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Should we be worried about our mortgage loan?

We have a 7-year ARM. We have had it for 3 years now. I was thinking of refinancing now that the interest rates are a little low. The thing is that I hate where we are living and I would move out this second if I could (the price in our house has dropped & my husband has a good job and doesn't think he can find one as good somewhere else.) Anyway, I am sure that we will be out of here before the next 4 years at least I am hoping we will be. The only way we will still be here is if the recession hits harder, or we enter a depression. Am I going to regret not refinancing to a fixed rate?

Answer Question

Asked by Anonymous at 12:15 AM on Feb. 25, 2009 in Money & Work

Answers (6)
  • I don't know the specifics of your situation, but I would look at the Neighborhood Assistance Corporation of America (NACA).  They don't refinance loans, but they DO work with your current lender to have your loan restructured.  We spent 3 months working with them and they got our lender to drop our 10.45% ARM to 5.25% Fixed for the remaining life of the loan.  So instead of starting over with a new loan they restructured what was left of our current one!  I also utilized a forum at  They are experienced and give excellent advice. :) Hope this helps!


    Answer by tandknix at 12:24 AM on Feb. 25, 2009

  • i might redo the loan.. just cause i dont think its gonna go lower that means it can only go up..

    Answer by miss_nevin at 1:22 AM on Feb. 25, 2009

  • What do you mean when you say "i dont think its gonna go lower that means it can only go up.." are you talking about your interest rate?


    Answer by tandknix at 1:33 AM on Feb. 25, 2009

  • I would refinance just to be safe. What if you don't move within 4 years and the interest rates sky rocket? What if you DO move, but can't sell the house? There are just so many unknowns and at least if you have a fixed interest rate, you will KNOW exactly what your mortgage payment is going to be from month to month.

    Answer by slw123 at 11:56 AM on Feb. 25, 2009

  • The problem is if I refinance we have to pay up to $7000 in closing costs and I just don't think that would be worth it.

    Answer by Anonymous at 12:52 AM on Feb. 26, 2009

  • You don't pay any costs for NACA. It is a free service. IF there is an office local to you they do ask that you volunteer IF they get your loan restructured and you are happy with it. IF there is not an office then you don't have to worry about volunteering! You can do everything by phone :) Welll worth it to me :)

    Answer by tandknix at 8:28 AM on Feb. 26, 2009

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