Financing in Chicago>Question Details

Nikki, Other/Just Looking in Chicago, IL

Need to refinance w/cash out

Asked by Nikki, Chicago, IL Tue Apr 7, 2009

I am in need of a refinance w/cash out. I don't know who to trust or if I should wait to improve my credit score. My home is worth 130k I currently owe 104k on my loan. I am in an ARM with a 8.65% rate due to adjust again in May. My credit score is in the mid 500's. Please advise if it is wise to refinance now or wait and try to improve my credit score. I was told that an FHA was more suitable for me. Then I also heard that I need at least a 620 to qualify. Please help, any suggestions to reputable lenders would be helpful.

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6
You definitely need to work on improving your credit score, and you should contact your lender to see if you may re-modify the terms of your loan.

Cash-out refinancing opportunities have largely dried up for most conventional lenders; however, all isn't lost. Depending upon what you intend to do, and depending on whether your estimate of the current market price is based upon the results of a recent (within 2 months) inspection, you may have other options: use part of your equity as cross collateral, a floating mortgage with a subordination agreement (which is albeit less common in residential real-estate than in commercial), etc.
0 votes Thank Flag Link Sun Apr 12, 2009
Hi Nikki. You really do need to improve that score. I do work with 1 lender that is still doing sub 620 scores but you have to have a very low DTI and at least 6 months of reserves. Basically, the rest of your file has to be very clean. If you think you might fit this, give me a shout.

http://www.seanccochran.com

630-330-2229

sean cochran
quality mortgage lending
0 votes Thank Flag Link Sat Apr 11, 2009
you need 620 - improve your score. also, fha just announced as of 4/1/9 that their max for cash out is 85% of the value of the property.
0 votes Thank Flag Link Tue Apr 7, 2009
Dear Nikki,

I'd suggest calling either:

Daniel “Dan” Larkin, Senior Mortgage Consultant
Wintrust Mortgage
600 Hart Rd. #115
Barrington, IL 60010
312-952-8068 (C)
847-277-1781 (off)
847-620-2591 (f)
dlarkin@wintrustmortgage.com

Jae McPherson
Chicago Bancorp
1555 Naperville-Wheaton Rd.
Naperville, IL 60563
630-388-1300 x 253 (off)
312-212-5473 (f)
312-617-1723 (C)
jae@chicagobancorp.com.

Either one of them should be able to help you with getting your scores improved and getting refinanced out of your current loan if possible. Good luck.

Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
christopher.thomas@sothebysrealty.com
http://www.myagentchris.com
0 votes Thank Flag Link Tue Apr 7, 2009
Nikki, You can also call your current lender and ask them for help with restructuring your loan. They will ask you for all types of paperwork, income, expenses etc. Some lenders are having home mortgage counseling seminars you might ask about that as well. Here is a site that offers useful information and other links. I would start here so you know what to ask. HUD is a great resource for informing buyers/consumers. Good Luck Nikki. Cindy Vedder, Prudential California Realty
http://www.hud.gov/news/release.cfm?content=pr07-105.cfm
0 votes Thank Flag Link Tue Apr 7, 2009
As for waiting to raise your credit score, I would definitely suggest you do that. One way to quickly raise your score is to pay off some of the smaller debt that you have on your credit report, if any, and ask for a rescore. You can also call the credit agency and get them to call all the creditors and they have 30 days to get back to them concerning your payment. Usually if they don't hear from the creditor, their claim drops off. If you have any further questions, I can direct you to my mortgage partner. She would be able to go more in depth that I could on this subject.

The quicker you resolve the credit the better your interest rate will be. You will not be able to do ANYTHING unless your credit score is at least 620.
0 votes Thank Flag Link Tue Apr 7, 2009
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