I would like to refinance my house but have no money to put down or use toward closing cost. Could I do it?

Question

I'm looking for a rate better than 5.875 for 30 years. This would help greatly since we're on one income as I have lost a job, but my husband has a secure job and I can't get unemployment. Only thing is we have necessary expenses, so there is no more cutting down. Our mortgage is 1665 monthly and he brings home 2000. I'm looking for a job but I'm having trouble finding one even with temp agencies help. Since I have young kids, finding mothers hours make it more difficult.

Answer 1

It all depends on what your house is worth...compared to what you owe on it. You have a good rate so getting a lower rate is going to be tough. If you have equity in your house, you could refinance. If not you'll probally have a tough time. You could go to a 40 year mortgage but that will only say you about 30-35 bucks a month. But it take an extra 10 years to pay off your house.

Answer 2

There are ways to refinance without money out of pocket, you roll the costs of the refinance, settlement back into the principal of the loan you are borrowing. However, when you do this, you usually have to take a higher interest rate on the loan. How much equity you have in the house will play a big factor into the loan rate, as well as your other outstanding bills, and credit history.
I think it is unlikely you are going to get better than 5.875 considering your income circumstances.
You could consider trying to get an interest only loan for a shorter time period. You would have less of a monthly payment, until a couple of years from now you are in better financial situation.

Answer 3

It will be tough to get that rate. There is still a chance though I am concerned about debt to income ratio unless you went stated income. I suggest Hometown Banc Corp. They may be your best opportunity for someone to say yes. If your credit does not measure up, they don’t simply “forget to call you back.” They help you get into a credit repair program you can afford regardless of income. Check out the free evaluation form at the source website and a Hometown loan officer will contact you .

Answer 4

You could roll the closing costs into the loan if you have enough equity.

However, you're not going to get a better interest rate than you now have. Current rates are around 6.25% for folks with prime credit. Any refi is going to increase your payments, not lower them, so it would not make sense to do so.

Answer 5

I once refinanced and I didn't pay a dime more for closing, but the terms were that I had to pay an extra quarter point on the APR. That was several years ago (2004).

Answer 6

Yeah ...you would have a very good credit score to do that normally without getting very high rates.

To answer your question in short, Yes you can.. but you would need to be well qualified.

Answer 7

The interest rate you are paying is not that high. You can find a no fee, no closing cost re-finance, so it is possible to do it.

Answer 8

I am currently using Countrywide and they have advertised a no-cost Refi. You may want to check them out and see if they can help you!! I would recommend them because I use them myself!! Good Luck!!