I'm looking for the best plan as in:
- Not getting my face ripped off in closing cost
- Not increasing my current interest rate of 5.8 to something over 8%
- Not having to pay thousands in points
It seems I'm having the same dilemna as when I bought my house and rates were supposedly "low" 4 years ago. I know I can't win, but I simply can't afford my current mortgage payment of $1500+ a month on a house I mortgage $185K for.
2007-07-31 12:47:18 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Since 5.8 is a pretty fair deal, you will need to go to an interest only loan. They have loans that are fixed low interest loans that allow interest only payments for the first ten years. Current interest rates on these loans is around 6.75 %. This will lower your payments down to just over 1000 a month.
The best bet for you is to find a good mortgage broker and ask them what they charge. After all the fees you will spend around three points. You can ask to spend less on the points, but they will have to raise your interest rate and thus your payment to do so.
2007-07-31 12:59:31 · answer #1 · answered by Ron B 3 · 0⤊ 0⤋
Sounds like you may have $300 to $400 per month is PMI and tax impounds/escrows -- like stated above
Be sure you are receiving all exemptions on taxes that you are entitled to & don't be shy about filing for an appeal.
Otherwise it sounds like you have a great mortgage already and should look for ways to increase your income or compromise and get a solid roommie - even if only temporary it may allow you to pay down other debts so you can comfortably allocate more of your earnings to the mortgage each month.
Otherwise sell and start over.
Good luck.
2007-07-31 13:15:14 · answer #2 · answered by LadyB!™ 4 · 0⤊ 0⤋
I wouldn't suggest an interest only loan because when you least expect it, you get it with a balloon payment and that is not what you want. Why go into foreclosure when you don't have to.
Your interest rate will surely increase but to what is anybody's guess at the moment. You can't get away with not having points but it may only be as little as 3 points.
For the moment your best bet I would say is to stay put and figure out how much better off you may be after all.
2007-07-31 14:32:32 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you are paying PMI and you are if you paid less than 20% down. If your home has increased in value by 20%. You can get a current appraisal to support the value increase. The lender has to remove the PMI and your payment should drop by $100-300 per month
2007-07-31 13:37:55 · answer #4 · answered by Leo F 4 · 0⤊ 0⤋
5.8 is a good interest rate and i do not think in these times you can do better, sounds more like the taxes are the thing that is killing you. With the depreciation of houses maybe you can get the home reassessed and change your taxes on it. cannot think of any other way to reduce payments
2007-07-31 12:58:17 · answer #5 · answered by Pengy 7 · 0⤊ 0⤋
I believe that the main requirement is that you have a hardship that is keeping you from affording your house payments and that you are on the verge of losing your home. Does not sound like you are in that dire situation, fortunately for you.
2016-04-01 04:21:23 · answer #6 · answered by Debra 4 · 0⤊ 0⤋
couple options:
-get a roommate that will pay
-get an international homestay student
-rent out a portion of the basement for income
2007-07-31 12:53:05 · answer #7 · answered by jimmy 1 · 1⤊ 0⤋