Brian, why don’t you share with me your mid score if you have it available as well as your front and back ratios. Also tell me what you are trying to accomplish. I can plug your details into our loan scenario site and see what I can do. Unlike your broker, I am a banker so we keep everything in house and depending on your situation we may be able to help. However, I would need the particulars of your situation before I am able to tell you if we can move forward. There is absolutely no cost to do this for you! You can e-mail me at leonard@eml.cc
Refinancing my personal home-LONG - Posted by Brian W(IL)
Posted by Brian W(IL) on August 20, 2004 at 03:22:50:
I have a question for anyone familiar with refinancing on personal residences. My situation is that I am in the process of a divorce and my wife and I have decided that I would keep the house and would buyout her half of the equity. My current financial situation is my credit score is about mid-600’s and I am considered self-employed(computer work contractor). House situation is FMV approximately $95K-$100K. Mortgage Balance approximately $81K.The problem is that the broker that I’ve been working with told me today that because I’m self-employed, I would have to go stated-income on my loan. She also stated that my debt-to-income ratio was high. She also stated that she could get the loan done, but because of my financial situation she could only do a loan where I would have a higher rate and also by the time they take out closing costs, other fees associated with the refinancing, etc. , there would only be about $2000 left over to pull out as part of the equity to buyout my wife. My question is, would it be worth it to me to do this just to get my wife’s name off the house? Also, is this the only way to do a refinance on your personal home when you are self-employed and have a high debt-income ratio? The broker also mentioned that I could also try to get a HELOC in order to pull more equity out which I would possibly be interested in doing because I do need to get some repairs/updating done on my house if I could. Would this also be a possible option on top of getting the refinancing done? What are typical costs for getting a HELOC? Sorry for this being so long, I just wanted to make sure that I was explaining my situation correctly in order to get good responses.
My attorney told me to just do the refinancing at whatever rate I could, pull out whatever amount of the equity that I could get, give these monies to my wife and then whatever amount I would still owe her as her share of the equity would be given to her through a sort of IOU/Lien against the property. This would then be paid to her whenever I sold the property. Is this the best way to go?
The broker you’re working with must be charging you alot of junk fees. I do loans for people all the time and if they say you would only have 2K left, I have to wonder what they’re charging you. With your scores, you can get up to 95% LTV and still get a good rate. Let me know if I can help.
Brian,
Sorry but I think your attorney’s advice is BS. The net of this is that you’ll be making higher payments blow a bundle on closing costs, and have a pittance to give the ex. Why not just give her a second morgtage and make monthly payments on it to her until she’s paid off. She’ll still be on the mortgage but you’ll have time to work on your credit and maybe get a better refinance deal down the road.
All the best, Lyal