Ed, I Need a refinance. - Posted by Randy Miller

Posted by Paul Macdonald on March 20, 2001 at 07:59:35:

Randy,

Have Ed find you an expanded guideline FHA:
If you actually have 1 year seasoning,< 80% LTV, and MODERATELY high DTI’s you should be ok.

If there are problems with the file, go automated and buck for a 15 year fixed. Becuase of the lower risk factor you’ll have a better chance of approval.

If it goes expanded you’ll have rates in the 7.5% to 9% range.

If the FHA doesn’t work, there are a ton of sub-prime lenders out there that would salivate over an 80% LTV with DTI’s under 50%. 30 yr. fixed will be in the 9 to 10% range for those folks with a couple of points.

Good luck.

Ed, I Need a refinance. - Posted by Randy Miller

Posted by Randy Miller on March 19, 2001 at 20:26:32:

hi ed… when we bought our house we had a broker that got us what I feel is a really bad loan. Our loan is a 2/28 arm. after 2 years the interest rate can go and most likly will go up to around 14% or higher. Now I am not having a real problem with the 11.25 current rate because of the sub prime thing… but that arm scares the hell out of me. Can you do better for me. I am working really hard on getting my credit to A paper because I am working on becoming an investor… and boy have I learned a lot…My current credit scores are probably around 550 - 600. OUr broker just jumped on the first bank that would say yes because of time constraints and pressure from the real estate agent. She was sick a lot and basically put us off until the last minute. This may be a long shot… but I am desparate to get into a fixed rate loan…of course lower interest would be good too… OUr house payments have been on time as have our other payments for the past year. Hopefully my credit rating has improved . I do have a sizeable student loan that may screw up my Income to DR. Do you think I am wasting my time? I did send you an app with my SS# so can look at my credit.

stats
appraised value of home = 102000
current mortgage = 79000 @ 11.25%
current monthly debt = 1000 (not including mortgage)
household income = 4000 per month

Thanks
Randy

Re: Ed, I Need a refinance. - Posted by Randy Miller

Posted by Randy Miller on March 20, 2001 at 12:58:18:

Thanks a bunch guys… I feel a little better now… You know the strange thing is… this was our first home purchase and we didn’t even think about the loan at the time… then after the excitement of new home ownership kinda wore off we started thinking about just how uncomfortable this loan could be… This could probably happen to new investors as well… you get the funding to do that first deal and feel really great until you realize that the financing maybe was not that good… again… thanks for your replys

Randy

Re: Ed, I Need a refinance. - Posted by Ed Garcia

Posted by Ed Garcia on March 20, 2001 at 09:59:09:

Randy,

Today, most Mortgage Brokers use lender that are credit score driven. Your better loan programs are credit score driven. Randy, you mention that you have already submitted a loan application with us. Today I’ll follow up on it with Mr. Neal Johnson. You’re doing the right thing. Remember Randy, the two year loan was to get your house financed and allow you two years to clean up your credit. That what it appears you are trying to do.

Neal will be contacting you,

Ed Garcia