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We got approved for a refinance, FINALLY, but I'm scared!!


kiakia123
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My husband and I have been trying to refinance for a while with no luck. Our credit is very bad. My score is about 535 and his is probably lower. We are in the process of doing a cash out refinance with Ameriquest. We are suppose to close on Saturday.

There are a lot of things about this process that we don't understand and I am very nervous. I'm not sure we are doing the right thing. First, I have heard a lot of bad stories about Ameriquest. Have you or someone you know had a pleasant experience with Ameriquest? Please share your experience with me. I need to hear something good about Ameriquest to ease my mind. Secondly, our present interest rate is 7%, our house was appraised at $260000 and the pay off is $118000. They are going to pay off everything on our credit reports, closing costs and settlement fees are about $8000 (I know, this is extremely high) and we are going to take out about $25000. They are telling us that we qualify for $180000 and our monthly payments will be $1340. Our present monthly payment is $1140. We do understand that we are not going to get the best loan because of our credit, but we want a fair and legal loan. We really, really need this money to get caught up, and back on track. We make pretty good money, and we don't have a lot of debt, but we are so behind that we feel overwhelmed by our bills. Does it make since for us to refinance?

Please help!! Your advice is very much appreciated.

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Your biggest asset is your equity. As long as you have equity you have a number of options. Keep this in mind, and don't let your loan officer at Ameriquest bully you around. Everyone is going to tell you your credit sucks and you have limited options. They want to scare you into going with them and not complaing about the fees. This is not true, becuase you have equity

Try shopping around. If you want to reply with the specifics of your scenario I can point you in the right direction. Always take the time to shop a few different lenders.

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Thanks for responding. I received the good faith estimate today and this is what it contained:

Interest Rate: 7.850%

Loan Discount Fee (4.65%) ---$8602.50

Appraisal Property Valuation --- $275.00

Tax related service fee - $70

Flood search fee -- $16

Lender's processing fee - $626.00

Admin to Ameriquest Mortgage -- $239.00

Application fee to Ameriquest -- $360.00

Interest for 10 days @ $39.79 per day -- $397.00

Est. Closing Cost $11,460.50

Est. Prepaid items/Reserves $397.00

Total: $11,858.40

Settlement or closing fee -- $312.00

Title examination -- $227.00

Title insurance - $600.00

Courier fee - $63.00

Total: $11,858.40

Principal and Interest: 1,338.17

Total monthly payment: 1,338.17

My credit score is around 520 and my husband's is 535. Our present interest rate is 7%. Our current monthly mortgage payment is $1140. With this new 7.8 interest rate it will be $1338.00.

We owe 119000 on our house and it was appraised at 250000, so we have a considerable amount of equity.

I understand our credit is very poor, but I think this is ridiculous. We are very much in need of money, but we are not desperate.

What do you think about this?

Thanks

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