Refinance w/ High Debt Levels
Hi - here is my situation, would appreciate any advice:- Virginia home valued $700 to $725k- 1st mortgage = $565k, 6.125% 30year fixed (BOA)- 2nd LOC = $40k, 9.95% (also BOA)- Wife lost her job a couple years ago, made mistake of living off credit cards too long... now debt/income ratio over 60%- Credit score is ~680 (all because of debt levels.. Never missed a payment on anything, etc.)We're trying to pay down our debts, get things back in order, and if we could save $1000+ a month on mortgage payment, we could pay down debts faster...Have tried several banks, all turned us down because of credit score/debt levels.Any advice? Last broker told us that we do not qualify for a "conforming" mortgage because our ratio was too high...Thanks for any assistance.... by bennyudaboy from Virginia Beach, Virginia. Apr 25th 2011
Chris Gummerson (cgummerson11)
#397 ranked lender in California - 648 contributions
Hello, It gets tough and confusing to obtain a loan in your situation. You obviously would save money by consolidating the 1st and 2nd mortgage, but lenders only look at the ratio. Are you currently at 60%DTI or is that the new calculation on your new refi? If so, try to work on your debts. Some lenders can go to 50%, some a tad higher to 55 if your lucky. Your best bet is to try an offset your DTI. If they are all credit cards, try to get one that is 0% interest for so many months. Then your payments will be less. Try to get your insurance lowered on your home. Sell one of the cars that is financed. There are things that can be done in your scenario. Is your wife currently still not working. If she was working, would your DTI be inline? Feel free to contact me off my page if you would like some more information. Thank you and good luck!
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