Profile picture for mswhite

Need to refi 2-family investment but stuck in balloon adjustable rate mortgage

I purchased a 2 family investment property in 2007 (NY state) and took an adjustable rate mortage in the amount of 181,000. Pardon the stupidity here, but after reviewing my paperwork I just realized I am locked into a 30 year balloon payment with an adjustable rate. Apparently after 30 years of paying 1900/month I will still owe them 166,000 upon maturity. The value of the 2 family homes in my area has dropped significantly (sales within the 80-120,000 range). How can I refinance this house rather than just give it back? I've never been late on a payment and I do have some money to put toward a refi just not 100k. Since its an investment property, I'm being told I need at least 20% equity. Can anyone give me an idea of what I can do with this property?
  • September 27 2011 - Middletown
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Answers (2)

Profile picture for Chris Corica
A few things to follow up Patricks post;

  He is correct about the DU Refi Plus program. The first step is to go to http://www.fanniemae.com/loanlookup/ and see if your loan is owned by Fannie Mae. If so, you may have option's available as long as you are NOT currently paying PMI. If you are, it would make you ineligible for this product. If not, while the guidelines say they go to 125% loan to value, all the lenders I know of have capped the LTV at 105%. Hope this helps. Feel free to contact me with any question's. Best of luck.
  • September 29 2011
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Profile picture for Mortgage Brothers
1) Investment property loans are eligible for HARP refinances, so first step is to find out if either Fannie Mae or Freddie Mac are the underlying owner of your loan
2) At the present time the maximum loan to value ratio for a HARP refi is 125% and your present loan balance and property value may exceed that. If that is the case you cannot do a HARP refinance now, but that may be changing
3) Plans are being discussed at the Federal Government level to open up HARP refis to anyone that is current on their mortgage regardless of LTV- if that comes to pass it may be your path to a refinance, but Fannie or Freddie would have to own your Note.  You can go to Fannie and Freddie's home page and navigate your way to each of their loan lookup tools that will tell you whether they own your Note
  • September 28 2011
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