topic Re: ARM Trap help in Mortgage Loans

ARM Trap help

Anonymous — Mon, 17 Mar 2008 22:41:00 GMT

Greetings, Im new here, hoping to get some help. My home was appraised at 315k, bought for 265k, almost 3 years ago. They did my house up as a 80/20 loan, 212k @ 5.75%, and 52k @ 7.74%. several months later I refid a car and took out 10k to help pay it down some, the rest to work on the house. so now its 212k + 62k. not only that, but that car took a flame so i got a car for 30k. and since then, we also have a 20k timeshare loan tied to our house. for the last 9 months I have been trying to refi. my 1st mortgage went from $1,206/mo to now a whopping $2,200/mo. my wife cant work, I try to keep up a career and 2 other side jobs. The last 2 years I had assumed I had a fixed rate. when my mortgage company called me and said they were just giving me a notice of my mortgage was going to go up, I literally laughed. I told them that they had the wrong person. They then faxed the papers with my signature... so ya, I guess somewhere along chasing one of my kids and getting the other from drinking others drinks, I missed the part where one of the signatures meant I knew my rate was going to go up. anyway... 2.5yrs later, no one will refi me. My mutual funds are now done. I even took 10k off my 401k. The highest my credit score has been is 661. I thought I had success when one of the loan officers i worked with got me as far as having his underwriter approve something... then all the sudden they no longer do stated income, so there was that. however, he was brilliant. he found the culprit in all this (other than myself). my local bank suggested to change my 20k timeshare loan tied to my house (equity loan?). the loan officer said this is why no one will refi me, as long as thats tied to my house. well, I paid $3k down, and its now a 17k personal loan... at a whopping 16%... it was $170/month, now $700/mo. and it only gets worse, my 1st mortgage just went up another $200/mo... I have 2 credit cards, one has 18% utilization rate, the other at 83%(ya i know, its that or more "discontinued notice" bills). anyone here actually know the ins and outs of this? or know someone? I literally have a handful of loan officers who have said the only way out is to get into the right career (better employer). who also call me once a month hoping to be the one to hear when I get a better job offer. which is another issue, and I have been working on it. i am fortunate it was just tax refund season so I used that money to chop down the credit card bills, however I had to pay $3k to the local bank. I was also very lucky my work had me on travel last month, and will be on this month, each trip making just enough money to keep us from going under. life was very liveable at the days when both mortgages were less than $1500/mo, so dont get me wrong, Ive had a handle on my finances, now its almost $2800/mo, and has only went up

Message Edited by Lamini on 03-17-2008 03:41 PM

Re: ARM Trap help

Anonymous — Mon, 17 Mar 2008 01:17:57 GMT

i forgot to mention my score went down to 653. however, in THIS LAST WEEK alone, I have dumped $3,500 to my credit cards, specially on that mindboggling 16% loan. they were both at 80%+ utilization rates. and btw, my loan officer said to keep that bank loan as a personal loan as thats the very reason why no one will refi me. he has no doubt that when that loan was taken off my house, and I get my score to 700+ he could work with me. he went as far as saying getting both my credit cards below 30% utilization rate will easily get me into 700s.. (?!). highest Ive had is 671 (for an entire 2 days!)... so im kinda having 2nd thoughts I also forgot to mention that another reason whey no one will refi me is because of my debt to income ratio. while most will do up to 35%, or even 45%... mine was at 59% 3 months ago (not sure what it is now)... but i have never been late on a mortgage payment, credit card payment, filed bankruptcy, etc.

Message Edited by Lamini on 03-16-2008 06:17 PM

Re: ARM Trap help

Anonymous — Mon, 17 Mar 2008 01:20:58 GMT

man sorry to hear things are where they are at. i can't help so much witht the mortg questions, but have a couple of thoughts.

first a credit union may be able to knock that intrest rate on the persoanl loan a bit. some of the popular ones are navy fcu (if you have an in, check thier website), christian community credit union, penfed, patelco, among others.

also, fico scoring is heavily weighted towards revolving utilization (individual and combined account balances), so you will see a score jump at 30% and the accepted sweet spot is half of your acounts only showing a 1-9% balance, the rest 0.

Re: ARM Trap help

Anonymous — Mon, 17 Mar 2008 01:27:52 GMT

think I should pay off that credit card that went from 80%, to 30%, and now to a 5% a priority? its a capital one card. balance is now $1200, max 3600. (ya i know they suck, but its 12 years of credit history).

Re: ARM Trap help

tryingtogetitrightnow — Mon, 17 Mar 2008 01:29:33 GMT

Can you sell the timeshare?

Re: ARM Trap help

Anonymous — Mon, 17 Mar 2008 14:49:09 GMT

been on sale since Oct 2007. punks charged me $698 (absolutely nothing has happaned). its on sale here: [url removed]paid $13k for it... i was one of the 50 or so suckers in vegas that got suckered in. this loan is the problem. not goin on vacations this year cuz of it ;(, ie paying it down, far as i know, vacationregister.com sucks too.

Message Edited by Lamini on 03-16-2008 06:39 PM

Message Edited by Timothy on 03-17-2008 07:49 AM

Re: ARM Trap help

tryingtogetitrightnow — Mon, 17 Mar 2008 14:49:31 GMT

So you're not going to get to use it this year? Sorry to hear that.

@Anonymous wrote:
been on sale since Oct 2007. punks charged me $698 (absolutely nothing has happaned). its on sale here: [removed] paid $13k for it... i was one of the 50 or so suckers in vegas that got suckered in. this loan is the problem. not goin on vacations this year cuz of it ;(, ie paying it down, far as i know, vacationregister.com sucks too.

Message Edited by Lamini on 03-16-2008 06:39 PM

Message Edited by Timothy on 03-17-2008 07:49 AM

Re: ARM Trap help

Anonymous — Mon, 17 Mar 2008 22:42:52 GMT

I have never used it. as i said earlier, soon as I did some research, there was hundreds if not thousands of others, entire online communities of these people who got suckered. bad marketing at its best. i dont know how these people can go to sleep at night knowing what they do for a living.

Message Edited by Lamini on 03-17-2008 03:42 PM