Posted on: 29th Dec, 2008 03:22 pm
I currently have a 5/1 ARM IO 80/20. The rate on my ARM is 5.125%. It is due to reset in May 2010. When it resets, my rate will go up 2.75% the first year and no more than 2% each following year. The balance on my first mortgage is $156,248; and the one on my second is $38,645. Currently, the payment on my first mortgage is $874.83 including taxes and insurance. I’ve also paid more toward the principle each month. The payment on the second is $284.85. City property tax info just estimated my home is worth $172,5000 today's market. My credit score should is above 700.
What are my options for refinancing or modifying my loan to take advantage of the low rates even though I now owe more than my home is worth? What can I do to make refinancing possible?
What are my options for refinancing or modifying my loan to take advantage of the low rates even though I now owe more than my home is worth? What can I do to make refinancing possible?
Hi blueauden,
As you owe more than what your property is worth, it will be difficult for you to refinance the loan. It will be better if you can speak to the lender for a loan modification. If the lender accepts your loan modification, he will alter the terms and conditions of the loan so that you get easier terms to pay off the loan.
Thanks
As you owe more than what your property is worth, it will be difficult for you to refinance the loan. It will be better if you can speak to the lender for a loan modification. If the lender accepts your loan modification, he will alter the terms and conditions of the loan so that you get easier terms to pay off the loan.
Thanks