Posted on: 02nd Apr, 2007 03:51 am
I am residing in Maryland and I need a loan of $650,000. We live in single family residential owner occupied home. Would do with a full doc loan.
Details are given below:
FICO score: 560
LTV: 88%.
We have yet to pay our unpaid first mortgage of $650,000, so need to refinance. Paid all payments till date and thinking of 40 year fixed or 2/28 arm. Is that a good choice? Anyone to help..
Details are given below:
FICO score: 560
LTV: 88%.
We have yet to pay our unpaid first mortgage of $650,000, so need to refinance. Paid all payments till date and thinking of 40 year fixed or 2/28 arm. Is that a good choice? Anyone to help..
Welcome Pearl,
You can try out with lenders with this community.
But let me tell you frankly, it is better if you can wait for some more time and re-establish your score.
Currently your credit score is 560; so if you can take it to something above 620, I think it will help you get competitive rates of interest and favorable terms and conditions on the loan.
You can try out with lenders with this community.
But let me tell you frankly, it is better if you can wait for some more time and re-establish your score.
Currently your credit score is 560; so if you can take it to something above 620, I think it will help you get competitive rates of interest and favorable terms and conditions on the loan.
"LTV: 88%.
We have yet to pay our unpaid first mortgage of $650,000, so need to refinance. Paid all payments till date and thinking of 40 year fixed or 2/28 arm. "
Welcome to the forum Pearl!
With today's market, a long term loan would be best, depending on your financial situation. However, it will be very difficult for you to receive a 40 yr fix with an CLTV% of 88%. From my experience, you would have a better chance of receiving that 40 yr fix if your CLTV% was 75% or below.
A loan program of 2/28 would give you a better chance of qualifying, however that type of program usually looks for a CLTV% of 80%. I would not suggest such a program where the interest rate is fixed for only 2 years in this type of market.
IMO, you can look into a Hybrid Option ARM where you can select a fixed rate at 5,7, or 10 year. Having the fixed interest rate longer may give you a higher rate, but will give you a longer fixed rate as opposed to a 2 year fixed rate.
We have yet to pay our unpaid first mortgage of $650,000, so need to refinance. Paid all payments till date and thinking of 40 year fixed or 2/28 arm. "
Welcome to the forum Pearl!
With today's market, a long term loan would be best, depending on your financial situation. However, it will be very difficult for you to receive a 40 yr fix with an CLTV% of 88%. From my experience, you would have a better chance of receiving that 40 yr fix if your CLTV% was 75% or below.
A loan program of 2/28 would give you a better chance of qualifying, however that type of program usually looks for a CLTV% of 80%. I would not suggest such a program where the interest rate is fixed for only 2 years in this type of market.
IMO, you can look into a Hybrid Option ARM where you can select a fixed rate at 5,7, or 10 year. Having the fixed interest rate longer may give you a higher rate, but will give you a longer fixed rate as opposed to a 2 year fixed rate.
"FICO score: 560"
It will be better to improve it then go for a refinance if it is not too urgent. Your payments are regular till now, so no need to select any higher rate loan if waiting for some more months can help your score to improve.
A 630-640, and you will be able to qualify for much lower rates that what you would now.
It will be better to improve it then go for a refinance if it is not too urgent. Your payments are regular till now, so no need to select any higher rate loan if waiting for some more months can help your score to improve.
A 630-640, and you will be able to qualify for much lower rates that what you would now.
This is a true. With this credit score you will face problem to refinance.
After great years for sub-prime lenders in a past, even they are rising credit score. It was no bad with 560. Now they start asking at least 620.
You should improve your credit. This will save you a lot of money.
I used one company and now referring them to others. Let me know if you need it.
After great years for sub-prime lenders in a past, even they are rising credit score. It was no bad with 560. Now they start asking at least 620.
You should improve your credit. This will save you a lot of money.
I used one company and now referring them to others. Let me know if you need it.
There are still lender's out there that will help you with your current score.
You have choices even with a 560 credit score, as long as it has not dropped below 500 there is still hope.
Send me an email and let's see what we can do. For further information you can visit here.
You have choices even with a 560 credit score, as long as it has not dropped below 500 there is still hope.
Send me an email and let's see what we can do. For further information you can visit here.
Hello,
All dough, your current credit scores are less than perfect. I can still offer you some options. My name is Will. I am a mortgage consultant with Wells Fargo Home Mortgage. It's a pleasure to make your acquaintance.
Give me a call or email me at your earliest oppurtunity and we can get started.
All dough, your current credit scores are less than perfect. I can still offer you some options. My name is Will. I am a mortgage consultant with Wells Fargo Home Mortgage. It's a pleasure to make your acquaintance.
Give me a call or email me at your earliest oppurtunity and we can get started.
Pearl,
Although a few lenders will offer programs down to 500, they are becoming fewer are farther in between. My suggestion is you take some simple steps to improve your credit. You can do a lot of it on your own with a few minor steps. I will be more than happy to tell you what you would need to do.
The process is pretty simple but can take a few months. If you have errors on your report that you know you document and prove they are incorrect, I can get the report fixed quicker.
Let me know if there is anything I can do for you after you looked into the credit repair.
Although a few lenders will offer programs down to 500, they are becoming fewer are farther in between. My suggestion is you take some simple steps to improve your credit. You can do a lot of it on your own with a few minor steps. I will be more than happy to tell you what you would need to do.
The process is pretty simple but can take a few months. If you have errors on your report that you know you document and prove they are incorrect, I can get the report fixed quicker.
Let me know if there is anything I can do for you after you looked into the credit repair.
boy i see way too many advertisements of what i can do for you and far too little advice.
there are limited options available to a person with a 560 credit score, particuarly with an 88% ltv. yes, subprime still exists, but it's not a very pretty alternative.
there are limited options available to a person with a 560 credit score, particuarly with an 88% ltv. yes, subprime still exists, but it's not a very pretty alternative.
