I currently have been in my home for a year now. My monthly house payment is 786.13/month with home insurance NOT included. I have 2 small kids and one due in a couple of months, my husband is the only one working. We tried to refinance a couple of months ago the only thing that stopped us was we did not have money set aside just in case something happend to hubbies job we can make a couple more payment. we currently have a ARM rate at 11.04 & YES I KNOWOUTRAGES. If we have money set aside now do you think it would be ok to try to refinance again. We have ok credit, i think its in the 641 on my part. we dont have NO defaults on there. Would someone give me some advice on this. Thanks
2007-09-24 10:05:01 · 5 answers · asked by marie76444 3 in Business & Finance ➔ Credit
If you financed 100% which by the interest rate is what I would guess then the reason that you could not refinance is not because you did not have enough money set aside in case something would happen, sorry have never heard of that, but more likely that your credit score has sunk a little and there is no equity in your home because of the economic situation that is happening at this point in time. The sub prime market has in fact disappeared, along with the Alt-A even the prime is looking for at least 10% down minimum. You can go FHA with 3% equity as long as you have been current with payments. By the way it is not only defaults, but late's and credit to debt ratio's that are also included in your credit score.
2007-09-24 11:43:33 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
Call a mortgage broker to get you the best rate. If they can get you a fixed rate, make sure you can lock it in for at least 90 days before you settle. Also request an amortization so you'll know much you pay each month. You can also try to pay down the mortgage because on the first 15 years on the loan, you'll pay about 70% in interest.
2007-09-25 04:56:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yikes! You can do a lot better than 11% and have it be a fixed rate that won't go up any more. You can even have them roll most of the points/fees/closing costs into the loan if you have a cash crunch.
2007-09-24 17:19:33 · answer #3 · answered by Ted 7 · 0⤊ 0⤋
have you tried FHA?
there highest rates are at 7% for a 30yr fixed....
not many lenders are approved to do FHA.
there maybe other programs that can help you as well.
2007-09-24 18:26:24 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Well, I found interesting information about your answer & the best options here. (mortgage opportunitty refinancing )
http://all-mortgage-calculators.blogspot.com/2007/06/mortgage-opportunitty-financing-and.html
Good luck!
2007-09-25 13:02:33 · answer #5 · answered by Anonymous · 0⤊ 0⤋