How do I refinance my mortgage when behind on payments

[Codaddy69]

So I purchased my home in 2006, with an ARM(I know big mistake right) and have financial difficulties since. We've sold several of our possessions just to make ends meet, and taken a lot of money out of our 401k. We are currently 3 months delinquent on our mortgage payments.

We've been denied a loan modification and really want to keep the house. I was looking at interest rates on the top of 3 banks the other day, Wells, Chase and Bank of America and was thinking how stupid I was to buy like I did at the time. So my question is, is it possible to refinance our mortgage when behind that much on payments?

[Evan Bedard]

So I purchased my home in 2006, with an ARM(I know big mistake right) and have financial difficulties since. We've sold several of our possessions just to make ends meet, and taken a lot of money out of our 401k. We are currently 3 months delinquent on our mortgage payments.

We've been denied a loan modification and really want to keep the house. I was looking at interest rates on the top of 3 banks the other day, Wells, Chase and Bank of America and was thinking how stupid I was to buy like I did at the time. So my question is, is it possible to refinance our mortgage when behind that much on payments?

Welcome to the forum.

I'm sorry to hear you have had to drain your savings and your 401k just to make ends meet. Unfortunately, since you are already three months behind it will be nearly impossible to secure a refinance. You must have a great credit rating and no more than 30-60 day lates within the last year.

However, that does not mean you cannot still achieve a loan modification. In fact, most people are denied multiple times before they are offered a mod. Just do not give up and continue doing research about this process.

If you feel you need assistance negotiating with your lender you can try a nonprofit housing counselor like HOPE or NACA. Please keep in mind that these organizations are not mortgage cure alls or a one stop shop to leave your problems at. You'll have to keep on top of this the whole time if you truly wanna save your home.

You definitely will want stick around this forum and feel free to join other discussions. Most everyone here is a homeowner just like you and going through the same things.

Please keep us updated and I wish you the best the luck in your fight!

[annikawilliams]

Mortgage refinancing is on a lot of people's minds these days. Some homeowners want to refinance because their credit scores have improved, and they hope to secure a better interest rate.

You should only consider a refinance if you can lower your interest rate by two percent or more. People have been saying this for years, just because they read it somewhere or heard somebody else say it. In truth, there are several factors to consider when deciding when you should refinance your mortgage. These factors include:

* How long you plan to stay in the house (and make payments on the new mortgage)
* How much lower the interest rate will be on the new loan, after refinancing
* How much you'll have to pay in closing costs and fees when you refinance
* Whether or not you plan to do a cash-out refinance

Once you have all of these pieces of the puzzle, you can plug the numbers into a refinancing calculator to see how much you might save. Based on these results, you'll know if it's a good time to get a refinance.