I own a home in Washington State and have an interest only loan at 6.5% on $512,000. The home was appraised last year for $640,000. It would probably sell right now closer to $600-625K, not that we have any plans on selling. I read the Home Owner Affordability and Stability Play, and got to thinking that I'd like to refinance for a traditional (interest & principal) loan at a lower rate. I'm fine with my current payment, but at a lower rate I could be making the same payment while also paying down the principal which would make me feel a lot better about depreciating real estate values.
I obtained my current loan through stated income because according to debt to income ratios I "can't afford" my house payment on my income of $78,000 a year. I live pretty frugally in the other areas of my life, and have been making the payments on time since I purchased the house 3 years ago. Also, my boyfriend and I have lived in the house together for the past two years and he contributes to the expenses, but because he's not on the title I had to do a stated income loan to get financing, and of course that was back when they were readily available.
Lenders, is there any where I'd be able to get financing given the above scenario and credit around 720-740? My credit report is completely clean, never had a late payment on anything. I'd love some advice/thoughts!
