How to refinance/What to ask for

mmmitchell · Joined: 22 Jan 2008 Posts: 2 1.81 Dollars($)

I am currently in a pay option ARM (5/1) I am inly able to make the neg am payment. I also have a 2nd. The home next door to me foreclosed and everything is selling at considerably less than what I paid for my home. I don't have enough equity to refinance - any options/ideas out of this mess? I called my lender a few months back and they said since I was still making the payments, they wouldn't talk to me as they had worse problems to deal with than mine....

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi mmmitchell,

Welcome to the forum.

How long have you taken the mortgage? Are you facing any problems regarding mortgage payments?

See it is not that you will have to refinance from your present lender only. You can shop a bit for lenders also.

Feel free to ask if you have any questions.

Best of luck,
Larry

blue · Posted: Tue Jan 22, 2008 3:56 pm Post subject:

Hi,

Welcome to Mortgagefit discussion board.

Are you thinking about selling the house or things like that as the rates have dropped down? If you can make your payments and have no problems with that then need not to worry so much. The market is down and so the home price. But it is not that it will remain the same. If you sell the house at this market crunch, you will only lose and gain nothing.

You can try to refinance and turn the ARM into FRM if you get a good offer.
.
Do let me know if you have any other questions.

Thanks
Blue

mmmitchell · Joined: 22 Jan 2008 Posts: 2 1.81 Dollars($)

I refi'd in 9/07 with a 1 yr prepayment penalty.

Well, the penalty to refi is up, but the value of my home is down and I have no equity.

My current lender won't negotiate the loan terms because I am paying the neg am and the 2nd (9.25%) interest.

I'm concerned about going with another lender because the value isn't there in the home to refinance.....

Thoughts? I owe about $600,000, the home appears to be worth about $550,000. I'm sick about this.....

Thanks.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi mmmitchell,

Welcome back.

You have recently refinanced and have paid 1 yr prepayment penalty also. So if you refinance you will have to pay the prepayment penalty and you don't have equity also. I think you should wait a bit. the price will again go up as Blue has mentioned and by the time you will gain equity also.

Feel free to ask if you have any questions.

Best of luck,
Larry

Jeanette · Posted: Wed Jan 23, 2008 9:40 am Post subject:

Hi Mitchell,

I understand why you are sick about your home situation with no equity. Keep on making your payments on time to all your creditors. Check your credit report to see if any disputed items on there and resolve them. If you have the money you can add value to your home. All these can help to build up your equity in your home. When that foreclosed property is purchased then that will also help the situation.

Hang in there, you have time on your hands. Some people dont have time, so consider that not so bad.

Keep us informed.

Jean

ckalvesmaki · Posted: Wed Jan 23, 2008 10:00 pm Post subject:

Depending on your credit scores.........There are lenders that will allow you to have a CLTV over 100%......and still redo the first mortgage....check with a good mortgage broker.....

lisascherzer · Joined: 04 Jan 2008 Posts: 749 0.10 Dollars($)

Hi mmmitchell,

I would at least continue with the minumin payments to keep your credit in good standing. If you can pay anything extra at all, do so. In the mean time work on paying off installment and credit card debts. After you pay off some debts, then you may be able to put more towards the mortgage later. If you plan on being in the home long term, then I am sure there will be a point that the housing market turns around. It will just be a little while. Again, try and pay anything extra you can on the mortgage in the meantime.

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