Countrywide won’t help me refinance even with good credit. Shoud I refi into an interest only?
I have excellent credit (FICO 780), good job, and have little debt (mortgage, 1 car payment, 1 credit card).
About 16 months ago, I put 20% down and got a 6.25% interest rate on my current home. The house was brand new and the Builder paid the first property tax installment – which threw me off in terms of how much the property tax was going to be. Well, my monthly payment just went up by over $400 (I impound prop taxes and insurance).
Bottom line, I may relocate for more pay and may want to rent my house…..but I need to lower the monthly mortgage in order to rent it out without being in the negative.
Is it smart to refi my current loan (fixed 6.25% with no PMI) to an 80/20 or interest only loan? This would get my payments down as well as expedite the reassessment of my property taxes. That way I could possibly rent it for what the cost of the monthly payment would be?
Thanks for your help.
Thanks for the advice
You are looking at it the correct way I would think. You should refinance the home into a 5 year fix interest only and get the interest rate under 6%. I have a friend that I know could get the loan done for you, I am sure. Countrywide has various issues they are dealing with like many lenders do currently. My friend has access to some great programs besides the ones banks use and I know he could help you out. You should shoot him an email. Mike@afbankloans.com
Good Luck!!
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The Foreclosure Of America: Life Inside Countrywide Home Loans And The Selling Of The American Dream $9.99 Now in paperback-an inside look at Countrywide Home Loans and the mortgage crisis from a former mortgage lender executive. In July 2004 Adam Michaelson attended a high-level meeting at Countrywide Financial headquarters about a new loan product that would allow borrowers to pay less than their minimum monthly payment. The "finance jocks" believed that the booming housing market would only get bigger supporting homeowners in a cycle of borrowing against their houses and refinancing later. They were wrong. And when the bottom dropped out Countrywide suffered the consequences-as did millions of Americans. With an insider’s knowledge and thorough reporting on the impact on American families and the ripple effects on the economy Michaelson examines the marketing of a mirage and the bad business decisions that destroyed a company confronts the ethical questions that have arisen in the wake of the foreclosure crisis and offers creative proposals to prevent such a meltdown from ever happening again.Now in paperback-an inside look at Countrywide Home Loans and the mortgage crisis from a former mortgage lender executive. In July 2004 Adam Michaelson attended a high-level meeting at Countrywide Financial headquarters about a new loan product that would allow borrowers to pay less than their minimum monthly payment. The "finance jocks" believed that the booming housing market would only get bigger supporting homeowners in a cycle of borrowing against their houses and refinancing later. They were wrong. And when the bottom dropped out Countrywide suffered the consequences-as did millions of Americans. With an insider’s knowledge and thorough reporting on the impact on American families and the ripple effects on the economy Michaelson examines the marketing of a mirage and the bad business decisions that destroyed a company confronts the ethical questions that have arisen in the wake of the foreclosure crisis and offers creative proposals to prevent such a meltdown from ever happening again. |
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