I strongly agree with Sheri Sanders, after all...do you ask your transmission guy to help you with your body work? It may be more worth while to contact a real estate attorney, who will not make any more or less money if you take out a mortgage or not, my gut feeling is that the attorney will be a flat rate....that could save you $1000's of dollars in the end.

Best of luck,

You should definitely refinance not apply for another loan. And also it is great to always be able to pay on time but remember that if you pay one extra payment a year for a 30 year mortgage it will take 7 years off of your mortgage and for 15 year mortgage will take 3 years off.

Please talk with a Lender of your choice and review your options. If you need references, please let me know.

Norlynn,

Since you already own title to your home, you should apply for a refinance. It is great that you were able to put $20,000 down and have payed on time....but it has not been reported to the credit agencies (more than likely) since it was owner financed.

An FHA re-fi would probably be your best bet, but I am no mortgage broker.

We are very lucky in SC that our homes are still holding value, as we are not a boom market in most places.

With your LTV (Loan to Value), I would believe that someone would allow a refinance, even with scores in the low 600's. That is not a bad credit score...there are far worse ones to have.

N. Hunter Jackson
http://www.IBlogColumbia.com

Norlynn,
With low 600 credit score your rate will not be very competitive. However, what does your contract with the previous sellers stipulate? Do you have to get your own loan after 1 year? If not, I would continue making payments on time for another 6 months or so and then check your credit score. If you can get your score closer to 700 you will have a much better rate.
Vickie Gutierrez
Century 21 Alliance