refinance my mortgage

Guest 0.10 Dollars($)

My husband and I bought a house about 2 years ago on ARM. we are planning to refinance in order to change the rate to fixed. However, the house seems to have depreciated instead of appreciating due to the housing loan meltdown. What can we do?

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

Hi nyconcerned,

Welcome to the forum.

You have taken the ARM 2 years ago. So I think you can refinance it not. But you need to give a bit more info on your husband's credit and employment history so that we can suggest you better.

Best of luck,
Larry

gmakerley · Posted: Thu May 29, 2008 6:55 am Post subject:

hi concerned - find out, if you can, from a local realtor what your home might be valued at today. with an fha loan, you can borrow up to 97% of your home's value on a refinance.

it is worth investigating.

cliff · Posted: Thu May 29, 2008 7:29 am Post subject:

Hi Nyconcerned and welcome

George makes a good point call a realtor and ask them what the value is in your area. Did you 100% finance with the ARM? The only reason I ask is because thier is because there may be a way for you to refinance into a fixed without having to pay for a new loan.

Once again thanks for coming to us with you questi Very Happy

on.

charlesarmbruster · Posted: Thu May 29, 2008 2:15 pm Post subject:

You need to describe whether or not you borrowed 80%, 90%, or 100% of the purchase price.

Also, depending on which index your Adjustable is pegged to, your rate may be up or down at time of adjustment. The LIBOR 6-month is a great index to be tied to right now, where common parlance sees this index stable and even dropping through 2008. Check your last few pages of the Deed to find what you have and when it adjusts and how much gets added to what index at that time...and let us know.

You may be better off waiting for home prices to begin rising again than refinancing into a Fixed product right now....especially if you equity position has slacked.

Also, George is spot-on -- FHA is typically the only recourse right now, due to PMI limitations elsewhere.

cliff · Posted: Thu May 29, 2008 3:17 pm Post subject:

Who is your lender there are a lot of forbearance plans that are available for people that are having difficulty with adjustable rate mortgages. For example your existing lender may take your existing ARM and turn it into a fixed rate even if you “are not yet” behind on your mortgage payment. Its all about talking to the right department with your existing lender.

We have worked with many lenders who are taking ARM and converting them into fixed in order to help borrows who are struggling with ARM's.

Who is your lender?

JuanHdez · Posted: Tue Jun 03, 2008 8:51 am Post subject:

Helly NY,

Here is what I typically recomment my clients in that situation.

First- review your loan closing documents or have an experienced loan officer review them with you in order to know exactly what your situation is. (rate, index, margin, adjustment date, whether you did an 80/20 loan or 100% first, etc). you'll be able to get a very good idea of what will happen with your loan and what options might be available.

Second- ask your loan officer what options you might have and consider taking an application with them so that they can give you accurate information based on your senario. Guidelines are constantly changin but last I checked, FHA allowed to finance a 1st mortgage up to 97% and be able to re-subordinate the second loan if the second loan lender approved it. (it might just be possible). By the way the Loan Officer can also get a ballpark figure on the value of your home by getting a title comp seach (no one can give you an exact figure on the value but the appraiser).

Third and Better said First- Speak with your lender. Let the lender know your situation and ask for a loan modification. One of the current problems with this as many will tell you is that the lender/s can be dificult in helping you get this accomplished.

best o luck and please keep us posted.

J

cliff · Posted: Tue Jun 03, 2008 6:48 pm Post subject: FHA $300 Billion in new lending?

Has anyone one heard an update on the new legislation to allow FHA to refinance $300 billion in new loans!

ldestefano · Joined: 04 Jun 2008 Posts: 3 2.10 Dollars($)

Hi,

The best thing to do is to find out what some of the homes in your neighborhood have sold for. I would just need to gather some other information in order to better assist you.

Laura DeStefano
Freedom Mortgage
856-974-5357
609-870-4679
"ldestefano@fmbranch.com"

[Link deactivated and promotional texk delited as per the forum rules]

cliff · Posted: Thu Jun 05, 2008 7:14 am Post subject:

Nyconcerned is gone...what do you think George?

joelaricci · Joined: 07 Jun 2008 Posts: 1 1.38 Dollars($)

Have you gotten a recent appraisal? You really need to talk to an appraiser to know what the value of the home is. OR just talk to a good loan officer who will be able to give you a current ratio on your situation. I know there are some great lenders in this network [http://www.easymademortgage.net]Easy Made Mortgage.[/http://www.easymademortgage.net] And they have some good incentives to help you bring up that home value...

Good Luck

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.11 Dollars($)

You bring up a good point Joe, I am surprised that someone has not brought up a new appraisal long before this.

cliff · Posted: Sun Jun 08, 2008 8:24 pm Post subject:

George had mentioned talking to a realtor to get a value. However, it would be safer to get a new appraisal.

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