Financing in Plainfield>Question Details

L Matthew Pe…, Home Buyer in New Jersey

Looking for help with a Refi

Asked by L Matthew Perry, New Jersey Thu Jan 27, 2011

Hi All, I am a current looking to refi and do a cash out to pay off my credit card debt. I currently have a first and second that total about $445K. Last time the house appraised, it was worth $535K. I remodelled the kitchen and extended the house since then, but6 who knows what it will go for today. I am in the state of NJ. Looking to pull about $60k out to clear all my debt. I make around $250K annually and have a credit score between 650-675 (I lost my job a couple years ago and struggled. But was never late on my mortgage). I realize I need a bank that is willing to do this deal with a pretty high LTV. And thoughts on who can help me?

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@KNBrennan... thanks for repeating the same info. I told Matthew the same, that you could get 10 people and 7 might tell you the same answer, but that still doesn't mean it's correct, not today.. maybe 3 years ago... then again, it was still bad in regards to answers that loan officers would give.

Matthew.. I will try calling you soon. If you get this before my phone call, please call me.

thanks,
jeff
1 vote Thank Flag Link Thu Jan 27, 2011
jeff,
I agree 100% with what you are stating. Youa re right on point with your guidelines for cash out. I would have to include the 2nd in CLTV limits and would not any room for an exception on a cash-out.
I informed Mathew to be leary because I lose clients from time to time that are promised a loan that never materializes- that the guidelines are exactly as I said they would be - as i am sure you do too.

My advice to Mathew would be to listen to you. But if he wants to explore the other higher LTV option, advise him to submit for an upfront underwriting approval before ordering appraisal or paying any fees. If it doesn't work out he only loses some of his time.
1 vote Thank Flag Link Thu Jan 27, 2011
L Mathew,
Jeff''s responses are right on point with the lending guidelines and the available loan programs. You may have a broker or lender promising to get you more cash out, but in the end you will be restricted to 85% cash out. I do not lend in NJ - I highly suggest you call Jeff. He seems to know his lending guidelines well and is willing to tell you truth about what can and cannot be done for you.
1 vote Thank Flag Link Thu Jan 27, 2011
L. Matthew...

Okay.. but again, you will still have cash-out issues... are you a Veteran? If not, the max cash-out would be 85% of the value of your home. There would be no other way to get more.. not even a home equity line with those credit scores.

If you have any other questions and or just want to talk about this, you can reach me on my cell @ 609-440-5133 or e-mail : jbelonger@ihmci.com

thanks,
jeff
1 vote Thank Flag Link Thu Jan 27, 2011
Matthew... are you still currently unemploed? If so, you could only do a no doc loan and would need 20% equity, especially with those scores. So with what you have said, and not employed, it won't happen and I would hate to see you waste your time. Do you have a spouse? Can you get someone to co-sign? The problem with that is you would only be able to do up to 85% cash-out... That is something else I just thought about... there is no program going above 85% of the value of your house for cash-out.


Thanks,
jeff
1 vote Thank Flag Link Thu Jan 27, 2011
Hello
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0 votes Thank Flag Link Wed Feb 23, 2011
Thank you all for the great advice!
0 votes Thank Flag Link Thu Jan 27, 2011
Matthew...
Here is the answer to your situation... The cash out ltv and cltv for fha is 85%. The conventional cash out limit is 75 or 80 depending on fico and cltv same. This was all changed a year ago or so...

@ KM Brennan... Mathew actually called me and told me that he spoke with a lender, a 'direct lender'.. lol Who said they could do this. Again, Matthew has a 1st and a 2nd, the 2nd being a HELOC and the lender is willing to subordinate the 2nd. For cash-outs, the CLTV is maxed with the LTV limits... do you agree or not? I am only saying this because I don't know it all.. but now Matthew has a loan officer telling him this could be done. Looking for other insight.. and thanks for the kind words.

Jeff
0 votes Thank Flag Link Thu Jan 27, 2011
All,

I have a new twist to my scenario above. Wells Fargo is willing to stay Subordinate on their line of equity, which means I am only looking to refinance $391K (1st mort balance) + around $60K cash out. I believe with a valuation of around $525K, that gets me to 85% LTV on the new loan. Does this help?
0 votes Thank Flag Link Thu Jan 27, 2011
Hello L, Wish you well with your refi. Would recommend Victor Diaz of Wells Fargo as an extremely competent Mortgage Broker. victor.diaz@wellsfargo.co - Cell (845 742-9974). Hard worker and very knowledgeable of your market. Good Luck, Allan
0 votes Thank Flag Link Thu Jan 27, 2011
I am working now. I have been working for the past two years since I was laid off. I make about $250k a yr.
0 votes Thank Flag Link Thu Jan 27, 2011
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