I know nothing!

[Mike]

Okay, maybe not nothing, but I have a lot to learn.

First off, I may be way too premature with my actions, but I figure, better to do something, than wait for inevitable to come. In 2004, we got a 5 year interest only at 5% that is not due to adjust until 8/09. Since we have never been in a house longer than 4 years, it seemed the obvious choice of loan for us. Well, now the market is awful, although I do believe we could sell and recoup loan value, as we put 30% down.

I tried to refinance into a conventional 30 year fixed but due to stated income and appraisal now at 20% ltv (including an equity line), no dice. I called Project Hope and am now waiting to be contacted. Budget came out with us having $300 a month over current payment. Basically, my argument is that we are current on the mortgage, we have STELLAR credit, but when we adjust in 8/09 - to 7% with a 25 year P&I 1 yr ARM, we're going to be in deep trouble (it is a very large mortgage).

My dream resolution would be to have a 5 year rate freeze at the current 5%.

My first question would be: Can we put the house on the market while we are going through this process - I know it was a huge no-no when we were trying to refinance conventionally.

Second: Are they going to give us any consideration since our loan reset date is over a year away? Third: Hi, nice to meet you all :) Hope once I learn a lot, I can return the favor - not a question but I like to propose things in threes!