Rates are dropping, and even though I have a great LTV and payment history my adj. rate mortgage just jumped to 10.11%. I know what I signed and realize they can, but why jack it so high they force me into foreclosure? Then they cry that they need bailing out? I don't think so - I think mortgagees need bailing out from unscrupulous lenders. I have already contacted them and they said...........blah...blah......you signed.......... up the rate if you want to but raise it 4%?!
2007-11-02 06:29:54 · 16 answers · asked by Tina h 1 in Business & Finance ➔ Renting & Real Estate
Quote: I know what I signed and realize they can.
If they did what you agreed to and they legally can, what is the basis for a complaint? You signed the contract.
2007-11-02 06:32:29 · answer #1 · answered by wizjp 7 · 4⤊ 1⤋
You are incorrectly assuming that the higher rate has something to do with how good or bad your credit is.
Where did you get that idea? From a psychic?
You have to take responsibility for your own decisions here.
You knew what you were going into and signed a contract.
Mortgage companies and banks are not charities.
They exist to make a profit. If the contract said they can raise the rate later, then there's a 100% certainty they're going to do that.
So stop complaining.
I'm tired of hearing this, especially since I don't make much money, can't buy a house, yet I WAS SMART ENOUGH NOT TO GET AN OBVIOUSLY GIMMICKY LOAN so I could buy something!
Now, I still can't buy a house, but my taxes are going to finance the big bailout when it happens.
I have to pay for all you moron's making stupid decisions, and YOU PEOPLE STILL GET TO KEEP YOUR HOUSE!
THAT, my friend, is what is unfair!!!
2007-11-02 07:28:38 · answer #2 · answered by dork 7 · 1⤊ 0⤋
I think you have already answered your own question. You SIGNED for what you just got. They raised your rate because they CAN. If you have an great LTV, simply head out there and get yourself a conventional 30-year FIXED rate mortgage. Rates on such loans are still in the low six percent range. It may cost you a bit to refinance, but it's worth doing so.
And don't bother filing a complaint anywhere. It won't be worth the paper you used to write it down.
2007-11-02 06:59:27 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
I don't think your mortgage company has any choice but to raise it as much as they are allowed to, otherwise they are coming up short for the other side of the transaction. Usually, these loans are sold to investors who take the other side of the bet .. and they are entitled to make the most of teh loan provisions.. whether it comes back and bites them later or not (by having many defaults).
You need to refinance your house on a fixed rate which are now about 6% to 6.5% on a good LTV.
2007-11-02 06:46:27 · answer #4 · answered by fouman1 3 · 1⤊ 0⤋
There are watchdog groups that might be of service here. I would consider a refinance. If you credit is good you might be able to get into a fixed mortgage (30 yr) for around 6-6.5%. The adjustable rate mortgages are scary. Depending on how much your home is worth, and how much you have left on the principle it would only take 2-3 years to make it worth it.
2007-11-02 06:36:07 · answer #5 · answered by John 2 · 1⤊ 0⤋
Sorry to hear that, but if you signed a mortgage that wasn't locked in, you have to take the bad with the good...the only other thing you might want to do is remortgage with another company and get out of this deal...will be worth a small penalty if you are paying 10.11%.
2007-11-02 06:34:34 · answer #6 · answered by pissy_old_lady 7 · 0⤊ 0⤋
And just where is your source that mortgage rates are dropping, also, persons that signed a contract with a adjustable mortgage rate clause have no right to complain when the mortgage company makes mortgage rate adjustments
sorry
2007-11-02 06:40:40 · answer #7 · answered by Jan Luv 7 · 1⤊ 0⤋
That is typical with an ARM. Payments start low and typically increase with time. With interest rates running around 6% to 7% for a fixed rate mortgage, I would suggest you refinance your loan at a fixed rate.
2007-11-02 06:37:54 · answer #8 · answered by RB 5 · 0⤊ 0⤋
The best way to complain is to refinance with another lender. You probably should go with fixed rate this time around. The 6 or so % you were paying wasn't very good anyways.
2007-11-02 06:36:08 · answer #9 · answered by Gary H 3 · 0⤊ 0⤋
They gave you a below market rate for a certain number of months (called a "teaser" rate). Now you are paying the normal rate plus they have to make back what they were losing while the teaser rate was in effect.
2007-11-02 06:35:24 · answer #10 · answered by Ted 7 · 0⤊ 0⤋
Sorry to say this, but you signed the contract knowing that this could be possible. You are kinda stuck. If you want to complain to someone, you should contact the Better Business Beaurea to find out if this is possible.
2007-11-02 06:33:19 · answer #11 · answered by Anonymous · 0⤊ 0⤋