it’s too late out here. but like i said before, i don’t think anybody here cares to learn from other markets…
