Reply #94: 10% 'teaser' rate? That's a gouge, not a teaser! [View All]

[PSPS]

I'm sorry to hear about your situation.

How could 10% be a teaser rate in 2004 when the 30-year fixed rate was 5.84% and the 1-year ARM rate was 3.9%? How could you have signed a 10% note under such circumstances?

It sounds like your mortgage was an Alt-A non-conforming loan. That's what I was talking about. A conforming loan would have almost guaranteed that you would be able to make your payments, and refinancing wouldn't be necessary.

Instead of walking away from the house, maybe you can sell it and salvage some of the equity. A $150,000 house should have some net appreciation over the three years you've had it.