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Refinancing Help

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Anonymous
Not applicable

Refinancing Help

My fiance and I are trying to refinance our mortage. 

 

2 years ago we purchased a HUD home and instantly had 50,000 in equity.  Since the housing decline we still have 30,000 in equity according to zwillow.com. 

 

My fiance lost his job and is on unemployment and our mortage is set to adjust in June.  We have never been late on any payments to anyone in over three years and my credit scores are TU 665, EXP 681, Equ 682. 

 

I currently make 48,000 not including bonus and our current mortage debt is 230,000.  My other shared debt is about 1,000. 

 

I want to find the very best lender for my circumstance and have my credit ran few times as possible.  Where would you direct us?  Since he is on unemployment is his income not allowed?  Our taxes from last year showed a total income of 120,000 but that is not the case this year.  Any help you can give is greatly appreciated.

Message 1 of 3
2 REPLIES 2
fused
Moderator Emeritus

Re: Refinancing Help

Welcome the forums!

 

I'm sorry to here about your misfortunes. This site has a mortgage forum, so I will move your thread over there. Best wishes to the two of you.

Message 2 of 3
Anonymous
Not applicable

Re: Refinancing Help

A couple things..

 

Zillow is not at all accurate as far as house pricing goes and current values.  Check the local real estate sections for comparable houses and then subtract about 5-10% of what the listing prices are.  Most houses are either selling 5-10 % under list or are giving concessions such as clsoing costs, etc to get the deal done that equate to the same amount.

 

Second, it will be tough to get a refi without your husband having a job.  I do not believe he can count unemployment and your debt will be too high to go it on your own more than likely.  at 48K per year that leaves you with 1720 per month for 43% DTI purposes.  Minus out the 1K in debt and you would only qualify for 720 on your own.  They may allow you to go a little higher since you have equity and a 680+ midscore, but I doubt they will let you go above 50% DTI and that would still not give you enough room. 

 

The good news is that rates are fairly low, so have you actually checked to see if your rate is going to adjust up or is it going to stay roughly the same as it is? 

Message 3 of 3
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