I am in an tractable rate morgage, we have been for 3 years now. It is the 80/20 loan. Paid 115 as well as it similiar homes have been starting in the tall 130 or low 140. My credit scores have been 559 during low as well as 585 during high. My loan has the intensity to go to 12.5. Is there any way to refinance to the reduce (under 8%) sealed rate?
The skill is located in Texas
Related solution post:
Come on guys… I thought we were all mortgage experts?
Stacy to answer your question there is a way to refinance and I just refinanced an identical deal to yours…
Based off the high and low scores I will assume your mid score is at 560+… at 560+ you can get a loan amount at 90%.
Now lets say your home appraises at 140k and you owe 115k you’re at about 82% loan to value which basically means you have 8% to play with. Based on your loan amount your standard closing costs will be around 3k most likely not more than that. If we include closing costs into the loan amount that brings you up to around 84% which means you still have 6% of equity to play with.
Based on this you’re looking at an interest rate at around 8.5%. Since you do have 6% room until you reach your max loan to value of 90% you can use that to buy down(discount points) the rate.
If you choose to buy down you’re looking at a little bit less than 8% on a 30yr fixed with no money out of pocket.
If you’ve paid your mortgage on time, and have fairly clean credit for the past 12 months, and your income will actually qualify you fully documented for the loan, FHA is your best bet.
You’ll have to pay some upfront mortgage insurance, but you’ll get a rate of 6.5% or less, monthly mortgage insurance of .5% on top, 30 year fixed-rate.
FHA has no minimum credit score requirement.
And I’d recommend applying directly for FHA from a large bank like Wells Fargo, Citi, Bank of America. They know how to do FHA better than most brokers.
You should be able to get a good rate and get some money out if that is what you want. A 30 yr fixed is in the 6.25-6.5% range now-go for it. Shop the loan around and get the best deal.
Then start working on getting your credit improved-maybe pay off some bills:}
If I were you I would start paying my bills on time, pay off all credit cards and let your credit build back up. And close all the credit cards.
Then I would check into a refinance where they do manual underwriting. They would see that you were paying your bills on time and would be more apt to give you a refi at a better rate.
Good luck!
There are a number of programs that will help you out. You will want to ask your local bank for thier best offer, and then see if a mortgage broker has something better. You will probably have a hard time qualifying for an FHA, but there are other programs that are not credit based.
Yes you can.
However, some institutions may approve bad credit bank loan. Keep in mind that they may charge you a higher interest rate. If you have bad credit or poor credit history, you may have trouble convincing lenders to approve your loans.
I have a list of some best compnies offering low interest Bad Credit loans with fast approval. Just email me with subject Bad Credit Loans at solidoffer11@yahoo.com you dont
have to write anything.
Best wishes
I may be able to help. Shoot me an email to msmith@premierloangroup.com, and let’s chat!
Marty
yes, but get your scores us some first, otherwise you are making it too difficult. pay all of your bills on time for the next 3 months and then have your credit report pulled by one trusted Loan Officer to see where all 3 of your scores are… Don’t force the issue now. you will just cause a lot of stress on yourself.
It probably would have been easier to find the financing you need a few months ago- since February a large amount of Subprime lenders have left the industry (for the time being at least). The best advice I can give you is to find a quick fix on your credit profile (maybe a credit card that you can pay down or a collection you can settle?) to get your MIDDLE credit score above a 575- this is an important number because it will allow most PMI companies to provide the insurance you would need. Going forward I would advise to work with a larger mortgage company and have them try to get you approved on a Fannie Mae backed loan (any mortgage banker should know what this is).
Good Luck
you should be able to get a good refinace loan with a fixed rate. my company can help you out. Feel free to e-mail me for further information.
Demetria Haller ( brmj41975@yahoo.com )