REFINANCING WITH A CO-SIGNER Help!!

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Icon Mini Profile drillboy1



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Post Posted: Thu Sep 11, 2008 4:47 am    Post subject: REFINANCING WITH A CO-SIGNER Help!!
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I have a mortgage of approximately 148,000 and a 2nd loan for 15,000. My house is worth about 170-175,000. I am currently paying a mortgage of 1368,00 with a interest rate of 10 plus%. I know this so high. I am trying to refinance my loan by getting a loan with somebody who has good credit. I do not have good credit, no judgements or anything but I do belong to a debt counseling co.

I am always on time with my Mortgage... I just want to get my payment lowered I know I will be paying a high interest. We applied to get in refinance and waiting to hear if it is approved..If i am able to make this payment of 1368 each I would hope they would approve the loan. If they don't what else could we do... I need to get this payment lower. I am just throwing my money away each month...
Icon Mini Profile sara
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Post Posted: Thu Sep 11, 2008 6:00 am    Post subject: RE: refinance to lower payment
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Hi drillboy,

Nice to see you again after some time.

So, you've gotten somebody to be a cosigner on your mortgage, right? are you using his income too? If his income and credit are good enough, I hope you shouldn't worry about the approval. What rate is the lender offering you? did you calculate as to how you are likely to save from the refinance? you may use the refinance calculator to do so.

In case you don't get qualified for the refinance mortgage, I suggest that you look towards modifying your loan with different terms and conditions. Make sure that the loan modification doesn't raise your payment.

Take Care
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Post Posted: Thu Sep 11, 2008 6:41 am    Post subject: refinance
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Thanks Sara for the good info.. Yes credit and income are good for the cosigner. I haven't found out yet what rate the lender is offering me with my bad credit he said possibly7%. I know that is still high but it is better then 10 plus% Still waiting if we can get approve.. thanks again I will keep you posted
Icon Mini Profile sara
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Post Posted: Fri Sep 12, 2008 6:20 am    Post subject:
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Hi drillboy,

Welcome to the forums.

Yes of course, if you get a rate of even 7% as because you have bad credit, it is still better than 10% rate of interest. I guess you have already started loan shopping. Keep posting about any loan offer that you may like to discuss here.

Take Care

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Icon Mini Profile lisascherzer



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Post Posted: Tue Sep 16, 2008 11:24 pm    Post subject:
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It sounds like you might be eligible for FHA on your own if you have decent payment history on your mortgage. The rate would most likely be lower than 7%.
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Post Posted: Wed Sep 17, 2008 6:52 am    Post subject: refinance
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I tried to get a loan at a bank with a co-signer it didn't get approved because of my credit and I belong to a debt counseling co. Even though my co signer had good credit..

My mortgate is always on time.. Any other suggestions?
Icon Mini Profile Caron
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Post Posted: Thu Sep 18, 2008 6:17 am    Post subject:
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Hi drillboy,

If your cosigner has good credit and you're using his credit record for the refinance, why would you be denied just because you have bad credit? I think there's some other reason for the denial. Please talk to your lender and ask him what's behind it.

Do you have both mortgages with the same lender? And are you trying to refinance with the same lender? If yes, then I suggest you try shopping with a few more lenders. Who knows some other lender may be willing to offer you the loan. Are you using your cosigner's income too?

Good luck

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Icon Mini Profile gmakerley
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Post Posted: Thu Sep 18, 2008 8:39 am    Post subject:
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"bad credit" can be construed in many different ways. if someone has an armload of collections, judgments, liens and charge offs, then any lender is going to term that "bad credit."

if someone else has paid all bills on time for years, leading to a 700-plus credit score, but something happens to cause that person to miss a payment on an account, that person will now claim to have "bad credit" even though the rest of us would recognize this as simply a blip on the radar.

drillboy, you've not provided us with the background about your "bad credit," so it's hard for any of us to determine whether you should have been granted a loan or not.

there is an old adage in lending: "adding a co-signer doesn't make a bad loan good." if this is your lender's attitude, then it's no surprise you were denied.

you can certainly keep shopping, but do so with your eyes open. if your good payment history on your mortgage hasn't turned the credit report around in your favor, then there's something else much deeper that is holding you back.

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Post Posted: Mon Sep 22, 2008 6:17 am    Post subject:
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Great you have received many suggestions form many users.

I totally agree with Sara.
You should concern others before plunging into these loans.

To be on safer side is certainly a good thing. So just view more experiences of others and then go forward.

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Post Posted: Mon Sep 22, 2008 9:48 am    Post subject: REFINANCE
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As far as my credit. On m Credit report I have 2 cards that went to collections. 3 that were 30 days late. And I joined a Debt Counseling Co. that the bank didn't like so they didn't give us a loan. It's just frustrating because I am making this huge payment each month I thought they could look at that and see I could make a lesser payment without a problem.
Icon Mini Profile gmakerley
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Post Posted: Mon Sep 22, 2008 10:12 am    Post subject:
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"that the bank didn't like" is something i'm not quite familiar with. honestly, a debt counseling company is a far cry from someone like Consumer Credit Counseling Service, which is a non-profit concern expressly designed to help people without exorbitant charges. maybe the bank didn't like the company because it's not a company that is truly helpful to people - who knows.

as for the credit issues themselves, having cards go to collections is very harmful to your credit, and any creditor worth its salt is going to look askance at you as a result. also, having accounts that were 30 days late (once?) helps you not at all.

that you are now able to make a larger payment (for how long?) is not exactly indicative of how you'll be able to handle payments in the future. after all, you've just mentioned (in your own words) that you do not have good credit.

a couple of things are missing that would allow for us to give you more relevant information. do you know what your credit score is; and how long have you been with this service that is paying your accounts with/for you?

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Post Posted: Mon Sep 22, 2008 11:27 am    Post subject: refinance
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My credit score is 510... I have been with the credit counseling co for 6 months and I missed my August payment because I had to pay a tax payment. I realize I should of never been given the loan back in 2006 with my debt ratio. How do you qualify for the the mortgage relief? I am not trying to bail out of my situation I just want to refinance and I hate throwing away my money every month at 10%. I know I have got myself in this situation. I just need some advice on the best way to get out of it
Icon Mini Profile jerry
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Post Posted: Tue Sep 23, 2008 2:11 am    Post subject:
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Hi drillboy!

Welcome to MortgageFit Forums!

The mortgage relief plan freezes interest rates on ARM for five years and is considered to be a welcome relief to some subprime borrowers. However, everyone does not qualify for the benifit. Buyers whose ARM originated between Jan. 1, 2005 and July 31, 2007 and the interest rates scheduled for their first reset between Jan. 1, 2008, and July 31, 2010. The borrowers must live in their homes and have a potential initial payment increase of more than 10 percent. The borrowers who have a credit score less than 600 will benifit from this. They must also have little or no equity in their homes or should not have a history of late payments.

Hope this will help you.

Thanks,

Jerry
Icon Mini Profile gmakerley
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Post Posted: Tue Sep 23, 2008 11:58 am    Post subject:
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drillboy, what you'll need to do is contact a local lender who is involved in this relief plan.

what might be the easiest way is to go to www.hud.gov and seek out fha lenders in your area.

you will have no luck with conventional lenders at this time.

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Post Posted: Thu Sep 25, 2008 10:14 am    Post subject: REFINANCE
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Do you think I will have even a chance with HUD with my credit (with a cosigner) I know these are general questions just trying to find a way to lower my mortgage. I appreciate all of your assistance.

Thanks again
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