Posted on: 02nd Jul, 2010 03:48 pm
i have, 100% financing, interest only mtgage from 2006 @ 7.5% fixed for 5 years (sep 2011) then goes into an arm that resets every 5 years with full amortization over 25 years. highest interest rate capped at 13.5%. i also had a prepayment penalty for the first 3 years.
i did not like the risk going into this loan, but it was i thought i would be able to refinance into a fixed rate 30 year amortizing mortgage. the prepayment penalty and the declining housing value have prevented me from refinancing.
i want to apply for a modification to fix the interest rate and go into a 30 year mortgage under the hamp. this would clear out the risk of the resetting arm. however, my mortgage payment is currently 25% of my gross monthly income. do i have a chance for modification?
i did not like the risk going into this loan, but it was i thought i would be able to refinance into a fixed rate 30 year amortizing mortgage. the prepayment penalty and the declining housing value have prevented me from refinancing.
i want to apply for a modification to fix the interest rate and go into a 30 year mortgage under the hamp. this would clear out the risk of the resetting arm. however, my mortgage payment is currently 25% of my gross monthly income. do i have a chance for modification?
I'm not a loan mod expert but it appears since your mortgage payment is within 31% of your gross income you probably would not qualify for a loan modification under the Home Affordable Modification Program. Still, that isn't to say that your lender may still work with you to convert it into a fixed rate loan of some sort. Read the following situation that a client of mine went through, I believe it will help.
"http://activerain.com/blogsview/877876/you-don-t-have-to-be-behind-on-the-mortgage-to-get-a-loan-modification"
[Link deactivated as per forum rules. Thanks.]
"http://activerain.com/blogsview/877876/you-don-t-have-to-be-behind-on-the-mortgage-to-get-a-loan-modification"
[Link deactivated as per forum rules. Thanks.]
Thanks Shane
Welcome.
If you have enough equity you also may be able to refinance into a 30-year fixed as well.
If you have enough equity you also may be able to refinance into a 30-year fixed as well.