mortgage modification

[Anonymous]

Hi again - just wondering if anyone has any info on modifying adjustable rate mortgages.  Ours just adjusted 2 percentage points.  We have had the loan for just over 2 years - paid on time for past 12 months but had some lates the previous year.  Does modifying the rate require a whole refinance or can the mortgage co. just choose to do this.  Not sure if we are better off paying the new rate for the next several months and doing a complete refi once scores improve or should we try to reduce it now?  680, 645, 642. 

[ShanetheMortgageMan]

If you have mortgage lates in the last 12 months it's going to be hard to qualify for anything but another sub-prime mortgage, there is an offchance you could qualify for an EA-III from Fannie Mae, you'd just have to find a broker/lender willing to try for you.  If the mortgage lates will be over 12 months by you making a couple payments, it might be better to wait... but you also have to figure what the real estate market is doing, if values are going down rapidly (like in most of FL and a lot of CA) then you'd want to see what refinance options you have at this point, if they aren't attractive, then wait to see where values go.  I'd also suggest contacting your existing lender and try to work out something with them.

[Anonymous]

There are several companies that will take the loan on a fixed rate.   Be sure that you do not have any 60 day lates (or more).

If you have any problems, let me know.

dow.rasdall@nationstarmail.com

[Anonymous]

Hoping that Countrywide is your lender...

[Anonymous]

Hello Mosieon, It's not that one has to refinance when interest rates on an ARM are modified. But yes, if you wish to switch to a rate lower than even the adjusted new rate on the ARM, then a refinance can be your suitable option. By the way, how many late payments did you have? If it's too many, it might affect getting a refinance loan at a favorable rate. The scores seem to be ok, so you should at least give it a try and start shopping for lenders who can offer a refinance loan. One more thing is that the mortgage company will adjust the rate on the ARM considering the changes in the ARM index.

[oneloveforall_2000]

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@Anonymous wrote:

Hi again - just wondering if anyone has any info on modifying adjustable rate mortgages. Ours just adjusted 2 percentage points. We have had the loan for just over 2 years - paid on time for past 12 months but had some lates the previous year. Does modifying the rate require a whole refinance or can the mortgage co. just choose to do this. Not sure if we are better off paying the new rate for the next several months and doing a complete refi once scores improve or should we try to reduce it now? 680, 645, 642.

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I just got my lender to bring my adjusted rate from 9.4 to 6.4, if you need help e-mail me and i'll tell you how I did it.