Hello,
My girlfriend and I have been looking to refinance for quite awhile now and have been having difficulty. Our house value has dropped about 30% since we bought and neither of our loans are backed by Freddie/Fannie so we are not eligible for most of the current plans out there. What other options (if any) do we have?
Here is an outline of our situation:
We have an 80/20 split. Original mortgage loan amount was $305k.
The first loan is $244k 30-year fixed at 6.375%. Formerly through Countrywide, now through BofA, we currently owe $219k.
The second loan is $61k 15-year balloon at 7.625% through Citimortgage and we currently owe $46k.
Our remaining balance is approximately $265k, with 24 years left on the first and 9 left on the second (before the balloon payment). We tried to refinance to an FHA about 18 months ago and we were all set, but the final appraisal did not come in high enough (needed $250k, but it came back at $240k, killing our deal). Out goal is to refinance into a single loan at a lower rate.
We both make a comfortable amount of money, neither of us have any outstanding debts, both our credit records are spotless and both of our scores are fantastic (at last check, I was at 790 and my girlfriend was at 819). We both have reasonable savings nest eggs and 401ks. We have never been late on a payment and we actually put an extra 10% towards our outstanding principle every month.
We are looking for a straight up refinance, not a modification, but not sure if that is possible. We just want to secure a fixed low rate mortgage while the rates are low. We are willing to pay down a chunk (maybe up to $20k) of the current principle if it means we can refinance, but even if we did that, I am not sure if that would be enough to get a new loan.
Does anyone have any input that might help us? Or particular lenders we should talk to?
Thanks, any input would be greatly appreciated.
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