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How can I lower my mortgage debt?
My mortgage is $330,000, interest only. I have no equity. My house is now worth $230,000. I am making the payments, but working 3 jobs and killing myself. How can I lower my payments or principal balance?
Sorry I should say, I am looking for suggestions regarding approaching the lender or any of the government programs out there? Is there any help for me? Seems people who stopped paying get the help?
4 Answers
- David MLv 71 decade agoFavorite Answer
Lowering your principal balance and lowering your payments are not compatible. You can't do both. The only way to lower your principal balance is to INCREASE your payments. It is impossible to LOWER your payments because you foolishly took on an interest only loan. A terrible idea. You also cannot refinance as you are under water, owe more than the home is worth. Second mistake (besides an interest only loan) was not putting enough down on the home to avoid being upside down. You are clearly living beyond your means, due to loose financing you bought more home than you could afford. And now you are paying the price. Your best solution is probably to do a short sale, absorb the $100,000 loss (ouch!) and severely downsize your living quarters. Learn from this, don't try to keep up with the Joneses, live within your means.
- pwrmaxLv 51 decade ago
Pay as much as you can to the mortgage, cut unneeded costs, maybe you can refinance with a different bank for a lower interest rate.
