Refinance Guidance

[mikemess]

Hi,
My names Mike. I hope to find some refinance help here. Was reading some of the posts and everyone seems very helpful.

Heres my story. I currently have a 30 yr fixed rate loan from Wells Fargo @ 5.875%. We bought the home for $445K and owe about $339k on the loan. I attempted to refinance about 2 months ago and everything was going well until the appraiser came. He appraised the home at $401k and basically derailed the whole process. Had everything gone well I would have gotten my rate down to about 4.25% and saved myself a couple hundred $ a month in payments.

The new rate is a bit higher then normal due to my credit rating. Had a great credit score but then my wife was out of work for a bit and credit card debt ran up. We owe about $50k and that killed my cedit score.

Took some time to get over the stress of basically failing the whole refinance process. I called Wells Fargo this morning to inquire about a HARP refinance. Unfortunately I don't qualify because our loan was established in August 2009. I had refinanced then because I was able to shave 1% off my rate. So I miss the HARP cutoff of June 2009.

Where do I turn to now? Don't have the cash to lay out for closing costs so I was going to roll them into the loan. Overall I am looking to save my self a few hundred a month if possible and start putting that extra cash towards paying off debt.

[Evan Bedard]

Where do I turn to now? Don't have the cash to lay out for closing costs so I was going to roll them into the loan. Overall I am looking to save my self a few hundred a month if possible and start putting that extra cash towards paying off debt.

Welcome and thanks for joining the community.

Since you do have some equity a regular refinance will be possible once you are able to rebuild your credit rating. But have you taken care of your credit card situation?

Other than a refinance the only option to lower your mortgage payments may be through a loan modification, but with this you must be able to demonstrate a financial hardship that is making your current payments unaffordable..