I have been reluctant to talk about my mortgage here.
It has been a tough few years that included working several part-time jobs, baking, sitting dogs and selling personal belongings to stay ahead of all of my bills.
I tried last year to re-finance, even having a friend’s son who works in finance re-run all of my numbers that had just been turned down by my bank. It seems I did not make enough money to afford my house. (I was affording it, just not easily) Granted re-financing would have allowed me to afford it, just by lowering the interest rate but I currently did not make enough to re-finance. Chasing tail around a catch 22.
I didn’t want out of my mortgage. I didn’t want money taken off the principle. I accepted that I took on this debt in 2005. I just wanted to re-finance and get the interest rate lowered to the new going (and much lower) rates.
In January Katherine sent me a link to a news article about a group NACA that would be in Bellevue for three days and this group helps homeowners with unaffordable mortgages get them re-worked. I had a little skepticism to begin with because every other thing I looked into required me to be delinquent. But I looked into it, got all of my paperwork together and spent ten hours filleting myself to these people. It was quite emotional.
Then there were a few months of follow-up paperwork. Scanning and emailing and faxing nearly every financial document I ever had and each and every pay stub up until the point that a “trail” period was started.
I then had to go through a credit counseling session to which they could not find anywhere for me to cut back. I had to make trial payments (meaning smaller payments via phone not check or on-line) by the first of three months in a row.
I now have a reset mortgage. My interest rate is lower. No money was taken off of my mortgage. Only the “extra” from my low payments the last three months was added on. No terms were changed at all. The only changes are: lower interest rate and my taxes and insurance are now rolled into an escrow account.
I can’t even express the relief. The only thing I wanted all along was to re-finance so I could get the interest rate lower. This is even better because the terms have not changed, the loan will not go any longer then it was already schedule. There were also no points or fees associated with this. I just got the lower interest rate and the price was complete humiliation on the first day and random frustrations when payments didn’t go through or scanned and emailed documents could not be located and had to be resent.
It was all worth it! I am thankful to have it done! Thankful for Katherine for having my back and sending me the news article! Thankful for the NACA program! All in all I am very lucky.