Adjustable rate coming up on my mortgage.80/20 loan?
by Mortgage Rates on Tuesday, November 9th, 2010 | 4 Comments
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Situations like this are the cause of the problems facing the economy right now. I’ll spare you the lecture, but an 80% ARM? Your lender should be shot!
Your best bet is to call the company that holds your note NOW and explain your situation. Banks do not want to own property, and it is in their best interest to work with you to find a rate you both can live with.
Also, interest rates are still very very low. Unless your initial rate for the ARM was one of those ridiculous 1% deals (which are now illegal) you should not have much trouble finding a good rate to refi at.
Good Luck!
20,000 sounds like plenty of equity. the lender may be worried that you have recent credit lates in the last 12months.
If you have had mortgage lates then it will make it a lot harder!
Most lenders will not help you with the refinance as they are hoping that you will pay that higher rate when it adjusts.
Since your 20% second was a purchasemoeny second you may qualify for a streamline refinance. they don’t make you requalify, they don’t pull a new credit report and the costs are minimal.
If your current lender can’t do them, call around.
Contact your mortgage company NOW and explained the stitition today and see if they can help you or refi your home.
You also think about refi into FHA loan if your loan amount is low.