MKG122001 Posted February 9, 2007 Report Share Posted February 9, 2007 My husband I are planning on refinancing this April 2007. Our initial interest only mortgage was for $220K, and we put 15% down. We have made our payments on time everytime since the loan originated in April 2005. Both of our credit scores average around 650, and we each have a few delinquent items. I have two, which are both being disputed. My husband has 3 or 4 negatives, which with the exception of one (older- 5+years) account, are all medical. I stay at home and my husband makes around $60K gross. Are we going to have a tough time getting a refi loan because of this? I guess my main question is can you get a loan (NOT a interest only) with a few negatives, or is that impossible? If I'm not mistaken, more than likely they wont even use my credit score though because I am not employed. I know that we want to get out of our current loan, as it was initially only meant to stay in for two years, because as of April our payments increase dramatically. Thanks for any advice! Link to comment Share on other sites More sharing options...
MTG_BROKER_OH Posted February 9, 2007 Report Share Posted February 9, 2007 You should be ok to do something, do you think your home has appreciated any since you bought it. You should be able to get a conforming mortgage but it is tough to say without looking at the whole situation. If your collections are less then 5k they probably will not have to be paid off. It seems you have some equity in your property and that should help as well with your loan. Link to comment Share on other sites More sharing options...
MKG122001 Posted February 13, 2007 Author Report Share Posted February 13, 2007 Thanks for the response. Yes, we have about 100K in equity on our home, although when we refi we would like to take out 15-20K for some home projects. I also am pretty positive that my husbands negatives total less than 5K. Link to comment Share on other sites More sharing options...
Knot-fore-sail Posted February 14, 2007 Report Share Posted February 14, 2007 As stated, you should be OK. It will certainly help with the Loan to Value being below 80%. (also keep you out of PMI) I do not know what your other debts are but I would work to pay any of them down I could. Debt to Income may be more of an issue than your credit. Mid 600's should qualify you for a conforming loan however a $240,000 loan (you stated you would like some cash out) at 30 yrs with 6% is about a $1430.00 pmt. That is a 29% front end ratio without adding taxes and insurance. You might be able to get by with this but it does not leave much room for other debts on the back end ratio. Also being a "cash out" might make it a little more restrictive. You might have to do a straight refi on the current mortgage and look for a home equity line after the closing for your repair money. Just a suggestion if your initial plan does not work. Link to comment Share on other sites More sharing options...
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