my credit is 535 my first loan is 148000 and second for 42000 and I need to pay some credit cards for 12000 my house is worth 253000 and I make about 3000 a month. Do you know of any companies or websites?
2007-01-17 09:54:06 · 16 answers · asked by Shadow 4 in Business & Finance ➔ Credit
You are probably pretty much out of luck with a credit score that low, and your LTV with a new loan would be around 80% which is probably not going to happen with a score like that. One thing to watch out for: there ARE lenders who will make a loan in cases like this and who are more predatory than anything else. Usually they like to stay at a loan-to-value of around 50%, so when they foreclose they can sell it easily at a relatively low price and get all their fees and profit out of the proceeds of the sale. I personally saw one woman who had obtained a mortgage where the lender had approved a loan such that the total of her mortgage payment (PITI or principal, interest, taxes and insurance) left her precisely $20 of her total monthly income to live on. That's right, she had $20 a month for everything else, all her bills, food, clothes, heating, EVERYTHING. When I came across her she was in foreclosure.
I don't think you want to go through that kind of thing. Plus they kill you with fees which are tacked onto the loan amount and are nothing more than another nail in your coffin.
I used to be a mortgage loan originator and I have seen things like this with my own eyes so I know they happen.
2007-01-17 10:03:21 · answer #1 · answered by Kokopelli 7 · 0⤊ 0⤋
Almost sure that you will find every financial clarification at: loandirectory.info-
RE Who should I go to refinance my house if my credit score is 535.?
my credit is 535 my first loan is 148000 and second for 42000 and I need to pay some credit cards for 12000 my house is worth 253000 and I make about 3000 a month. Do you know of any companies or websites?
2014-08-28 05:46:01 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You should be aware of the following:
1. You can refinance, but expect your rate to be at least 8% for an adjustable mortgage. If you have mortgage lates, expect that rate to go up.
2. You can work on building your credit. Most credit repair companies are little more than scams - there are a few legitimate ones, but it can be tough to determine who is shady. The following will help your credit, but it will take months before you hit a 580:
- timely payments
- paying down individual credit card accounts to 35% of the limit
- limiting credit inquiries
- not opening or closing accounts
3. You have 3 credit scores (from equifax, experian, and trans union). Lenders generally look at the middle credit score - is that 535?
You should find a GOOD broker to work with - as it has been said, you can easily get burned by the wrong lender.
You may want to take a look at the mortgage shopping tips I have listed on my website (it is not an application or sales site): http://www.mortgagemystery.com/mortgage-shopping-tips.html
If you wish, you can contact me directly.
2007-01-17 12:26:32 · answer #3 · answered by robert_byrne 2 · 0⤊ 0⤋
There are a few lenders who are starting to do loans for borrowers with a 580 or higher score.. however, if you have any lates in the last 12 months you won't qualify. Your rate will be higher than a person with good credit. 640 is the lowest score for most lenders. Refinances are no different than purchases. If you haven't paid your exsisting mortgage on time every month you might as well forget refinancing.
2016-03-29 02:10:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋
With a credit score below 580, I strongly recommend working on improving your credit instead of refinancing. Fight to pay the minimum payments until you have 6 months of clean credit, then look into a consolidation loan. FHA has a great consolidation loan for people with rough credit and a loan-to-value less than 85%.
Lendingtree.com will be a good source for lenders. They will compete for your business.
2007-01-17 10:00:11 · answer #5 · answered by MR MONEY 3 · 1⤊ 0⤋
If you can't find a rate lower that you are paying now, you would be stupid to refinance. On $3000 per month, you can't afford a $235,000 house. DOWNSIZE. Take the $63,000 of equity. Pay the $12,000 in credit cards. Use the remaining $50,000 to buy a home you can afford.
2007-01-17 12:45:13 · answer #6 · answered by STEVEN F 7 · 0⤊ 0⤋
Honestly I would wait and get your credit repaired first.
Once you get your score up you'll have plenty of options, and your rate will improve but up to 2% probably. Why not be patient and get a hold of your credit report and figure out ways to resolve your credit problems.
Even if you're paying a higher interest rate now, if you can fix your credit in the coming months, it would be worth it to wait.
Learn about mortgage and credit:
Learn more at http://www.thetruthaboutmortgage.com
Learn more at http://www.thetruthaboutcreditcards.com
2007-01-17 10:21:28 · answer #7 · answered by Todd S 3 · 0⤊ 0⤋
My husband is a loan officer for Home Funds Direct. If you want the phone number to contact him email me. They most of the time can get you refinanced with a lower interest rate than other people.
2007-01-17 10:43:25 · answer #8 · answered by Anonymous · 0⤊ 0⤋
You will need to go to a mortgage broker. Most banks will not lend directly to you, or will kill you if they do. You are not going to geta great loan with that score, but you should be able to get yourself out of trouble. Where do you live? if you are in CA, WA,TX, or FL, I can help you. Respond to this answer, or call Ron @ 619-379-2063.
2007-01-17 10:02:31 · answer #9 · answered by Ron B 3 · 0⤊ 0⤋
The 2 individuals who recommended credit repair are on the right track.
2007-01-17 11:26:22 · answer #10 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋