Chase Home Finance

Chase Home Finance Chase Bank, Chase Mortgage Mortgage refinance ARM bank subprime qualify Columbus, Ohio

22nd of Apr, 2011 by User414843

In 2005, at the height of the sub-prime mortgage fiasco, Chase Home Finance loaned me $464,000 to purchase a new home in Redondo Beach, California. This was a stated-income loan and required little or no documentation to qualify. I made a 20-percent down payment on the purchase price of $580,000 and received a 7/1 adjustable-rate, interest-only mortgage at 5.375%. The monthly payment was $2,046. For much of the the time, I've prepaid toward the principal, however, and sent them monthly checks for $2,600. The balance of the loan now stands at $454,000. Now, six years later, we're approaching an almost inevitable rising interest-rate environment. However, Chase Home Finance won't allow me to refinance this booby-trapped loan. The appraised property value has fallen by about $80,000, leaving me with less than 20-percent equity in the home. Additionally, like all banks, Chase has vastly increased the level of income documentation required to qualify for a refinance. So, here I sit, with one year remaining before the interest rate re-sets on this 7/1 ARM, with little or no chance of refinancing without having to apply for an FHA loan at a higher rate, and with the extra cost of private mortgage insurance. Despite hearing stories of many other homeowners walking away from their loans, here I am attempting to fulfill my obligation and merely lock in a 30-year fixed-rate loan so I can stay in the home secure in the knowledge that I'll be able to afford the payments once interest-rate hikes begin, likely, in 2012-2013. It's ironic because I'm in considerably better financial shape than I was in 2005 when I first qualified for the mortgage: My income is higher, overall debt lower, and I got married and my wife has a job, which makes it a two-income household. Any suggestions on how to proceed?

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Comments

4638 days ago by Mikeymike801302

Do what I do, I just made my wife start working two jobs. That way, we have three incomes coming into the house. I also fired our maid, bringing down the costs of upkeep for the house and told my wife to make sure her work schedule is conducent with her cleaning duties.

By doing these simple steps, the money we save on maid service and her extra income is applied to the mortgage. We have increased our pre-pay greatly. I promised her as soon as the house the is paid-off, I will place her on he mortgage.