The loan amount is 560,000, home value based upon certified appraisal is 525,000. The loan terms are 3 additional years as interest only, 1-year T-bill rate plus 2.75%, max loan rate 10.5%.
At this time I have no employment concerns with annual income of 250,000 plus.
What would you do?
Since you're upside down, you really don't have any options as the HARP program does not include jumbo loans (they are not written through Fannie/Freddie). Good news is that short term rates are still quite low, your interest rate may actually go down when the rate adjusts. Remember, the interest only period eventually ends and your payment goes up dramatically, so not a bad idea to make principle payments if possible during the interest only period.