Posted on: 21st Aug, 2012 10:08 am
I am in a situation which probably isn't unique but I have not yet found a good solution to this issue. I hope someone here can give me some pointers.
Here is my scenario:
I bought a house during its peak for say $300K.
I had put down 10% and locked mortgage at 6.5% for 30 years. This mortgage was done through Minnesota Housing (which is not owned by Fanie Mae or Freddie Mac or any of the big banks)
Since the home value plunged, say my house would appraise for $200K today. Currently I owe $230K (P.S. I made extra payments to reduce my Principal amount).
At this time I am not really able to refi because.
1. My loan is not owned by Fannie Mae or Freddie Mac or big bail out banks so I couldn't qualify for Home Affordable Program.
2. When I talked to banks they say they can only do upto 90% loan to value which means I could only refi for $180k resulting that I bring up $230 - $180 + Closing costs = ~60K
Everyone mortgage broker/banker I talked to tell me that I have no option but to keep making payments or to foreclose.
I have been able to make monthly payments but at 6.5% APR for 30 yrs when today others are refi'ing for little over 3%.. :(
Does anyone have a good advice in this situation?
Here is my scenario:
I bought a house during its peak for say $300K.
I had put down 10% and locked mortgage at 6.5% for 30 years. This mortgage was done through Minnesota Housing (which is not owned by Fanie Mae or Freddie Mac or any of the big banks)
Since the home value plunged, say my house would appraise for $200K today. Currently I owe $230K (P.S. I made extra payments to reduce my Principal amount).
At this time I am not really able to refi because.
1. My loan is not owned by Fannie Mae or Freddie Mac or big bail out banks so I couldn't qualify for Home Affordable Program.
2. When I talked to banks they say they can only do upto 90% loan to value which means I could only refi for $180k resulting that I bring up $230 - $180 + Closing costs = ~60K
Everyone mortgage broker/banker I talked to tell me that I have no option but to keep making payments or to foreclose.
I have been able to make monthly payments but at 6.5% APR for 30 yrs when today others are refi'ing for little over 3%.. :(
Does anyone have a good advice in this situation?
Hello Bond,
You can easily compare various options before actually selecting one. Depending on the results, you can decide to refinance your home and pay off the whole debt amount. Or you can decide to pay only a part of your loan and maintain the equity of your home.
:idea:
You can easily compare various options before actually selecting one. Depending on the results, you can decide to refinance your home and pay off the whole debt amount. Or you can decide to pay only a part of your loan and maintain the equity of your home.
:idea:
The refinancing is one of the option that you could use here but while selecting any other that is dealing with equity or any other mortgage firstly consult the Minnesota Housing and clarify any other measures in which they could suggest something as per any request received by them in past
Austin Home Equity Loans - Mortgage Refinancing
Austin Home Equity Loans - Mortgage Refinancing