If you have an adjustable-rate mortgage that’s about to reset to a higher rate, you aren’t necessarily locked into it for the long term. This article shows you what you can do to get yourself out of this predicament.
1.The first, and most obvious option for those with low-rate ARMs that are about to reset is to refinance into a 30-year fixed rate loan, or at least a 7-year ARM. This will give you reasonable monthly payments that will last much longer than your previous loan.
2.If your current mortgage balance is now greater than the value of your house, the Federal Housing Administration now has alternatives available for refinancing. The FHASecure loan is one such option. In this program, lenders agree to to forgive any mortgage debt above 90 percent of the value of your house, thus enabling you to refinance into an FHA-guaranteed loan (see Resources below).
3.If you cannot refinance, talk to you lender and see what you can get. It’s possible that the lender would agree to reduce or forego your payments for a few months, or at least set up some kind of plan to allow you to make up for the payments you missed. There are also housing counseling agencies for delinquent mortgages (see links to FHA and HUD in Resources below).