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(former)FormerSanDiegan
ParticipantPrior to this, how often were homes sold to FHA buyers that were also purchased within 90 days prior to that FHA purchase ?
I think this is only a major problem for the commercial flippers (e.g. Bruce Norris) who have the machinery in place to rehab properties within 30 days or less. Still, they have to market and get it sold.
It is not really a removal of buyers from the pool, more like a removal of available properties and an increase in the time (and therefore money) required by the flippers.
ParticipantTo some extent it depends how large this loan is relative to your other assets. If you have a net worth of 2x or 3x this loan amount AND the maximum payment on this loan at 8.375% is less than 25 -30% of your income, then the risk of keeping the ARM is small.
Otherwise, figure out what the ARM rate would reset to such that your savings from going to a fixed rate is paid for over 5 years.
I’m gonna make a quickly stab at this:
Suppose it costs 4000 to refi (2850 in points, another 1150 in appraisal, title and other fees)
Your fixed rate payment would be : 1005.
TO pay for the 4000 over 4 years, you would need to save about $83 per month. That corrwesponds to an ARM rate at about 5.625%.
To come out ahead on a refinance over the next 4 years the ARM would have to average more than 5.625%. That’s 1.5% above today’s level, which is likely.
I would take the fixed rate.
ParticipantTo some extent it depends how large this loan is relative to your other assets. If you have a net worth of 2x or 3x this loan amount AND the maximum payment on this loan at 8.375% is less than 25 -30% of your income, then the risk of keeping the ARM is small.
Otherwise, figure out what the ARM rate would reset to such that your savings from going to a fixed rate is paid for over 5 years.
I’m gonna make a quickly stab at this:
Suppose it costs 4000 to refi (2850 in points, another 1150 in appraisal, title and other fees)
Your fixed rate payment would be : 1005.
TO pay for the 4000 over 4 years, you would need to save about $83 per month. That corrwesponds to an ARM rate at about 5.625%.
To come out ahead on a refinance over the next 4 years the ARM would have to average more than 5.625%. That’s 1.5% above today’s level, which is likely.
I would take the fixed rate.
ParticipantTo some extent it depends how large this loan is relative to your other assets. If you have a net worth of 2x or 3x this loan amount AND the maximum payment on this loan at 8.375% is less than 25 -30% of your income, then the risk of keeping the ARM is small.
Otherwise, figure out what the ARM rate would reset to such that your savings from going to a fixed rate is paid for over 5 years.
I’m gonna make a quickly stab at this:
Suppose it costs 4000 to refi (2850 in points, another 1150 in appraisal, title and other fees)
Your fixed rate payment would be : 1005.
TO pay for the 4000 over 4 years, you would need to save about $83 per month. That corrwesponds to an ARM rate at about 5.625%.
To come out ahead on a refinance over the next 4 years the ARM would have to average more than 5.625%. That’s 1.5% above today’s level, which is likely.
I would take the fixed rate.
ParticipantTo some extent it depends how large this loan is relative to your other assets. If you have a net worth of 2x or 3x this loan amount AND the maximum payment on this loan at 8.375% is less than 25 -30% of your income, then the risk of keeping the ARM is small.
Otherwise, figure out what the ARM rate would reset to such that your savings from going to a fixed rate is paid for over 5 years.
I’m gonna make a quickly stab at this:
Suppose it costs 4000 to refi (2850 in points, another 1150 in appraisal, title and other fees)
Your fixed rate payment would be : 1005.
TO pay for the 4000 over 4 years, you would need to save about $83 per month. That corrwesponds to an ARM rate at about 5.625%.
To come out ahead on a refinance over the next 4 years the ARM would have to average more than 5.625%. That’s 1.5% above today’s level, which is likely.
I would take the fixed rate.
ParticipantTo some extent it depends how large this loan is relative to your other assets. If you have a net worth of 2x or 3x this loan amount AND the maximum payment on this loan at 8.375% is less than 25 -30% of your income, then the risk of keeping the ARM is small.
Otherwise, figure out what the ARM rate would reset to such that your savings from going to a fixed rate is paid for over 5 years.
I’m gonna make a quickly stab at this:
Suppose it costs 4000 to refi (2850 in points, another 1150 in appraisal, title and other fees)
Your fixed rate payment would be : 1005.
TO pay for the 4000 over 4 years, you would need to save about $83 per month. That corrwesponds to an ARM rate at about 5.625%.
To come out ahead on a refinance over the next 4 years the ARM would have to average more than 5.625%. That’s 1.5% above today’s level, which is likely.
I would take the fixed rate.
Participant[quote=peterb]The 10 year just hit 4% as I am writing this.[/quote]
Short-term rates have gone up as well.
12-month LIBOR jumped from ~1.5 % to ~1.9% over 2 weeks. Now the fully indexed rates for resetting 5/1 ARMS taken out in 2004 will be in the 4-4.5% range.Participant[quote=peterb]The 10 year just hit 4% as I am writing this.[/quote]
Short-term rates have gone up as well.
12-month LIBOR jumped from ~1.5 % to ~1.9% over 2 weeks. Now the fully indexed rates for resetting 5/1 ARMS taken out in 2004 will be in the 4-4.5% range.Participant[quote=peterb]The 10 year just hit 4% as I am writing this.[/quote]
Short-term rates have gone up as well.
12-month LIBOR jumped from ~1.5 % to ~1.9% over 2 weeks. Now the fully indexed rates for resetting 5/1 ARMS taken out in 2004 will be in the 4-4.5% range.Participant[quote=peterb]The 10 year just hit 4% as I am writing this.[/quote]
Short-term rates have gone up as well.
12-month LIBOR jumped from ~1.5 % to ~1.9% over 2 weeks. Now the fully indexed rates for resetting 5/1 ARMS taken out in 2004 will be in the 4-4.5% range.Participant[quote=peterb]The 10 year just hit 4% as I am writing this.[/quote]
Short-term rates have gone up as well.
12-month LIBOR jumped from ~1.5 % to ~1.9% over 2 weeks. Now the fully indexed rates for resetting 5/1 ARMS taken out in 2004 will be in the 4-4.5% range.Participant[quote=sd_matt]Here here condogirl
We reward the lawless and punish the lawful. I got a response from Fienstien. Here’s part of it.
“Most recently, during debate of the American Recovery and Reinvestment Act of 2009, I voted for an amendment that prohibits all recipients of Federal funds from hiring H-1B guest workers (temporary foreign workers in specialized occupations), unless a business first proves that American workers are not able to fill the jobs. This provision was included in the final version of the Act, which President Obama signed into law on February 17, 2009 (Public Law 111-5). Additionally, the White House has estimated that this Act may create or save as many as 396,000 jobs in California, and will help our state avoid additional cuts to Medi-Cal and other critical safety net programs.”
She never addressed benefits to the undocumented.[/quote]
That’s because the response was selected from a discrete number of form letters for various issues. This form letter was probably selected based on a staff-member scan for certain keywords, related to political issues in your letter.
Participant[quote=sd_matt]Here here condogirl
We reward the lawless and punish the lawful. I got a response from Fienstien. Here’s part of it.
“Most recently, during debate of the American Recovery and Reinvestment Act of 2009, I voted for an amendment that prohibits all recipients of Federal funds from hiring H-1B guest workers (temporary foreign workers in specialized occupations), unless a business first proves that American workers are not able to fill the jobs. This provision was included in the final version of the Act, which President Obama signed into law on February 17, 2009 (Public Law 111-5). Additionally, the White House has estimated that this Act may create or save as many as 396,000 jobs in California, and will help our state avoid additional cuts to Medi-Cal and other critical safety net programs.”
She never addressed benefits to the undocumented.[/quote]
That’s because the response was selected from a discrete number of form letters for various issues. This form letter was probably selected based on a staff-member scan for certain keywords, related to political issues in your letter.
Participant[quote=sd_matt]Here here condogirl
We reward the lawless and punish the lawful. I got a response from Fienstien. Here’s part of it.
“Most recently, during debate of the American Recovery and Reinvestment Act of 2009, I voted for an amendment that prohibits all recipients of Federal funds from hiring H-1B guest workers (temporary foreign workers in specialized occupations), unless a business first proves that American workers are not able to fill the jobs. This provision was included in the final version of the Act, which President Obama signed into law on February 17, 2009 (Public Law 111-5). Additionally, the White House has estimated that this Act may create or save as many as 396,000 jobs in California, and will help our state avoid additional cuts to Medi-Cal and other critical safety net programs.”
She never addressed benefits to the undocumented.[/quote]
That’s because the response was selected from a discrete number of form letters for various issues. This form letter was probably selected based on a staff-member scan for certain keywords, related to political issues in your letter.
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