ARM At 5%, Getting Divorced, Need Stability-What do I do?

Guys, everyone says that HARP is the answer and it is not. She said her loan is owned by ING and it is a 5/1 ARM. That is not Freddie or Fannie and so those answers don't help. There is no lender out there who will touch this loan so there is nothing to do right now. The crazy part is that in 2014 there is a good chance your payments will go down and they probably will not go up until we start pulling out of the recession. Look at your note and see what the margin is and what the index is and then look to see what your rate would be now and I bet that will give you comfort that it is not going up too much between now and 2014. You can check in with me and I will help you do that.... hans@hansblog.com or (866) 385-1650

Yes Ibennett is correct. Here is the requirements for HARP 2.0HARP allows homeowners facing difficulties refinancing their mortgage through conventional methods to apply for a refinance of their mortgage. A homeowner that is current with their monthly payments but unable to refinance due to a drop in the value is the typical prime candidate for the HARP program. The ultimate goal is to allow a homeowner to do a mortgage refinance for a lower interest rate and overall monthly payment. Here are the general eligibility guidelines for HARP: o There is no loan-to-value cap in the new HARP, for fixed-rate loans. This is the most significant change of HARP 2.0. Under previous versions of HARP, the LTV could not exceed 125%.o The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac. Determine if you have a Fannie Mae or Freddie Mac loan by going online (check Fannie; and check Freddie) or by calling 800-7FANNIE or 800-FREDDIE (8 am to 8 pm ET).o At the time you apply, you are current on your mortgage payments. You can have one 30-day late payment in the past 12 months, but none within the past 6 months.Good luck.

HARP 2.0 is your answer. That is providing your loan is owned by Freddie or Fannie.. if you have no mortgage insurance now, you won't' have mortgage insurance on the new loan. Also, there is no Loan to Value restriction, meaning even if your underwater you can still refinance. You should wait till the divorce is complete... it makes things much easier for everyone... If your loan is not owned by Fannie / Freddie, then there might be help on the horizon.. President Obama has talked about another refinance program for borrowers who have not been able to take advantage of all the other government sponsored programs. Details to follow in the future. but the best advice I can give you right now is to Contact a local mortgage broker, not a bank, and apply with them.. with their vast network of lenders, they can find the right loan product for your particular scenario.. WilliamAcres.com

Hans is most likely correct. Most of INGs loans are not Fannie/Freddie. That said, use the look-up tools to confirm. If it is, then HARP would be the way to go, if not, then there really is only two viable options. One option is to stick it out. Many folks with ARMs that began adjusting in the last two years saw their rates go down. We don't know where rates will be in 2014, but it is likely they won't be significantly higher. The second option is probably your best. FHA will allow you to do a no-cash-out-refinance and lend up to 96.5% of the appraised value. If your currently loan is the one you used to purchase the home with, you are set. If it was refinanced, then you will need to provide documentation (like the HUD-1 from the Refi transaction) showing no cash was extracted. You will probably need to bring cash to escrow to bring the loan balance down, but your new loan amount would be $366,700 if your home appraises for $380,000. To se what other options you have, contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com