Posted on: 08th Nov, 2012 11:10 pm
i need information on refinancing a 10-year fixed mortgage from us bank, with an interest rate of 5.625%. i'm pretty young and got married to a guy who i thought was well enough off, but he recently ended up loosing a decent job he had that was paying for our house. we're still current on our mortgage right now but it is very difficult to be current for a long time. based on that information i gave about the mortgage, would it be easy to refinance our mortgage to something lower? my home's value has dropped down to about $210,000. please help.
Hi Julian,
Though you're current on your mortgage payments, your property is underwater. In such a situation, I don't think it will be easy for you to get a loan.
Thanks
Though you're current on your mortgage payments, your property is underwater. In such a situation, I don't think it will be easy for you to get a loan.
Thanks
Is your home underwater, or the value has just dropped. This is why I never propose putting a client into a loan with less term than 30 years...5 Years down the road, something can happen and if you are on a 10 or 15 year loan, the payments are too high. Its best to take a 30 year loan and make the 10 or 15 year payment. If times get tough, you can fall back on the 30 year payment. If your home is underwater, you can still refi if you have Fannie mae or Freddie Mac loan, or a FHA...The problem I see if your husband not making the same amount of money or unemployed. You need income to qualify for any loan. Good Luck
>>would it be easy to refinance our mortgage to something lower?
No. It'll be difficult because he's currently unemployed.
No. It'll be difficult because he's currently unemployed.
If your current loan is Fannie Mae or Freddie Mac owned, there is potential to qualify for a HARP loan (home affordable refinance program) either through the current lender who you make payments to, or through another lender or mortgage broker. If you have a job, or if your husband is once again employed, I'm sure you may be able to qualify for this loan and secure a 30 year fixed loan at a much lower rate than what you have. If you have equity, even if your value has lowered, there is still a chance to qualify, if you have income, or if your husband as a lower paid job.