Financing in 94123>Question Details

Foo1, Home Buyer in San Francisco, CA

Refinance a First - Credit Market - Will this Limit Me?

Asked by Foo1, San Francisco, CA Sun Mar 16, 2008

With the current loan crisis is it hard to refinance a first mortgage? I have a first at $650k, interest only- my credit is 750.

I have owned for three years and my unit has appreciated.

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I have found lenders to be extremely stringent on their willingness to lend money for all sorts of reasons. Your FICO is great and should not pose a problem. What will be examined in great detail is the value of your home in relation to your current mortgage. Best case scenario is to have a 80% loan to value ratio or better. If your interest rate is 7% or greater and you have plenty of equity in your home then a refinance would be suggested. You may want to get a move on though because property values in many areas of California are sliding as we speak. Lock into a 30 year fixed loan, fully amortized and stay put for awhile. Good luck.
1 vote Thank Flag Link Tue Mar 18, 2008
It has become difficult for some people in worse situations that you seem to be in. You have good credit and your condo has appreciated, if you can go full doc then you could even go FHA now, however I'm from Santa Cruz and know that it's not easy to make 30 year fixed mortgage payments on a 650K loan. It's also not easy having a DTI ratio under 55% with fully amortized payments on a 650K loan. We still have stated income loans available for fico's 680+. I would like to know what your LTV is. If your 80% or under then your looking at a good jumbo scenario.
0 votes Thank Flag Link Tue Mar 18, 2008
While I don't know what your LTV(loan to value) is, it "shouldn't" be hard to refinance with your credit score. You haven't mentioned if you want a cash-out refi, or a rate and term. If you have any questions, let me know: darryl@usamortgageresource.com
0 votes Thank Flag Link Sun Mar 16, 2008
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