I bought my home 3 yrs ago and and it is increasing in value as well as insurance and mortgage payment. I looked into the loan that I have but I cant renew because my credit is not at 650 yet. I did the tax exemption which discounted the mortgage bill but it is still increasing. I was paying under 1000 a month and now I'm paying close to 1500. What can I do to decrease or avoid it from increasing???
- babyboomer1001Lv 72 months ago
I am not familiar witha type of home loan that renews. Since your does, you have to renew it when the time comes. If you cannot afford to do that, then expect to lose the house to foreclosure. If it an option in your contract and you choose not to renew, or you cannot for some reason, then you live with the consequences. If you cannot afford those - increases everywhere, then maybe you can sell the house before it is foreclosed on. That would be your best choice, because it would not affect your credit or your ability to buy another house in the future.
- exactdukeLv 72 months ago
Why did you get an adjustable rate mtg when interest rates were so low?? Either refinance & get a fixed rate mtg. Or sell, and get out from under.
- JudyLv 72 months ago
It sounds like you have an adjustable rate mortgage. If you do, it can go up every year. A fixed rate mortgage can go up too if your insurance or property tax goes up, which they often do, but normally would not go up nearly that much in 3 years. If it's adjustable, the only way you can stop it is to refinance to a fixed interest rate, and for that you need better credit.
- A HunchLv 72 months ago
The only way a mortgage increases in amount each month are you have an adjustable rate mortgage or insurance/property taxes are increasing.
Refinancing will help the former but nothing can help the latter except legislation in your area to reduce these costs.
If you can't afford the home, you will have to sell the property.
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- Anonymous2 months ago
Your payment should not be increasing that much.
- .Lv 72 months ago
It's spelled "Home," not "Hone." What's your question?
Edit: If you have some sort of balloon mortgage and your credit is too bad to refinance, there's nothing you can do right now.