I need some serious advice. I don't want to end up in trouble with the mortgage. we have a option loan.(intrest/payment) w/ a variable rate and the 2nd is kicking our butts. It wouldn't be so bad if our 2nd wouldn't flucuate. what i need to decide is if we should refinance again. we have no fixed available right now, and if we do this our mort. will go up 800 dollars Take in mind the paym't goes up because we are going to add the car loan to it. but what other options do we have. Our house is NO in jepardy at all. The only problem is that we are only paying a fraction of the interest this way. and thats not cool at all. Help me not be stressed.
Mortgage help -SERIOUS ONLY!?
You probably can't get fix rate mortgage due to higher payment or credit or downpayment, otherwise you might have in the first place. Because fix rate is near all time low comparing to past 40 years.
Could you borrow some downpayment from family or friends? Then refinance to get a fix. As for not able to meet the payment, sorry... you have to get a second job.
This is NOT easy, but difficult time requires some tough action. I am annoyed that your loan agent or realtor didn't protect you better. Oh well.
Good luck!
Mortgage help -SERIOUS ONLY!?
Depending on when you bought your home, the value might be much higher than what you owe on it. You might have a great deal of equity that will permit you to refinance for a lower payment. If you leave the car out of the equation and then get a 7/1 ARM, you will have 7 years of fixed rate payments. If you consistently make your payments on time and you do not buy anything else on credit, after 3 or 4 years you will be able to refinance again for a lower fixed rate. Keep your debt to income ratio low and the money that you save on the ARM should be put into the bank so that you have reserve cash available when you are ready to refinance for the permanent fixed rate.
Mortgage help -SERIOUS ONLY!?
You don't want to pay any interest. I think what you meant is that you're only paying a fraction of the prinicipal. Now isn't the best time to re-finance. Rates have likely peaked, and may head back down a little before too long. If you do refinance, the only kind of mortgage you should ever get is a 15 or 30 year fixed rate, unless you know for a fact that you will be moving within a certain time period, then an adjustable rate that is fixed for that period would be ok. Once you've gotten yourself into a non-standard mortgage, such as yours, things can become very complicated, and you should see a mortgage broker about your options.
Mortgage help -SERIOUS ONLY!?
Rolling an existing 2nd into a new first mortgage with a fixed rate would be a good idea. Rates are still quite low.
Rolling the car loan into that is probably the worst possible thing that you could do! You generally should not finance anything for longer than it will last. A 30 year loan for your home is fine, but rolling the car note into the re-fi is substituting a 4 - 6 year loan on a car (reasonable today) for a 30 year car loan. THAT is a terrible idea!
Mortgage help -SERIOUS ONLY!?
Refinancing is good as long as the equity exists to do it.
For example, if you have $500K in mortgages and the house is now worth $450K - you're in trouble. Many adjustable rate mortgages are resetting with higher interest rates and your first mortgage payment is going up likewise. In that case - you might as well walk away from the house BUT we'll assume that you have equity and you can refinance with a 30 Year fixed which will take care of the 2nd mortgage and lower your payments - hopefully.
As the other poster mentioned - keep the car out of the mortgage.
Mortgage help -SERIOUS ONLY!?
if after refinancing your payment will go up $800- don't do it.
your 2nd mortgage payment is probably equity line of credit and if you can pay more ,than your monthly payment- your payment will be smaller and you will pay more of the principal. instead of rolling your car payment to the mortgage- pay as much as you can to your 2nd mortgage. if you can afford to pay $800 more after refinancing- split this payment between your car payment and 2nd mortgage and this way your APR will be much lover, than you paying right now and after you pay down your equity line- you can reused this money again and remember this can be tax deductible. i will not recommend for you to keep your option loan for more than 3 years, because index they use for those loans are high and you can loose to much of equity .
No comments:
Post a Comment