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laziestindian t1_iu7jw6q wrote

  1. A loan to pay a loan is 99% of the time a terrible idea...

  2. Check who currently owns your loan, if it is Fannie Mae you have options they aren't giving you.

A payment deferral plan is probably what you want and one of the options they mentioned previously, this assumes you have been reemployed and can make payments again. This puts the deferred amount on the end of your loan and should not affect the interest rate or payment.

A repayment plan spreads the balance out over some or the rest of the loan term but, again, it shouldn't be increasing the interest rate.

Loan modification is what they're pushing but in this case it hurts you instead of helping.

  1. For either payment deferral or repayment there may be additional paperwork you need to file. Talk to them specifically about these plans and whether they are options, getting in writing is best.

  2. If these are not options for some reason the higher interest is about the same cost as adding a 37k personal loan which they aren't going to want to give to repay a different loan. The higher interest also doesn't wipe your savings...so personally I'd take it, be frugal, and refinance somepoint after you own at least 20% of the house and rates have decreased at least a bit.

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hauntedavacado OP t1_iu7k9sr wrote

How can I find out if my loan is through Frannie Mae? Do I just call the servicer and ask?

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laziestindian t1_iu7mzs5 wrote

Yeah, call and ask. They would have also sent you a notification at some point if/ when they sell it, though it generally doesn't change anything for you in terms of normal payment, so you may not have noticed.

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