Adjustable rate has taken our mortgage payment from $1,800 per month to $3,000!
2007-10-29 21:16:40 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Well, you do have a couple of options and depending on a couple of factors...i.e how negative you are on your property, your credit and income documentation (Can you qualify using your W2's, pay stubs..etc). There are some companies out there, believe it or not that are still doing financing over 100%; I have seen some that do up to 110% but you will have a terrible rate. You can always call your mortgage company and see if they will refinance your loan to a fixed rate loan. A lot of lenders will rather refinance the debt that they have into a more comfortable payment then risk you going into forecloser and giving up the house. It's much cheaper for the bank to refinance the current balance; since they will lose at least 20% of the value when reselling it. It's not smart to let people lose their house on a declining market. Talk to your lender; a lot of them will have payment workout programs. I would recommend the refinance or a loan modification if they offer it over a payment plan since your credit is normally affected when you are on a repayment plan. Don't get suckered by some of the lenders out there thought; don't pay points, and see if they can do it with no or very little cost.
2007-10-29 21:24:54 · answer #1 · answered by laguy82 2 · 1⤊ 0⤋
In general you can't. You were lured into the adjustable mortgage by a teaser rate that made your payment more affordable. The real issue is that you bought a house that was way too expensive to begin with. You should limit housing to 2-3x your annual income and I would bet you are way over that.
Lecture aside, figure out what your payment would be on a fixed interest rate loan near market value and determine if you can afford it. If you can't, you really might have to let the house go. It's possible that is the best move for your future sanity.
Good luck!
2007-10-30 08:45:44 · answer #2 · answered by Rush is a band 7 · 0⤊ 2⤋
You and millions more like you are in the same boat, and that is why foreclosures are at record highs. No one seen the crash of home prices. But when appreciation of homes has been in double digit figures, energy costs have doubled, yet wages have only gone up 3% it is no wonder that this is happening. I assume that you got into this mortgage believing that your equity would build up enough to refinance at a lower more stable rate? This obviously did not happen, the middle class, and the American dream is slowly sinking. Although I do feel for you I do believe the end result is not going to be good. I know that Countrywide is trying to do something for those that have a mortgage with them and has just started a program to help.
2007-10-30 18:09:56 · answer #3 · answered by Pengy 7 · 0⤊ 2⤋
Is the lien all in one loan? Or did you do one of those combo loans to avoid PMI?
FHA may allow you to refi the 1st lien only and CLTV can exceed 100%. The 2nd lien holder must agree to resubordinate the 2nd.
Hard to do.... but worth looking into
2007-10-30 10:50:42 · answer #4 · answered by DallasLoanGuy 2 · 0⤊ 0⤋