Single and Settling In

Single life has its own unique challenges, personally and financially. Hear how these bloggers are making the single life work for them.

Time is running out.....

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I have an ARM mortgage, AKA adjustable rate mortgage. 

Guess what? The adjustable part will take effect in July of this year.  I have been prepared for this, but not ready.

Five years ago an ARM made sense for me.  I assumed this would be a "starter" house, and I would want to move on after a few years.  Not invest too much - but get my feet wet with my first home.  It is in a great neighborhood, a growing area, and I can potentially make a little money on it after I find a home that I would like to share with my family. 

All seemed to be going well until the housing market crashed, the recession hit, and my great neighborhood had foreclosure signs going up all over.  The result, my property value dropped about $45,000.  So, over a year ago I started to be proactive and talk to banks to explore my options.  I waited out government programs, I looked at every resource out there, the bottom line - there wasn't much to choose from. Because I was not foreclosing, I was not late on my payments, and I was not a millionaire, re-financing became this "looming" shadow that I was starting to fear.

I crunched the numbers, and the end result had me paying a lot more than I wanted to when the re-financing was complete.  So I took the advice to wait it out a little longer hoping for a market change.  It is now January of 2010 and I have about 6 months to figure something out.  I am going to start at step one again.  I am going to the 2 banks that hold my mortgage (I had one bank buy out part of my mortgage years ago for a line of credit to pay off see how well that worked!) and see what options have come up since we last talked about 6 months ago.  One thing I have learned is that you can get more accomplished in person. While phone calls are easier from a standpoint of anytime, anyplace nothing is better than the one on one interaction; instead of being, just another caller.

I am going to try to remain positive, but I have a feeling it is going to come down to the lesser of two evils. Pay a bigger fixed rate mortgage payment now, or wait and see what the rate is when it adjusts in July - could go up, could go down.  I hate to gamble, but I also hate to increase costs at a time when my budget is working, and my debt is going down. 

So, I will start my research again, fingers crossed, and hope that something changes in 2010 - not just for my sake, but for the sake of all of us just trying to stay afloat!  I will keep you posted on my progress as I begin my refinancing journey all over again.  Let me know if you have any suggestions - I am open to anything at this point!  Clock is ticking! 

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