This topic contains 8 replies, has 6 voices, and was last updated by Anonymous 7 years, 8 months ago.
- May 4, 2011 at 4:53 am #425723
You may see some online loan sites advertised.
Be aware that these are scams.
- May 4, 2011 at 5:08 am #425724
You are an unlikely candidate for any refinancing from any credible institution. Beware of anyone promising you access to refinancing. Since many, many unqualified borrowers took out loans they could not afford, then lenders have tightened their rules for financing. If you find someone to refinance your loan, beware of what they are trying to do to you and your mortgage.Tou have to realize that you are not a qualified borrower for any refinancing.
- May 4, 2011 at 5:50 am #425725
What is it that you need to accomplish with your refinance? Cash out for paying off debt or to just get a lower rate and payment.
If you can prove 2 hardships, for instance loss of income or wages cut, medical problems, loss of partner income, there is a long list, you may qualify for a mortgage loan modification. While it can be a hassle, many people have succeeded in getting there monthly payments lowered, principal cut, rates lowered, to bring there payments down to or below 31% of your gross monthly income.
I would first try your current lender/bank who is servicing your note, and if they give you too difficult of a time, there are attorneys that work on your behalf to provide pressure on the banks you may not know about.
In today’s mortgage market, your file is looked at with 3 sets of eyes. Credit, have you demonstrated the ability to make your obligations, debt to income, how much are your gross household earnings or anyone that is applying for the loan, and Equity position, what is your home worth compared to the amount you owe or want to borrow.
If you purchased the home in 2008, depending where your at, you shouldnt have been affected too severely by the housing downturn, it may seem like income and credit are your problems.
Todays average bank or lending institution are requiring a minimum 640 – 660 credit score, no exceptions for money saved or payment history of the mortgage itself. Depending on what exactly your debt to income level is though that alot of lenders will look at differently depending on compensating factors. Compensating factors are things like savings, current and past mortgage and rent history, extensive job time with the same employer, and even in sum financing types like FHA, non occupying family members as a crutch. (Non occupant co borrowers cannot be used on a cash out refinance)
When determining your debt to income percentage, you will make a list of all payments reporting to your credit report (credit cards, lines of credit, mortgages, car notes and leases, recreational vehicle payments, student loans, child support, alimony, Property Taxes, Insurance, 401k repayment plans through payroll, etc.) and add them up. You dont want to include items like car insurance, health clubs, utilities (that dont report to credit) child care expenses, and cell phone or home phone services. You will then divide that number into your gross monthly income. Your gross income can be calculated by salary which is easy, or by dividing your current YTD gross income into however many weeks we are into the year. This is if you are paid on a weekly basis. There are several ways to calculate income, most difficult is for self-employed so you have a question regarding that, feel free to let me know.
I hope this helps
- May 4, 2011 at 6:23 am #425726
Unfortunately most of the web sites on the internet that offer debt relief are scams.I can suggest you one of them that really works… no doubt.
They helped me to save more than 30% …
If you are serious about that, Go to
Hope that will help
- May 5, 2011 at 3:59 am #202789
It will take years? I have paid off all my debts my credit score is 539 or something close to that i cant remember, but it did say that that meant poor not very poor. Now that its gone, I have to wait 7 years to the day that it went bad, to get the score back up? Is that what Im reading? That will take forever. There has to be a better way. If I ask my grandmother who has perfect credit to put my name on her cards as a user, will her credit history rub off on mines? Is that gonna be faster? If my score is so low will I be able to qualify for a new card on my own?
- May 6, 2011 at 11:59 pm #265245
no thats only oustanding debt and negative comments that sticks around that long, your score should go up slow and steady from here out. i fixed my fiancees in 2 years he went from 530- 620 so its possible
- May 8, 2011 at 11:20 pm #268553
congratulations you are debt free. what is the big rush to get back into debt. for once why don’t really start saving and along the way pick up a credit and use it as a debit card — other words pay off complete balance each month. it may seem forever but your credit score will start going back up.
- May 11, 2011 at 2:26 am #271916
No it doesn’t take 7 years. That is the length of time a bankruptcy stays on your record. If you now use your credit wisely, pay your bills on time then your score will begin to rise almost immediately. You will probably start getting credit card offers as soon as you’ve paid them off. Be cautious, it is OK to take one or two but never use more than 30% of the available credit. You will be surprised at how quickly your credit score begins to improve.
- May 26, 2011 at 7:48 pm #284149
If your Grandmother makes you a co-signer or joint user it will help your credit a lot if her credit is as you say.
If she makes you a authorized user it will be a waste of time since in September the way FICO calculates credit scores is going to change so that authorized users no longer get additional points.
Other then that, you can use your own credit cards to raise your score. Use them for everyday things like gas and food being careful never to exceed 30% of your credit limit in any given month and pay them off in full before the due date.
This will do two things, first it will establish a payment history and second it will keep your debt ot credit ratio low. These two things alone make up 65% of your credit score.
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