SONYMA didn't approve at the last minute! Now I have to choose...

I just found out that SONYMA didn't approve my loan, turns out too many people in the complex have SONYMA and they aren't accepting anymore applicants! After all of this, extra paperwork, headaches, everything!

You guys were right, what a pain in the butt!

Well, now I'm faced with a choice, I can take a 30 year fixed at 6% or a 7 year adjustable at 5.75%.

I don't know what to do... I don't know if I will be living there for 7 years, as I am not getting married anymore (that's why I'm buying the coop, for a fresh start), but you never know...It's a small one bedroom. I'd like to believe that I'll be married or moving into a bigger place in 7 years, but I want to be realistic.

What are your opinions on fixed vs. adjustable?

Re: SONYMA didn't approve at the last minute! Now I have to choose...

Have you calculated the monthly cost difference in with the different rates?

Re: SONYMA didn't approve at the last minute! Now I have to choose...

The difference is not much, about $15, (it's about 80 more a month than the SONYMA though). My lawyer advised me to take the adjustable... but I think I prefer the fixed, even though I don't think I'll be there for that long.

Re: SONYMA didn't approve at the last minute! Now I have to choose...

No offense to you but you should fire your lawyer for even suggesting that you take the adjustable. If you end up staying there past 7 years you can get really screwed. Interest rates could go up really high. Do the payment using a 10% interest rate and you will not be happy.

In other words, i would definately take the 30 year fixed!!!! Sorry if this is harsh. Did your lawyer say why you should take the adjustable?

Re: SONYMA didn't approve at the last minute! Now I have to choose...

He said that I probably wouldn't live in the apartment for more than 7 years, so I should go with saving money now.

But it's really not that much money more per month, for the security that I won't be paying 10% in 7 years.

You are right. I'm going to go with the fixed. Even if my stupid ex gets his act together and we do get married and buy a house, it is worth a few extra bucks now in case I live in the apartment for the rest of my life.

Thanks for your advice!

Re: SONYMA didn't approve at the last minute! Now I have to choose...

Discuss your concerns with your lawyer about doing the ARM.

Anyway, personally I'd go with the fixed just b/c things are pretty uncertain right now, it's only .25% higher, and it's only a few dollars more a month. Also, adjustable rates can only go up a certain amount per year; you'd have to check with your bank to see how much it can go up in a year and what is the maximum it can increase for the life of the loan. Good luck!

Re: SONYMA didn't approve at the last minute! Now I have to choose...

Sorry if i was harsh but i just thought that he would know better. I can see if maybe it was about 4%.

Re: SONYMA didn't approve at the last minute! Now I have to choose...

Don't worry about being harsh, I was very apprehensive about the ARM but I WANTED someone to tell me that I wasn't crazy!!

Your strong reaction just affirmed my initial feelings on it, that the fixed is much better.

I don't know why my lawyer said that... hmmm...

Re: SONYMA didn't approve at the last minute! Now I have to choose...

SONYMA did the exact same thing to us. We went with the fixed rate...Good luck!

Re: SONYMA didn't approve at the last minute! Now I have to choose...

What does too many people in the complex having SONYMA have to do with you getting it?

Why would the complex care how you get your financing... as long as you get it?

All the complex should care about is high sales prices. Maybe they feel the seller undersold the apartment.

Re: SONYMA didn't approve at the last minute! Now I have to choose...

I think it was rejected on the SONYMA side. I was really out of it when I talked to the banker because I have a sinus infection, an ear infection, and possibly strep throat all at the same time, and she woke me up from a nap!

My bank now says I qualify for closing cost assistance... I hope *that* doesn't fall through too!!
I have seen other apartments in the complex sell for about the same... there is one left for about 30 more than the others, because it has a new kitchen and new bath... that one has been on the market for a while... but mine was about the same as the other units.

I just wish I hadn't wasted so much time and energy getting all of that extra SONYMA paperwork, I would have probably been living there by now!!

Oh well, at least the bank will give me a fairly good rate.

Re: SONYMA didn't approve at the last minute! Now I have to choose...

There is nothing wrong with getting an ARM mortgage if you plan on leaving in 5-7 years. In fact thats a WISE move!

An even better move if this is better for you if the first time buyer program doesnt work out... would be a negative points ARM mortgage. You will pay a slightly higher rate than a normal ARM (you would probably get a rate close to 30yr fixed)... and you will get cash back at closing to possibly pay for some or maybe ALL of your closing costs.