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What is the best refinance option?

livinginnky's picture
livinginnky | Joined: September 8, 2007 08:31 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

[quote:59c5b0f7a2]Would like to refinance a mortgage, but with all of these issues(subprime/credit issues(, what would be the best option?[/quote:59c5b0f7a2]

We need a lot more information than that.

Here we go answer everything you can.

1. How much is your house worth?

2. How much is your mortgage for? and at what interest rate and for how long

3. What is your credit score? and how many accounts do you have

4. Do you have any alternative credit? Such as Movie memberships, gym memberships, etc.

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

6. How much do you make.

You need to answer these questions and more but this is a good start. Getting a mortgage doesn't have to be complicated you just need some good information.

Like | Dislike | Share | Posted: Thu, 09/20/2007 - 16:04 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Thu, 09/20/2007 - 21:47 | Post subject:

ssherel's picture
ssherel | Joined: September 20, 2007 04:00 pm | Posts: 0 | Location: New Jersey | 00 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...)

Like | Dislike | Share | Posted: Fri, 09/21/2007 - 10:29 | Post subject:

ckalvesmaki's picture
ckalvesmaki | Joined: January 28, 2006 06:28 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Fri, 09/21/2007 - 11:12 | Post subject:

ssherel's picture
ssherel | Joined: September 20, 2007 04:00 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

it has been more 4 times, unfortunately...

Like | Dislike | Share | Posted: Fri, 09/21/2007 - 11:57 | Post subject:

ssherel's picture
ssherel | Joined: September 20, 2007 04:00 pm | Posts: 0 | Location: New Jersey | 00 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...

Like | Dislike | Share | Posted: Fri, 09/21/2007 - 11:59 | Post subject:

livinginnky's picture
livinginnky | Joined: September 8, 2007 08:31 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

Like | Dislike | Share | Posted: Fri, 09/21/2007 - 14:10 | Post subject:

ssherel's picture
ssherel | Joined: September 20, 2007 04:00 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Fri, 09/21/2007 - 17:53 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Ssherel,

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

Like | Dislike | Share | Posted: Tue, 09/25/2007 - 04:05 | Post subject:

ssherel's picture
ssherel | Joined: September 20, 2007 04:00 pm | Posts: 0 | Location: New Jersey | 00 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?

Like | Dislike | Share | Posted: Tue, 09/25/2007 - 11:11 | Post subject:

ssherel's picture
ssherel | Joined: September 20, 2007 04:00 pm | Posts: 0 | Location: New Jersey | 00 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?

Like | Dislike | Share | Posted: Tue, 09/25/2007 - 10:57 | Post subject:

ckalvesmaki's picture
ckalvesmaki | Joined: January 28, 2006 06:28 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Tue, 09/25/2007 - 11:02 | Post subject:

ckalvesmaki's picture
ckalvesmaki | Joined: January 28, 2006 06:28 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Tue, 09/25/2007 - 12:02 | Post subject:

ssherel's picture
ssherel | Joined: September 20, 2007 04:00 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Tue, 09/25/2007 - 12:16 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Ssherel,

You can think of refinancing with an FHA approved loan. This type of loan does not give much importance to the credit profile of a borrower as a qualifying factor. So, you can talk to the lender about this option.

Like | Dislike | Share | Posted: Wed, 09/26/2007 - 04:45 | Post subject:

ckalvesmaki's picture
ckalvesmaki | Joined: January 28, 2006 06:28 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Then you will not qualify for the FHA secure loan.

Like | Dislike | Share | Posted: Wed, 09/26/2007 - 04:58 | Post subject:

evolovik26's picture
evolovik26 | Joined: August 15, 2007 11:43 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

As far as qualifing on any given loan FHA or not talk to mortgage professional ( you will need to provide them with the nessesary information to qualify you ) if you trying to get FHA mortgage make sure the Mortgage provider is FHA approved (many say they are but they are not) And to get an FHA loan with sub 600 scores you will need an FHA provider that will do manual underwriting.
If you have alot of equity in the home FHA might not be your only solution either.
My biggest concern is that according to you, you and your spouse make close to 100k a year and having trouble paying a 180k mortgage. Why this is happening? What is the underlying problem? Are you overextended? Do you need to consolidate bills? Is this a money management issue? Or just plain irresponcible behavior? Are you spending money you dont have? Can you cut your monthly spendings down to nessesitiees only and fix your financial situation?
Answer these questions for yourselves and it should give you a good idea what to do.

Like | Dislike | Share | Posted: Wed, 09/26/2007 - 08:29 | Post subject:

ssherel's picture
ssherel | Joined: September 20, 2007 04:00 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Eugene, those questions have been asked and are currently being answered/resolved. but the underlying source is due to some legal issues, between me and my former spouse, which has caused the financial stress, leading to this..

Like | Dislike | Share | Posted: Wed, 09/26/2007 - 15:05 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I agree with Eugene that before considering an FHA loan, you must ensure if the mortgage company is really FHA approved or not. Otherwise, you may face problem later.

Like | Dislike | Share | Posted: Wed, 09/26/2007 - 22:32 | Post subject:

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