If you currently are a homeowner that has an adjustable rate mortgage, good credit and equity on your home you probably have nothing to worry about with the current housing market. However if you need an ARM mortgage refinance and you have less then perfect credit or have a home that dropped in value you may soon find yourself in a jam. Knowing how an ARM home loan can cause you difficulties and how to deal with them is critical to keeping your home.
The main factor for people not being able to refinance their adjustable rate mortgage is that their home has dropped in value and the banks will not refinance their loan since the home is not worth enough to be collateral. This is a major problem but one that can be solved with two approaches.
Bamboozle
Working With You Existing Loan Holder
You can opt to request a loan modification to your ARM loan with your current lender. A loan modification is a program were your mortgage holder voluntarily changes the term on your existing home loan. They may choose to change you to a fixed rate or just extend the fixed rate period for your ARM. They will however not modify loans for people who cannot afford the payments, so if you are not able to pay your mortgage with your current income you may want to consider selling before foreclosure begins.
FHA Programs To The Rescue
The other option would be to see if you can qualify for the new government FHA Secure loan program designed to help homeowners who have homes that have lower values then when they bought them or have late payments from rising interest rates. There are certain parts of this program that need to be explained to borrowers so talk to a mortgage professional that is familiar with this type of FHA loan and see if you can qualify.
Knowing you cannot refinance your ARM mortgage is a stressful situation but if you approach it before missed payments or foreclosure begins you will have a much better chance saving your home with the options mentioned above.
Can't Get A ARM Mortgage Refinance - What To Do When You Have Been Turned Down
For more information on FHA Secure Program and an overview of a Loan Modification please visit http://www.mkemortgage.net
No comments:
Post a Comment