Unloading a time shareRefinance now or hold out?Good debt vs. bad debtGetting a lower mortgage rateDebt snowballTo mortgage or notWhat to do with inheritanceDebt settlement good or bad?Unhappy about CD ratesShopping for a credit cardMaking payments on two housesWhy invest?Late payment once; rate doublesPay debts or invest?Lenders and collectorsTrapped in an option ARMBad financial adviceTackling debtHelping son with debtI locked into a bad mortgage, a 30-year payment-option ARM. I borrowed $234,000 in February 2006. I now owe $246,000 at 8.5 percent with an $8,000 prepayment penalty -- bad deal on my part. I tried to get out but the vultures are coming in. Every month that I don't make the high payment, $800 is added to my principal. With the decline of real estate I will be lucky to get $310,000 for it. Got any ideas?Hogan Hogan, I rarely tell people to sell their home, but in your case you have to in order to get out from under this crummy ARM. $310,000 is a good deal compared to what you'll end up owing if you stay in the house. advertisementRelated Links:Paying for basics with credit card a no-noFiance is $100,000 in debt3 options for debt woes, none of them goodRelated Articles:Make money moonlightingSpend emergency surplusCar loan in bankruptcyprevious question | next question
I locked into a bad mortgage, a 30-year payment-option ARM. I borrowed $234,000 in February 2006. I now owe $246,000 at 8.5 percent with an $8,000 prepayment penalty -- bad deal on my part. I tried to get out but the vultures are coming in. Every month that I don't make the high payment, $800 is added to my principal. With the decline of real estate I will be lucky to get $310,000 for it. Got any ideas?Hogan
Hogan, I rarely tell people to sell their home, but in your case you have to in order to get out from under this crummy ARM. $310,000 is a good deal compared to what you'll end up owing if you stay in the house.