refi a ballon

[Zahnrosen]

Hey, I bought my first place, a townhouse (appraised at $85k, I owe $62k). I've got until 5\2014 to complete this or the baloon will come due. Im at 665 (exp) 651( equi) and 656 (tu) according to myfico.com. My DTI is around 26% currently with an income of $92.5k combined between my wife and I. I'm scheduled for a raise in the next month or two that *should* raise that by about 15K annual to 107.5k income which, if it comes through, would lower my DTI to 22%. We'll see about all that though.

Where is the easiest place to get a refinance?

[Zahnrosen]

Oh, and if I refi'ed my monthly payment will go down about 40% which should lower my DTI to about 23% (or 20% if I get that raise. The reason is the current balloon is 7.5% for 20 years and I'd expect to refi into a 30 year fixed at ~3.5%.

[pdog661]

What is your house wroth? 

[Zahnrosen]

I haven't had a recent appraisal but it's in the $80-85k range based on what's similiar places are selling for in my neighborhood.

[tooleman694]

If I were you I would do a limited cash out 15 year conventional refi.

[Zahnrosen]

I'm not very familiar with mortgages, why would that be a good choice? Thanks for the explanation!

[Zahnrosen]

So... What should I do here?

[Homeowner13]

Zahnrosen I don't know what you did but I assume making 100k a year you should have been over paying each month to raise your equity! With a payment in the 500-600 dollar range you should be living more with in your ability and pay that sucker off in less than 10 years by adding $500 extra each month! If I were a bank I would be asking where all the money is going? 23% with your loan is more then easy enough to have extra disposal income if you are not blowing it all. To answer your question I would start with local banks, they are more likely to consider your outside situations.

[DallasLoanGuy]

---

@Homeowner13 wrote:
Zahnrosen I don't know what you did but I assume making 100k a year you should have been over paying each month to raise your equity! With a payment in the 500-600 dollar range you should be living more with in your ability and pay that sucker off in less than 10 years by adding $500 extra each month! If I were a bank I would be asking where all the money is going? <= that is why you arent a bank.... because this has NOTHING to do with the question asked... AND has no bearing whatsoever on getting a mortgage. 23% with your loan is more then easy enough to have extra disposal income if you are not blowing it all. To answer your question I would start with local banks, they are more likely to consider your outside situations.

---

[DallasLoanGuy]

---

@Zahnrosen wrote:


Where is the easiest place to get a refinance?

---

pretty low loan amount. borderline for some lenders.

ask current lender to refi?

go to a bank/credit union?

ask friends/relatives/coworkers for a referral to a lender they liked?