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Home Loan - I need an advice....

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Anonymous
Not applicable

Home Loan - I need an advice....

Hi Everyone,

This is my first post here, and I'm looking for an advice. Right now, I'm confused with all options available for refinancing/lowering the payment for my residence. So far I've made a payments on time (first loan is with Chase and second with Cit) but lost some of my income and trying to see what the banks can do for me asap. All answers I am getting are- sent the application in about modification and we will get back to you within 60-90 days, My credit score is around 750 and I wish I can keep it this way and not be "forced" to give up with both- good credit and my condo.Thank you for all suggestions anyone can give me. 

Message 1 of 5
4 REPLIES 4
Lel
Moderator Emeritus

Re: Home Loan - I need an advice....

Welcome to the forums.

 

Without more details about your situation, it's hard to give you any specific advice.

 

Has your drop in income made it impossible for you to sustain your current mortgage payments for much longer?

 

What percentage of your gross income currently goes to pay for your mortgage, property taxes, homeowners insurance, and condo association fees?

 

Do you have equity in your condo?  If not, what is the outstanding loan balance of your loans, and what is the estimated market value of your home?

 

What are your current interest rates?

 

Have you determined whether you are eligible for either the Home Affordable Refinance or Home Affordable Modification Programs?

Message 2 of 5
Anonymous
Not applicable

Re: Home Loan - I need an advice....

Hi Lel,

 

Thank you for your quick answer.

I lost about 20% of my salary plus I am getting paid irregularly since I am in construction business.

Right now almost 2/3 of my income goes to my payments which is insane!

I have only a little equity so basically I do not have 20% of downpayment which is required with regular refinancing, so I want to go into some different options. But what are they? Stop paying? Calling the bank does not do anything, they are happy to transfer me from one department to another while I am pulling a hair from my head...

 

My first mtg is 270 k (4.75 interest rate arm-due to change in March next year) and 2nd 67k (8.25% interest rate fixed) and market value about 15k more than my loans are, still- not enough equity...

How can I determinate if I am eligible for those programs?

My mtg is not Fannie May. The investor is Chase what I already verified with the bank.

Please advise.

Message 3 of 5
Lel
Moderator Emeritus

Re: Home Loan - I need an advice....


Annette11 wrote:

Hi Lel,

 

Thank you for your quick answer.

I lost about 20% of my salary plus I am getting paid irregularly since I am in construction business.

Right now almost 2/3 of my income goes to my payments which is insane!

I have only a little equity so basically I do not have 20% of downpayment which is required with regular refinancing, so I want to go into some different options. But what are they? Stop paying? Calling the bank does not do anything, they are happy to transfer me from one department to another while I am pulling a hair from my head...

 

My first mtg is 270 k (4.75 interest rate arm-due to change in March next year) and 2nd 67k (8.25% interest rate fixed) and market value about 15k more than my loans are, still- not enough equity...

How can I determinate if I am eligible for those programs?

My mtg is not Fannie May. The investor is Chase what I already verified with the bank.

Please advise.


The biggest problem I see with your situation is that your interest rate on your first loan is already very low.  If you were to refinance to a fixed rate loan now, your interest rate would not change, and would most likely be higher.

 

Like you have already figured out, you don't have enough equity for a conventional refinance.  Even if you were able to go with an FHA refinance, your rates wouldn't be any better.

 

If your investor is not Fannie or Freddie, then unfortunately you won't be able to get relief from the Making Home Affordable plan.  Even if you were, you'd be directed to the refinance option before the modification option, since you have a little equity.  As before, this wouldn't help you out because of the current interest rates.

 

A loan modification outside the MHA program is probably your best course of action; this is the route that you've already taken.  Modifications take a looooong time to complete - several months is the norm.  Even if your lender were willing to modify your loan, it will be very hard for them to make it affordable, based on what you've already written.  There isn't much room for improvement on your interest rate; even if they cut the rate to 2% and re-amortized it over 40 years, it might not bring your payments down to an appropriate level.

 

Sadly, your lenders have a lower incentive to modify your loan as compared to borrowers with negative equity. 

Message 4 of 5
DallasLoanGuy
Super Contributor

Re: Home Loan - I need an advice....


@Lel wrote:



The biggest problem I see with your situation is that your interest rate on your first loan is already very low.  If you were to refinance to a fixed rate loan now, your interest rate would not change, and would most likely be higher.



agreed.

 

i dont think a lender will be inclined to lower your rates because you cannot afford the home....... 

you might get some relief if the arm adjustment hurts you.....

 

what is the arm index and margin? (on your note or you can ask lender)

 

Retired Lender
Message 5 of 5
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