Consider this scenario.
Two years ago you, a self-employed California home owner with good credit, were talked into taking a neg-am adjustable rate mortgage for "the payment flexibility" by a slick-talking loan officer. In order to get a "no points, no fee" loan you took a 3-year hard prepayment penalty with the loan. That prepayment penalty isn't up until some time late next year.
Your home is "worth" $550,000 right now, down from $600,000 a few short months ago, but there are homes on the market that have been sitting and you feel future price devaluations are imminent. You bought before the peak of the market and have 25% equity currently at $550,000.
You have no problem making the fully-amortized payment; but your Option ARM loan (scheduled to recast in 3 years) has a
Related Headlines
- Want to Know More About Me?posted 46 weeks ago on Blown Mortgage
- Spread the good wordposted 48 weeks ago on Blown Mortgage
- Off for a few daysposted 12 weeks ago on Blown Mortgage
- 5.7 + 3.7 =posted 38 weeks ago on Blown Mortgage
- Friday Funniesposted 4 weeks ago on Blown Mortgage
- We told you about this AGES ago.posted 34 weeks ago on Blown Mortgage
- Okay, this is just wrong?.posted 38 weeks ago on Blown Mortgage
- The Fed cut rates by .25%posted 39 weeks ago on Blown Mortgage
- Magical Mystery Tourposted 38 weeks ago on Blown Mortgage
- Okay here?s what I?d like your thoughts on?..posted 34 weeks ago on Blown Mortgage