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Company Loan Type APR Est. Pmt.

Current lender requested monthly expenses

Posted on: 30th Aug, 2007 05:59 pm
My ARM is resetting in Aug. and jumped by 3 points. These payments are not affordable to me. After discussing with current lender he has requested for monthly expenses to calculate the mortgage i could affoird. . I have been current with my payment since last 2 yrs. My current payment i may be able to save 600-700 a month. My question is do i show these savings in my expense list as i do not want my rates to go up..
"My question is do i show these savings in my expense list as i do not want my rates to go up.."

Expenses are to be defined under different heads. Where you would be putting this amount?

Miller
Posted on: 30th Aug, 2007 06:12 pm
"My ARM is resetting in Aug. and jumped by 3 points. These payments are not affordable to me."

Why don't you refinance your present mortgage into a frm? Your loan is current and in good status as you have been regularly making the payments for the last 2 yrs. You should not have much difficulty in refinancing it.
Posted on: 30th Aug, 2007 06:18 pm
Miller st - Lender has asked me for current pay stubs (Income). I will be providing expenses under different heads. (Income - Expenses) i save around 300-400. I was wondering if this saving would encourage them to increase the points.
My debt - Income ratio is little high and it's little difficult to refinance from other lenders.
Posted on: 30th Aug, 2007 06:55 pm
Hi Hkaakad,

With your high debt to income ratio, you can go for a no-ratio loan. It is a type of home loan which will not require any verification of your income and thus cannot calculate your debt to income ratio. But to qualify for such loan, you must have a good credit and a sufficient amount of personal assets.
Posted on: 30th Aug, 2007 11:33 pm
i need some more info on no-ratio loans. where can i get it?
Posted on: 31st Aug, 2007 04:41 am
Hi Tom,

You can get to know more about No-ratio loans from a previous discussion on the topic.
Posted on: 31st Aug, 2007 04:45 am
Hi hkakkad,

Welcome to our forums.

If you inform the lender about your savings, the lender may realize that you are capable of paying off the loan even if the rate increases beyond a certain level. But you may not prefer a rate hike equal to that level. Therefore, I think it is better to keep aside your savings because you may need it in times of any emergency as well.

However, as far as paying points in order to get a lower rate is concerned, I don't think that is possible especially when an ARM resets.

Thanks
Posted on: 31st Aug, 2007 05:16 am
Just refinance your mortgage if you can to get a payment you can afford because your current mortgage will continue to adjust
Posted on: 01st Sep, 2007 05:45 pm
" i save around 300-400. I was wondering if this saving would encourage them to increase the points. "

You will have to show this amount somewhere, like if you put it as some expense, the lender will do a check to see if it is correct or not.

What I also feel is that you should contact some other lender and inquire about refinance choices open for you.
Posted on: 03rd Sep, 2007 04:09 pm
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