Home Equity Loan
Adjustable rate coming up on my mortgage.80/20 loan?
I live in southern California, I currently have an 80/20 loan and the 80% is going to adjust. I'am in the process of refinancing but it isn't looking too good for me, I have about 20,000 in equity according to a recent home appraisal but I'am still having problems getting a loan. The payments will go up around $700.00 when it adjusts and it will be almost impossible to pay. Should I contact my Mortgage company now and see if they can work with me and if so what is the likely hood that they will work with me? I would like to avoid a short sell or obviously foreclosure. What are some of my other options? I have fair credit and good income. Beneficial is the company the loan is through.
Public Comments
- Situations like this are the cause of the problems facing the economy right now. I'll spare you the lecture, but an 80% ARM? Your lender should be shot! Your best bet is to call the company that holds your note NOW and explain your situation. Banks do not want to own property, and it is in their best interest to work with you to find a rate you both can live with. Also, interest rates are still very very low. Unless your initial rate for the ARM was one of those ridiculous 1% deals (which are now illegal) you should not have much trouble finding a good rate to refi at. Good Luck!
- 20,000 sounds like plenty of equity. the lender may be worried that you have recent credit lates in the last 12months. If you have had mortgage lates then it will make it a lot harder! Most lenders will not help you with the refinance as they are hoping that you will pay that higher rate when it adjusts.
- Since your 20% second was a purchasemoeny second you may qualify for a streamline refinance. they don't make you requalify, they don't pull a new credit report and the costs are minimal. If your current lender can't do them, call around.
- Contact your mortgage company NOW and explained the stitition today and see if they can help you or refi your home. You also think about refi into FHA loan if your loan amount is low.
