How to go about refinancing my mortgage?

Question

I have bad credit, my mom financed a home for me. at the time, 3mos ago, her credit score was like 620 but she had bad debt that was paid off right before getting this loan leaving her with no outstanding debt, save for the new mortgage. She pays all her bills on time, I have made 2 mtg payments before the due date. I have an 80/20 loan that ha sreally high interest 8.25 and 12.5. I need to refi ASAP how soon can I do this and can I consolidate both loans into one when doing so? My mom is going to be 65 in feb making her eligible to have a senior discount on taxes (about 3200.00 less) should I just keep the loan in her name for the perks or should I try to get the financing under my name again? We are on the deed as co owners with sole survivorship~ doe sthis mean my 7 siblings will not be able to try to get the property from me when she passes away? I pay for everything, but the loan is in her name. Sorry so long. I appreciate any insight and advice!

BTW~ I am in Illinois

Answer 1

I'm not sure you can refinance so soon, and because her credit is better you may be in a better situation to keep it financed in her name for the time being. 80/20 loans are the devil though, so have her refi as soon as you can- try to get 100% financing. You'll have to pay mortgage insurance though, if you're 100% financed. Oh- and since you are on the deed as a sole survivor the house will legally be yours and only yours if your mother passes away.

Answer 2

For one, don't listen to heatherraemccoy, sorry Heather. Typically an 80/20 is better than a 100% loan for the pure fact that you have to pay mortgage insurance on a 100% loan. The mortgage insurance you pay is wasted money and is not tax deductable, where as the interest you pay on both the 80% and 20% lien is tax deductible, therefore, even if your rate is a little higher on the second lien (20%), it typically works out better and a lot of times a cheaper payment than the 100%. Phewwww..Anyway, a good loan officer that knows what they are talking about can run both scenarios to see what is better, but mortgage insurance is only for the lending companies benefit, not yours!! Make sure you get several different quotes. Contrary to popular belief if you are shopping for a mortgage your credit score will not go down if you check with different lenders within 30 days of each other. The bureaus identify that they are all mortgage lenders and do not fault you for shopping around. good luck!

(credentials-master of science in real estate, licensed mortgage loan officer and real estate sales person, currently real estate analyst for commercial loan originations ranging from $5 - 100 million)

Sorry, one more thing. If you plan on staying in the house for a long time, the refinance may be worth it. If you plan on moving anytime soon, it may not be worth the refinance simply due to the costs associated with closing the new loan (lender's fee, title fees, etc). Again, an honest lender can tell you how long it will take to recoup your closing cost and whether it is worth it, but judging by your rates, you should be able to beat it and be fine as long as you are in the property for a while.

Answer 3

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Answer 4

I just finished doing mine, I just got it done yesterday, We went to Lending Tree, and actually we had a bunch of lenders give us offers, and its worked. I have only had the house for 9 months and also an 80/20 interest only at that, I got only my 20 refinanced and my 80 stayed the same, but we got a good deal, and 30 years fixed, and cash out. now when the time comes we will refi the 80% loan with the same company and have them both 100% fixed . Try Lending Tree the worked with you.

Answer 5

I work for United Lenders Group and I work with over 45 different banking companies so I could get you a mortgage loan no matter how your credit score is or how much in debt you may be in. And with those two interest rates you have it should be no problem to beat what you have.
916-860-0804
keyon

Answer 6

Better check your deed again. There's no such thing as "co owners with sole survivorship".

If you're "Joint Tenants with Right of Survivorship" then the house goes directly to the joint tenant upon the death of either.

If you're "Tenants in Common" or "Tenants in the Entirety" then the will of the decedent decides who gets title upon death. If they die without a will, the courts decide according to state law. It's entirely possible that your siblings will get some interest in the property in that case though you would likely be the majority stake-holder.

Answer 7

Hi There,

My name is Jason Fry, i am a licensed loan officer for Providential Bancorp in Downtown Chicago, IL...

You purchased this home 3 months ago?

Most lenders in America require whats called 12 months seasoning...Or 12 months of ownership before you can refinance..

I am partnered with over 50 different investors though, all with different program guidelines...

Although it is rare, I do have multiple investors that would refinance your mortgage without you being thre for the full 12 months...

What it seems like to me is your credit isn't good enough to qualify.. Which is why your mom helped you with financing...

One option would be to do a refinance with both you and your mother on the loan.. .This way you are both responsible for the debt, and you 2 are the only one's that would have any legal rights to the said property..

Another option is to see what your credit looks like, and see if we cant qualify the loan based sole on you...

The thing is that i can approve people with terrible credit, but it is going to be followed with a high interest rate...

Here's the thing htough, it's a catch 22... Without a mortgage reading on your credit, it is impossible to IMPROVE on your credit score.. You may be able to get the score to go up a litle here and there, but without REAL ESTATE DEBT, it will never increase how you want it to..

What i suggest is a program calle da credit builder refinance... You would try to refinance solely by your self, knowing that it will be at a high rate of interest... Then 1 or 2 years later, once your credit has increases (my having the real estate debt in your name, on your credit) You call me back for the 2nd part of your refinance... The second refinance would be at 0 cost to you (for repeat customers to providential) and you will then qualify for a conforming interest rate and loan program...

The way i explain this is that you have to crawl before you can walk, and you have to walk before you can run.... Without having a mortgage, or real estate debt on your credit, you will NEVER qualify for a good loan.. If you take the necessary steps to get the mortgage under YOUR name, and YOU MAKE ALL PAYMENTS ON TIME!!!! you will see your credit increade substantially over the next 1-2 years...

Either route, you need to talk with a professional so they can break down what you qualify for... Feel free to contact me at
312-264-6448, or email me at [e-mail]...

I have helped numerous people here both purchase homes, and refinance existing mortgages (feel free to look at my profile)

I look forward to speaking to you!

Jason Fry
Licensed Mortgage Originator
Providential Bancorp, Ltd
600 W Chicago ave.
Chicago, IL 60607
P: 312-264-6448

Answer 8

toll free 1-877-242-2717 ask for Joe for free advice from a lisenced loan originator

Answer 9

What state are you in. I can make this happen. I am a lic. mortgage broker in NYS. [e-mail]

Answer 10

I often end up asking the same thing on other sites