Posted on: 05th Nov, 2008 05:46 am
i have a 262,000 mortgage on my condo. it is a negative amortization. i have an 80,000 fixed 2nd mortgage on the property. the property, normally, would be worth $380.000 (in today's market, maybe $310.000). is it possible to refinance to get a fixed mortgage? i am 55 years old and would eventually like to have a reverse mortgage but know my condo must be mortgage free. is there any way i can take out a loan to pay off the mortgage? thank you.
jtansey, what was once "normal" in the mortgage market simply doesn't exist anymore. if your condo's current market value is $310000, then your overall debt of $342000 is, as is said, "under water."
unfortunately, at this time, unless you take advantage of some of the newer foreclosure-prevention loans that have been birthed as a result of current conditions, you won't be able to refinance. refinancing is largely based on equity in the property, and you have none.
on reverse mortgages: it is not true that you need to have no mortgage, but the lower the better. a refinance of your existing mortgage(s) becomes a new mortgage on the property, so there would be a large benefit by eliminating the negative amortization, but no such thing as a payoff of all mortgages would be taking place. you'd simply be replacing the two mortgages (presumably) with a new one.
unfortunately, at this time, unless you take advantage of some of the newer foreclosure-prevention loans that have been birthed as a result of current conditions, you won't be able to refinance. refinancing is largely based on equity in the property, and you have none.
on reverse mortgages: it is not true that you need to have no mortgage, but the lower the better. a refinance of your existing mortgage(s) becomes a new mortgage on the property, so there would be a large benefit by eliminating the negative amortization, but no such thing as a payoff of all mortgages would be taking place. you'd simply be replacing the two mortgages (presumably) with a new one.
Thank you. I will simply have to work on paying my mortgage down as much as possible.
Hi John Tansey!
Welcome to the forums!
It will be better if you can pay off the loan as much as possible. You can try and look for a loan modification from the lender if possible.
Feel free to ask if you have further queries.
Sussane
Welcome to the forums!
It will be better if you can pay off the loan as much as possible. You can try and look for a loan modification from the lender if possible.
Feel free to ask if you have further queries.
Sussane