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I have a mortgage that in 3 months it will be a changeable rate, but my mortgage rate is already at 9.9 percent. My question is can it get higher if so how much higher? and on what basis do they raise or lower them. I would love to get my home refinanced but I don’t have good credit and I have not payed any down on the principal of my loan so I wouldn’t know where to start. any advice would be very helpful.
Nice comments but the last thing I want to do is leave this home. 🙁

5 Thoughts on How high can my mortgage interest get?
  1. Reply
    February 12, 2014 at 3:50 pm

    We can’t know the terms of the mortgage you got, but since you don’t know and assumedly didn’t check them that hard when you got the mortgage I’ve got a real bad feeling about this (ie it can possibly go up alot). Still, go read the papers the bank gave you at closing and when you got the loan. They should tell you all that.

  2. Reply
    Steve t
    February 12, 2014 at 4:44 pm

    Rent at this stage. 9.9% is too high. It looks like that you are just pay high rent. download some loans and then go for buying property. It is possible that prices of house go down and can be loose money. It is just opinion, decision is yours.

  3. Reply
    February 12, 2014 at 5:31 pm

    if you don’t have any equity in the property, then save your payments…..don’t make another one….the market is great for that….buy another home using the money you saved…be sure to finance right away….and then tell the mortgage company your with to go to hell.

  4. Reply
    February 12, 2014 at 6:02 pm

    It sounds like you have an interest-only ARM. How much your rate goes up will depend on your payment history, overall credit score, and what your contract says is the max.

  5. Reply
    Rachel T
    February 12, 2014 at 6:30 pm

    You are on an ARM and the rate increase has absolutely NOTHING to do with your current payment history or overall credit score. You need to read the note you signed when you took out the loan. There is a 1st year cap, a per increase cap, and a life cap on the loan. The interest rate on the loan can never go higher than the life cap. Your note will also say how often the rate can be increased, but it is either every 6 months or yearly. Sounds like you also may have a subprime mortgage, meaning that when you took out the loan, your credit was not high enough to qualify for a conventional loan. Based on what I saw a few years ago when these loans were made frequently, I would guess that your rate is going up 2.5-3 %. You may also want to take a look at the TIL or Note because I would be willing to wager you also have a Pre-payment Penalty if the loan is paid off or refinanced in less than three years. If you want some additional info, email me. I would be glad to try and help.

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