Posted on: 12th Nov, 2010 02:36 pm
Looking for help here in what to do..... I currently have a 1st & 2nd mortgage on my house. The total $$ amount I owe on my 1st & 2nd mortgage is equal to the same value of my house.
I've made some bad money decisions lately that didn't go as planned and now my hours & income have been reduced at work. My Monthly payments are now exceeding my monthly wage. I'm not behind on anything yet but will be at my limits very soon!
I talked with my bank where I have my 1st & 2nd mortgage but they would only help in refinancing my 1st mortgage which won't really help me. I really need to combine my 1st & 2nd into one new 30 year mortgage.
Are there mortgage companies out there that will borrow up to 100% of the home apprasial value?
I have money in my 401k but not sure if I should be using that? Should I use money from my 401K and pay down my 2nd mortgage to get it at 80%
Thanks in advance for your help!
Scott
I've made some bad money decisions lately that didn't go as planned and now my hours & income have been reduced at work. My Monthly payments are now exceeding my monthly wage. I'm not behind on anything yet but will be at my limits very soon!
I talked with my bank where I have my 1st & 2nd mortgage but they would only help in refinancing my 1st mortgage which won't really help me. I really need to combine my 1st & 2nd into one new 30 year mortgage.
Are there mortgage companies out there that will borrow up to 100% of the home apprasial value?
I have money in my 401k but not sure if I should be using that? Should I use money from my 401K and pay down my 2nd mortgage to get it at 80%
Thanks in advance for your help!
Scott
hi trekk5500,
welcome to mortgage fit,
most probably major chunk of the money is 1st mortgage.so you should get refinance for the first mortgage and remaining amount can be raised either through 401 k or through equity loan in the house (if you have enough equity in the house).even if you get a heloc that is also a good instrument to hedge.........
feel free to ask any further query if you have........
dipa
welcome to mortgage fit,
most probably major chunk of the money is 1st mortgage.so you should get refinance for the first mortgage and remaining amount can be raised either through 401 k or through equity loan in the house (if you have enough equity in the house).even if you get a heloc that is also a good instrument to hedge.........
feel free to ask any further query if you have........
dipa
Actually no, my 2nd mortgage payment is more than my 1st mortgage payment. I currently have no equity in the house. Refinancing my 1st mortgage would save me $400 per month but if I could refinance my 1st & 2nd motgage into one 30 yr it would save me $1260 per month. Of course I'm going from 14 years left on my 1st mortgage back to 30 years.
Sorry, the above post^ was from me, didn't realize I wasn't signed in.
Hi trekk5500,
In my opinion you should instead of trying to cut cost on mortgage,you should try to do some reverse calculation....Try to increase your earning resources....Why am I suggesting this because even if you get a refinance at this moment as per your requirement eventually you will get this deal at higher interest rate and what you are currently doing is postponing the debt.....
I am not against the restructuring of loan but rather I want to prove that......
It is lot more easier to increase the resources and pay mortgage rather than trying to lower mortgage with professional help spending hundreds of dollars on professional consultancy fee...and at the end of the loan you end up paying high interest rate because refinancing not necessarily reduce your total outstanding......
Coming back to the question.....If you could ask your existing lender for modification it will be a good start,.......if he/she refuses then you can shop around but again as you do not have any equity in the home you will end up paying higher amount....
last resort should be to file chapter 13 BK, so that court will give you repayment plan according to your income and thus you could be able to streamline the mortgage payments...........
Feel free to ask any further query if you have..........
DIPA
In my opinion you should instead of trying to cut cost on mortgage,you should try to do some reverse calculation....Try to increase your earning resources....Why am I suggesting this because even if you get a refinance at this moment as per your requirement eventually you will get this deal at higher interest rate and what you are currently doing is postponing the debt.....
I am not against the restructuring of loan but rather I want to prove that......
It is lot more easier to increase the resources and pay mortgage rather than trying to lower mortgage with professional help spending hundreds of dollars on professional consultancy fee...and at the end of the loan you end up paying high interest rate because refinancing not necessarily reduce your total outstanding......
Coming back to the question.....If you could ask your existing lender for modification it will be a good start,.......if he/she refuses then you can shop around but again as you do not have any equity in the home you will end up paying higher amount....
last resort should be to file chapter 13 BK, so that court will give you repayment plan according to your income and thus you could be able to streamline the mortgage payments...........
Feel free to ask any further query if you have..........
DIPA
Even if you are current have you tried to do a loan modification. You do not have to be behind and it will cost you nothing if you work directly with your lender an an approved HUD counsel or do it yourself. How this would help you? No cost to you, lower your monthly mortgage payment, your term may get extended out to a 30 year. You can also look at a loan modification on the 2nd as well. If you can reduce your mortgage payments and also try to increase your pay a little it may work out for you.