Are you one of those who don’t sleep at nights because of the economy crisis? Are you afraid of losing your house you worked so hard to get? are there any payments on your house loan you already missed? Have you got any phone call or a letter from your bank or another lender who loaned you money to buy your home mentioning the word foreclosure?
I guess that if you are still reading these lines you answered yes to at least one of the questions above.
First I’d like to advise you to check carefully the 50% down loans people used to take. Maybe after you read you find out that this program might be very helpful to you, maybe not, but take a good look at the loan’s papers you have and check it carefully. After saying this I can give you much more information of the new Obama loan modification program. As said before, It might relate also to the 50% down loans you might have taken.
The program deals with loan modifications, possible for many and even most house owners. The program’s administrator’s mission is to help the state’s economy by helping lenders like you by taking your mortgage and adjust it to your possibilities so you can afford the payments.
How is it possible? Is it real? Yes, it is real; the participants in this program are permitted to extend their loans terms, so their payments are reduced and the expected troubles down the road are saved from them.
It is up to 2% that the interest rate can arrive to, so payments are really cut.
Financiers know that when man’s payments are more than 30% his earnings, it is possible that he won’t stand it. Of course, there are exceptions, but now we deal with the norm. So the aim of this program is to make your outcome, together with the mortgage, become less than 30% of your income.
I’ve heard you can get a low rate initially on an adjustable rate but then it jumps up. But I also heard there is a cap on how far it can go and it works out better. How do you choose?
I’ve owned 2 houses, both with a fixed rate. Why do people get an adjustable rate? I never understood the risk. Is it easier to qualify for one? Do you not need to put as much down?
Thanks for the help.
My friend cannot keep up on bills her mortgage just rose -She was advised to go bankrupt -how can she keep her home?? And will the rates continue to rise as contracted.??? She is planning a chapter 13. She has no equity built up. Her condo’s value has dropped and is not able to refinance. She cannot sell without a loss.
I have heard on the news that we can petition our lender for a fixed rate. They also gave a phone number to a place called, Homeowners Unity Foundation whom I talked to, and they say they charge 00.00 to help you because they work with lawyers that help the process move faster. But they do not guarantee results. Can anyone give me some insight or suggestions?
My mortgage company was bought out by another one. They have sent me a letter which allows me to choose what my new rate to based on: the CODI (Certificates of Deposit Index), or the Wachovia COSI, which is their Cost of Savings Index.
I can’t find any information online which compares these indexes, so I have no idea which would be best. Does anyone have information about this, and how to make an informed decision?
I am concerned that one or the other could wildly fluctuate separate from the market.
What can I do with my Interest Rate that is now variable? Now that my property decreased ,000, the monthly payment is now way higher, I don’t want to pay the mortgage anymore, and I can’t pay two houses at the same time, I don’t know what to do if I want to cancel everything is going to cost me about ,000, and the only choice I’m aware of is declare bankruptcy and my credit is very good, and I don’t want to do that, I need help.
My adjustable rate has gone up this month and will go up again in 6 months.
Will I be able to get a fixted rate with credit scores between 680 and 720.
How do I go about it and will I have to have my home apraised? I bought the house for 160000.00 and now owe about 130000.00 on it. How much will they refinace, all of it or only 80%.
The rate is going to kill me.
I am considering an adjust rate mortgage to lower my payment over the next year. I will be retiring and selling my house next spring. I would like to lower my mortgage payment and invest the difference over the next year.
Being that it is a new year one of my resolutions was to do more research before a jumped into anything. Being that I’m new to the housing market what are the benefits of a fixed rate mortgage compared to an adjustable rate?
I understand that some law prohibits mortgage lenders from giving ARM to people over certain age. I am 54 years old and I am struggling with this rate now. Someone told me I could use this fact to persuade my lenders to reduce my interest rate, or to move me to a fixed rate. Is this true?
I am in the process of getting a loan for a house. I do not plan to sell it.On the paper work I see checked "your loan does contain a variable rate feature. discloures about the variable rate feature have been provided to you earlier." It came with a booklet on adjustable rate mortgages. no where else in the paper work does it talk about a ARM. It has number of payments such as 24 @ 1,224.30 then 335 @ 1,249.77 and 1 @ 1,246.11.
So is the variable just meaning a change in payments listed above or that my interest rate and payments can change other then what is listed?
I specificaly told them I wanted a fixed rate.
Say someone were to get an Adjustable Rate Mortgage, locked in for 10 years (of a 30 year mortgage) at an rate of %5.125, what happens after 10 years? What are your options? I’m not sure how this works. Any help would be appreciated. Thanks!!!
Hi,
My husband and I bought our home 2 years ago on with an adjustable rate mortgage. The interest rate has now come up and we need to refinance.
The problem is that our credit score is about 600.
Can we get a refinance? Our home is worth about 0K, we have K in debt, and we make about 0K per year.
Thanks Bob,
But we really can’t afford the extra costs. Our payment went from 00 per month to 80 per month.
What would the rate be for a credit score of 600?
I want to do a 10/1 30 year adjustable rate mortgage. It is my understanding that the rate will remain the same for the 1st 10 years then adjust. Is this accurate, or can my rate change before the 10 years and if my rate remains the same, does that mean that my monthly payment will remain the same for 10 years, aside from tax and PMI increases?
With mortgage rates on the rise, is it prudent to pursue ANY type of adjustable rate mortgage (ARM) at this time? Or should home buyers be scrambling to lock in fixed rates?
In a simple world, I’d consider this question to be a slam dunk, until you factor in the various ARM options available on the market (1, 3, 5, 7, 10). The questions is essentially, is it possible to pick an ARM with a front-end period (where the rate stays fixed) that essentially "jumps" over the upcoming rate spike?
Naturally, we’re talking about rational home buyer options, NOT interest-free or 40-year loans.
For the record, the ARM options I was considering were 7/1 and 10/1. Because the first 7 (or 10) years are fixed, I would have assumed both to be a viable option. My thinking was that you’d basically be gambling that rates would be better in 7 or 10 years than they are right now. Is a decade of high rates really a possibility?
It seems that the people that purchased their homes with Adjustable Rate Mortgages got into big trouble when their rates adjusted at a higher rate. Did they not see this coming since they did opt for a Adjustable Rate Mortgages vs a Fixed Rate Mortgage.
Also do people with Fixed Rate Mortgages having the same problem as Adjustable Rate Mortgages home owners? I would assume not, usless they lost their job.
I’m a CPA but am not entirely sure how the mortgage brokering process works. I’ve received some sketchy information in the past indicating to me that the higher the rate is, the more of a commission the bank pays to the broker for bringing them the loan. I believe the exact terms are when the rate is above the bank "par rate". Now I’ve heard that if the broker brings the bank an adjustable rate loan that the broker receives and even higher Commission. Is this true?
Thanks,
Craig R. Fechter, CPA
I just read that foreclosures are up 78% in my state, and a lot of them were because people could not afford to pay on their skyrocketing adjustable rate mortgage. I have never bought a home before, but I would like to know why anyone would choose such a mortgage. Are fixed rate mortgages so much harder to obtain?
I have an adjustable mortgage with a 2 yr fixed rate, but in 2 months my mortgage payment will increase to 0 dollars. I’m just wondering why it’s going up if the prime rates went down, shouldn’t my mortgage payment go down instead? Please help I’m confused.
