Need Mortgage Loan Advice?

Question by kmlittlejohn: Need Mortgage Loan Advice?
I need to refinance my house to get away from the THDA policies that restrict me from renting my house. My house is currently listed for sale, but due to the economy, it could be months/years before it sales and my family and I would like to move as soon as possible. If we refinanced we could at least rent the house if it came down to that.The bank is suggesting that I do a 3/1 or 5/1 ARM since I am planning to sell the house immediately. From what I hear, ARM’s are selfsame scary and I’m not sure this is the best dispatch. Help!!!Pls understand that I am not trying to do a refi in hopes on a lowering my rate. I also understand that doing a refi will add more money to my loan, but in the end, I could likely still sale the house at a price to pay the entire loan balance.Selling the house is my ultimate goal and I really don’t want to rent, but if it comes down to it, I may have to in order for my family to move into a bigger, more suitable home. My house is priced for quick sale, but their is so much competition flop now.I’m considering the refi to get out from under the THDA guidelines..THDA did provide grant money that I have been repaying with my mortgage since I bought my house. I will have to pay the balance of if I sell the house, but that’s no concern of mine. The guideline that THDA imposes that is crucial to me can be read at the weblink below. It’s question 12: http://www.thda.org/Programs/Mortgage/svcqstns.html

Best answer:

Answer by Big Al
Arms are very scary but if you know you can sell it in 3-5 years then you can do it. Now if you cant sell it and the rate goes up to 10% get ready to pay your butt off in interest.

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