Posted on: 15th Sep, 2010 08:44 am
i would like to refinance for a lower rate but have no equity left our house and our credit scores are low. we've owned for 7 years and have not been late at all. all we would like to do is lower our montly mortgage payment. i have heard about streamlining our loan. what would you suggest?
Do you have an FHA loan? What's the value of your home? How much do you currently owe? What are your credit scores? You might be eligible for the DU Refi Plus Program.
We do not have an FHA loan. We owe about 477,000 and value is about 400,000. The primary is with Wells Fargo Financial for about 430,000 and we have a HELOC with Bof A for about 37,000. Our credit scores are around the low 600s to high 500s. Do you have any info on streamlining our loan to get a lower rate with no money out? We have never been late and our credit scores are low due to high balances on our credit. My wife is going through Consumer Credit Counseling, which also lowered her score.
you can't streamline unless you have an fha loan. being that you owe more than your property is worth; you would look to work with the loss mitigation department of your servicer to see if they can give you a principle reduction on your mortgage balance.
Thank you Ted. I appreciate the information. It seams that lenders would benefit more by just lowering interest rates to help out the borrowers rather than making more money off the interest and the risk of the borrowers being unable to make the payments and go into default. Lenders would still make money rather than lose out with property that would probably sit for months if not years at a time. It just doesn't make sense. I know there are thousands out there who are in the same shoes. Anyhow, thank you again and I will follow up with my lender.