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New Member
Posts: 5
Registered: ‎07-15-2009
0

REFI OR LOAN MODIFICATION

Hi,

I am unsure between a loan modification or a refi my lender is Wells Fargo we bought the house in NJ in spring 2006 I am paying a FIR of 6.75% for the 288k mortgage and 8.75 for a 73k  HILOC. Please advice.

My fico 692 TU 696 EQ 705 my wife EX 702 TU N/A EQ N/A.

Thank you in advance for you time

Frank B

Super Contributor
Posts: 8,360
Registered: ‎09-28-2007
0

Re: REFI OR LOAN MODIFICATION

How much do you think your home's value/would appraise for now?

 

Is your wife on the current mortgages, and why no scores for TU & EQ?  Not enough established credit? 

New Member
Posts: 5
Registered: ‎07-15-2009
0

Re: REFI OR LOAN MODIFICATION

Thank you Shane for you prompt response first a house down the block sold for 395k 4 months ago same size same year no upgrades as ours we spend 50k in renovations new bathroom brand new roof  1800sq feet of bamboo floors ,etc.

My wife and I we booth are in the mortgages.

And for you last question she only gets EX credit score but I will ask her to get the other 2.usually around the same 690 to 710 we will check and post it ASAP

Thank you

 

Moderator Emeritus
Posts: 5,267
Registered: ‎03-18-2008
0

Re: REFI OR LOAN MODIFICATION


FRANKNY wrote:

Thank you Shane for you prompt response first a house down the block sold for 395k 4 months ago same size same year no upgrades as ours we spend 50k in renovations new bathroom brand new roof  1800sq feet of bamboo floors ,etc.

My wife and I we booth are in the mortgages.

And for you last question she only gets EX credit score but I will ask her to get the other 2.usually around the same 690 to 710 we will check and post it ASAP

Thank you

 


 

It sounds possible that you might have 20% equity in your home.  You could do a conventional refinance combining both loans into a single fixed-rate loan at a lower interest rate.

 

With that much equity, loan modification is NOT the way to go.  You'll be told to refinance your loan.

Super Contributor
Posts: 8,360
Registered: ‎09-28-2007
0

Re: REFI OR LOAN MODIFICATION

Yeah it appears that you should have at least SOME equity, perhaps maybe not 20% depending how your home compares to that other one, but since your scores are healthy and you have some equity - refinancing would likely be the better option for you to look into.  Since your loan balances total up to only $361k, and you are in NJ, you should have conventional & FHA as refinance options.
New Contributor
Posts: 51
Registered: ‎03-25-2008
0

Re: REFI OR LOAN MODIFICATION

I went to wells farfo to refinance  and they told me to pay almost 8,000!!! my fico is 660 and i have only one late payment. I almost pay 25% of my loan and they told me that i do not qualify for FHA.
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