Refi Options

garrett · #1 (**permalink**) 05-23-2008, 02:01 PM

Hello,
I have a question regarding refi options:

I belive my credit score is 620 or thereabouts and I am currently with:
1st mortgage - 8%
2nd mortgage - 10%
Between the 2 mortgages I owe approx $298k

The house appraised in the summer of 2007 for $320k. I spoke to someone a couple months back and they said my credit score was too low and that my house is probably not worth $320k anymore.

Does anyone know of any options? I would like to hope I can get a better % on both my mortgages but if the house is not worth $298k anymore...am I stuck?

I want to stay here long term, I am ok with a long term fixed loan.

Garrett

DallasLoanGuy · #2 (**permalink**) 05-26-2008, 08:14 PM

do you know what fha limits are where you live?

maat55 · #3 (**permalink**) 05-26-2008, 10:18 PM

Quote:

Originally Posted by garrett

Hello,
I have a question regarding refi options:

I belive my credit score is 620 or thereabouts and I am currently with:
1st mortgage - 8%
2nd mortgage - 10%
Between the 2 mortgages I owe approx $298k

The house appraised in the summer of 2007 for $320k. I spoke to someone a couple months back and they said my credit score was too low and that my house is probably not worth $320k anymore.

Does anyone know of any options? I would like to hope I can get a better % on both my mortgages but if the house is not worth $298k anymore...am I stuck?

I want to stay here long term, I am ok with a long term fixed loan.

Garrett

Your rate will get better only when the bank has less to risk. Either you need more down payment with a good show of liquid assets with a good manual underwritten review or a higher fico score. You may have to stick it out a couple of years, paying all your debts on time, then try again.

garrett · #4 (**permalink**) 05-27-2008, 01:36 AM

Hello and thanks for the replies. I do not know the fha limits here.

I will ride this out for a little bit. I may be able to get rid of quite a large chunk of debt here soon, hopefully that will help.

Thanks,
Garrett

rachael24 · #5 (**permalink**) 07-15-2008, 09:41 AM

Good luck with the outstanding debt, hopefully you can pay off some of it soon.

ImDebtFree · #6 (**permalink**) 09-03-2008, 09:11 PM

Garrett -

Be sure to take into account all of the money that the bank will be charging you for refinancing. They will on average take about three points on the amount financed. You can usually get that written into your loan or pay it outright. If you could hold off on the refi and try to build more equity in your home you may be better off.

sharon333 · #7 (**permalink**) 10-27-2008, 04:29 PM

That is a good point. That is the way I would go about it.

impact · #8 (**permalink**) 11-16-2008, 05:33 AM

I work for a loan modification firm. Sounds like you may have no equity or even negative equity. This should be an easy one, we have sucessfully negotiated numerous situations like yours and have had lenders reduce balances off and reduce rates as low as 3%. Worth a try, there is a money back guarantee also.

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