Obviously you want to refinance to get out of it. Several things to consider:
1. What is the property worth? Typically you need at least 20% equity for a lender to refinance.
2. What interest rate are you paying now? The current rates are anywhere from 4.5% to 5% based on your credit rating. If your credit rating merits it and you can get a lower interest rate, then go for it.
3. What is your home income ratio? Typically a lender will require that you have sufficient income to sustain a new loan. You may have to come up with some cash to meet the requirements of a new loan.
Better Homes and Gardens Mason McDuffie
Your mortgage lender --- will they refinance
Your realtor --- find out what your property is worth today. If you owe more than what it's worth, it may be difficult to get your loan refinanced if you have no equity
Do you know what the home's value is? You may want to look into refinancing out of the I/O loan. Do you know if there were any stipulations in the I/O loan?
Feel free to contact me directly through my profile to see what options you may have.
Amerifirst Financial Inc
You can always refinance if you qualify, however, I suggest you have a mortgage professional review the terms outlined in your Note before moving forward with refinancing.
Elva A. Wormley
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / DRE #01274093