Tuesday, July 7, 2009

Never the Right Time to Refi

When we bought our house we decided on an ARM because we were not planning to stay in the house for longer than 5 years. Of course the economic collapse has stymied all our plans. Our payments are manageable at the moment. (Although a lower one would be very helpful!) But things are very iffy after all and who knows what will happen? We are trying to be fiscally responsible, and refinance into a 30 year before things change but it seems like we are always thwarted by something.

When the rates first dropped I called around, people took my calls but then didn't get back to us. Eventually we decided to take a break, concerned that our credit score would be affected by having too many people look at it- and taking the chance that the interest rate wouldn't rise anytime soon.

So now the interest rates have gone up, we were going to wait it out, but our circumstances are very volatile at the moment so I thought I'd call and see what our chances are now. Only to find out that now this is going on. Husband's office has had 2 deals fall through due to low appraisals. And we certainly don't want to spend money on multiple appraisals if one comes back lowball. The number the mortgage rep at my lender quoted me yesterday made me burst into tears, although Husband was able to talk me back of the ledge.

So now it looks like we are back to waiting and seeing, perhaps even to the point when the ARM comes up. I think I am just frustrated at not being able to take the reins and control my own destiny with this.

7 comments:

Dad said...

As you know we were shocked at our appraisal as well when we converted from our construction loan to permanent...a 25% drop in 6 months!

Hang in there. Save your energies for those things you can influence and only deal with those you can't when you have to.

Anonymous said...

I don't know about the appraisal situation, but 30 year fixed rates are at 5.42% today, according to the Tribune. That sounds pretty good. In case I haven't already done so, I will email you Dan Gjeldum's information. He's our friend, but also the VP of several National City Mortgage branches in the area (Niles, Northbrook, Glenview, etc.). We used him, the H family used him, and we both like him a lot. Lisa

Anonymous said...

Definitely call Dan G., Stef. He was such a help to us when we purchased and refinanced. Good luck!! Britany

stef said...

Thanks guys. We could use all the help we can get! ;)

If you read the article I linked the problem is that appraisals are coming in really low right now due to this new regulation that was implemented May 1 and is having unintended consequences. There is lobbying on the hill being done to try to address the issue so maybe it can be resolved in the near future.

Lakeview Coffee Joe said...

I'm sure you have a good broker in mind, but if not, a Podolny client and long-time buddy of mine has a brokerage and is very client attentive (almost to a fault). He'll give you the straight dope.

alexis said...

whew - I am glad other folks are here to help you. That sounds like a terribly frustrating and frightening situation! :(

Pulisha said...

No advice here, but I just wanted to send (((hugs)))!