Posted on: 19th Feb, 2011 09:26 am
i am confused about the mortgage programs being offered to me. i have received a commitment packet and was told i am approved with conditions, which appear to be minor. i filed bankruptcy 2 years ago, but have a coborrower who has excellent credit (score in the 700's). i was offered a 2/28 fixed/adjustable rate mortgage loan with a 5 year interest only period; according to the paperwork it would adjust every 6 months. i did not like this because my goals are set for a minimum of 5 years. (my car will be paid off in 3, my bankruptcy would be 7; i would have equity in my home and would like to refinance in the 5th year for a better interest rate). can you explain the type of loan i'm being offered? will i build equity with this type? are there any advantages or disadvantages? i was also offered a 30-year fixed with a 5 year interest only period. can you explain this type of loan? can you refinance an interest only loan?
You can refinance any type of loan provided you qualify and have sufficient equity - It sounds like you are being offered a subprime loan - Havent heard of anyone doing a 2/28 in about 4 years - What is your credit score and have you considered FHA - It allows a loan 2 years post BK - Will offer a good rate and allows for less than perfect credit? I would avoid the 2/28 as well as interest only - With interest only your loan amount will remain the same and unless that market value goes up (which isnt as likely these days) you will not have any equity at the end of 5 years -
B
B
What are you credit scores? It's still not clear why these are the only programs the bank/broker is offering you? What is your current interest rate?
