REPOST-NEED ADVICE ASAP!! Refinance or sell???

[Anonymous]

I posted this earlier today but maybe in wrong forum. I need some advice refinance maybe into one loan if possible or just sell. Both loans are fixed 80% at 6.0 and 20% 9.75 different mortgage companies. Who could I start with first to maybe refi? Would I be cosnidered prime now? Need help!!!!!!

I wlll keep this short. I need some advice on what to do or what not to do. Here is my situation:

Scores: tu 623, ex 683, and ex 665. I am looking to possibly refi my 80/20 loan. I pay appro. 1230 per month on a townhouse that I purchased 11 months ago. At that time scores were in 720 range.  Scores Have taken a sign. hit this year- i guess due to my debt to income ratio. Other info: no baddies, no derog, etc. clean history with no bruises excpet for inquir. this past year after purchase. For whatever reason, I applied for every loan/ credit card I could think of. Long story but have learned the errors of my ways. Also I have 19,500 in revolving credit which is managed by debt management program and 75,800 in install. loans(school, car, personal loan) Yes, I know it looks bad- makes me sick to my stomach really. But I have made this mess and intend to clean it up.  I Just increase payment on DMP so will be done in 25 months and car will be done in about 30 months.  

My questions: sell townhouse and look for a cheaper place to live? Could I combine both loans for one payment? I really have alot of anxiety about my finan. future. I am only 29 and I don't think I handle any more. I am in over my hand. Thankfully I have a great job that pays well. Never been late and somehow manage to make it- just barely though. ANY thoughts, ideas are appreciated. Thanks

[Anonymous]

6% for (most of) your mortgage is a pretty decent rate IMO, and 9.75 isn't that bad for a secondary loan.  Are you looking to sell/refinance because you're in over your head?

With the drop in your credit scores and increased mortgage scrutiny these days, I'm not sure you'd be able to qualify for a better rate than the one you currently have if you're looking for 100% financing...  Some of the mortgage people around here will be able to address that aspect better than I could.

As far as your other debt, it sounds like you've taken some very positive steps with the debt management program and increased payments.  If you're able to make ends meet on top of the increased payments, you're doing great. 

With that being said... what is your biggest concern financially?

Message Edited by smlala on 11-05-2007 10:04 PM

[Anonymous]

Hello loveit,

It's good that you have learnt from your mistakes. We all commit mistakes but the best thing is to learn from them and act accordingly.

You can possibly refinance both the loans into a single loan. But for that you need to shop around a bit with a number of lenders. Loan shopping will help you find out what lenders are willing to offer you – the loan amount (that’s important here as it's an 80-20 loan), the mortgage rate and the closing costs. Then compare the monthly payments and the costs and check out which lender requires you to pay the least. Also, enquire about his service background.

Your scores may not be that good but they aren’t too bad either. You will possibly be considered as a prime borrower considering your Equifax and Experian scores. This however, will depend upon the lender with whom you are dealing.

One more thing, if at all you don't get a suitable loan offer (though I don't think that's going to happen), only then it makes sense to sell the home and live in a cheaper place.

All the best

[Anonymous]

As far as refinancing goes, you'll most likely not find a much better deal than you have now. I would not sell the house. The house slowly makes money. Sell your car. The car eats money.