Adjustable Rate Mortgage with No Equity

[Ali M]

I have an adjustable rate mortgage. My home has no equity. What can I do to lower the pmt? Like many people i was one of the many that got stuck with an adjustable rate mortgage. My pmt is about to adjust, is increasing by $400. I don't know what to do because the housing market is very shaky and i can't sell my home because i owe more than it's worth. Please someone, help i don't know what to do. What options do I have. Many people have told me to talk to my lender and see if we can come into an agreement instead of foreclosing my home.

[hj_thorne]

You don't need to have equity in the house to refinance the mortgage. Just call up and see if you can get a better fixed rate at a lower interest rate than you currently have. You don't have to take any money out. Ask if you can refinance at a fixed rate and see if you can get a better interest rate than you already have.Good luck

[Real Estate Guy]

you didn't say what the payment currently is, so it's hard to know what impact 400 a month will have. I find it hard to believe that you are so poor that 400 a month is going to kill you. I would suggest that you get a part time job.Or a room mateOr rent a roomOr cut back on some of your living expenses like cable, etc.

[Liberty 4 all]

Whoever told you to speak to your lender is correct. That would be the first place to start. If they have no answers try several different lenders and be upfront on your situation. Private local lenders not (Countrywide) should be able to work something out for you. There are hundreds of loan programs out there.If at all possible do not enter into foreclosure. Most mortgage companies will with you.

[Linc S]

refinance!! rates are so low right now. you can geta conforming 30 yr for around 6%...1st call your lender-if its b of a or countrywide you are set as they are doing refis just by resturcturing the rate with low impact on you paper wise....if it isnt call the lender and tell them the situation and ask them...otherwise go to another bank....if none of that works, get a p/t job, roomate or cut back your spending...good luck and hang tough!

[Patty D]

What do you mean you were "stuck with an adjustable rate mortgage"? You chose the mortgage program and signed the papers. It also sounds like you chose to do a 100% loan. Sell it for as much as you can as quickly as you can and suck up the difference or talk to your lender about doing a 100% refinance into a fixed loan and pay out of pocket whatever you have too.

[AriGold]

You should consider the FHASecure refinance program. You can refinance up to 97.75% of their home’s appraised value into a FHA-insured mortgage. By refinancing into a FHA-insured mortgage, you can expect to pay lower monthly mortgage payments. Under the FHASecure program the lender will not automatically disqualify you for any late or non-payments on your existing loan. Moreover, the lender can offer you a second mortgage to make up the difference between the value of your property and what you owe.

[M&M]

I hope everything works out for you. So many people who found themselves in situations where they needed to refinance were talked into adjustable rates by shifty lenders who knew the rates were going to climb. These are now backfireing on them and the home owner. I wish you the best and I would try to refinance if I were you.