Mortgage Modification - Long Term Effects - 5 Years and Beyond [mortgagefraud101.blogspot.com]
Question by ssk402000: I have a 5 year ARM mortgage and i need advice on refinancing to a fixed rate mortgage? When I bought my house it was worth 291,000 where I made a down payment of 20,000 and now I am having an appraisal getting done and with the housing market as it is, i'm sure its worth much less. I originally had a 5 year ARM mortgage at a 5% rate but am now looking to refinance to a longer fixed rate mortgage. What are my options? Best answer for I have a 5 year ARM mortgage and i need advice on refinancing to a fixed rate mortgage?:
Answer by Biggie @ Arbor Mortgage
You may be fine putting 20k down on the loan, but how long have you been in the home? Is it @ the 5 year mark? You should consider an FHA 30 year fixed because they will refinance your home up to 97.75% of the value for a rate & term mortgage.
Answer by Orange County Sheriff
If you have enough time left on the mortgage, you could ride it out until the market comes back. Not really able to give advise unless we know how long ago you purchase the home, what the current value is. With an assumption you purchased the home with in the last year, and you're in a declining market, you're probably up side down. 5% rate is a great rate. If you can wait out the market, wait it out.
Answer by David Beasley
Call your mortgage servicer. The LIBOR index is DOWN. Your rate may not adjust UP! Or not very much. Find out what the current MARGIN and INDEX are on your current mortgage. As long as the LIBOR stays low (which won't be for more than say 2 years) it might be better keeping your current mortgage. It may not be worthwhile to pay refi closing costs to get a somewhat higher fixed rate. Today's rates are 6.5% 30yr fixed on FHA 97.75% refis today (600+ credit). Best of luck!
www.peterkinch.com February 14, 2010 - CMHC suggests a 'Soft landing' in the Canadian housing market. Greece continues to struggle with austerity measures as people riot in the streets and Canadian banks cut back on the discounts that were offered a few weeks ago. What does all this mean to you - this week's mortgage minute will tell you. Last Chance to register for one of 5 remaining seats for the Ottawa 5 Year Action Plan. Peter will be in Ottawa on Feb. 18th and there are only 5 seats left - email to register.
mortgagefraud101.blogspot.com The Mortgage Minute - 'Soft Landing' in the Canadian Housing Market
It's easy to find out all you ever wanted to know about how to apply for a mortgage modification on the web! Everywhere you look there are helpful tips and guidelines to get you through that initial qualifying process. But what happens in the long run? Once you are approved, then what? Maybe you don't want to even apply until you know that answer! I know I wouldn't! Being informed includes understanding how the entire process works not just the beginning!
Some of the benefits to a mortgage modification include:
1. Reduced interest rates, could be as low as 2%
2. Extended terms on your loan to as much as 40 years
3. Defer or forgive second loan balance
You have probably already read those benefits a thousand times online! So, ok you apply and are approved then what?
The first thing you should know is that you are given a 90 day trial period.
During this trial period you must make every payment on time! This is your new lower mortgage modification payment. It is only AFTER this 90 day period that your modified loan will be extended to the next 5 years.After the 5 years you will see a change again! Depending upon what the market interest rate was on the day your modification loan took effect, you new interest rate will change! For example, let's say your mortgage modification loan included a lower interest rate at 3%, and the market interest rate was 6% when your modified loan took effect. Beginning in year 6 of your mortgage modification your interest rate will increase 1% every year until you meet the 6% market rate. The goal being to get your loan back to the market rate as it was at the time of its inception. This is all documented in your mortgage modification agreement; you must read the fine print!
This makes sense, and is a good plan! But you need to know what is going to happen before you jump right into a mortgage modification! Basically the government is going to give you a break for 5 years, and then slowly bring your loan back up to the current market rate.
(Actually the market rate at the time of your initial modification)Knowing all the facts will make you a much more educated borrower! If you are overwhelmed by the whole process, or just want a bit more information, I can help you there too! Maybe you aren't even sure if you would qualify for a mortgage modification loan and want to find out before contacting your lender. These folks can help! Mortgage Modification experts! Click there and you will be well on your way to saving your home today! It is a scary time, a stressful time and should be entered with caution! Start here and find out would you qualify today!
Recommend Mortgage Modification - Long Term Effects - 5 Years and Beyond Issues
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