Many clients calling us recently have never been aware that they have a balloon mortgage.  Now they have received notice that their mortgage is maturing and their payment is doubling.

Adjustable rate mortgages (ARM) were incredibly popular in the early to mid-2000.   Mortgage brokers would place clients in these type of mortgages with the idea of refinancing the loan before the note ballooned.    This was done so consumers could afford higher priced homes and often times these were interest only loans.  That sounded good in theory but since then, the housing market crashed leaving many borrowers unable to refinance their ARM and struggling to make their payments.

In 2008 HAMP (Home Affordable Modification Program) was introduced to help homeowners impacted by financial hardship to modify the original terms of their mortgages if eligible.   HAMP offers struggling homeowner’s, upside down on their homes and having trouble making their mortgage payments, the opportunity to reduce their monthly payment (and sometimes their principle balance) and keep their home.  When this program first debuted, the process seemed overwhelming to most consumers who really did not know how to navigate the process to get approved.  Most were ultimately denied and left hopeless. The HAMP program, when applied for exactly the right way is surprisingly easy to get qualified for.  It is important to consult with someone who knows the right way and can help you through the HAMP consideration and approval process.  Classically in the early years of HAMP, most consumers only saw this as a last-ditch effort to save their home from foreclosure.     Today we have expanded our utilization of the HAMP program to cure balloon mortgages and lock in their mortgage at today’s completive interest rates.

HARP (Home Affordable Refinance Program) was introduced in 2009 to help homeowners whose homes have depreciated refinance with better mortgage terms. This program allows you to refinance regardless of how under water your current mortgage is.   A major condition to qualify for HARP is you cannot have any missed or late payments in the previous 12 months.  This rules out eligibility for many borrowers but if you are approved, you can lock in at today’s low interest rate.

This brief synopsis shows there are good options available. Please call us today to discuss your individual situation and all programs that can help you.