Bad credit can cause some major issues in the future, so try to avoid a foreclosure. Unfortunately alot of people are finding themselves in the same position as your son. You got a terrible mortgage. Im assuming that you have a first and second mortgage because you were unable to come up with the required downpayment. Do this now, dont want until November. Banks are more willing to work with you right now, then to have you go into foreclosure. Based on your comments, it sounds like you have more problems then just the mortgages. Making over 100,000, you should easily be able to cover your mortgage.

With that level of income you should be able to get aggressive with paying down debts. If you are not able to do that, your spending is out of control. It adds alot of stress to your marriage and it can be corrected with fiscal discipline. If you would like more ideas, just let me know. Ill be glad to help. Follow up: Thanks for the additional info. Im glad to hear that you have a good plan in place. That already puts you way ahead of most people.

As you stated, your credit rating has improved over the past year and a half. 20 split, but at least they would both be at a fixed rate. If you start now, you will have time to shop around for the best rates. Our mortgage is through Wells Fargo.

They have been easy to work with for us.

Mortgage rates are not controlled by the Fed. Usually the Fed at the start makes it worse. Banks dont make up what the rates are.

The Fed controls what banks charge eachother. Mortgages are sold on the open market as bonds. No bank is rich enough to hold mortgages, they just service them. You have a loan with wells fargo, that money came from the open market sold as a bond.

Wells fargo gets your payment and sends it to China, or whoever bought the bond who funded your loan, and collect a fee for doing it. The company or country that provided the money for mortgage back securities determined the rate on an open market. Not the FEDS and definately not the bank. So its up to companies and even governments what they pay for them. They pulled their money out of mortgages and went for stocks. Interest rates increased to get more buyers. The Fed cant do a thing about mortgages. But the good news is historically it will follow the feds.

But its up to businesses that actually buy mortgage backed securities. They can bid anything they want. So you will need to be patient. It doesnt always follow the fed.

And sometimes they go opposite. Mortgage backed securities follow the 10 year bond. Here is a 3 month graph. You will see how they changed when the fed lowered their rates. But its still a good market but you can see the 2 days they lowered the rates on this graph. Mortgage rates went up, not down.