Refinancing 1st and 2nd Mortgage

[Anonymous]

I just checked my FICO score today. EQ/658 TU/617. My wife and I are getting a divorce, I'm trying to keep the house in my name only.1st mortgage bal:85500,2nd mortgage bal:41000. The purchase price of the house was $100000 in 2003.Zillow.com has the house appraised at $159000. Total; credit card debt at 10000. I am wondering if I am able to refinance by myself.

[ShanetheMortgageMan]

How much are the property taxes & homeowners insurance?  How much are the minimum required payments on the $10k in credit card debt?  Are there any other debt payments?

What is your income?

What is on your credit that is bringing your scores to the 617-658 levels?

Did you take the 2nd mortgage out after you purchased the home? 

[Anonymous]

property taxes= $2400 yearly broken up into 2 payments Home insurance=$530 yearly 5 credit cards min payment #1 $40 #2 $90 #3 $100 #4 $100 #5 $70

 Gross yearly= $33500  

19 accounts showing on credit report 7 old credit cards no longer used with $0 bal. 1 car loan paid off a month and a half ago which was refinanced by wife alone.

2nd mortgage taken out in 2007.

any suggestions would be helpful

[ShanetheMortgageMan]

You can refinance the 1st & 2nd mortgage into one, and if you go with an FHA loan (recommended due to the lower FICO scores, and potentially being over 80% LTV) the payment would come out to around $1,025/mo with taxes & insurance, or 36.7% of your income, and when adding in the minimum credit card payments the total debt ratio is 51%.  FHA prefers that your housing debt ratio is at 31% and the total debt ratio is at 43%, however if you have compensating factors such as the 20% equity you'd roughly have, and if you have some reserves leftover in savings, checking, retirement, etc. after the refinance is complete, then higher debt ratios can be approved, even up to 44.9% for the housing debt ratio and I've seen up to about 60% for the total debt ratio.  It's definitely worth looking into if you are required to refinance into your name.