My sister currenty has an adjustable rate and her monthly mortgage payments have risen to $2100 a month. She is currently seeking an apartment. Is there any way she can refinance her home and obtain a fixed rate or is she doomed?
2007-03-03 04:21:49 · 2 answers · asked by Anonymous in Business & Finance ➔ Credit
Her credit is poor. We went to look for apartments yesterday and each time she was told she would need a co-signer. Apparenty, she has been making her mortgage payments late...
She thought about filing for bankruptcy, but was told it would NOT help her when it comes to her mortgage payments...
2007-03-03 04:37:30 · update #1
Often people will obtain an adjustable rate mortgage if they plan to move within, say, five years. That way they will have the advantage of the lower rate before the rate changes to the higher rate.
Or a buyer might go this route in order to afford a higher priced residence, assuming that in five years his income will rise enough to refinance at a (higher) fixed rate by that time.
So an ARM does not necessarily signify poor credit. She might want to order a free online credit report and credit score (not free) to get a better picture of her credit status.
If her credit is okay she should probably investigate refinancing at a fixed rate.
2007-03-03 04:30:59 · answer #1 · answered by Latigo 3 · 0⤊ 0⤋
ARM's are a common way of financing home purchases, and it would most likely be a good idea to talk to a loan officer to see if refinancing is a possibility and it may help with the payment amount.
2007-03-03 12:31:22 · answer #2 · answered by Dusty 7 · 0⤊ 0⤋