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we are refinancing a home for 100% to a new fixed rate, we just have enough equity closing costs. we are getting out of the BS Arm loan. I talked to a mortgage company they pulled my credit showed 671 and income and found my DTI to be at 55%. they then asked for my wife, she has a score of 598 but has a good income. he told me it should not make a diffrence. What type of rate should i expect for a fixed loan. Confused??? PMI too what is that and how much is it a month on a 181k loan. I would like to know these before meeting them tommrow,
thx

1 Thought on refinancing a home?
  1. Reply
    John L
    February 12, 2014 at 4:43 am

    He is completely wrong. Here’s the main issue. Anyone with a credit score less than 620 and requiring mortgage insurance is going to be lumped in with “A-Minus” rates.

    Your mortgage insurance on $ 181k is going to be as much as almost $ 500 per month.

    If just your income brings you in at a 55% “Back End” DTI, meaning total debt plus total mortgage payment, then your loan guy needs to run your loan through the Desktop Underwriter System as a FNMA My Community or a FNMA Flex 100. Your fixed rate will be in the ball park of 6.75% – 7.25%, but it will be fixed. Your mortgage insurance payment because you are above 620 should be no more than $ 144 per month.

    Good job posting here. This loan person should have known this stuff right off the top of his head.

    Visit http://mortgagecounselor.blogspot.com or http://www.johnleblanconline.com for more information to arm yourself with when you go meet him. If you want to email me with specific questions, please do so and then let me know what his face looks like when you start questioning him.

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