Mortgage Forum

Mike

Hello, I stumbled upon this site tonight trying to look for answers on a brewing problem regarding our home loan.My husband and I have had our house for two years under an 80-20 interest only loan. We haven't been late on our payments. However, in June the first loan will adjust from 7.45% interest only to 8.95% interest and principal for the next six months. We are able to afford the current payment with our current jobs. However, we will clearly not be able to afford them when they adjust. In addition, we have decided for my husband to be a stay-at-home dad. I will also be changing jobs and taking a drastic paycut. With all of these changes, we will still be able to afford the current mortgage but definitely not when it adjusts.We are seriously considering the loan modification, but I'm not sure about the timing. Do we wait until I am in my new job which starts May 15 or do we apply now and risk being denied because we make too much currently?Any help you can provide is very much appreciated.