DH and I are trying to sell our house this summer so when we PCS next summer, we won't have to worry with it. On top of that, we got the crapiest, shadiest realtor ever and ended up taking it in the a$$. Our monthly payment ended up being about $300 more than the estimate that our realtor gave us, and that's another reason we are trying to get out now.
At any rate, the housing market is flooded around Lewis and McChord right now. We've had it on the market for 2 months now and no one has even set foot in it. (It is new construction completed in April 2006 with upgraded carpet, tile backsplash, etc.)
Since it looks like we are going to have to wait til next summer to try to get rid of it (and hope that things get better) we are trying to think of ways to lower our monthly payment. It's kind of getting to us, and if it doesn't sell right away after we PCS it would help A LOT if the payment was more manageble. We did a VA loan at 6%. I was thinking we could do a ARM since we're selling in a year or so.
Could someone please give me some advice on how to lower our monthly payment, what we need to do, and how much this will cost us out-of-pocket?
Since you are selling your house soon then you are going to lose money by refinancing it no matter what kind of loan you do. If freeing up cash flow right now is the highest priority then I would go with a pay option ARM or an interest only loan. If equity in your home is marginal then the pay option ARM will only hurt you.
You have a 6% rate on a VA loan. That's your advantage. Rates are not that low right now and you can offer to let someone assume that loan. If another veteran buys it then it works out even better, all you have to do is swap eligibility. What's the balance on your current loan and how much is the house worth?
