My next mortgage

How long do you plan to be in the house?

 

You should refi now into a longer term I/O.

 

Plan? Til it gets too small to work @ home and have a housewife and kid there too. I give it a month before they are sick of me.

Let's say 5-7 years max. I ran the numbers for the 10 yr as a bit of a hedge against that depreciation thang Meat mentioned above. In the event the market REALLY goes to shit and we "have" to stay there longer. Plus, we are not talking a huge mortgage - for a 10 yr I/O the numbers might look like a car payment for some folks.

 

Find me a jumbo at 5.125.

 

I have no idea what rates you could get, but that's not the point. If you are worried about the risk of your current balloon payment after 10 years, then it may be worth a bit of a premium now, to eliminate that risk.

 

No shot in hell. The Jumbo market is more or less fucked. Fannie Mae won't buy them and the secondary market sucks balls. Think I quoted someone 6.25% in a 7 Yr IO (Jumbo) last week. That was with no points. They are running about a full point higher than conforming instead of the typical 3/8 to 1/2.

 

Just pulled up rates from my best ARM source.

NO Points...good credit 80% LTV $120,000+ loan amount

3/1 IO 5%
5/1 IO 5.125%
7/1 IO 5.25%
10/1 IO 5.375%

These were yesterday's rates.

 

I got one in October, granted, my credit is pristine.

 

Mine is not. Call it dinged. It's not horrid though. What I found during our last refi was that the lender loved my job more than my credit score.

Of course, that was back when my cat could've gotten a mortgage so things may have changed.

Freak - Can I still finance the last 20% in a piggyback?

 

I'm not. He asked for the downside - that's the downside.