We're finally done with our Chapter 13 and I think we are actually not upside down in our mortgage anymore. Originally it was a $258k 80/20 loan with $200k @ 8% and $60k @ 12%. Worst. Loan. Ever. We were idiots to take it, obviously. We were able to include the 2nd mortgage in the bankruptcy as unsecured credit debt since the house was valued so far below the loan value.
So now, I don't actually know our balance on the main mortgage. It was sold from lender to lender over the course of the last 5 years. Currently we are with Nationstar. The treasury website shows the value at $191k which is on the low side for this area. Our credit scores are about 620 across the board. We've got 1 secured credit card for the last year and no other debts besides the current mortgage.
Will it even be possible to do a no-cost refinance? Even dropping down to a 5% rate would save us a lot per month. We're going to my work's credit union next week to discuss getting a car loan because our car is 15 years old with 254k miles on it and on knocking Death's door. We were going to ask about refinancing as well. Any ideas or suggestions are welcome. Thanks!
