Refinancing Home Mortgage
In: Mortgage Rate
22 May 2010How difficult is this transaction going to be ? I am nervous if I can’t with all the new standards ? Is this based only on a appraisal of my property vs my current loan ?
This is about mortgage information questions.
4 Responses to Interest only mortgage rate and want to switch to a fixed rate ?
Hippiechick
May 22nd, 2010 at 5:42 am
It will be based the appraisal. You should have some down payment because you have no equity built up and you ‘ll need money for closing costs. Get out of that interest only mortgage if possible. good luck.
The Bulk
May 22nd, 2010 at 6:36 am
Get out of that thing as fast as possible especially right now
no offense but only an idiot or a flipper uses interest only
Joseph P
May 22nd, 2010 at 6:40 am
Yikes, looks like your question generated lots of sales people hounding you for business.
To answer your question and not solicit you…
This transaction may or may not be difficult depending on your financial status. You would certainly need to qualify for the higher payment and meet the requirements of the lender. The lender will definitely do a new appraisal. If I were you, I would try to stay with my current lender, because they are more likely to want to help you get out of the i/o loan. Also, check your loan documentation to see exactly what happens when your i/o loan switches over…its possible with these low rates, that you might flip over to a rate that’s not so bad?? With all the new options out there to try to help customers, you may end up being better off in the long run. Dont panic. The last thing the bank wants is your house, and there are many new programs out there that try to help the consumer out of these jams. Good luck to you.
Chas
May 22nd, 2010 at 7:36 am
If you arrange to change the terms with your current lender, there will be no fuss,just a simple form filling exercise.
If you decide to go with a different mortgage lender, than you will have to apply for a new mortgage
I wish you luck in getting a fixed term mortgage right now, which is reasonable and fair.
Do not forget that the fixed rate is only available for a relative short period of time,but you will still be locked in with your lender for some years at a much higher rate and you will not be able to change that. Be very selective and careful. Do not just read the headlines, but the small print too.