FHA streamline

erod1313 · Joined: 02 Nov 2009 Posts: 1 1.32 Dollars($)

I have 1 610 fico score and been current with my mortgage. What has suffred is my credit cards because I care about my mortgage more than my credit cards.

I owe on my home 190k and its apprasised at 295k. The LTV is around 65%. In your opinion will a lender be interested in helping us. Our current rate is 6.00% we were hoping to lower it to at least 5.00 and save around 100 dollars a month.

jveenstra · Posted: Mon Nov 02, 2009 2:16 pm Post subject: Refinance

When refinancing, the new mortgage is often a Fannie Mae or a Freddie Mac loan. They have minimum middle credit score requirement of 620.
Additionally, when the credit score is below 740, the interest rate is higher.
The loan to value looks like it would be about 65% to 75%. At that value the rate for a 30 year fixed rate mortgage is 1.500 points higher than if you had a 740 middle credit score.

Special refinance programs exist for mortgages that are presently owned by Fannie Mae or Freddie Mac. Call your existing servicer/lender and ask them if your present mortgage is a Fannie Mae or a Fredddie Mac mortgage.
If it is, ask them what rate they would modify your loan to. You should not even need an appraisal.
Whatever rate they tell you, that is the best you are going to do. Either do it or do not do it.
If your existing mortgage is not a Fannie Mae or a Freddie Mac mortgage, you may keep what you have or shop around, but, I think you will be best keeping what you have.
If you have outstanding credit card debts, you could look into refinancing and taking cash out to consolidate all debts and lower the overall monthly payment. You need to check fast because minimum FHA credit score will be 620 soon.

jveenstra · Posted: Mon Nov 02, 2009 2:23 pm Post subject: FHA Streamline

I missed the subject--FHA Streamline. It was not mentioned again in the body of your message.
If you have an existing FHA mortgage, a streamline refinance is definitely something you can look into. The rules are changing soon, but, even with the changed rules, you may need an appraisal if the intent is to cover closing costs with the new mortgage.
FHA does not have a minimum credit score, however, they will next month--620. So check fast.
What state are you in?? Contact lenders on this site or call local FHA lenders. Many lenders have increased rate for FHA mortgages if the middle credit score is below 660 or 640 or 620. Rate of 5% may not be possible, but, rates are at a low point, so, check now.,

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