Variable interest rate mortgage?

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My home mortgage fixed interest rate (5.75) expires next month, and there will be variable for the next 20 years. My house has no equity to refinance and be able to my bank (Wells Fargo) is asking me to deposit 20% (money I do not). I fear that my new floating rate my monthly payments more than I can afford you machen.Wenn, as you know, faced with this situation, please answer my question? I called several mortgage banks, and they ask me all the time by 20% after unten.Im my house worth about $ 240,000 and my mortgage is $ 265,000. What should I do? Thank you.

3 Comments
  1. Reply
    J
    May 16, 2011 at 5:37 am

    Find a way to create the 2650 dollars you need for morg payment taxes n such , Make your house worth 265 k bye having it recheckd bye town , dont towns love raising taxes 😀 Then get loan for value of house ?

    Move to a house that is worth like 80 k Take all extra money and grow vegetables

  2. Reply
    Mary Soilex
    May 16, 2011 at 5:39 am

    I SAY GET AN APPRASIAIL FROM KLONDIKE LOAN UND TRUST

    A STAWART FIRM WITH STANDARDS,.

  3. Reply
    Paul in San Francisco
    May 16, 2011 at 6:37 am

    If you have no equity in your home and you are unable to come up with 20% down for a new house, then the only thing you can do is stay put and continue paying your mortgage payments on a timely basis. First thing you do is look at your loan documents to find out how much your interest rate can move once it becomes variable. There is always a cap on how much your lender can raise the interest rate. Find out what the cap is — can the rate go up by 1% a year or 5% a year?. Remember that interest rates can go DOWN as well as go up although in this market that would probably be rare. Once you know how much the interest rate can move, you can figure out the maximum of how much your monthly payment will be. Then you need to start saving your pennies so that if your monthly payment does go up a lot you will be prepared.

    It sucks, I know, but that’s the way it is.

    Good luck!

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