Carolyn - Refinancing Home Loan

iVillage Member
Registered: 10-01-2008
Carolyn - Refinancing Home Loan
2
Wed, 07-17-2013 - 12:43pm

Our Mortgage company offered to refinance us under the HARP program.  We are approved two different ways.  

20 yrs. @ 5.175% $988.00 a month  

OR 15 yrs. @ 4% $1100.00 a month.  

Our current loan is at 6.87% with a payment of $1013.00 a month (all payments include taxes & insurance)  

Will the judge allow use to increase our payment by approx. $80 a month?  Husband received a raise last March but it was well under the threshold that the courst allowed us to receive.  Plus, we gave the court his entire bonus of $6,700.00 in March to apply to all the debts.  We are currently on tract to pay back 88% of the debt and our final payment is on Feb. 24, 2014 or about 7 months away.  

What do you think....will they object to us making a slightly higher payment?

Thanks,  

Norma

Community Leader
Registered: 03-17-2003
Wed, 07-24-2013 - 6:16pm

Hi Norma,

I would proceed with asking the court to modify your mortgage.  Over the life of the loan it will save money.  You have nothing to lose and everything to gain.  Interest rates are on the rise and if there were any way you could lock in that rate pending court approval, I would certainly ask. 

Can't remember if you have maintained contact with your BK attorney, but if you have I would definitely send the attorney an email requesting court approval to modify your mortgage.  Your attorney would also contact the Trustee and see what kind of feedback the Trustee has.  If the Trustee has no problem with a loan modification then that's a good sign.

Frankly, given your excellent history and managing your household finances while under the protection of the United States Bankruptcy Court, I think your chances would be good.

As we all know; however, you may or may not get approval of the court.  As my Dad would say, "You can't hit if you don't take a swing."   Go for it!

Carolyn

iVillage Member
Registered: 10-01-2008
Thu, 09-26-2013 - 9:39am

SIGNED!!!   I closed the loan on Monday at 4.875 for 20 yrs.  Our attorney contacted the Trustee and they would only let us do the 20 yrs. option but....we're saving 5 yrs. off our loan with the 2% decrease in the rate.

We only have 21 weeks left and our balance is under $11,000.00.  I'm so excited that we were able to refinance our home and that we are about to the end of our payment plan.  It's been a long time since I actually got to bring home a paycheck!