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ibetterquit
Joined: 25 Jan 2008
Posts: 5
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| Posted: Fri Jan 25, 2008 7:38 am Post subject: Need to refinance but house with less appraisal value |
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Here is my scenario:
Credit >580
Filed Ch.13 and discharged ~3 years ago
Good and stable income
No late mortgage
Loan amount ~215K
Recent appraisal amount ~190K
Location: AZ
ARM 9%, expire in May08.
Is there anyway I can do a refi with the drop of my house value? Or is there anyway I can freeze the rate? I don't need to take out any cash but I don;t have spare cash to burn either.
Thanks in advance! :) |
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Haplo
Joined: 20 Jan 2005
Posts: 2406
Location: Springfield, IL
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| Posted: Fri Jan 25, 2008 1:11 pm Post subject: |
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Contact your lender. You're not going to find much out there that'll get you out of this upside-down issue. They may be able to do a modification to your original loan to prevent your ARM from resetting.
An alternative would be to do an FHA refinance (97% +) and take out an unsecured loan for the difference. Depending on why your credit is at 580, and what you've done since the bankruptcy, this may be your best option. 6% on a 30 year loan would be a nice change. |
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ibetterquit
Joined: 25 Jan 2008
Posts: 5
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| Posted: Fri Jan 25, 2008 6:14 pm Post subject: |
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| Thanks... Any suggestions for unsecured loan? |
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liverichly
Joined: 10 Feb 2005
Posts: 198
Location: Orange County, CA
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| Posted: Sat Jan 26, 2008 8:14 am Post subject: |
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| Is it just 1 loan at $215k or is it a 1st & 2nd combo? |
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ibetterquit
Joined: 25 Jan 2008
Posts: 5
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| Posted: Mon Jan 28, 2008 7:42 pm Post subject: |
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| Just one loan.. |
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liverichly
Joined: 10 Feb 2005
Posts: 198
Location: Orange County, CA
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| Posted: Tue Jan 29, 2008 5:07 pm Post subject: |
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| If it was a combo loan I'd suggest something else, but since it's 1 loan then Haplo's advice is spot on. Where to get that unsecured loan? It's tough as loans are more credit sensitve than revolving trade lines (credit cards)... I'd start with your bank though. If you have enough excess credit on good interest rate credit cards you could move the excess debt onto those. Or if you have a 401k you can take a loan out against that would be another place to look. |
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islander007us
Joined: 30 May 2008
Posts: 3
Location: Connecticut
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| Posted: Fri May 30, 2008 7:53 am Post subject: FHA Secure |
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If your rate is due to rese in the next six months, you can possibly qualify for FHA Secure. The difference between the appriased value/new loan amount and the present loan amount can be written off by the lender or can be subordinated into a small second.
Read the recent FHA's mortgagee letter on FHA Secure.
Good luck. |
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