Community Answers

1. 

   1-31-11

   tkahrs12122 says:

   Just start shopping for a new mortgage, call around starting with your bank. Once the word reaches your current mortgage holder they will be calling you and more willing to sweeten the pot.

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2. 

   1-31-11

   lender2you says:

   Yes! You can or there are companies out there that will do it on your behalf. Banks do not want to foreclose and refi is not an option for many people today.

   Keep making your original payment and call the bank that hold the mortgage. Ask to speak to someone about doing a Loan Modification. They have a special dept. set up for this and they will give you all the information you need.

   Right now I only know of Countrywide and Wells Fargo being pains about offering this but they still do it in the end.

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3. 

   1-31-11

   Ed Atun says:

   Today’s newspaper said that Countrywide, the nations’ largest lender, is renegotiating thousands of mortgages. Up until now, their efforts were a joke. Their offers were terrible. If they really do change, the others will follow. This will all unfold over the next few weeks.
   The government programs are all voluntary and have not worked..

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4. 

   1-31-11

   doreen k says:

   Assuming you plan to stay in this home for the next several years, you did the right thing.

   You received a great rate, and though it’s a little higher now than the LIBOR-indexed teaser rate, in the long term it will serve you well. Historically, 4.875% is a very low rate!

   The longer you stay in the home, the more you stand to save. If you are concerned about starting over with a 30-year term, just go to any website with a financial calculator and figure out how much you need to pay monthly to fully amortize your loan in 24 years.

   Or, save the difference each month and keep this cushion as an emergency account. In several years, when you have enough saved to pay off the mortgage in full, make the transfer and be mortgage-free.

   Rates WILL be higher in the future. I can predict that because rates are so low right now. History doesn’t always “repeat” itself, but it certainly “resembles” itself. Trust me, in a few years, you will be very glad you locked in now.

   When I started my career, mortgage rates were in the double digits!

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5. 

   1-31-11

   Not I says:

   Yes you did not right thing. No ulcers sweating the rise in the prime.
   In 1982 ARM mortgages ran as high at 16%
   Now just sit back and enjoy your home

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6. 

   1-31-11

   Kirk Kinder says:

   I think you made a wise move. While no one knows when rates will go up exactly, they will eventually rise. With the government incurring massive deficits, the fed printing money, and banks looking to raise fees, rates are going to rise over the coming years. And, I doubt mortgage rates for a 30 year fixed will ever see 4.875% any time soon.

   If you are worried about the extra years for the mortgage, just pay extra towards the principal each month. One extra mortgage payment per year cuts 7 years off a 30 year mortgage. Plus, if you pay down principal in the early years of a mortgage, you drastically reduce the amount of interest you pay. It doesn’t happen so much in later years as the vast majority of interest is paid in the first 15 years.

   Good luck,

   Kirk
   http://www.swimupstreamtowealth.com – Build your wealth by creating your own path.

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