Question about mortage

well, a couple things need to be looked at...

first of all, with that score you probably wouldnt qualify for a conventional "cashout" refinance or a home equity loan. Subprime may touch it <<i try not to recommend specific companies but google subprime mortgages and go from there>> a lot of the big lenders have subprime depts.

on a side note, how much do you owe them? are you required to pay them back lump sum or do you just owe them money? the interest rate you end up with will probably be 8+% for 1st mortgage or 10+% for home equity loan.

do you have time to work on credit to get score up to get better loan?

 

Make them validate the debt first

 

so you solely owe this debt and there is a written agreement stipulating you would have it paid in full before your divorce?

if not, i'd tell them to piss off and to collect from your ex. tell them if they don't like it you'll bill them for having to tolerate their child for the last umpteen years.

 

I am not advertising here just letting you know some facts.

As a Mortgage Broker yes you would qualify for a mortgage cash out refi. Full doc verses stated would greatly effect the rate.

We are still getting 7-8% for 550 scores as well.

Sub Prime does NOT mean 10+ on the rate contrary to popular belief.

For a cash out of 37k the biggest thing would be what is your existing balance verses the value on the home. Is it a stick built home or manufactured?

Is it rural or in the city?

there are loan size adjustments that cover many unmentioned questions. Im licensed in NY and PA. Other states may be much different but all in all a finance company usually can lend nationwide.

 

Then I certainly would reccomend that you call a reputable Mortgage Broker and let them know you are interested in a Cash out Refi then.
Just make sure when they tell you they have an approval you tell em you want to see the good faith estimate which they have to provide anyway and ask if the rate is "PAR"

If it is not then they are quoting you a higher rate than the lender approved you for most likley.

 

I personally would treat this debt no different than i would any other debt.

the poster does bring up a good point - what is your home worth, what is the first mortgage balance, what negatives are on your credit report, what is your debt to income ratio (or debt ratio)?

 

one other thing - what are the terms on your current mortgage? are you keeping the home as part of the divorce or is it a required sale? are you required to buy out your ex and remove them from title?

 

What are your inlaws Brokers? Most Brokers are refinancing people with 500 minimum credit score average. I would be able to do this in a week in my areas.

Delta WMC to name a few will refinance you. Even on a stated income your rate would be higher, but you would remain in the home.

 

as i said before, we need to know how much your home is worth, the current mortgage balance, your debt ratio before we could even begin to give you an estimated rate.

 

i doubt you would have much problem as you would end up at about 70-80% loan to value when you factor in closing costs as well as any unpaid chargeoffs or collections that may need to be paid. You MAY be able to get prime rates with the lower loan to value, so make sure to talk to a regular mortgage company before considering subprime. Citi, ING, Bell, USBank, etc all have good mortgage programs. I've heard good and bad about wells fargo and countrywide.

 

Indymac, Flagstar would even do this at the lower ltv. (loan to value) as I said though make sure you ask if the rate is Par.