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Interest Only ARMs and MTA / COSI / COFI loans used to be attractive... Now...

By
Mortgage and Lending with AnnieMac Home Mortgage 815040

Consumers are fighting to refinance into a fixed rate.  Consumers are getting frustrated.  Thier mortgage payment continually increases and the value of homes are stagnant at best. 

I do believe that 2007 will have many rate and term refinances due to this situation.  However, appraisers are having a tough time getting value to eliminate these high risk loans.  So, now is the time to refinance.  Make sure you can get your value before proceeding with the loan.  Most consumers will be surprised hen they hear that they cannot get the value that they once had.  For those of you out there, hang in there until spring time.  More homes tend to sell during that time and more comporables will be available.   

 

Scott Gormley
Oak Valley Mortgage-California Home Loans and Refinancing - Chico, CA

Hey Eric,

I haven't had too many problems with values, but I hear where you're coming from. Spring time would be better...Also, look out for those prepayment penalties. If you can justify the loan for a few months, take your time with them...They will appreciate it and you'll still get the business this year...

Scott

Jan 22, 2007 12:31 PM