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 Post subject: Mortgage Refinance in Texas. Bad Credit.
PostPosted: Mon Mar 11, 2013 8:00 pm 

Joined: Mon Mar 11, 2013 7:43 pm
Posts: 2
I got into a $235,000 mortgage with my wife in January 2009.

My balance now is $214,000.
Interest rate: 6.25%
PMI: $184.07 a month
Total monthly payment: $2088

With housing prices going up I believe the home is at least worth what I owe on it now making it a wash. I really want to hold onto and would really like to refinance. We are now renting out the home and living in Dallas. My credit is 660 so not the best. I just paid off all credit card debt. We now just have our cars and my wife's student loan (~$4000). Between us we make about $140,000 a year before taxes. We are renting a home we live in for $1,000 a month because we don't qualify for a new home loan. We can certainly afford the $2088 a month but I feel like we're just throwing gobs of money away. Is it worth it to refinance and where can I go if I've got bad credit? Thanks in advance.


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 Post subject: Re: Mortgage Refinance in Texas. Bad Credit.
PostPosted: Tue Mar 12, 2013 7:07 am 

Joined: Sat Jun 06, 2009 11:49 pm
Posts: 256
Location: Cincinnati, OH
I would suggest looking to see if your current mortgage is securitized by Fannie Mae or Freddie Mac at the following links (sorry can only post 1 link.....such a silly requirement):

Fannie Mae: http://www.fanniemae.com/loanlookup
Freddie Mac: google search Freddie Mac Loan Lookup, it will be the 1st link that is shown

If it is securitizied by one or the other, then you should be eligible for a HARP refinance (Fannie Mae - Refi Plus or DU Refi Plus and Freddie Mac - Open Access). When HARP 2.0 was released (March 2012 I believe) Fannie Mae and Freddie Mac imposed caps on the amount of adjustments you would face for credit score and level of financing. Thus, making it much more feasible for someone with a credit score less than 700 to take advantage of the program. And investment properties are eligible.

The one hang up that some lenders may have is your PMI. The PMI certificate has to be transferred to the new lender. Some lenders don't want to deal with it at all, and others will only deal with certain PMI companies. The big PMI companies (that lenders generally don't have an issue with) are: MGIC, Radian, United Guaranty.

I would suggest contacting a mortgage broker, who would have access to a number of different lenders and should be able to find someone to handle the refinance. Or you could contact your current lender and see if they have any options for you to refinance with the HARP program.

Hope that helps.

_________________
T.C. Strait
Ohio Loan Officer / Manager @ Mortgage Broker
NMLS ID 164070
Ohio Mortgage Solutions
Ohio FHA Mortgage


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 Post subject: Re: Mortgage Refinance in Texas. Bad Credit.
PostPosted: Tue Mar 12, 2013 9:19 am 

Joined: Mon Mar 11, 2013 7:43 pm
Posts: 2
Thanks so much TC. My loan is securitized by Fannie Mae. I should've said that earlier.

I'm wondering if anyone knows a broker in Texas that specializes in my situation? We applied for a new home loan and were turned down so I'm a bit discouraged that we may not be able to refinance.

One other thing I had a question on was the PMI. Am I eligible for the UFMIP drops (0.01%, 0.55%) since my property was bought before June 2009? And how much would that drop my current $184 pmi I'm paying every month on a rough estimate?


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 Post subject: Re: Mortgage Refinance in Texas. Bad Credit.
PostPosted: Tue Mar 12, 2013 11:10 am 

Joined: Sat Jun 06, 2009 11:49 pm
Posts: 256
Location: Cincinnati, OH
The UFMIP you referenced is for an FHA loan, so that wouldn't apply. There are other ways of handling PMI rather than paying it monthly, however with a HARP refinance the PMI cannot be changed, so it will stay as is.

And really your situation isn't unique at all. I would venture to guess I speak to 2-3 people a week in your same situation. Most lenders (at least the ones that I deal with) offer HARP refinances down to a 620 or 640 score.

I always suggest that people talk to family/friends/co-workers to see if they recommend a broker to speak to. As bad as it sounds, I will go far above and beyond for a referral than I would for someone that found me in the phone book.

If you strike out with family/friends/co-workers I could do some checking to see if I can find a few people for you to contact.

_________________
T.C. Strait
Ohio Loan Officer / Manager @ Mortgage Broker
NMLS ID 164070
Ohio Mortgage Solutions
Ohio FHA Mortgage


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