topic Re: SubPrime Refinance in Mortgage Loans

SubPrime Refinance

Anonymous — Tue, 26 Feb 2008 22:44:01 GMT

I'm sure our problem is not unique. Wife and I built a house Dec 2006. Our credit was less than stellar and we have a 80/20 mortgage with the larger mortgage an ARM set to reset in Jan 09. Considering the housing collapse we have less than a $1000 equity. Would like to refinance before the ARM comes due in Jan. Our credit scores have been going up but still not where we'd like. Any suggestions what we can do to avoid that big payment in January

Re: SubPrime Refinance

Anonymous — Wed, 27 Feb 2008 22:21:52 GMT

*****bump*****

Re: SubPrime Refinance

Anonymous — Thu, 28 Feb 2008 17:06:27 GMT

The short answer is that your lack of equity is a big problem. If you are not in a declining market, there may be a possibility of doing a 100% rate/term refinance. However, you would likely have to come to the table with the closing costs. If you are in a declining market, then you have a bigger problem and will have to come in more money in order to refinance.

Re: SubPrime Refinance

Anonymous — Tue, 04 Mar 2008 03:08:53 GMT

I agree w/ KnoxWimberly in the mean time you should do as much as possible to improve your credit scores and do as much as possible cosmetically to the property w/ out acquring more debt to try and increase the value. With rates where they are right now things could change soon and hopefully property values will start to increase.