Refinancing Interest Only Mortgage

by Lynn Helwig from Chattanooga, TN USA

Hi Kate, My husband and I are interested in refinancing an interest only mortgage. We currently own a home with an interest only type loan. We are considering refinancing to transition to a fixed 30 year loan.

We have moved out of the state and we rent the home when possible due to the decline in the real estate market. We have not purchased another home and will not until we can sell this home.

I have a few questions. First we are working with a mortgage broker in the state in which our house resides, so we'll be doing everything over the phone. The broker told us that we could refinance but as a second home since it is no longer our primary residence.

He also told us that due to our debt to income ratio being too high (I am currently unemployed) the underwriter suggested that we consolidate one of our debts (a large credit card) into the mortgage. The broker provided approximately what the new rate would be and approximately how much the monthly payments would be including principle, interest, taxes and insurance.

Since we are working over the phone what should we expect at this point? Should the broker provide us something in writing first? Or do we pay for the appraisal before he puts anything in writing? Thank you very much in advance.

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Kate Answers: Refinancing Interest Only Mortgage

Ask Kate

Dear Lynn, Get everything in writing, writing, writing. Once more, in writing!

If you don't get the loan terms, interest rates and mortgage closing costs in writing, you stand to receive an unpleasant surprise at closing. Find out the secret to a smooth refinance at How To Lock Mortgage Rates Over The Phone.

Secondly, get the nitty gritty on the importance of mortgage interest rate lock confirmations and how to compare them to good faith estimates.

Lynn, if you decide against refinancing your interest only mortgage, another way to experience Debt Relief is with CareOne. CareOne has helped over 4.5 million people and they're here to help you too.



Because everyone's situations are unique, CareOne offers a variety of debt relief programs. So don't let debt overwhelm you any longer. Click here for more help!

I have also included more information about refinancing an interest only mortgage to a fixed rate at the bottom of this page.

Discover the many different types of fixed rates, Forrest Gump style!

"There's pineapple shrimp, lemon shrimp, coconut shrimp, pepper shrimp, shrimp soup, shrimp stew, shrimp salad, shrimp and potatoes, shrimp burger, shrimp sandwich"

Best Wishes,

PS If you still have questions regarding refinancing an interest only mortgage to a fixed rate, write me at Ask Kate where every question is a good question.

Riveting Fixed Rate, Hybrid and Adjustable Rate Mortgage Help

Assure yourself of the lowest fixed payment possible with this best fixed rate mortgage yet pay it down as quickly as you like.

The 15 year fixed rate mortgage will save you thousands and thousands of dollars in interest over the years. Plus you'll be mortgage free after 180 payments!

What would you do with an extra $87,789? Meet the 20 year fixed rate mortgage.

Introducing the 25 year fixed rate mortgage combining the security of a 30 year fixed home loan enhanced by a slightly lower interest rate.

I've heard it referred to as boring but I crown the 30 year fixed rate mortgage King Of Mortgages!

The 40 Year Fixed Rate Mortgage - When fast mortgage pay offs may not be for everyone.

Are adjustable mortgage rates good or bad? It all depends on your circumstances.

Imagine what it would be like if you could plan for changes to your adjustable rate mortgage.

If the cheapest fixed rate mortgages will save you money, why pay for more?

Come on Kate! Aren't interest only mortgage loans just hidden adjustable rates?

Ask Kate About ARMs - Ask a question to get an answer from Kate about mortgages that adjust.

ARM Ask And Answer - Questions about adjustable rate mortgages, each with a individual answer from Kate

Return home to Get-Your-Best-Mortgage-Rate from Refinancing Interest Only Mortgage

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