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Was your loan an interest only loan for x years? If your payment was $1200 10 years ago and now is $2400, then one of two things happened:
1. Your taxes and insurance have gone through the ROOF. You should check on that. If your home value hasn't doubled AND you gained an exemption, it shouldn't be taxes, so if it is, then you should protest with your county, and if it is the insurance, you need to shop around. Address whichever is the problem.
Or
2. Your interest only period expired, and you are now paying principal and interest. In which case, you definitely need to refi. If you can't qualify to refi, you should sell, because that interest rate is terrible. Of course, if your credit score is sub 600, you are going to have trouble finding a place to rent, so that makes selling less palatable.
Mortgage payments on regular loans do vary some with increasing taxes and insurance, but they shouldn't double. Mine has varied by about $50 over the 13 years I've owned my home. Even if your home value doubled, raising your taxes, that shouldn't double your payment, since taxes are just one part of the overall payment. That makes me think you had an interest only loan to start with.
Sit down with a loan officer and find out what you need to do to be able to qualify, then spend the next year getting that done. With a little bit of work, you should be able to raise your score 50 points or more in a year without too much hassle. Then refi.
I bought this home 11 years ago with little money down. (I was probably one of those suckers who should not have qualified for a loan). But I have obviously managed to make all my mortgage payments for 11 years. Paid 162k and my mortgage payment is 2,400/mo and eating me up!
I'd like to drastically lower my mortgage payment or move to a smaller home, now that I am a senior. My credit is not good (about 600) and I had two big tax liens (from my owned business) that I completely paid off. I applied online with a couple of refi companies who both turned me down, about a year a apart. Is there anything I can do? Thank you.
I wish I knew why my payment is so high! It was 1200 ten years ago! My interest rate is 7.25. Now I have Homestead Exemption, but instead of going down, my monthly payment has gone up over the years. I am not going to be able to hold on to my house if my income takes a dip. I should be able to enjoy the rewards of working hard for 50 years and running my own business for 25 years. But it is a struggle to pay this mortgage payment. I don't know who to turn to for advise, help.
How can you not know why your payment is so high? What's the breakdown?
My payments have gone up, but it is because of an increase in property tax and the addition of mandatory flood insurance. I know to the penny where and why my payments are.
I'd speak with my lender and see if there are options. I think there are ways to restart the clock on your mortgage and drastically lower the rate. It may require you to put down 10% of whatever is owed or something, but you'll restart the 30 year clock possibly helping to cut the payment by 1/3. Then focus on building up your credit score and refi asap.
The key data when attempting to lower the payments on a loan is generally NOT what the current payment / interest rate is but what the house is worth, how much equity the owner has in the home, what sorts of debt-to-income the owner has, and the details of the borrowers credit history.
A low credit score is often the easiest thing to improve -- the OP or anyone else with a credit score under 640 or so will often be rejected from the majority of loans. The steps needed to get one's score up into the "acceptable" range can often be accomplished in just a few months, but the details matter! Having bad info is one thing but having too much debt or defaulted loans is harder...
I would sell the house move to a smaller home, rent for a bit so you can put money away. Improve your credit score and then buy a home.
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