I don’t know if this is the right place to post my questions but I am certain someone will let me know otherwise… I am new to all of this and I have recently bird dogged a couple of rehabbers and looking for something different but in the mean time I am in a situation with my own home that I need advice about. I had some hard times back a few months with my Dad being terminally ill and it drained us to the point where we fell behind and a trigger that we weren’t aware of in the contract has pushed our interest rate up over 10% from 6.8%…I know it doesn’t sound plausible but it is and because of our recent problems its been very difficult to refinance at a reasonable rate and now our mortgage is over $2100 a month and climbing…I don’t want to sell, its not an option. We love our house and neighborhood but we can’t continue to have our rate keep increasing…and I don’t want to keep dumping money into an interest rate. I was going to talk with a buddy of mine who is an investor to see if he’ll lease it back to us for a couple of years and then buy it back but if we have any other options please feel let me know…
ryd777,
There are always solutions. Give more specifics, what the house is worth, how much owed, interest rates, etc., so we can brainstorm. Hang in there.
Da Wiz
Fair market is $235,000. Current mortgage $190,000, Interest rate 10%…thanks for the response.
Is the loan under both your and your fathers name?
If not do an equity gift between family members and try to get the house to appraise at 240k and get a 80% loan. That way there is no MI (mortgage insurance) and only one 80% loan. This option also will work if you sell to anyone in your family. The 195k you owe at 10% is $1,649.83 a month.
Now let’s say you find someone not in the family that has Awesome credit you could carry the 20% and still end up with a 80% loan payment at 7% would be $1,250.77.
Even if you were to sell the house to them and they get a 100% loan you could pull the equity and do a lease option with 10k down . Put 35k in your pocket and not worry about the mortgage because of the 35k for a year and a half.
The only thing I say on this is your Dad’s health and Stress are way more important then any house.
Hope this helped