Mortgage after Deed in Lieu

[Anonymous]

Here's the information from the Caliber ARM

https://gallery.mailchimp.com/cdac811f7f8c077ce620256b8/files/Fresh_Start_Program_Summary.pdf

I'd appreciate your thoughts as I wade through the information.

[StartingOver10]

Based on the link you provided and some of the other information in your previous posts, it looks like for the 5/1 ARM you would have the 1 year LIBOR as your INDEX and a margin of 4.5% over the 1 year LIBOR rate if your credit score is 580 or more and less than 620 for a primary residence with a 20% down payment on your purchase.

Here is a link to the One Year LIBOR rate http://www.moneycafe.com/personal-finance/libor/

Looks like the current rate (Mar 2015) is 0.67960 + 4.5% for your margin is a note rate of 5.1796% 

A 5/1 ARM usually means the first 5 years are fixed and then the rate adjusts annually.*** 

***You will need to get clarification directly from your LO as to the exact terms of the loan for which you qualify because there were lots of different aspects depending upon how many lates you have in the last 12 months, credit score and other factors.

[Anonymous]

Thank you

We have credit scores of 712 (me) and 720 (spouse). We will also have 20% down.

The goal would be to refinance before year 5. It's easy for a bank/broker to say "just refinance" but we need to be sure that's possible. I read this morning that most lenders will not refinance until you've had the original loan for 1 year and you must have good credit (700s are good scores, but it's unclear how a re-fi lender will view the DIL). Most lenders also require 5% equity, which shouldn't be a problem since we would have put 20% down. The closing cost fees on a refinance vary from 3 to 6% of the loan balance, according to Lending Tree. It's a lot to juggle