Compare Mortgage Quotes

seanjeddrie · Joined: 19 May 2008 Posts: 2 1.85 Dollars($)

I live in eastern mid coast Fl. We paid 260K for the house, but the est. value now is about 225K. My wife and I are expecting, so she will stop working next month (right now, our income is approx. 10K/month). Oh, and I've just been reassigned to Colorado...the hits just keep coming Smile

I do not think I can afford to take such a big hit on selling the house and would like to rent it out. My mortgage is about 2100 per month, but that makes it quite unaffordable to a lot of prospective renters. I am thinking about an interest only loan for a while to ride us through, while being able to afford to rent elsewhere. What are your opinions?

cliff3 · Posted: Mon May 19, 2008 5:59 pm Post subject:

Have you considered a short sale or a deed in lieu that way you would not take a hit on the house. In addition, the drop in value in your home was do to a market correction it could take years before the value of your home returns to your original purchase price.

Short sale is when the mortgage company agrees to allow you to sell the home for less than what you owe the mortgage company.

Deed-in-lieu: This procedure allows you to transfer your property voluntarily to your lender or Mortgage Company and your debt or deficiency is often forgiven

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi seanjeddrie,

Welcome to the forum.

You have good monthly income. Now if you want to refinance with interest only mortgage then your principal will not be reduced. BTW the decision is totally yours. If you cannot afford the mortgage now then you can refinance with interest only option but you will have to bear the closing costs and prepayment penalty.

Have you talked with your lender yet? Consult with your lender and see if he can help you out for refinancing.

Feel free to ask if you have any further questions.

Best of luck,
Larry

brad · Posted: Tue May 20, 2008 11:06 am Post subject:

You could always refi into a interest only program. There are plenty of them out there without a pre-pay penalty. You have options, try to exercise all other options before thinking about a short sale or deed in lieu.

If you can afford to keep the home with an interest only product than go for it!

JuanHdez · Posted: Tue May 20, 2008 11:37 am Post subject:

I highly suggest that you sit down and speak with an experienced loan consultant to give you an accurate quote based on all the details of your situation. You need to be aware that in order to refinance you more than likely be having to come up with the difference of the appraised home value and the amount of the loan (OUT OF POCKET). From the info you shared with us, that might be more than 35K ( I would consider that quite a large hit). Again, a great reason to speak with an experienced loan officer to get you some accurate figures on what is available to you.

Best o' Luck

J Smile

brad · Posted: Tue May 20, 2008 11:47 am Post subject:

Sean,

What do you currently owe on the property in florida?

seanjeddrie · Joined: 19 May 2008 Posts: 2 1.85 Dollars($)

We've only been in the house for about 3 years. Unfortunately, I am in Korea, and access to loan consultants is slim to none. My wife is doing what she can from FL, but is not at all comfortable dealing with this subject.

Thank you all for the responses- I am learning quite a bit, and appreciate all the responses!

brad · Posted: Tue May 20, 2008 1:49 pm Post subject:

Did you buy it with 100% financing.

cliff3 · Posted: Tue May 20, 2008 2:38 pm Post subject:

Hi seanjeddrie

What mortgage company are your with? Brad asked a very good queston because if you 100% financed the home there will be know way for you to refinance at this point.

Before you contact your lender I would recommend doing a little research so that you know what your options are here is a link that will give you your options "http://home-buddies.com/dont-be-afraid-of-your-lender/"

Hope this helps keep us posted. Very Happy

However, mortgage companies are currently lowering and fixing rates for clients who are having trouble paying thier mortgages.

[Link deactivated as per forum guidelines]

securityonefinancial · Joined: 19 Jun 2008 Posts: 5 10.83 Dollars($)

If you have an interest only loan, you should refinance. Interest only is only a good option if you don't plan to stay in that place for long, but as long as you plan to stay in your home longer than a few years, then it is definately not worth it.

[Promotional text deleted as per forum rules. Thanks.]

enriko · Joined: 05 Mar 2008 Posts: 67 0.07 Dollars($)

hi,
yeah you defenetly should be able to refinance into intrest only program. Also i advise to talk to your lenders and explain your situation, hopefully theyll understand.
All the best!

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

Refinance with Interest Only Loan?