Question by Audiology@Home: Can I Refinance My Adjustable Rate Mortgage At 120% LTV?
A need to know please, and how does it work as it is all a little confusing… thank you so much.
1st two are a bit spammy but get a thumbs anyhow thank you 
Best answer:
Answer by Wise Guy
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First of all – don’t rush out and re-fi your ARM.
Interest rates are low – extremely low.
Your ARM will readjust – but perhaps not too high.
Also to re-fi you will need 20% equity in your home.
If you refi – consumer reports money stated that only re-fi if you can get 1.93% lower APR than what you currently have.
Allow your ARM to adjust – and see what your new interest rate will be.
Or call your mortgage company and ask to see what the new payment will be if it readjusted today.
Do not do another ARM or variable or 5/5 or 5/1 .
Never allow banks to take advantage of you again.
Fixed rate 15 or 30 year only – stop letting banks use you.
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No.
If you were at 120% LTV when you took out the loan there are no programs for refinancing, but you should call your lender to see if there is a modification program available. If there is, costs should be minimal. If your LTV is 120% because your home value has decreased there are FNMA and FHLMC programs available through the Home Affordable Refinance Program (HARP) that allow refinancing up to 125% LTV at current market rates. If you had no PMI before, there will be no PMI with the new loan.
Well, Audiology, it may be possible to refinance. Though, the ability to get refinanced depends on a variety of factors, some of which cannot be influenced by you (such as the local status of your community’s default rates, the financial viability of your mortgage lender and its willingness [and capacity, really] to absorb a possible prolonged loss if they adjust the mortgage, your past credit and history of payments, etc.). You need local professional help.
A word of comfort: Persistence. Be persistent in your quest to get refinanced no matter how bumpy the road to it is. Everyone is suffering from these bad economic times. Hang in there. Knowledge is power. Here’s an informative article on tips to avoid mortgage defaults, and one of them includes what you are doing–realizing and not ignoring that you have a financial crunch, which you seek to fix:
http://yourhandymanzone.com/Your_Handyman_Zone_How_To_Pages_Real_Estate_Zone_Buying_Your_House_Mortgage_Default_Avoid_Foreclosure.htm
Hope you find this helpful, and that you get through your financial troubles.
Good luck!
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Source(s):
The Internet. Just whatever is available online and what I have on my mind, including the inclusion of relevant sites, like the one cited that came into existence from my efforts, which is intended to be useful. Helping people get the relevant info they want is great.