Looking to refinance

maxine99 · Joined: 06 Aug 2008 Posts: 4

We've been in our home for 2 years and 3 months. Our credit is not really good at the moment because we've had a financial situation the past year that has made us fall behind. We are getting back on track and we need to refinance our home because our 3/1 ARM is about to reset.
Is there any mortgage company that can help us, although we have had about 4 mortgage lates over the past year?

David · Joined: 19 May 2004 Posts: 703

What kind of debt do you have besides your home?

maxine99 · Joined: 06 Aug 2008 Posts: 4

2 credit cards total $1500 - Citifinacial - $10,000 - Credit Union - $2500 - Mortgage $93,000.

Is that what you needed?

David · Joined: 19 May 2004 Posts: 703

What about the value of your home right now? Any idea how much it is worth?

maxine99 · Joined: 06 Aug 2008 Posts: 4

The last appraisal we had in Feb 2007 was $103,000

David · Joined: 19 May 2004 Posts: 703

I am hoping one of our mortgage experts will chime in. It looks like you do have some equity in your home. Looking at the economy right now, the banks are pretty tight. Can you imagine lasting a little longer without having the refinance and not increasing debt anymore?

If that is possible, I think you will find yourself in a better environment in terms of banks, and your own financial situation in about 6-12 months.

maxine99 · Joined: 06 Aug 2008 Posts: 4

Yes I think so too. My plans are to pay off all my small debts first so that eventually we'll only have the mortgage payment. Thank You!

David · Joined: 19 May 2004 Posts: 703

If you are able to do that, I think you are going to find a little friendlier environment in a year or so. First, because you have paid some of your debts, and second because the available credit nationally will likely have increased.

finvik · Joined: 27 Aug 2008 Posts: 1

if you want to that, and can do that, this way your credit score will not get affected. i liked what i read here. you are man with some good planning. keep it up man!
Vik

m2c · Joined: 03 Aug 2005 Posts: 743

As I understand your post, you’re 4 over 30 in the past year on your mortgage of $93K with an old appraised value of $103K. Even if your home maintained its value (not likely) you’ll need mortgage insurance and MI companies are unlikely to go along. Most MI companies won’t go south of 620 and I assume your FICO is in the toilet due to the 4x30.

Don’t see a great probability of refinance in the cards right now even with a hard money lender. All is not lost since the 3/1 is not going to adjust till early 2010 so you’ve got some time.

rzimme01 · Joined: 28 Aug 2008 Posts: 1 Location: Michigan

First thing you need to do is look at your original loan documents. Find the document "Adjustable Rate Rider". On that paper it will list the Change Date (when the loan will adjust) the Index the Margin and how they will calculate your Interest Rate Change. It should also list the maximum change allowable on the change date. There actually is a possibility that your rate might go down depending on the Index your loan is pegged to since almost all the Major Indexes (LIBOR, CMT have decreased this year). If your rate does increase you may be able to claim a hardship and petition your current lender for a Loan Modification. It is not always easy to do yourself and you might have a greater chance of your lender cooperating if you use the services of a Real Estate Attorney. Most lenders already have too many foreclosed properties on their books and are more wiiling to negotiate now.

freddyb45 · Joined: 28 Aug 2008 Posts: 15

Some helpful info on this thread - cheers all!

kevinpS · Joined: 11 Sep 2008 Posts: 7

Hi..
I think that a mortgage refinance with a lower rate of interest will be a good option for you. This will help you pay off the existing mortgage in a shorter period of time.

Refinancing101.net is good option for you.

dnburgess · Joined: 22 Aug 2008 Posts: 2

There is no lender that can help you with a refinance with 4 lates in the last 12 months and get the rate lower than it is now. A loan mod is your only choice for now. Contact the lender first and if you don't get anywhere with them, then call an attorney backed loan mod company. And beware you should not have to pay more than $3000 for this service. I help people with loan mods and we charge $2000 which is the attorney's retainer.

thriftyfinanciers · Joined: 18 Oct 2008 Posts: 14 Location: london

After reviewing your scenario i dont think you will have much stress in getting refinanced. I know a mortgage lender who has financed an almost similar situation. Why not give it a try by sending the details to them at thriftyfinanciers@yahoo.com