Before we were married my wife took out a interest only Mortgage,that's proably going to strangle us n 5 years

Question

I also own a home, is there anyway to get both Mortgage's on one. Mine is fixed. Anyone have any ideas?

Answer 1

Be awear that the prepayment penalties are pretty high.Talk to both lenders to find the best path to take.My best suggestion is sell one of them and get out from under the payments.Make a choice of economics not greed. .

Answer 2

You cannot combine both mortgages into one, as they are on two different properties. You have two options. The first would be to refinance your wife's mortgage to a traditional fixed rate. The second is to start making principal payments along with the interest payments. This will essentially make the interest only loan into a conventional. That way, in five years you will not owe nearly as much as you would have. With simple math, you can reduce the principal by 30,000 by making an extra $500/month payment for the next five years. The amount reduced will actually be more, because you will owe less interest as you reduce the principle. I hope you see where I am going with this. Good luck with it!

Answer 3

There are some good ideas above, consider them. Here are a few other thoughts/ideas/questions to ponder - hope some or all help...

1) Do you have to keep your other house?
- if you sell yours and pay down on her mortgage - or heck just put it in a high-yield CD or invest in the stock market - you'll probably come out ahead
2) See above, but you should be able to pay some principal. My Interest only note allows that and my interest owed payment decreases every month...
3) Why is it going to kill you? Payment hike? Not amortizing the loan down? Are you REALLY DEFINITELY going to be there for 5 years? Look at your loan. If she had good credit, the loan might not adjust upwards that much. Also, she may NOT have a prepayment penalty. Many (certainly not all) prepayments are associated with sub-prime loans (people with bad credit).

You really need to look at a big picture of what you are doing. Read her mortgage and understand the consequences. In the end you may sit tight, you may want to refinance hers.

Get some recommendations of trustworthy, experienced mortgage brokers. Sit down and meet, face-to-face with 2 or more (until you understand what you want to do and the numbers support your decision) then I would do that.

Best of luck.

Joe...

Answer 4

Sign a contract and one most likely has to pay a penalty to get out of it. Thats the fact. Love your wife? get over it and start working as a team or as one, which you became when you were wed.
Ask her for help, get her input,ideas and opinions. Then together you can figure out whats best for all. two are one now, start there, and only good can come of it.