We Dont Qualify to refinance our house???

SaraLee2002
Contributions:5

We bought our house in june 2008. our loan was for 122,000 for a 2 bd 1 bth house with a large yard (0.25/acre) we are not behind on our payments and both my husband and I have jobs at the moment- but with a baby times are rough...I wanted to stay home with the baby but due to our debt i could not..... our house is appraised by zillow at 77k at the moment.... i would like to know if there is anything i can do to lower our payments... id like to save more money to actually expand our house. anyone have any ideas? Thanks in advance!

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December 07 2011 - Barrio Centro

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Answers (7)

Norm D Plume, "Coolidge or Chaos"
Contributions:2312

The problem is lenders won't be able to determine what rates they need to charge until February.

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not true. the HARP-2 pricing has already started. (and some of us have already started taking applications for it)

https://www.efanniemae.com/sf/refmaterials/llpa/pdf/llpamatrixrefi.pdf

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December 21 2011

Susan Lehmkuhl, "KUHLteam"
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Contributions:61

You need to speak to a qualified loan officer to find out if you would be able to refinance. You can also speak to whatever service provider currently manages your mortgage to see if they would do any sort of modification, but I suggest speaking to a loan officer first. Get an idea of whether you could refi or not. You can also speak to a realtor to find out what they value your home at. While Zillow generally does a good job, they aren't always spot on.

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December 21 2011

SaraLee2002
Contributions:5

Thanks for all the answers! unfortunatly we are not under freddy mac/fannie mae... we got a conventional loan and our interest rate was 5.5% our current balance is at 113, 297 that is from 122k in 2008 (we pay $420 automatically Bi-weekly. $840 a month) Wells Fargo is the one who owns it... i tried to find out who really owns it and they "couldnt tell me" they deal with that whole problem. My dad keeps pressuring me to find out if i qualify for any new programs and if i dont he wants me to walk from the property..stop paying and let it go into foreclosure.... and he would help get another house.. i would hate to do that since both our credit scores are excellent... i hope this is more helpful info..thanks again in advance

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December 08 2011

Justin Coleman, "UtahLoanProfessional"
- (6 reviews)
Contributions:82

There are many loan programs available to help you but it all depends on your loan type:

When you purchased your home did you use FHA financing or was it traditional conventional financing? How much did you put down on the home? What is your current interest rate?

Once I know the answers to these questions I can certainly advise you on what you should be doing - do not seek a loan modification until the last resort.

If you would like to speak in more depth about your specific situation, please do reach out.

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December 08 2011

Geofrey Merino, "GMerino"
- (20 reviews)
Contributions:741

Thank you for posting a question here on zillow. These would be my questions to you.
1. Is this a fannie mae loan or a freddie mac loan
2. Is it an FHA loan

You may look up if the loans would qualify under the HARP program on the fannie mae/freddie mac home tool lookup.

If they are not either one of these loans the next best thing to do is contact your current lender to discuss loan modifications options for you. Many people have taken advantage of such programs. Please reach out to me by clicking on my profile to discuss further options.

Thank you.

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December 07 2011

Spirit Messingham, "TucsonSpirit"
- (73 reviews)
Contributions:1550

Couple of things, Zillow's "Zestimate" is not a fact. It is more like a ball park guess to be honest with you, the value they give your property is NOT what it is worth. Instead, talk with a local Realtor and ask for a CMA. See how is compares with recent solds & they can give you a value. If you are close, talk with a local lender. I recommend Nova Home Loans. They will walk you through it all, it is not just you, your FICO scores and etc buy more importantly in this market the loan to value. Your house needs to appraise for $X amount or you can't refinance. Don't feel bad, it is estimated as much as 70% of Americans are "upside" in their house, meaning they could not refinance either.
Talk with a local lender and see what they can do, there are many options for you. Just dont think that the process begins and ends with the Zillow Zestimate. As a Realtor I know first hand the values are all over the place and are not accurate or up to date.
Best of luck.
Spirit

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December 07 2011

Bob Willett, "SacRELender"
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Contributions:202

If you had a $122,000 loan in 2008 you probably still owe over $115,000 – probably close to $117,000. Depending on who owns your loan, you may have some options, but you may have to wait a few months. The new HARP guidelines are out which do allow for Fannie Mae and Freddie Mac loans to be refinanced even if the loan-to-value is over 125%. The problem is lenders won't be able to determine what rates they need to charge until February. Then it won't be until mid-March until the computerized underwriting program will be updated so that all lenders can assist you.

What I would suggest right now is that you do two things: 1) Contact your current lender and find out what they can offer, who owns your loan, and if they will be able to help you come February if they can't do anything now. 2) Look for a local housing counselor and see if there is anything they can suggest. Be sure that they are HUD approved.