Need to refinance my adjustable rate mortgage?

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Long story short (kind of)…my husband and I are in one of those crappy adjustable rate mortages which is set to go up in January. We have been trying to refinance, but are having horrible luck. Our credit is considered good (even though we do have a bankruptcy on our record) – but we are being told that our loan to home value is what is throwing us off. We need to be refinanced for $ 180,000 but our home value is falling short of that. I know there are programs out there like “relief programs” but we keep being told we do not qualify because our loan is neither a Freddie Mac or Fannie Mae. Another stickler seems to be the fact that we pay ALL our bills ontime. There are programs out there for people who are behind on their mortgages…which is not our situation. We are current on all our bills. Bankruptcy was discharged over 2 years ago, and we have worked to rebuild our credit. Is there ANY hope for us out there as far as being able to refinance before our mortgage adjusts is January? Oh, and I DO understand that a bankuptcy will stay on our record for 10 years – but according to a few different mortgage brokers, that’s not the problem…it’s the economy. HELP!

4 Comments
  1. Reply
    Judy
    April 29, 2011 at 11:39 pm

    One note:
    Interest rates are incredibly low.
    I read an article that even if your loan re-adusts your payment would still be affordable.
    Call your mtg company and ask them how much will the loan re-adjust to if you kept things as is (with the present rates).
    Rates will probably stay at these historic lows for another 2 years.
    The feds funds rate right now is at historical lows – .19%

    You could figure out your new payment on your own.
    See what your adjustbable mortgage is tied to – such as the libor.
    /

  2. Reply
    Simpson G
    April 29, 2011 at 11:57 pm

    The economy is only peripherally the problem. The main hurdle is that you owe more than the house is worth.

    ARM loans are not always crappy. My 7 year ARM just adjusted to well BELOW what I was paying (13% lower). Do you know what it’s going to adjust to and is it significantly higher?

    I know you said there’s a long story, but you were made aware that you were getting into an ARM before you signed up for it. I understand that circumstances might have changed since you signed up for it, but you did know this day was coming.

    If you can continue to afford the loan after it adjusts, then you’ll have to continue to pay until you get enough equity in the home to refinance.

    You should also look at the Obama ‘Making Homes Affordable’ program here http://makinghomeaffordable.gov/eligibility.html , if you haven’t already. It will help you see if you qualify for any assistance, especially modification since it’s not dependent on Fannie and Freddie.

  3. Reply
    Iffy
    April 30, 2011 at 12:18 am

    You need to bring CASH to the table and find a new mortgage.

  4. Reply
    askmeaquestion
    April 30, 2011 at 1:01 am

    The only way to find out is to shop around with mortgage companies and see what they offer.

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