I have two mortgages that was created when I financed my home to better my credit scores. After about 2 years, both mortgages were to be refinanced into one with a lower rate. The 1st mortgage was at 6 something % and the second at 11%. Recently, my mortgage company only refinanced my largest mortgage that was at around 6% and changed the rate to about 9%. The 2nd one was not included in the refinancing.
It is stated in original papers that both would be refinanced into one mortgage and to a lower rate.
My credit score is only 597 and considered fair. Would it be too early to shop around for another company to get a better deal?
Thanks.
2006-08-27 06:57:45 · 7 answers · asked by Dottie 6 in Business & Finance ➔ Credit
Shopping around is always fair enough, but with a somewhat low credit score might be tough to find a good rate.
If your paperwork from two years ago specifically states they'll refinance the two into one at a lower rate, then you should talk to them again and point that out. But what exactly does it say - a lower rate than WHAT?
If there were any conditions in it like having excellent credit, you might not have much of a chance here. But why did you sign to refinance the 6% loan at 9%? If you were behind in payments or something, they might have had you over a barrel - but otherwise, why did you allow that? Was it an ARM where they have the right to change the rate, or fixed? Try to get a fixed rate, especially if you're planning to keep the home for a long time.
2006-08-27 07:14:37 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Quote 1:
After about 2 years, both mortgages were to be refinanced into one with a lower rate.
Quote 2:
Recently, my mortgage company only refinanced my largest mortgage that was at around 6% and changed the rate to about 9%. The 2nd one was not included in the refinancing.
If the Quote 1 was true than there would not have been two mortgages at the time of the second refinancing. I find it difficult to believe that any company would promise in writing to refinance anything at a lower rate.
That said, if you can find a better offer, its never too soon to refinance.Just make sure you recover any costs of refinancing in a reasonable amount of time.
2006-08-27 11:26:47 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Your score of 597 is below average and the interest rates you have are great for your score.
If you want to shop around and get 1 mortgage make sure that your 1st and 2nd do not exceed 80% loan to value (LTV) of the fair market value of the home. If it does then you will be required to pay primary mortgage insurance (PMI).
Then contact a broker who will search up to 120 banks to see who will offer you a better deal.
2006-08-27 10:02:56 · answer #3 · answered by tony 2 · 0⤊ 0⤋
Well, if you are already at 6 something%, why would you want to refi, especially i fthey are offering 9%. With a credit score of 597, anything in the 6-7% range is great. Keep that existing loan.
The second mortgage at 11% is good for that score.
2006-08-27 07:10:53 · answer #4 · answered by Anonymous · 0⤊ 1⤋
[quote]
It is stated in original papers that both would be refinanced into one mortgage and to a lower rate
[/quote]
I would suggest speaking with an attorney since they have violated the written agreement.
2006-08-27 08:51:44 · answer #5 · answered by echo 7 · 0⤊ 0⤋
http://www.nohasslebargains.com/loan/id12.html
Home Equity Loans
Financial Services
http://www.nohasslebargains.com/loan/id10.html
Refinance Mortgage
Financial Services
2006-08-27 07:13:38 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It's bad
2016-08-08 13:38:14 · answer #7 · answered by Sondra 3 · 0⤊ 0⤋