Refinance Mortgage?

Question

I have a 3 yr Arm? I've been in it for a yr. Home worth $145000 but loan now over $150,000. What are my options?

Answer 1

There's so many questions to ask you in order to derive a good answer for you. First if your primary concern is about your loan, then I would suggest contacting several loan officers and getting their input as to how to go about refinancing. Remember to keep in mind that although the market is re-adjusting itself, all indications from analysts is that the market is going to recover in 2009. Good luck!

Answer 2

President Bush announced the new FHA Secure program for helping borrowers with good credit to refinance their ARM loans if they are behind in their payments. The program is expected to help around 80,000 individuals who are not in foreclosure but are experiencing difficulties. While it is a step in the right direction, in and of itself, it will do little to help with moving the mortgage markets forward. That will only come when the Senate gets off its butt and finally passes the FHA reform legislation that has been languishing these last 16 months. Only by putting forth a Bill that revises FHA down payment requirements and increases the current archaic loan limit restrictions will real reform move forward. The same would be true for more conventional borrowers if the Federal Reserve would do the same for Fannie Mae and Freddie MacTo qualify for FHA Secure, eligible homeowners must meet the following criteria:
• The loan must be a non-FHA ARM.
• A history of on-time mortgage payments "prior" to the borrower's ARM loan resetting to the higher rate.
• The Arm loan interest rate must have either reset or be scheduled to reset between June 2005 and December 2009.
• Mortgage late's are allowed after the reset date if they are directly related to your higher loan payment. In addition, if you are in a mortgage payment plan because of late payments and there is sufficient equity in the home, the late amounts can be rolled into the new loan.
• Second mortgages are possible under specific conditions.
• A minimum of 3% cash or equity in the home.
• A sustained history of employment.
• Sufficient income to make the new mortgage payment.
While the new program will help those borrowers who qualify save their homes, it is obviously not a free ride. It is designed for homeowner's who just need a little assistance in order to get out from underneath onerous ARM interest rates.

Answer 3

You could always pay it down or walk away from it. If its too much try to work out an arrangement with the bank. Some banks are starting to do just that.

Answer 4

Your option is to seek 100% LTV fixed rate financing and come to the table with the difference in cash. Not pretty, is it ?