I have an a-r-m loan that will be adjusting next year. It is a 3year arm loan and was to be refinanced to a lower rate once my credit imporoved significantly. ( I purchased my home with no money down and an interest rate starting at 9.3%) however, my credit has not improved and now my chances for refinancing for a lower interest rate are not looking good. I will be facing an increase in mortgage payment which will be very hard to handle. Is there any other type of loan I can go into to avoid this jump in payment? What about an interest only loan until my credit gets straightened out? Any other suggestions? I really don't want to be one of so many losing their homes. Please help with any suggestions!

If your credit is poor, the interest only loan would probably not be available to you.

There really aren't that many options, either re-fi to a fixed rate that may be a little lower than your arm adjusts to? Or find someone to help share the living expenses.

Wish I could offer you better news, maybe someone else knows of other options?

You may qualify under the new laws to protect people caught by the sub prime crisis. I believe there is a freeze on rate adjustments. I would suggest discussing this with your banker.

Yes you can get an interest only loan but it might extend the life of your loan
On an interest only loan it reduces your payments but it extends the life of your loan
Example: if your is for 30yrs. And you are paying 1000 amonth the interest only loan
Will cut that 1000 in half but by them doing that it will add another 10 to 15 years to your loan but you will have a fixed rate try ditech at Sleep EZ with Ditech Home Loans: America's Leader in Mortgage Loans at the Lowest Mortgage Rates (http://www.ditech.com) or if you are current on your mortgage you could try going fha which is a government loan

You may also ( if you have been good about paying your house payment on time, talk to your current lender about doing a refi with them, if they think you are looking, they may offer you a fixed rate at your current rate of interest. Does not hurt to ask.

But if you have bad credit it will be harder today to get any type of loan than it was a few years ago.