I have a 5/1 ARM mortgage loan with 3 years until the interest only payment changes and the rate becomes ?
adjustable. I also have a HELOC. Together the loan amounts are more than what my house is worth now since the market has crashed. It was worth well above what we now owe on it just a year ago. My question is what to do with my loan situation. We are not having any problem paying our loans but I am worried that in 3 years when the loan term changes the house value will not be what we owe on it and a bank wont refi us. It was our intention to refi and get into a fixed rate before then. Of course this was before the market plummeted. Should I keep going the next 3 years and hope at least my house value has gone up enough to allow me to refi or try to do something about it now even though I am upside down?
- Anonymous1 decade agoBest Answer
At this point your only option is to wait and see what happens.
- PengyLv 71 decade ago
With an interest only loan you already owe more than you originally took the loan out for add that to the market you are in bad shape as far as refinancing goes. start paying more on the interest only loan to pay down your principle or you will definitely be SOL in 3 years