Posted on: 13th Jan, 2011 12:58 pm
this question pertains to my home that i bought in 2006.
the details:
i paid 229,000 for the home. my guess is that was top dollar when i bought it. i live in an area where prices did not recede much, but i think it would be safe to assume that it is worth about 90-95% of the loan amount.
i am self employed. my credit is in the low 600's.
i have two loans...the first is interest only for $185000 with an 8.5% rate. the second is for the remainder at 10.5%
i have had one 30 day late on the mortgage. i can in general afford it.
obviously, i need to get into a different loan situation, get out of interest only and get a decent rate. with the situation at hand what is the best way to do that...i fear that while my situation is not as glaringly bad as some, the combination of a somewhat low credit score combined with sely-employed and the fact that i don't have any equity are going to kill any attempts at a decent refinance. thoughts?
the details:
i paid 229,000 for the home. my guess is that was top dollar when i bought it. i live in an area where prices did not recede much, but i think it would be safe to assume that it is worth about 90-95% of the loan amount.
i am self employed. my credit is in the low 600's.
i have two loans...the first is interest only for $185000 with an 8.5% rate. the second is for the remainder at 10.5%
i have had one 30 day late on the mortgage. i can in general afford it.
obviously, i need to get into a different loan situation, get out of interest only and get a decent rate. with the situation at hand what is the best way to do that...i fear that while my situation is not as glaringly bad as some, the combination of a somewhat low credit score combined with sely-employed and the fact that i don't have any equity are going to kill any attempts at a decent refinance. thoughts?
Welcome gary,
It is true that if you don't have equity in your property, you won't be able to get a mortgage refinance. You should have at least 20% equity in your property in order to refinance both the mortgages into one. In such a situation, you'll have to carry on with the existing mortgages.
It is true that if you don't have equity in your property, you won't be able to get a mortgage refinance. You should have at least 20% equity in your property in order to refinance both the mortgages into one. In such a situation, you'll have to carry on with the existing mortgages.