I live in a condo and my interest rate is 9.5%. I've tried to refinance but our home isn't worth what our

Asked by Juliep, 01826 Sun Aug 9, 2009

mortgage is at. Would it be worth putting $20,000 or so down on our mortgage just to get a lot lower interest rate? Because i was hoping if we could lower our monthly payment then we could rent our condo out. Or do we just take the hit and sell our condo for a lot less? I'm so confused on what to do! Who can i talk to?

Help the community by answering this question:

+ web reference
Web reference:

Answers

13
Paul DeSousa’s answer
Paul DeSousa, Mortgage Broker Or Lender, Westport, MA
Mon Aug 17, 2009
Julie
There are many different ways you can attack your issue. Paying down your mortgage is definitely one way, but I am assuming you want to keep that money in your pocket.
I can help you out, but I would have to dig a little deeper in to your situation.
Conatct me for more information.
Thanks Julie and best of luck.
1 vote
Christopher…, Agent, Woburn, MA
Mon Aug 17, 2009
If you pay down the principle balance with the 20,000, that is the best way of doing it or use part of it then use part of it to pay a point up front to get the lower rate! This may allow for a smaller payment, then rent it out and wait for the condo market to recover!
0 votes
Ken Lambert, , Exeter, NH
Tue Aug 11, 2009
Hi Julie- There may be a unique solution as well; there are some interesting programs that are similar to a loan modification, but it is actually a new loan/ mortgage. The company does work with your existing lender in order to buy the existing note from them. You do not have to be behind in payments.
If you'd like more info, please contact me. Thanks, and good luck,

Ken L.
0 votes
Cherrie Cata…, , Chicago, IL
Mon Aug 10, 2009
It doesnt hurt to fill out the package and see if they will lower your interest rate and payment. Tell your bank that you attempted to refinance and you were denied due to value. Also mention that you property is worth $30k less than what you owe. Fill out the package, make sure you fill out every detail and enter in every and any expense, send it in, and see what they say.

Also, you if end up renting it out, it may even pay for itself.

As far as streamlines go, you can check online to see if your loan is a Fannie Mae or Freddie Mac loan. Here are the links: http://loanlookup.fanniemae.com/loanlookup/ & https://ww3.freddiemac.com/corporate/

If you have any questions or need guildance call me at 773.490.3437.
0 votes
Juliep, , 01826
Mon Aug 10, 2009
I tried contacting my mortgage company about a loan modification. They wouldn't talk to me, they just sent out a big packet that i had to fill out. But i noticed a lot of it gered towards financial difficulties and we are fine paying what we pay monthly. I actually pay a a little more so it goes towards the principle. It's just crazy what we pay for living in a small condo. So i doubt they would ever lower my rate because they are making money off me ya know?
0 votes
Juliep, , 01826
Mon Aug 10, 2009
When i tried refinancing a few months ago the guy tried to see if i had a fanny mae or freddy mac loan but he couldn't find what type of loan it was.
We owe about 165,000 and we haven't had it appraised yet. But they went by the places that have sold in our condo develpment and it is about 135,000-140,000. I just feel like we are stuck here.

Thanks for all the responses! I may take you up on some of the offers and contact you.
0 votes
Paul DeSousa, Mortgage Broker Or Lender, Westport, MA
Mon Aug 10, 2009
Julie if you contact me I will exhaust all your options. I would definitely do this before you decide to use any of your personal funds in order to lower your interest rate. You can't get that money back until values start coming up. Which they are starting to rise a little now......
I would be happy to help you out.
Don't hesitate to contact me if you have any questions.
Thanks
0 votes
Kristen Blan…, Agent, Dracut, MA
Mon Aug 10, 2009
Hi Julie,

I do a lot of business in the Dracut area. If you would like me to come by and take a look at the unit I can give you an honest opinion of your best options based on the current market conditions. You can reach me through my profile page...Good luck! -Kristen
Web Reference:  http://www.sellyourden.com
0 votes
Paul DeSousa, Mortgage Broker Or Lender, Westport, MA
Mon Aug 10, 2009
Julie
You do have some possible options.
Fannie Mae allows you to streamline refinance your home. You can actually go to 125% of the value of the home. Although you have to meet certain criteria. First, you can't be currently paying PMI,
Another option, is an FHA streamline.
Contact me for more information, I can help you out.
Take Care, and Best of luck.
0 votes
Cherrie Cata…, , Chicago, IL
Mon Aug 10, 2009
You do have a few options. First off, if you have a fannie mae or freddie mac loan, you might be able to take advantage of the Refi plus program that rolled out earlier this year. Basically, they will lend up to 105% of the value of the home. How much do you currently owe and how much did your appraisal come in at?

Also, you might want to talk to your mortgage company and see if they modify your loan. Depending on your situation, they could potentially drop your payment and interest rate. This process might take a couple months, but its worth it. Hope this helps!
0 votes
Juliep, , 01826
Mon Aug 10, 2009
Thank You I may take up your offer and call about questions.

I'm not sure exactly where i would go. I would like to upgrade to a house in surrounding towns.
0 votes
Jody Stemarie, , 01876
Sun Aug 9, 2009
Hello Julie,
This is a very common question and there are multiple ways to handle your situation. You have obviously spoken to a professional about refinacing so the next step would be speaking to a Realtor. You should find out what your home is worth in todays market. What could you expect to gain by selling the home vs renting it out . What are your future plans for the property and your life? I am a Realtor working in your area and woul be able to give you a good idea of what the home could possibly sell for. I would be glad to talk with you and give you some information that may help you make your decision.
You can reach me @ 978-771-9044 or visit my site at http://www.jodyforhomes.com
Web Reference:  http://www.jodyforhomes.com
0 votes
John Savigna…, Agent, Hopkinton, MA
Sun Aug 9, 2009
Where would you go if you rented out your condo?
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more