home refinance- self employed single mom?
I am interested in refinancing my home . I am a single mother so just one income, I am a hairstylist and also self employed. I just pay rent and run a one man salon. I purchased my first home in July in Texas. I had a hard time getting the loan because well first of all I dealt with a broker who completely messed up my loan. I went into the process with the idea that if icouldn't purchase a home under the conditions I wanted then it wasn't the right time for me. Well day of closing, he needed five thousand more down and i also had the pmi i didn't want. Anyways, he said that at the last minute he had to go with stated income loan because the lender doesn't go by what you claim on income tax. it goes by what you claim after deductions. Well, i would like to refinance to get a lower rate and get rid of pmi. My appraisal was 142,000.00 and I financed $119,000.00 and have since made several improvments. I am just wondering if i can even get refinanced or is it going to be this hard again?
I have good credit and bank statments. Current interest rate is 6.875%
i have a fixed rate for 30 years. I know that if i pay more towards principal that i will pay it off sonner but the whole idea of refinancing is to LOWER my monthly payments. I was put in a loan like i said that were not on the terms i wanted and it is a little tighter of a situation than i wanted, i am happy to even have a loan but one could only want better.
- solomonLv 61 decade agoBest answer
I have done real estate, and I can tell you ,I see 8% mortgages right now , and the market is such that the banks are VERY selective of how much and who they loan their money to at this time..The housing market is in crisis, and you are lucky to have your loan you have.. And your loan, only if you have a fixed rate, is the kind of loan the banks DON'T want to take on.. If you have an A R M adjustable rate mortgage.. ,you haven't got much!! Because in time those rates will go up and drive you right out of your house.. Plus, if you re-finance, there will be closing costs, points, and with the value of your property to ratio of debt, its not a disirable loan that banks are looking for..If it were me, I'd stay put, pay on the loan for a couple of years, and when the housing market gets better, (2years from now) you'll have a two year additional payment history, and rates I guarantee you will be in a more realistic state,,and then you can look around for a good re-finance with a FIXED 30year mortgage..Another thing you can do to reduce your debt is pay and extra bit on your monthly payment.. Look at your payment ,see whats interest, and what goes on the principal every month.. If you can pay extra what goes on the principal every month,,you can save all the interest you pay each month and it reduces your payments toward the house by one month.. Good Luck! SOLOMON
- psi2006Lv 41 decade ago
If you have good credit you should be able to go to any bank.
Tell them up front that you need to know exactly what you're getting and no last minute changes. The lender you are presently paying may refi for a small charge. I'd start there.
- keshequa87Lv 61 decade ago
My advice would be to speak to reputable local lenders. Stay away from Internet companies with whom you have little to no recourse if something goes wrong. Also stay away from mortgage brokers. Talk to your local banks, real people who are working for you and not a commission. Good luck.
- 1 decade ago
You need to contact Fairway Independent Mortgage. This company has some of its corporate headquarters, but it has branches all over. Go to www.triadfairwaymc.com
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- s and d eLv 71 decade ago
ck out this website: www.daveramsey.com--it's free. he tells you about finding a mortage company that does manual underwriting--means they will look at all the factors, not just a credit score. you'll probably be able to get re-financed fairly easy, just shop around and make them fight over the best rate. good luck