My current mortgage loan will be resetting to an adjustable this coming Sept. I need to know what steps I need to take to possibly refinance into a fixed rate loan. My credit is not shiny and the score is around 600. I only have about $2000 in credit card debt and will pay it off this month. Reason why is credit score is so low is because I had high credit card debts that went to collections but I managed to paid those off in 1999-2001. Someone told me to dispute negative items with the credit beareu. I was told that those negative items are to stay in my credit for up to 7 yrs? The clock is ticking and I'm so stressed out now I don't know where to start. The lending industries are tightening up their lending standards because of the subprime woes, does that mean I won't be able to refinance and end up losing my house if i can't pay the higher payment? My current rate is at 6.35% for $289000, what's my payment gonna be after Sept? I don't think my payment will double right? Plz HELP!
2007-03-14 19:42:54 · 4 answers · asked by REEMPIRE888 2 in Business & Finance ➔ Renting & Real Estate
Just try to apply for a fixed rate loan with a lender, thats the best way to find out if you're qualified.
Most adjustable loans have annual caps on the increase. So even if the indexed rate on your loan were 15% this year, it would only be able to go up 2% or so from what it was the previous year. Contact your current mortgage servicer to find out what your new rate will be.
2007-03-18 15:52:23 · answer #1 · answered by SndChaser 5 · 0⤊ 0⤋
If your rate is 6.35% then YES it could double but it all depends on the details of the mortgage.
My guess is that your are looking at probably a $3000 payment. Some of the bad choices you made in 1999-2001 will already be off your report. You can dispute any claims on your report and they credit agency has 30 days to verify that the claim is accurate. This might help with some accounts but don't count on it. Make sure to check out all 3 credit reports. You can do this for free once each year at www.annualcreditreport.com (it's free by Federal law - there is no catch).
You will also need to have some equity built up. Did you put a down payment on the house? Has the value of your home increased?
Personally, I would recommend checking out a fixed rate refi sooner rather than later. If you are denied they will tell you why and you will be better able to plan your next move. Better to pay 7% or even 8% now than 12% or 14% in Sept.
Good luck.
2007-03-14 20:07:02 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Don't panic If you are paying off your credit cards that in turn will increase your scores. However, I would not recommend waiting until September to look around rates are reasonable now. Even with a mid score of 600 hypothetically,assuming you can document your income and your loan to value is around 80% or less you could get a fixed rate 40 yr loan around 6.5 to 6.75. I would be more then happy to help and give you a quote feel free to send me an email you can also fill out a secure application on line at my web site http://homefrontmortgage.us
2007-03-14 20:23:00 · answer #3 · answered by CAS 2 · 0⤊ 1⤋
Sorry to answer a question with a question, but what state and county do you reside in? If it is a state I'm licensed in, I can give you a no strings attached estimate. 30 yr fixed rate 6.375 - 7%.
2007-03-15 03:40:51 · answer #4 · answered by davidt5w6 2 · 0⤊ 1⤋
My daughter is a loan officer. give her a call, her applications are free. 240-843-4416,her name is amanda. tell her Gina referred you - she is with Premier Mortgage and can give you some rates and what you can do.
2007-03-16 06:06:48 · answer #5 · answered by glamour girl 2 · 0⤊ 1⤋