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Refinacing with bad credit?

Discussion in 'Credit Talk' started by charaty, Mar 6, 2003.

  1. Mar 6, 2003 #1
    charaty

    charaty Member

    I had read wonderful things about Countrywide on this site and decided to apply for a refinance. We bought 5 years ago (while still in a bankruptcy, filed in 96, bought in 98, discharged in 99) and got 7.5%. Our credit has improved, but there are still a few things being investigated/disputed. Countrywide turned me down flat and referred me to the secondary division. I explained what we ere trying to do (refin. existing and pull 9500.00 to use as a down payment on another home), and he came back with two options:
    1. pay 5 pts and 8 to 8 and a half percent
    2. pay no points and 11 percent.

    Needless to say, I'm not doing either. Is this typical or was he trying to hose me?
    According to countrywide, our numbers are (and I don't know which order they are in,t his is just how he read them to me) him:562, 603, 654.
    me: 554, 601, 625.

    Is this hopeless or the norm?
     
  3. Mar 6, 2003 #2
    REInvestor

    REInvestor Well-Known Member

    Your mid scores do put in you a sub-prime area, but the intesrest rate and fee's seems extremly outrageous. Have you made all your mortgage payments on-time?
     
  4. Mar 6, 2003 #3
    Hedwig

    Hedwig Well-Known Member

    I had to refi to get cash when I was having a lot of problems. This was about 4 years ago, and rates were a little higher. I paid 11-1/2% and I think one or one and a half points.

    I'm not sure, but I think my scores were comparable to yours. But look around, you may find something else. I waited about a year, found a decent broker that sort of specialized in people with damaged credit, and refinanced again to 8%.

    So you may want to try to find a broker who works with a lot of lenders and see if he can find you something.
     
  5. Mar 6, 2003 #4
    fla-tan

    fla-tan Well-Known Member

    charaty

    I agree with you. The rates that Countrywide's subprime division quoted you seem way out of line. If your scores are in the area quoted, you should be able to get a loan in the 7-8+% range without giving 5 points either. There are several things I would need before I could give you a more accurate answer though. Most of the additional information needed would be personal in nature.

    It doesn't matter which CRA has which score, they use the middle score so you both have acceptable scores.

    If you want to email me offboard you are welcome to do so.


    fla-tan
     

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