Do you owe more than your home is worth?

By - James Smith

American Guaranty Mortgage

Mortgage and Real Estate Help Center

jimsmith@agmloan.com

303-577-7246

If so, you are not alone. But don't despair. Relief is available for raising interest rates in a downward market.

What do you do when the sum of your first and second mortgage exceeds the current value of your home?

Many homeowners are finding themselves stuck between a rock and a hard place considering the turbulent mortgage industry and the declining real estate market. The popularity of adjustable rate mortgages in the past has put many homeowners in a financial position they cannot escape. At the time the low rate and payment of the ARM was enticing, consolidate debt, take some cash out, all at a lower payment with the full understanding that you will need to refinance after the fixed period. This was all good in theory until this last summer. The Real Estate market slows and the subprime mortgage crisis hits, foreclosures are on the rise and lenders eliminate over 60% of their mortgage programs.

The homeowner who either purchased their home with no money down or refinanced and took the equity now has a rising interest rate and payment they cannot handle and their home has actually lost value. My clients tell me that they have been repeatedly turned down for financing because they are "upside down" or that they owe more than their home appraises for. Many in this position try to "short sell" the property or give up and let it go to foreclosure. Thus, fueling the downward spiral of the real estate market.

Yet there is an option for homeowners with 80/20 combination financing and a very viable option at that. There is a little known Mortgage Program that allows for the rate and term refinance of the volatile first mortgage while allowing for the total indebtness of your home to exceed its value.

In Simpler terms, we can refinance your First Mortgage into a 30 year fixed rate (currently less than 6.00%) and let your current Second Mortgage remain in place even if your home appraises for less than what you owe.

This is by far the best option for individuals in need of restructuring their adjustable rate mortgage. The new rate and payment are fixed and there are no pre-payment penalties.

Your situation and that of thousands of other homeowners like you, is serious. You are, in need of a viable, secure refinancing option. Even if you have repeatedly been turned down due to the value of your home I urge you to look into this program.