Do you owe more on your home than what its worth? You do have options. Here is what we are doing in this type of situation.
1. You need to find out what your home is actually worth? Use a local appraiser or your local Mortgage banker may be able to help.
2. You need to get approved for that amount or 97.75% of the appraised value, your best bet is an FHA loan which will allow you to refinance up to 97.75% of the value of your home into one 30 year fixed rate loan. There are other options but this is by far the best program for you.
3. Give your lender a call letting them know that your home is only worth a certain amount but less than what you owe, tell them that you are approved for 97.75% of the appraised value and that you have to refinance that amount into a new fixed rate mortgage or you will loose the home. Hopefully the lender will agree to hold a 2nd for the difference of the appraised value and what is owed and put the difference into a fixed rate 2nd Mortgage like the first.
You ask why would the lender except this? Put your self in there shoes, I (The Bank) have a good client that is paying which is you and they (the client) might loose the home if I don’t allow this to happen. If I don’t allow it to happen (the bank) then I could loose 10-40k what ever the amount might be. You are giving the bank a win / win solution. They help you keep the payment down allowing you to keep your home and the bank gets to keep you as a client and not loose a bunch of money. They are not into taking back homes and selling them they are in the business of lending money.
I hope this idea help you get out of your adjustable rate mortgage and saves your home. Please give me a call if you have any questions or need my assistance with any financing needs.