What is the best refinance option?

ssherel · Joined: 20 Sep 2007 Posts: 9 3.83 Dollars($)

Would like to refinance a mortgage, but with all of these issues(subprime/credit issues(, what would be the best option?

livinginnky · Posted: Thu Sep 20, 2007 4:04 pm Post subject:

sara · Posted: Thu Sep 20, 2007 9:47 pm Post subject: RE: the best refinance option

Hi Ssherel,

Welcome to the forums.

It's true that there are credit problems going on currently but it all depends on your financial situation and how well you've managed your existing mortgage.

Are you in default? if so, then you can qualify for a refinancing with FHA Secure loan. Know more....

However, if you are current on your loan, then refinancing with a fixed rate would be better. This is so because mortgage rates both on fixed and adjustable rate loans are on a rise even though the Fed has cut down the short term rates. And, i guess it would be easier to manage fixed payments instead of variable ones.

Take Care

ssherel · Joined: 20 Sep 2007 Posts: 9 3.83 Dollars($)

1. How much is your house worth? $177, 500

2. How much is your mortgage for? and at what interest rate and for how long 1st mortgage(142k 30yr ARM @7.75(going up to 10.25. Oct 1) 2nd mortgage 35k 9.2530yr fixed

3. What is your credit score? and how many accounts do you have
poor(as of Sept 1 - 515 fico /540 fico(me/wife)

4. Do you have any alternative credit? Such as Movie memberships, gym memberships, etc. no

5. How long have you been at your current job? 6.5 years/5 years

6. How much do you make. 58k/49k

We currently are not in default, but we have been late several times(we are currently in process of reviewing this finances to address the mistakes, but that is another story...)

ckalvesmaki · Posted: Fri Sep 21, 2007 11:12 am Post subject:

How many times have you been late on the mortgage? FHA may be an option........

ssherel · Joined: 20 Sep 2007 Posts: 9 3.83 Dollars($)

it has been more 4 times, unfortunately...

ssherel · Joined: 20 Sep 2007 Posts: 9 3.83 Dollars($)

didn't mean to post that twice......but based on our payment record, especially in the last 6 months, we definitely would not qualify for the FHA Secure program...

livinginnky · Posted: Fri Sep 21, 2007 2:10 pm Post subject:

WHO IS ELIGIBLE

Eligible homeowners must meet the following requirements:

Have a non-FHA insured ARM that has reset;
Sufficient income to make the mortgage payment; and
A history of on-time mortgage payments before the loan reset.

That is straight from fha.gov and it sounds like you probably meet those requirements.

The new FHA secure program is for people like you.

However there is a slight problem. How do you get the 177,500 home value? The new FHA secure program requires that you have 3% equity in your home. And had your current mortgage rate adjusted before?

ssherel · Joined: 20 Sep 2007 Posts: 9 3.83 Dollars($)

no, I haven't had it adjusted.....but the amount listed was my original loan amount....

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi Ssherel,

How do you know that you won't qualify for FHA Secure program? Did you talk to any lender about it?

ssherel · Joined: 20 Sep 2007 Posts: 9 3.83 Dollars($)

Larry,
I really dont know...I assumed, based on the previous information that I had, that we would not qualify... But, based on info found on this site(Thanks, everyone, BTW...), that may not actually be the case... But my next question is...how do I get started on this process?

ckalvesmaki · Posted: Tue Sep 25, 2007 11:02 am Post subject:

The key issue with the FHA secure program is that you can't have had any mortgage lates prior to your loan adjusting.......if you did then you won't qualify........if not then any good broker or lender that offers FHA is where you need to start.

ssherel · Joined: 20 Sep 2007 Posts: 9 3.83 Dollars($)

ok...this is where is gets confusing...I have been told that we would qualify with late payments, I have been told that we would not with late payments...please clarify, for as I have stated earlier in this thread, that we have been late(according to my credit report about 4 times).... and with all of that being said, what other options, short of foreclosure, are there?

ckalvesmaki · Posted: Tue Sep 25, 2007 12:02 pm Post subject:

Where your late payments made before or after your rate adjusted?

ssherel · Joined: 20 Sep 2007 Posts: 9 3.83 Dollars($)

Before... the rate will adjust Oct 1...

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