Pre-Approval says 30-Year Fixed

[Aimster]

Ahhh told my lender I wanted an ARM. Pre-Approval says 30-year Fixed Rate.
Submitting an offer tomorrow with pre-approval letter

Can I switch this to an ARM at the time of closing or do I need to get this stated before I submit this offer in?

Pre-Approval is not for any property. It is just a general approval for a loan amount.

 

[CrackRabbit]

So do I need to go get ANOTHER 9v battery for my sarcasm meter, or is this self pwnage of the year?

 

[KLin]

Why would you want an ARM over a 30 year fixed?

 

[Aimster]

Originally posted by: CrackRabbit
So do I need to go get ANOTHER 9v battery for my sarcasm meter, or is this self pwnage of the year?

This is my first house. I don't have experience with mortgages. Congratulations you do. You want to be an ass about it then be one. You are cool.

 

[Gibson486]

no offense...but wow...have you been living under a rock or something? ARMs are part of the problem with the housing crisis.

 

[Amused]

ARMs are almost ALWAYS a bad deal. About the only time they might be useful is when you plan on flipping the house in a very short time.

You want the fixed mortgage rate. Definately.

 

[Aimster]

Originally posted by: KLin
Why would you want an ARM over a 30 year fixed?

4.25 versus 5.25

 

[Gibson486]

Originally posted by: Aimster

Originally posted by: KLin
Why would you want an ARM over a 30 year fixed?

4.25 versus 5.25

how long is it 4.25% for? Are you planning to do the, "well, i can refinance when the rates go up".

 

[Epic Fail]

Originally posted by: Gibson486

Originally posted by: Aimster

Originally posted by: KLin
Why would you want an ARM over a 30 year fixed?

4.25 versus 5.25

how long is it 4.25% for? Are you planning to do the, "well, i can refinance when the rates go up".

No, when readjustment hits, you sell your home for 50% more than you paid for and mortgage a bigger house with another ARM.

 

[TruePaige]

Originally posted by: Aimster

Originally posted by: KLin
Why would you want an ARM over a 30 year fixed?

4.25 versus 5.25

Yeah, but then they adjust and screw you.

What you might want is to refinance at a lower rate if possible later, but unless planning to sell you'd probably refinance into another, lower-rate, fixed mortgage. This you can most certainly do. I hope that helps!

 

[Pantoot]

Originally posted by: TruePaige

Yeah, but then they adjust and screw you.

What you might want is to refinance at a lower rate if possible later, but unless planning to sell you'd probably refinance into another, lower-rate, fixed mortgage. This you can most certainly do. I hope that helps!

Unless the unthinkable happens and the house value drops by 20% and now you owe more than your house is worth and nobody would dare refinance for you.

But that could never happen.

 

[OCGuy]

Yes, you can switch it up until the point docs are drawn.

 

[Gooberlx2]

Originally posted by: Aimster

Originally posted by: KLin
Why would you want an ARM over a 30 year fixed?

4.25 versus 5.25

Rates are low now, and will probably go up as the economy and housing market recovers. So in 3 or 5 or whatever years, when your ARM starts adjusting, you'll likely be refinancing into a fixed rate a good bit higher than 5.25. If you at all plan to stay in the house for a good number of years, it's smarter to stick with the fixed rate now.

 

[Aimster]

Thank You

& I don't plan on living in it for 5 years.
Fairfax, VA you either are a millionaire or you live paycheck to paycheck saving a little here and there. Never enough to retire comfortably when you are old just enough for a rainy day.
I'll be in Texas in 5 years. Living in my nice house paying little to no mortgage and having a big savings account. Can't wait.

 

[OILFIELDTRASH]

You should stick with the 30 year fixed rate. When your ARM interest rate goes up after time your going to want to refinance. What everyone is forgetting to mention is that when you refinance the house its going to cost you several thousand dollars. They are going to want to get the house reappraised, inspected, closing costs again. Your essentially rebuying the same house.

 

[OILFIELDTRASH]

Originally posted by: Aimster
Thank You

& I don't plan on living in it for 5 years.
Fairfax, VA you either are a millionaire or you live paycheck to paycheck saving a little here and there. Never enough to retire comfortably when you are old just enough for a rainy day.
I'll be in Texas in 5 years. Living in my nice house paying little to no mortgage and having a big savings account. Can't wait.

Your a douche. Good luck selling that house in 5 years. You didn't even know the difference between a ARM and fixed mortgage, but claim you will be living in Texas with an almost paid off house.

 

[mshan]

http://www.federalreserve.gov/.../arms/arms_english.htm

 

[Aimster]

Originally posted by: OILFIELDTRASH

Originally posted by: Aimster
Thank You

& I don't plan on living in it for 5 years.
Fairfax, VA you either are a millionaire or you live paycheck to paycheck saving a little here and there. Never enough to retire comfortably when you are old just enough for a rainy day.
I'll be in Texas in 5 years. Living in my nice house paying little to no mortgage and having a big savings account. Can't wait.

Your a douche. Good luck selling that house in 5 years. You didn't even know the difference between a ARM and fixed mortgage, but claim you will be living in Texas with an almost paid off house.

I know the difference between an ARM and a fixed rate mortgage genius.
I asked if I could switch over to an ARM rather than a fixed rate mortgage at closing since my pre-approval stated fixed-rate and no mention of an ARM.

& thanks for your concern but a townhouse/condo in the heart of Fairfax, VA is not going to depreciate that much if the markets continue to slide. This is not LA or Las Vegas. Government is here.

 

[CrackRabbit]

Originally posted by: Aimster

Originally posted by: OILFIELDTRASH

Originally posted by: Aimster
Thank You

& I don't plan on living in it for 5 years.
Fairfax, VA you either are a millionaire or you live paycheck to paycheck saving a little here and there. Never enough to retire comfortably when you are old just enough for a rainy day.
I'll be in Texas in 5 years. Living in my nice house paying little to no mortgage and having a big savings account. Can't wait.

Your a douche. Good luck selling that house in 5 years. You didn't even know the difference between a ARM and fixed mortgage, but claim you will be living in Texas with an almost paid off house.

I know the difference between an ARM and a fixed rate mortgage genius.
I asked if I could switch over to an ARM rather than a fixed rate mortgage at closing since my pre-approval stated fixed-rate and no mention of an ARM.

& thanks for your concern but a townhouse/condo in the heart of Fairfax, VA is not going to depreciate that much if the markets continue to slide. This is not LA or Las Vegas. Government is here.

Sorry about being an ass in my first reply, but seriously, a fixed rate is the way to go even if you plan on getting out of it before the ARM adjusts.
Plans change and the future is always fluid. I would rather have a fixed rate just in case for some unforeseen reason I got stuck with the property.

 

[rudder]

Originally posted by: KLin
Why would you want an ARM over a 30 year fixed?

Why would y6ou do an ARM when rates are lower than they will ever go again.

 

[JS80]

Originally posted by: Aimster
Thank You

& I don't plan on living in it for 5 years.
Fairfax, VA you either are a millionaire or you live paycheck to paycheck saving a little here and there. Never enough to retire comfortably when you are old just enough for a rainy day.
I'll be in Texas in 5 years. Living in my nice house paying little to no mortgage and having a big savings account. Can't wait.

what's rent vs 0 down mortgage in your area? 5 years I can see it going two ways. 1) we have asset inflation and your house is worth more than you bought it for and it was smart to do an ARM or 2) we have stagflation and rates go up but your house value drops or stays the same and you regret buying a house.

 

[OILFIELDTRASH]

I agree with crackrabbit selling a property is always an iffy proposition in a good or bad economic climate. How much would 1% save you in 5 years? Im sure its not enough to justify risking being stuck with a property thats going to have an insane interest rate when the arm increases.

 

[TruePaige]

Originally posted by: OILFIELDTRASH
I agree with crackrabbit selling a property is always an iffy proposition in a good or bad economic climate. How much would 1% save you in 5 years? Im sure its not enough to justify risking being stuck with a property thats going to have an insane interest rate when the arm increases.

Usually true. Especially if you are a small fry in the market (1 property).

The headaches and fees alone might cancel out most of the benefit.

 

[Gothgar]

Originally posted by: Pantoot

Originally posted by: TruePaige

Yeah, but then they adjust and screw you.

What you might want is to refinance at a lower rate if possible later, but unless planning to sell you'd probably refinance into another, lower-rate, fixed mortgage. This you can most certainly do. I hope that helps!

Unless the unthinkable happens and the house value drops by 20% and now you owe more than your house is worth and nobody would dare refinance for you.

But that could never happen.

wow.... quoted for no sarcasm meter

 

[DaveSimmons]

Why buy if you're planning to sell in <5 years?

With closing costs and all the other fees, I'd bet on an S&P 500 fund over a house now that the market is probably close to the bottom.

Mutual fund shares are also liquid so you can wait to sell until exactly when you need the money, and only sell part of your holdings if you don't need them all. With a house it might take 6 months to years to sell.