if you have a mortage loan conv jumbo that for the last 3 years paid only the interest how can you get out of it and convert to a fixed

Asked by teres2222, San Pablo, CA Fri Dec 27, 2013

$439000 principal balance
owe $119,000 interest only
total I owe now is $558,000

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Audi C, , 12305
Fri Dec 27, 2013
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.
Good luck!
Audi Constance
Better Homes and Gardens Mason McDuffie
0 votes
Ed Jue, Agent, Pleasanton, CA
Fri Dec 27, 2013
Debi Zentner is a good choice for a mortgage broker, 925-426-8383! She won't stear you wrong. Ed
0 votes
Pacita Dimac…, Agent, Oakland, CA
Fri Dec 27, 2013
Two people you need to talk with:

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

Good luck
0 votes
Bmecsey, , San Francisco, CA
Fri Dec 27, 2013
Hi Teres,

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.


Bryan Mecsey
Amerifirst Financial Inc
Cell: (510)725-2665
NMLS: 861229
0 votes
, ,
Fri Dec 27, 2013
Hi Teres,

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.

Best regards,

Elva A. Wormley
Mortgage Consultant
(408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / DRE #01274093
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