You have probably been into this for about 4 years or so now. When your house purchase was set up, it's likely that you didn't have a lot of cash to ork with. In order to get you into the property and have you qualify, that second mortgage was calculated on a 30 year payment structure. The interest rate is probably in the 9 to 12% range, and the 30 year payment structure was needed to make it work. Your loan was known as a 30/15, amortized over a 30 year period, but due and payable in 15 years.
With the massive decline in property values, options have gone away for many. The ability to sell and clear both mortgages, the ability to refi into one loan, have all diminished. The 11 trillion dollar loss of equity is a real problem. A good loan person can help you structure a plan for the future.
31 years real estate & mortgage lending.
· 1 decade ago