Are 10 Year Mortgages Legal In Texas?

Can you tell me if 10 year mortgages are legal in the state of Texas? We were told by our "out of state lender" that they were not legal in Texas, but they gave us one anyway. Since then, Wells Fargo has purchased the mortgage & we have 4 1/2 years left to pay. Due to family illness, we must lower our monthly payments & are trying to work with the bank. If they are illegal will that give us any leverage in dealing with the bank?

Thanks,
JM

Hi Jane,

I say this with the caveat that I am not licensed in Texas. Thus, I am not an expert nor can I offer a legal opinion. I can, however, tell you that I called four separate mortgage companies located in Texas and asked them if a ten year mortgage was possible. Without exception, they all said they could offer 10-year conventional mortgages. The each noted, with prodding, that they could not offer 10-year mortgages on the FHA program. I know you are searching for options. Given that you are currently in a ten year, with a ten-year amortizing payment, I would be pretty surprised if your lender did not offer to modify the loan into a 30 year at a reasonable rate for you...assuming the 30 year payment would be affordable for you. As I have stated many times, lenders do not want to foreclose. If you can make the 30 year payment, I am sure they will work with you.

MortgageMaster