We have an adjustable rate mortgage and in October that's when it can change. Now the dilemma we have is this; do we refinance now or wait until the end of the year? Why wait until the end of the year? Because my husband's gets his bonus then and they are a significant amount. Obviously this years bonus we are putting directly all of it to our debt, so after that our 2 biggest credit card accounts will be just about paid off. Now that will raise my husbands credit score a good amount right now it's only a 613 due to our balances be so high and stupid mistakes of me not keeping better track of when the bills are due. So if we wait to refinance I would think we would get a better way due to his credit score but is it worth it? I can use all the suggestions you all have because I really don't know what to do.
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Ooooh, that's a hard one! Cuz you'd like to be able to wait until the end of the year when you get the bonus, but by then your rates would have re-set, right?
I'm DEF. no expert about this stuff, but it always seems to make more sense to refi BEFORE the rates reset...but i don't really have anything to back this up, so your guess is as good as mine.
Is it possible to talk w/ a financial professional, or at least a bank loan officer to get their opinion? I'd at least start looking around and talking with different banks to get a better idea (if you haven't already)
man, tricky tricky! GOOD LUCK though :) keep us all updated!
ARM's scare me, so I'd probably do it as soon as I could. But I'm a wimp with that kind of stuff - for me, better the devil I know than the devil I don't.
We've thought of a refi, since our BK is 10 years ago. It would be nice to get the mortgage a little lower, but we also want to add on in a few years (after the other debt is under control). We might wait until we know more about that.
Sorry I wasn't much help! :(
Hi Mare, I definitely can't help on this topic, since I'm clueless about that kind of stuff, but I just wanted to post and say best of luck with your decision.
Me, I would wait. I had an ARM and it reset, but the increase wasn't that huge (the first time). Your loan resets in October and you are thinking about doing it in December? That is only one or two months at a higher rate. Plus, when you refinance you almost always end up skipping one month's payment, so that will make up for it. If you can pay for the refinance paperwork with the bonus rather that financing it, that will help keep your loan amount low. Besides, rates aren't THAT low right now that I would rush to do it. It seems to me that it can't hurt you to wait, the worst that happens is you see your new rate and go EEP! and head to the bank that day - the best is you wait for the bonus, get the credit rating a little higher and get the best rate. I'm not financial expert but I refinanced after my ARM reset and there were no benefits of doing it before the reset as opposed to after. (In fact, the first time it reset the rate was fine and I stayed with it - it was the second reset that sent me to the bank to refi.)