I have had a 1st mortgage for about 2 years now and the company I got my mortgage through has been putting 95% of my payments to the interest and not the principle so I pretty much still owe my whole mortgage and my home is approx. assessed at $70,000 and my mortgage is for $75,589 can anyone lead me to someone who will refinance me????PLZ?!?!?!?!?!?!?!?!!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!??
2007-08-13 07:40:15 · 8 answers · asked by princess with an attitude 1 in Business & Finance ➔ Renting & Real Estate
Today, nobody is going to refinance you for more than the property is worth. A few years ago you could've maybe made this loan (or at least refinanced the whole amount you owed) but with the sub-prime problems being what they are, nobody will make this loan anymore.
Your either going to have to continue paying on the current loan, or refinance for whatever you can get (maybe 80-90% of the appraised value) and come up with enough cash to cover the difference (or lose the house - or maybe sell the house but come up with money at the closing as the sales price will probably be below the current mortgage)
I'm sorry as i suspect you may have an adjustable mortgage where the rate is in danger of adjusting up (or already has) and you may be in a real cash crunch now. Still, there are millions of people in this situation (or about to be) and they are all going to have to suck it up and keep paying the higher amount or lose their houses. Its really a huge disaster that we as a country have gotten ourselves into this situation but thats the situation.
PS - Possibly the government will come to the aid of people in this situation, but no programs out there yet to assist with this.
2007-08-13 07:49:39 · answer #1 · answered by Slumlord 7 · 1⤊ 0⤋
Your first mortgage sounds about right - most of the payment WILL go towards interest (excluding taxes and insurance, if that's part of your payment). That's the way these things work, and why it takes 30 years to pay off a house.
But my advice would be to NOT get a 125% mortgage. That's a recipe for a disaster. If you can't make the payment now, how will borrowing more help you? Instead, make a bigger payment, and include a note with each payment that says the extra $20 or $50 or $100 is to be applied directly to the principal, to help pay the mortgage down faster. You need to include the note every time, so they don't put it in your escrow account, for example.
2007-08-13 07:46:54 · answer #2 · answered by Ralfcoder 7 · 0⤊ 0⤋
That is how mortgages work actually. The first 10 years they really take the interest payments up front. if you can pay a little extra and tell them that goes to principle is the only way it really goes down in the first few years.
all mortgages run the same way unfortunatly. but if you can make an extra payment a year you can really chuck it down as the interest you pay each month is on the principle nit the original principle so it helps you in 2 ways
2007-08-13 07:46:04 · answer #3 · answered by Domino 4 · 0⤊ 0⤋
Those that are claiming that a 125% mortgage is not available are incorrect. That being said, I agree with the answer that asks you why you would want one. Paying extra on you current mortgage is the best advise you can get and I wholeheartedly agree.
If you insist on the 125% second mortgage, I suggest you go through a Mortgage Broker and to see if they work with Homecomings Financial which is a lender that offers a 125% second mortgage.
Hope this helps....
2007-08-14 10:38:08 · answer #4 · answered by hoa_craig 2 · 0⤊ 0⤋
As is typical with any mortgage or car loan. If you could find someone these days with the market as it is you would be paying an even higher interest rate, with even more reverse equity so you payments would no doubt end up higher. What you are asking for is a quicker way to foreclosure, or greater loss. Because of that fact do not think you will find any equitable loaners to help you, those that would, are looking to break you.
2007-08-13 09:42:12 · answer #5 · answered by Pengy 7 · 0⤊ 0⤋
A refinance won't change the amount you are paying to principle. In 28 years, you will be only paying 5% towards interest. Furthermore, it will be hard to find someone to refinance you above 100%. Good Luck
2007-08-13 07:51:15 · answer #6 · answered by ? 4 · 0⤊ 0⤋
I am not aware of anyone doing 125% loan anymore with the subprime market shrinking. There is a difference between assessed value and appraised value; there is a chance that your appraised value is higher and therefore you can get the loan terms you are looking for. You can call an appraiser out of the phone book and ask for a value range without incurring any charge.
2007-08-13 07:46:56 · answer #7 · answered by f1scrilla 2 · 1⤊ 0⤋
As lots of the loan stability as you will get down is astounding with the aid of fact as all of us understand maximum of right this moment's housing values are straight away lowering. in case you could repay the 2d and not strap your self i might say refinance the 1st and since the 2d is fixed besides. counting on your state i will refer you to somebody in case you will possibly decide to talk with somebody.
2016-10-10 03:44:37 · answer #8 · answered by jochim 4 · 0⤊ 0⤋