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My name is Terry and I have a 3 yr ARM mortgage
Yes, I am one of the millions that did a short term mortgage in plans to not stay in my house for very long. Of course, I am in for the duration.
Luckily its doesn't go variable until August 2008 and cannot go above 7.00% until August 2009. It goes to 2.75% + prime variable after that which could be scary.
But in preparation I decided to call a referred broker to see what my options are (my original broker has gone bankrupt). My options.......virtually nil.
Property values in my neighbor hood have dropped 10% and banks will now only finance 90% of the home value (they use to go up to 125%). So I will have to pay off 20% of the house to refi. Thats pretty sporty but an option after August 09.
The broker suggested I hold off for a year. I can hold off for 2 without to much financial direst. Hopefully property values raise 5%.
Not worried in the least bit because I can always pay off $20-30k and e able to refi but it would eat up a huge chunk of my savings.
Now I see why people that got the ARM because they couldn't afford a conventional mortgage would be in deep *****.
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