How can I get a lower monthly payment for a loan?

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I have 2 only interest mortgage (ARM / HELOC), which comes to $ 2450 per month. I recently received devorced, and hard to find, make my mortgage payment (no late payments yet), but I can make a payment of $ 2000-2100 per month. I tried to refinance, but I need clossing off cost of $ 12,000, its impossible, since all my savings. . I really want to keep my house … What should I do? .. Then my mortgage company help? or are there other ways to get a lower payment?

  1. Reply
    February 24, 2011 at 7:55 pm

    Unfortunately, it sounds like you purchased a home that out of your price range. After being in the industry for 10+ years, it seems that families want a specific home no matter what. Most banks use the creative financing( interest only, pick a payment, adjustable rates ) to get the family into the home. In most cases, it is because they cannot afford a traditional fixed mortgage. You are in a very difficult situation, it may be possible to find a lender that will refinance your mortgage, however, the payment will most likely go up. The best option, although not what you want, would be to sell the home and purchase another home on a fixed mortage. A payment you can afford and guaranteed to not go up for the term of the loan.

  2. Reply
    February 24, 2011 at 8:34 pm

    I am sorry to break this to you Ruth but it appears to me that you have more house than you can afford.

    If you cannot afford interest only paymets, the only way that you will be able to reduce your payment further is with a very expensive negativly amortizing adjustable rate loan.

    As much as I hate to say this, you may have to sell your home and move to a less expensive home.

    There are negatively amortizing loans that you could get, but they would just eat up all of your equity in your home and they would probably cause you to lose your home to foreclosure at some time in the future and you would lose everything.

    It may be better for you to sell now rather than to lose your home to foreclosure later.

    I know this is not the news that you wanted to hear, I am sorry.

  3. Reply
    February 24, 2011 at 8:55 pm

    DIVORCE (medical bills and losing a job are the other two) is one of the reasons for foreclosure. In any case you don’t have any equity in your home. Maybe selling might be the best option and need to sell short in this market. You might try to negotiate with your lender but they seem to be overwhelmed now-days. With on equity and cash I’m don’t believe any lender would be able to help.

  4. Reply
    Rush is a band
    February 24, 2011 at 9:15 pm

    Since you are already at interest only the only way to get a lower payment is a negative amortization loan. This means that you aren’t even paying the interest due on the loan and the extra interest eats away at your equity or adds to the balance on your mortgage, an extremely dangerous place to be.

    Really, in general, the only ways to decrease a mortgage payment is to reduce the amount borrowed, reduce the interest rate paid or extend the term. You sound like you are about out of options, you can’t extend the term, you aren’t willing or able to get a new rate (refi) and you aren’t going to reduce the amount borrowed. Sounds like you are out of luck!

    good luck!

    ps – some of the other answers about selling the house and moving to something you can truly afford are probably spot on.

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