i purchased my home 2 1/2 months ago. i got it on a first time buyer 80/20 plan. i have a 2 year arm. now i'm terrified i will not be able to afford my home in 2 years. the monthly payment is already 2920. i'm baerly making it due to circumstances with my husband's work. what can i do? is it true i have to wait to refinance?? after i bought a house i purchased a new car. i had to return the lease i had been driving but had to wait to buy a car because of escrow...borrowed a put-put for two months. i think i;m maxed out on my credit limit...does that make sense? the house is only under my name because my husband had credit problems in the past and his score isn't very good. so everything is under my credit. for starters, i have cut back on little binges i would spend money on...eating out, toys for children, non-brand-name stuff, bulk shopping, gave up expensive hair and nail visits, no more starbucks, i dont "pick up the tab", i really need some help with my finances.
2006-09-27 12:06:58 · 5 answers · asked by life beyond yur wildest dreams 2 in Business & Finance ➔ Personal Finance
Jamie M...how can i e-mail you?? there's no option to e-mail you on your page...
2006-09-27 13:21:28 · update #1
Hi, I am sorry to hear of your situation but a first time buyer program NEVER puts you in a 2 year arm. The idea of FTB programs is to help people understand their mortgage as well as pay it. Anyhow I am a mortgage broker and lend in all fifty states- I can refer you to someone who can truly help you with your finances- not just refi your house so they can make $$. Email me- Sorry about that Jmadden.CASecurity@hotmail.com
2006-09-27 13:13:37 · answer #1 · answered by JAMIE M 2 · 0⤊ 1⤋
Look at your Mortgage Note and any and all Riders attached to your mortage for starters - to see if you have a pp pentality (pre-payment pentality). That is the reason you were told you could not refinance in 2 years....You mentioned that you are currently in a arm right now, so that is where the pp comes in - Lenders can add anywhere from 2-4 percent (sometimes higher) of the loan amount. Check your Note, ok!!
You can refinance, but you will have closing cost associated with your new loan. Have you called your lender and discussed it with them?
Would like to talk with you, and go over some options with you. Contact my thru my e-mail, this is not an advertisement, but sounds like you are stressed, and you may have other options available to you.
Just a heads up, talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
2006-09-27 19:21:15 · answer #2 · answered by W. E 5 · 0⤊ 0⤋
sounds to me that if you got a 2 year arm it's because that was the only program you qualified for. How is your credit? by the sound of it you can't manage your credit , so I'm guessing , not good. The type of loan you got is designed for people that can't get a loan to buy a house. So you got a house . congratulations. Now you have 2 years to work on your credit. That's how long it will take to raise your scores. So pay off some credit card debts . don't get anymore credit card debt. don't buy a new car, or finance anything else. After 2 years if you pay everything on time. you will have good credit and be able to qualify for all those good rates you hear other people getting. I'm sure your mortgage broker told you this. You just forgot.
2006-09-27 21:51:04 · answer #3 · answered by jassy 3 · 0⤊ 0⤋
You handle the refinance pretty much the same way you did the original mortgage(assuming you have no prepayment penalty).
Figure out what type of loan you are looking for (30year fixed were fairly cheap last time I looked) and contact your preferred lenders.
You will most likely have to requalify(so do it before you start having late payments) and pay all new loan application and origination fees.
If you are changing lenders you may have to provide all new inspections, appraisals, title insurance, and whatever misc fees they have in your area.
If you have to roll all this into the new loan they will also require PMI (Private Mortgage Insurance) if you end up with less than 20% equity.
Good luck.
2006-09-27 19:18:10 · answer #4 · answered by Jim R 5 · 0⤊ 0⤋
Oh man. Yeah, you will want to do something about that ARM soon.
try getting some refinance quotes to fix your mortgage rate.
get a couple of competing quotes from lenders who can help advise you in your area.
http://loans.savingslife.com
2006-09-28 02:34:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋