Refinance time

[invest1choice]

Okay we are out of BK7 1 Year tommorrow ..
I had our credit pulled and by paying credit cards down in month our scores went up to 624 middle ...
But now what and where should I go ?? I already called my current mortgage company now changed what they said before . Now it will cost $4300 closing fees I think that is a lot of fees to get a 9.0 rate .. I have a arm at 10.5 right now that goes up every 6 months .. So I really have to do something I ma paying 1200 now... any suggestions??

[HHM]

I am not sure what you can do. Regardless of your credit score, you don't leave the sub-prime category for mortgage lending until 2 years after your BK is discharged. With those types of closing costs, you will pay less money overall by continuing in your current loan than re-financing. Also considering, any new loan you get won't be that much better.

Honestly, the least expensive option is for you to stick it out and refi a year from now.

[invest1choice]

that may be what I wind up doing because I do not want to get myself in a mess anymore ... The credit cards are getting paid off we only owe a total of 700 on all three together .. so that is not too bad but still too much .. I am trying to investigate all financial descions witha fine tooth comb .. It is stressfull... But We are doing just fine... Thanks

[FilingOnMyOwn]

Why does it go up every 6 months? Fed rates have been the same for about 8 months now. Your rates should not be going up.

[invest1choice]

It was 7.5 The arm hit as of November 2006 rate went to 10.5 %
next adjustment is in May 2007 it does have a cap of 13.5 % .. It is going by LIBOR rates London orsomething like that.. That is why I am trying to refi.. If I can ..

[HHM]

Since we are looking at a one year timeline from now, the incremental interest increases over the course of a single year are not going to hurt you that much. Also, if you try to refi now, the incremental decrease in interest (because your rate won't go down that much because of your current credit situation) won't save you very much money, and once you factor in closing costs, will cost you more money over the next year.

Thus, I'd wait one more year when your at least beyond that 2 year from discharge window so you can get a refi that will actually save your money.

[invest1choice]

When it goes up to the cap it is going to be around 1500.00 a month . I know I can not afford that it is hard doing 1200.00 .. I do not however want to do something that is going to make a situation worse . Right now Bank of america says they can help it is at underwriting and they will let me know in about 24-72 hrs otherwise our credit union says they can do it too .. We will see what happens I am trying to avoid going to a Broker due to the fees and we are at a 89% ltv right now so not much equity to get hit with fees .. Bank of america says 6.5 % that sounds too good to be true but I will pray and see what happens . But I understand HHM what you are saying..

[HHM]

If you can get 6.5 percent, fixed, that would be a gift and you should probably jump all over it.

[invest1choice]

BOA said they thought they could do it but it ends up NOT... I hate when they say they can but then don't why waste time and credit pulling???
Our Mortgage company can do it but it is 9% 30 year fixed BUT costs are $4500 to do the loan.. However my rate now is 10.5 % and goes up again in May 07 at least it cannot go up past 13.5 % .. My house is most likely going to appraise at 135,000 that is a high guess low 132,000 .. I owe 119,000 pay off so I am at a 89% LTV ...
this does not sound too good It seems I will not really win either way because I could end up upside down in the house.. Or paying high monthly mortgages that I can not really afford ... I will be searching for a loan officer that can really help us our middle score is 624 and we have to go stated due to not having longterm jobs they look for 2 years...So I may stay where I am and even sell possibly .. If I cannot refi . So if anyone knows anyone that can help please let me know .. Thanks ..
I hate getting my hopes up to believe something unrealistic when we are in this position but it is our faults we claimed bk7 so we have to take it as it comes ....

[HHM]

I agree, that loan they are offering is not much of an improvement, and with those closing costs, will cost you more than the incremental increase in interest you will pay between the time your rate goes up in May, to the time that you are 2 years out from your BK.

Hang in there as best you can. and try again when you are 2 years out from your discharge date.

[MTG_BANKER_OH]

BOA said they thought they could do it but it ends up NOT... I hate when they say they can but then don't why waste time and credit pulling???
Our Mortgage company can do it but it is 9% 30 year fixed BUT costs are $4500 to do the loan.. However my rate now is 10.5 % and goes up again in May 07 at least it cannot go up past 13.5 % .. My house is most likely going to appraise at 135,000 that is a high guess low 132,000 .. I owe 119,000 pay off so I am at a 89% LTV ...
this does not sound too good It seems I will not really win either way because I could end up upside down in the house.. Or paying high monthly mortgages that I can not really afford ... I will be searching for a loan officer that can really help us our middle score is 624 and we have to go stated due to not having longterm jobs they look for 2 years...So I may stay where I am and even sell possibly .. If I cannot refi . So if anyone knows anyone that can help please let me know .. Thanks ..
I hate getting my hopes up to believe something unrealistic when we are in this position but it is our faults we claimed bk7 so we have to take it as it comes ....

You should be able to get a decent rate definitley not 9%, i knon wyou do not want to hear it but you probably should apply with a broker. I am even surprised that BOA at first said they would do it and then said they could not. They do not have any programs that will allow for less then 2 years out of BK except for FHA, which is very difficult to get approved less then 2 years. It is going to be tough to get a good deal on a stated product as well. You are going stated because of your job history, it is going to be tough most stated programs want 2 years in the same job or line of work, sometimes with the same employer. You may want to look at a bank statment loan, where you verify your income through deposits on your bank account. It is tough to say one way or another. I thin you can do better then 9% though.

[invest1choice]

Update :
I just put my home on the market and once it sells hopefully we will just Rent for another year which I found a brand new apartment complex for only $700 a month verses the $1200 we are having trouble paying . It is a 3 bed townhome. I know I won't be owning but I think I am making the right decsion beacuse I don't want to wind up foreclosing since we are in this arm and I don't see any other way. So on the market it went as of today. I hope I will not regret this but time will tell ... Thanks for all your help really this is a credit board ...

[HHM]

Good luck. I hope your house sells soon.

[invest1choice]

Thanks I just have to pick an nice area to live in with the best schools in the greenville SC area it is hard I keep getting mis info.. Will keep you posted thanks again ..

[invest1choice]

I have been looking for houses in the area . I hope by waiting to buy two years after BK7 will help the rate I am being offered right now.. So I will wait until Jan 08 to buy a ahome and just rent until then. has anyone applied two years after and found this helps a lot with the rate?? Also is refinancing a home rather than buying one make a difrence? I just found out we have 10,000 equity in our current home we are selling, is that alot of equity ????