Mike’s Real Estate Show

The following “Hot-Lines” are supplied by frequent radio show guest and co-host Pete Phillippe, Mgr, Production Branch 707-521-4406.  If you are having difficulty in making your monthly mortgage payments then call the following number: 888-446-6390  If you wish to change or modifiy the “Terms” of your loan, either due to a “re-set” in interest rate or a more than anticipated “margin” hike then give this number a call: 800-669-6650.

  Remember, the lenders are trying to keep you in your home. You wont’ get “loan amount” relief but they will try and work with you to lower your “re-set” interest rate or reduce the “margin” when your “re-set” take effect. These new “re-sets” are wreacking havoc with many homeowner who inadvertently believed th 1.75% “Teaser” rate was going to be THE rate for the loan!! But even more realistic re-sets from 4.75 to 6.75% is causing havoc. If you started with a “super-teaser” rate for the first 6 months at 1.75% your payment based on a $450,000 loan would be $1,607.60.  If you had a more realistic teaser at 4.5% your payment (principle/interest) would be $2,280.08 but when it now adjusts at 6.5% your payment is NOW 2844.31.  One is a total “gotcha”! having a payment going up $1,200 per month is crazy but if you didn’t think it was going to is also a bit crazy! The more realisitc number, though not a back-breaker, can put a big hole in the family budget.

  Be aware of these “re-sets” if you have not experienced one yet, and HAVE an adjustable rate mortage or “option arm” you can expect it to happen soon. Call your original loan broker, if they’re still in the busines, and ask them just how much can I expect based on today’s rates and indicator. Your “indicator” can either be the 10 year treasurey bill, Cost of funds index or the much dreaded “Libor”!! (London inner-bank offering rate) which is very volatile. If you have a Countrywide loan and got it locally then give Pete a call above at his “local” number. Anywhere else in the nation or California call those two other numbers. Now’s the time to take charge of your finances and quit playing “Victim”!!