I am new to the forum, so forgive me if I am asking silly questions. Here is my situation. My FICO is around 620, not sure what the rest are, my wife's score is around 595 and we currently have a 115% mortgage on our home. Actually, it is a 100% first and a 15% second. We did this to try to consolidate, but I am thinking now that it may have been a bad move. Anyway, we make decent money between the two of us (~$95,000), and would be fine paying all of this if we had a better rate, but I can't get a better rate until I pay down our credit card debt (~$14,000)...and we can't afford to pay down our credit card debt...because our mortgage payment is so high....any ideas or help is greatly appreciated.
I did pay off cc's...prior to the refi we had close to 45k in revovling debt.....the idea was that over the next 3 years, our home would appreciate ~5% per year (which is what it has averaged over the last 3-5) and we would be back to even....but I am getting a little nervous about the whole thing...feeling a bit trapped...
First piece of advice is never do a 2 or 3 yr ARM unless your able to refi within 12 months. I recommend pulling all 3 of your scores and your DW's to see what your mid score is. If you are in the 620-640 range you should be able to goto a real bank and get a fixed rate with little to no out of pocket expenses except for a new appraisal. Break down your CC debt by each card and focus on paying off all but $20 on one card month and mothball it starting with the one with the lowest balance first.
I tried to look into a refi with a fixed rate, but the loan officer actually quit returning my calls. She called me once and told me that my score was around 605 (it has since jumped back to 620....) and that she would do some checking on why it was so low....but hasn't called me back...and won't return any of my messages. Meanwhile, I got a "loan letter" ( I apologize, I cannot remember the term) in the mail with an estimate of what she initially thought she could give me, and she was charging 10% origination!! Seems a bit counterproductive...is this the norm for "high risk" folks like me?
Jay, try NationStar Mortgage. Look them up on the internet and give them a call. I've been very pleased with their process. You might have more value in your home than you think, especially if you aren't in a "depressed" real estate area of the country.
Let 'em try and help you and let us know how you do.
How long ago did you close on the ARM?? If its been within the past 12 months. I would continue to pay off what you can for another year then look to refi between 2 and 3. You and the DW need to come up with a budget and pay off your CC.
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