I was in default on my mortgage and was just able to catch up and now it is current- would like to refinance and get a better rate to lower payments- it is interest only now.......any suggestions?
2007-07-18 05:11:54 · 5 answers · asked by MDJLT 1 in Business & Finance ➔ Renting & Real Estate
first, let me say---do not apply with these on-line offers (where people write in and say "call me---i can help you")...they can't...and if they can...they will only get you deeper....
Best advice is to go to your local banks...they are reputable, close, easy to work with and will not scam you with all kinds of loans.
Also keep in mind that today's market is really bad...foreclosures everywhere everyday! So be savvy any DO NOT fall for those ARMs or any other fancy loans....stick with a traditional 30 year, fixed, no prepayment penalty loan.
you will be completely safe with a traditional loan.
Good luck and ...stay away from the sharks.. :)
ps---glad to hear you got caught up!
2007-07-18 05:28:55 · answer #1 · answered by Blue October 6 · 3⤊ 0⤋
If you have recent mortgage rates, your credit score is probably too low for a traditional bank. If you want to refinance right now, you're not going to get any help from anyone except a broker, and then you're looking at a subprime loan, which is going to be probably worse than you are now. My advice is to stick it out for the next 12 months, let the lates drop off your mortgage history, and then refinance with a conforming product. And for the people that fear ARMs, they aren't sucker deals. Especially not the 5/1 ARMs. They have a rate advantage over the 30-fix, and if you know that the rate will stay the same for 5 years, you can prepare for it. Besides, statistics show that the average mortgage is refinanced every 5 years anyway, so why not take the 5 year ARM and enjoy the lower rate? There are no bad loans, just bad loan officers.
2007-07-18 05:54:21 · answer #2 · answered by togashiyokuni2001 6 · 0⤊ 0⤋
To echo the advice, avoid the offers of "I can help."
I am a mortgage broker with years of experience... I CAN'T help and neither can they. Your typical lender will not lend money for a refinance if you have late payments on your credit report... and you do.
So strike up a relationship with a local bank. Tell them your situation and see what they can do for you. Don't expect great rates, but look for the deal that will improve your situation.
Best of luck.
2007-07-18 05:43:22 · answer #3 · answered by Anonymous · 2⤊ 1⤋
It' no problem to refinance you once your are current, but lower the interest rate and payment may be the problem. How far behind was you and how long ago?
Contact me for a free quote; http://1stmdhomes.com
2007-07-18 16:17:19 · answer #4 · answered by ron d 3 · 0⤊ 0⤋
I have to agree with I'm My Son's Mom. Avoid the scam artists who spam Yahoo! Answers with offers of help. They can't be trusted to even read the Community Guidelines so why would you trust them with something as costly as a mortgage??
I'd first check out local Community Banks or Credit Unions. They have a stake in the community and prosper when the community does. Keeping it local keeps it real.
2007-07-18 05:37:21 · answer #5 · answered by Bostonian In MO 7 · 1⤊ 1⤋