Profile picture for CP77

I have 740 credit score. I would like to drop by mortgage rate by 100bps, but was laid off. advice?

what option are available to me?  I have never missed a payment, and all I want to do is refi to current lower rates.  Is this possible?  
  • March 01 2009 - Murray Hill
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Answers (12)

CP77,

I agree with Sam on this occasion. If all you are really wanting to do is just get into a lower rate, and you're not yet experiencing financial hardships due to the un-employment; I would hit the streets and get back to work as soon as possible. Loan Mods are good; however you still need to show your lender you are going to be able to repay the note. Not being able to provide any paystubs to your current lender will not help you in your modification endeavors.  You'll be eligible for a refi if there is not too great a lapse of unemployment in between jobs.

Regards,

Drew Yoder
  • March 04 2009
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Someone in the household needs to be employed. They do not have to be on the deed. Remember one thing, although a loan modification would help anyone that did it, the bank is there to help themselves. If it is not in the best interest of the bank, they will not approve it. If the bank lowered your payments, interest rate, principle reduction, or forgive missed payment they are only doing it because they win somehow. Most homes are upside down, so it would be better for them to modify than to foreclose. "Depending how upside down you are" I see many people that have great credit, able to make payments, etc... and still want to do a modification. Doesnt work like that. Loan Modifications are meant for people who have real hardships. So even if you have good credit, but lost your job, that could turn into a real hardship, just make sure someone in the household is working, the bank wants to know after they modify that it can be paid for. If no one is employed, hold on for as long as you can, maybe you will get another job in that time. If not the only other alternative is a short sale. Speak to a Local Realtor if you have to. Good Luck and God Bless you in this time.
  • March 04 2009
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By chance, do you currently have an FHA or VA loan? If so, you could streamline refinance.
  • March 04 2009
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Profile picture for Clearpoint
Andrew it's going to be completely insane. 
  • March 02 2009
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People are just funny.....I just can't wait for some of the calls that I will be fielding on the 4th....it should make for some pretty funny stories!
  • March 02 2009
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Profile picture for Clearpoint
What????  So all of you think that having a job or a reliable income stream is not important?  You need to be able to pay your bills with real money.  Unemployment benefits are not enough to qualify someone on, this is just getting ridiculous.  All you should want to do right now is get another job!!!
  • March 02 2009
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Profile picture for nhedges
You may want to look at this, which describes Obama's present plans on loan modification. We will all know for sure on Wednesday....
  • March 02 2009
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Profile picture for CP77
Thank you all for your advice and comments.  This is helpful.
  • March 01 2009
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Profile picture for bollabee
I think this loan modification could still help in your situation if your homes purchase price is not out of range- whatever that range ends up being. I would call your lender and let them know you've been laid off. And see if the March 4th lender incentives payoff.

As reported in the LA Times, “This program applies to borrowers who are unable to make — or are struggling to make — mortgage payments that exceed 38% of their monthly income. If the lender agrees to lower the interest rate or reduce the principal amount to bring the payment to 38% of the borrower's income, the government will pay half of the additional cost to the lender to reduce the payment to 31% of the borrower's income.”

  • March 01 2009
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Profile picture for bollabee

On March 4th there could be some changes made by Obama that would give people a chance to renegotiate their rate to lower it with their lender. There are some criteria that has not been made official yet. But from what I understand, if your having trouble making payments you can do a loan modification. Not sure what the fees will be, but its not an actual refinance. See this blog:

http://www.zillow.com/blog/what-is-a-loan-modification-and-who-qualifies-for-one/2009/02/

  • March 01 2009
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Profile picture for CP77
Interesting.  I purchased my NYC home in 2003, so even in these markets my home is worth almost double my initial purchase price.  However, it appears that bailout money is helping those who do not pay their mortgage, and not helping those struggling to keep up with their payments.

Why would a mortgage bank risk the costly and annoying process of dealing with foreclosure instead of just lowering rates to market pricing?

Are there non-traditional lenders out there that would consider taking my mortgage off of Wells Fargo's books in order to get my fixed income?  Perhaps I can secure a guarantor to cosign on my mortgage?  I'm looking for some non-traditional options here in a non-traditional market.
  • March 01 2009
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It's really not.  Lenders are being very careful lately, and unemployment income will not qualify.  As soon as you have a new job, apply for the refi.
  • March 01 2009
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