The bank approve your loan application according to the the most recent appraised value of your home. It's good to get a 30 years fixed rate. That's mean your payment will be fixed for 30 years until it pays off. After the loan closed, the house value doesn't a concern for the bank, they only concern whether you can make the payment or not. You'll concern more on the value of the house since this is your investment. The increased value is your gain or what we say you have more equity. The decreased value means you lose money but it only affect you if you need to sell it. It's hard to refinance if your house value dropped unless you have a lot of equity in your house. Remember the bank lend you money base on the most recent appraised value of your house.If my home value drops after I take a mortgage loan (30ys fixed), will my payments increase in a any way?
only when it is time to sell and there is still no equity in the home. What you should do is a loan modification, or short refinance.
This is a process that allows the lender to forgive the difference and modify your loan to an amount that matches its current market value.
I work for a company here in Northern California that provides such a service. It is new, but already receiving nationwide recognition. email me to learn more.
thechase23@yahoo.com
cturner@shortrefinow.com
no, but you could become upside down depending on how the 30yr refi is structured. Say you refi with Fha and do so at 95% ltv, if you lost 20% in value, would owe more on the mortgage than the home is worth, and that's not a good place to be. hope this helps
NO. The terms of your mortgage won't change by contract.
They may ask you to impound for taxes/insurance... especially if they find out if your homeowners policy has lapsed or you are behind on taxes.
Best of luck!
No, the sad part is that you lose the equity. What that means is you may not be able to refiance for awhile. Once a fixed rate, always a fixed rate.
No, sorry. If it's any consolation, you are not alone on this. My home value dropped about 30%. You can however get a break on your property taxes. Get your home reasessed.
No - your payment will only go up if you role in your taxes and insurance and they have to put more money in escrow to cover it.
No. The only problem will be if you try to sell it.
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