could i possible do a refinance?
by Mortgage Rates on Tuesday, October 5th, 2010 | 4 Comments
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No lender will lend based on your opinion of your future anticipated “guaranteed” income. It will decide based on your current “permanent” verifiable income.
You are wise to plan ahead for the day you no longer receive the supplemental policy payment. Lenders require the income to be stable and likely to continue for at least 3 years and you clearly meet that standard for both policy income sources. Your numbers indicate your proposed refinance loan would be well below 80% of appraised value so you should have no trouble getting the refinance loan if you decide that is best for you.
I don’t know the rate and terms on your current loan or how long you figure to remain in this home and that would be necessary to make the best call in your case. If refinancing results in a worthwhile rate improvement and you plan to remain in this home for several years the refinance probably makes good sense.
If you already have a good rate and term on your mortgage the HELOC starts making sense. Even though their rates are variable they are available at prime (3.25%) or lower now, which is lower than you would pay for a 30 year mortgage. By your estimates you’ll have $10,000 or more to pay toward other debt in the coming year which could reduce it to the point where the rate won’t matter as much. I don’t see rates going through the roof in the coming 12 months and reducing debt now gives you a better return on your money than keeping it in a bank account.
Justme, if you do your research and continue to be persistent, you just might be able to get your mortgage refinanced. The other thing to do is to also consider other actions you can take to have enough to pay your mortgage as it is before you are on a much more solid financial footing.
Knowledge is power. Here’s an informative article on tips to avoid mortgage defaults, and one of them includes what you are doing–realizing and not ignoring that you have a financial situation in need of assistance:
http://yourhandymanzone.com/Your_Handyman_Zone_How_To_Pages_Real_Estate_Zone_Buying_Your_House_Mortgage_Default_Avoid_Foreclosure.htm
Hope you find this helpful, particularly on how to utilize resources available to get your mortgage refinanced/modified, and that you get through your financial troubles.
Good luck!
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Source(s):
The Internet. Just whatever is available online and what I have on my mind, including the inclusion of relevant sites, like the one cited that came into existence from my efforts, which is intended to be useful. Helping people get the relevant info they want is great.
You cant get Medicaid with that much income !