In asking my earlier question, I got some facts wrong. So here are the details. I currently pay $1027 (which includes the property tax and home insurance) a month on the interest on a $455,849 mortgage . Interest rate is 2%. In three years the percentage will change to 3% and mortgage payments will increase to $2000.00/mo. on principle alone, however it is unlikely that at 61 my income will be able to cover that. My income now just barely makes the current payment.
I have owned this home for over 18 years. 7 years ago, when I refinanced to pay off my soon to be ex-husband, I was told securing the home in any way possible would be in my best interest. The loan company used their own assessor to make the assessment of my home’s value and it was assessed at $675,000. The company advised me that the real estate “swing” was typically 2 to 5 years and that I would expect to see a rise in values in that time.
Two years ago I sought out one of the top real estate sales people in my area to look at my home for a possible sale. She told me that the value was possibly $525,000 and that she could sell it for about $450,000. Seeing that I owe so much on the mortgage, it was not a viable option.
Now I am faced with having to decide what step to take regarding keeping my home, if that is at all possible. I am open to hearing advice on this matter.