How do I refinance - any help?

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My ARM would shoot up to 10% within the next 2 months but I'm still not able to refinance. I have balance worth $190,000. My house has an appraised value worth $200,000 and $210,000 as I had done it twice with diff companies and with two diff results (now this is confusing indeed!)Middle score is 670's range. I did a chapter 13 filing in 2003 and prior to that things were fine with my credit being too good but I hope that's not going to work here anymore after the bankruptcy. I haven't missed any payment for the last 3 years. Can anyone help? What are my options here? Where should I start from?

Guest 0.10 Dollars($)

you should be able to re-fi out of your Arm no problem. your not going to get a 6% rate but definately something much better than 10%

if you'd like to talk more i am a mortgage broker, you can contact me at "jevenson@firstntlmtg.com" with more contact info and i will get in touch with you.

[Email address deactivated as per forum rules. Thanks.]

sara · Posted: Fri Oct 19, 2007 11:57 am Post subject: RE: refinance ARM

Hi Smith,

Welcome to the forums.

Your middle score seems to be ok. But I guess the bankruptcy is making it difficult for you to take out a loan. So, perhaps that's the reason why you're not qualifying for the refinance loan. By the way, are you looking into a fixed rate loan? I guess it will be better to go after a fixed rate loan as you need not worry about payment increases.

I think you should shop for some more time till you can find out the lender who's willing to offer you a suitable loan for the refinance. It's good that you haven't made any late payment since the past 3 years - this is something i hope lenders would consider while evaluating you as a borrower. So, do shop around, there's every possibility of your getting a suitable refinance loan.

Take Care

livinginnky · Posted: Fri Oct 19, 2007 4:39 pm Post subject:

Guest 0.10 Dollars($)

The mortgage is an ARM. It has been over 10 years of my job. For the status of the chpater 13, i am yet to pay $30,000 to get a discharge. but can you tell me what is this middle score and do i really need to worry about two appraisals. I did have a tlak with a lender this week and he suggested something positive but he is yet to confirm it. meanwhile i am looking for any other options that can see me in good financial stand.

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello Smith,

Since the loan amount depends on the appraisal, I think, the appraisal by your lender is more important. If the higher value is taken out by your lender then you need not worry about that.

If you are getting a higher value from another company, then I think it is better to go for a third appraisal.

livinginnky · Posted: Mon Oct 22, 2007 9:06 am Post subject:

Ok, there is a possibility of going for an FHA loan. If the court will allow you to take on new debt you may get an FHA loan.

To qualify for FHA you will need to do the following....
Contact the court that is handling your Ch13. They have to give you permission to take on any new debt, including a new refinance. If they say it is ok, the next step would be to apply for an FHA loan.

Did you get 2 appraisals because you are working with 2 lenders?

0.10 Dollars($)

[color=DarkBlue][font=Georgia]Being a mortgage professional, I need to put my 2 cents worth in! First things first...the appraisal issues: to answer your question about the value difference - appraisers are people too & some are more conservative than others, usually appraisers that are working directly for a lender are conservative, for example - Countrywide - they order their own appraisals through Landsafe & generally are conservative - I know, I used to work for them. Appraisals are driven by comparable sales within a 5 mile radius of your home (at least this is the general rule), so different appraisers are using different "comps" to arrive at the value they assign to your home. When I order an appraisal for a client - I myself will call 3 different appraisers & speak to them first to see if we are in the "range" where we need to be to make the deal work...I am not influencing the appraiser in any way - I simply ask for an honest opinion (the appraiser will check out the MLS to give me the info).

How old are these appraisals and who were they done by?

Next the bankruptcy..sounds like you are all set with making your payments on time with that - if you have been in chptr 13 payout for at least one year & made all payments on time, you most certainly can apply for an FHA loan as well as non-FHA loans.. the issue is you owe $30k to buy out of it & you owe $190k on the mortgage - that's $220k right there & your home is appraising for $210k on the high side - so you are upside down right now. Ideally you want the home to appraise for $280+ because then you will be able to payoff the chptr 13 & the mortgage, allowing about $5k for closing costs - approx $226k loan amount & you will be at 80% loan to value which will give you a better rate.

Your middle score is fair & not too bad for being in bankruptcy really.

Bottom line is you dont have enough equity in the home right now - with the $210k appraisal, you are already @ 90% just on the payoff of the mortgage before closing costs which need to be factored into the final loan amount. I am sorry you spent money on 2 appraisals. If you would like more honest, no bull help, call us @386.597.1164 - everett & lisa - we have 17 yrs experience to guide you...have a good night Wink

Guest 0.10 Dollars($)

Hi Smith,

Mid score is the number between the highest and the lowest score as per the three reports offered by the credit bureaus.

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