help is there anybody that could help us refinance our ist and 2nd mortgage combine even the value is lower?

Deal Score0

credit score is excellent but the house was appraised lower than the total loan combined for refinance. we just want to lower our monthly payment due to pay cuts. current interest on first is 6.75 and the second is 7.5% we would love to find a 5% that would surely cut our monthly payment.

My husband was laid off from his job two days ago. Prior to this, we were considering refinancing (our current mortgage is at 6.625%). I am wondering if this layoff instantly qualifies us for some type of special rate/terms in a refinance or loan modification or if we should just continue with a conventional refinance? We don’t want to miss out on anything that would help us out financially, but we also don’t want to wait on something conventional only for rates to shoot up again.

6 Comments
  1. Reply
    Simpson G
    February 7, 2011 at 7:41 pm

    Doubtful. You aren’t going to be able to open a new loan for more than the collateral (the property/the home) is worth.

    You can certainly call the bank to speak with them about restructuring, but they have no inscentive to make you any kind of deal.

  2. Reply
    Ms L
    February 7, 2011 at 7:56 pm

    A modification is done if at least one person can prove they have a job to repay. Some banks only allow $ 500 to $ 1000 in surplus to qualify for a modification meaning you have to show you can pay something. A modification may take up to a month or two. I have known some to take up to 6 months. In the meantime your mortgage could go into default an start of a foreclosure issue. Doesn’t matter what happen if you have a hardship case but you have to have some type of money coming into the home so that they can adjust your mortgage to what you are bringing home. You will have a pre modification agreement and once you satisfy this you get your modification. A pre modification is three months of a small payment on time.

  3. Reply
    Rush is a band
    February 7, 2011 at 8:46 pm

    The layoff means that you probably no longer have the income to justify a refinance. Don’t be surprised if the re-finance is completely denied now that there is no (or less) income to support it.

    In case you didn’t understand the last paragraph – you will not be able to continue with a conventional refinance unless YOU have enough income to do the whole refinance by yourself.

    Loan modifications are generally only available to people who spend more than 31% of their gross monthly income on their loan payment. In addition, it is often an interest rate reduction only (not a modification of the principal balance). This might be your only hope to reduce your loan payments at this time.

    I hope you have it, but this is why experts say to have 6-12 months of living expenses in savings, because your mortgage payments can come out of savings while he looks for a job.

    good luck!

  4. Reply
    Landlord
    February 7, 2011 at 9:45 pm

    No, the lack of a job would disqualify you from a modification.

    If you have no means to pay the mortgage they really have no choice but to foreclose.

  5. Reply
    Pengy
    February 7, 2011 at 10:27 pm

    If anything it reduces your chances of getting a remortgage because of a lower income to debt ratio. You do have to report this change of income and it is possible because of this you will get denied. (You do not get better terms because you where laid off in fact the mortgage is harder to get)

  6. Reply
    Jdseo
    February 7, 2011 at 11:24 pm

    In a perfect and forgiving world, you would get a discount or some leeway for your mortgage. However, the reality is the opposite. You are now more of a liability to the bank or lender. You have less cash in total, which means it is less likely you will be able to pay your mortgage. In essence, the lender is probably going to deny you the refinance until you and your husband get the same amount of income you had when the original mortgage was offered.

    Leave a reply

    Register New Account
    Reset Password