The Mortgage Go To Guy!!

So you bought or refinanced your loan into an Adjustable Rate Mortgage and you want to know what to do?  This is a dilemma facing many homeowners right now due to the huge numbers of 2-5 year Adjustable Rate Mortgages that were written in the past 6 years. 

Lenders have begun sending out letters informing their borrowers that their loans are due for adjustment.  Even with all the hype in the media, many homeowners are taken by surprise.  The harshest reality is when you find that your new mortgage payment will be 50% higher (or more!) than your current monthly payment!

So you may be one of these homeowners.. but what can you do?  The first step is usually the hardest. 

First, find your closing package from the title company. You received it at or a few weeks after your closing.  In the package, you will find the Mortgage and Note that you signed.  You will need to copy these documents…specifically look for the Adjustable Rate Rider and a Prepayment Penalty Rider, if it exists.  You will also want to copy your most recent Mortgage statement that you received in the mail.

Then, contact your trusted Mortgage Broker.  Arrange a time when you can sit down with your loan documents and figure out what is about to happen.  This may require faxing, emailing or mailing a copy of the Mortgage and Note to the Mortgage Broker.   In this meeting or phone call the Mortgage Broker should be able to help you to:

1. Figure out what your new rate will be from analyzing the Adjustable Rate Rider and the current market indices.  - Adding the margin from the mortgage to the current index (ex. 6-mo LIBOR) will give you your new rate.
2. Find out what your new payment will be after the adjustment.
3. Figure out how much your house is currently worth with a call to an appraiser to establish your current loan to value
4. Decide if now is a good time to refinance based upon where your rate will be versus current market rates.
5. Check your credit to qualify you for a new mortgage

With this information, your Mortgage Broker can help you to refinance into a new loan with a payment you can afford.  There are many loan programs from many lenders currently available to help homeowners refinance that have little or no equity in their homes. 

(It is very important to figure out whether a new loan is even possible… if your Loan to Value is far over 100%, you may not be able to refinance right now.  If this is the case, then you should still contact a Mortgage Broker who can help you devise a plan to refinance as soon as possible.)

It is important to sit down with a trusted Mortgage Broker that can advise you as to the best course of action for your unique situation.  With a trusted advisor like this by your side you will be in good hands.

For more information about refinancing your Adjustable Rate Mortgage in Florida, contact me by following this link to my contact page.

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David A. Podgursky, MBA
The Mortgage Go To Guy!
Your Source for Residential and Commercial Mortgage Loans in Florida