Mortgage Loan Q & A
what do i do about my adjustable rate mortgage?
i owe $500,000 on my home. i currently have 2 mortgages. 1 for $400,000 and another for $100,000. the larger amount is at 5.8%, the smaller loan is for 8.5%. my monthly payment is almost $3,000. my home is a 2 family and i have a rental income of $1,500 monthly. my 5.8% rate is going to adjust in a year. my home was recently appraised at $750,000. i am also a disabled veteran and i haven’t used my VA loan. is there anything i can do before i get caught up in the sub-prime debacle? before anyone chastises me for purchasing a home i couldn’t afford, i earn $90,000 a year. my monthly income after taxes is 5,200 a month. i can afford the home, i just want to protect myself and possibly lower, if not maintain my current payment.
As a mortgage lender, I would look at two different scenarios.
1. Only refinancing the 1st. That would keep you in a conforming loan. (anything under 417,000) and I would subordinate the 2nd mortgage.
2. I would look at combining both mortgages at 600k (jumbo) and compare it to the first scenario.
I would look at these 2 different options because Jumbo Interest rates are different (higher)than conforming rates. Then depending on how long you’re planning on staying in the home advise accordingly.
adjustable mortgage rate
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