With the tanking housing market, I believe that I'm close to (if not already) having a CLTV > 90%. As I understand it right now, many big lenders are using CLTV < 90% as the standard. Is it common for already existing mortgage/HELOC rates to readjust or fees be imposed if CLTV increases any further or even possibly becoming upside down? If it matters, property is SFR in Calif and lender is Countrywide.
2007-10-16 06:41:40 · 2 answers · asked by Henry L 2 in Business & Finance ➔ Renting & Real Estate
No, that won't happen. Your rate is established, probably prime + some percentage. The prime will change whenever it wants but the additional percentage will not.
2007-10-16 08:27:17 · answer #1 · answered by Debdeb 7 · 0⤊ 0⤋
No that's not common. They're still held to the terms in the original agreement even if the home value changes.
2007-10-16 07:31:11 · answer #2 · answered by matzael 3 · 0⤊ 0⤋