Mortgage vent

**ansley** · 09-15-2008, 04:04 PM

DH wants to refinance our house (great news). So, I tell him to check out Church Hill Mortgage (recommended by Dave Ramsey). They said we don't owe enough and that they will not even consider a loan of less than X amount. I couldn't believe it. Their X amount was more than what we bought the house for to begin with. Do they think that because we can't afford a million dollar house (not the X amount by the way) that we aren't good enough or need the better interest rate. I had thought that being affiliated with DR meant that they would help people in need. That's what I get for thinking. So far the lowest rate has been 6.125% for a 15yr fixed rate. I don't know how long that quote was good for. DH is supposed to call more places today. Okay venting done for now.

**Greebo** · 09-15-2008, 04:27 PM

Wanna fill in the blank for the value of $X ?

**ansley** · 09-15-2008, 05:03 PM

Originally Posted by Greebo

Wanna fill in the blank for the value of $X ?

$50,000. That may not be much to some but it is a huge amount to us and our original loan wasn't that much. I wonder if it is a location issue. I know my house in Boston would be about $350,000 per my bf that is trying to buy a house there.

**dwallyfam** · 09-15-2008, 06:12 PM

Most mortgage companies want the base line of the loan to be $60K. Ran up against that one myself a couple of years ago when I tried to refinance my house.

Kellie

**ansley** · 09-15-2008, 07:48 PM

Originally Posted by dwallyfam

Most mortgage companies want the base line of the loan to be $60K. Ran up against that one myself a couple of years ago when I tried to refinance my house.

Kellie

Most houses around here aren't that much except for NICE houses.

**Jenna** · 09-15-2008, 09:08 PM

Geez. That's odd they'll finance $xxx,000's yet not $50k. I would think the "risk" would be minimal.

Good luck with your search.

**nodmicks** · 09-15-2008, 10:31 PM

Try a credit union. We only have 50K left and wanted to go to a 10 year. The credit union rate was 5.67 and the 50K was fine.
Actually the credit union guy said we were there kind of customers with no consumer debt and over 50% equity. I assume that means low risk.

**Amanda W** · 09-15-2008, 10:48 PM

Definitely try a credit union. We just refinanced our mortgage with a local credit union down to 15 year 5.25%. And they were great to deal with!

**Ceashels** · 09-16-2008, 08:26 AM

I guess they just couldn't make enough profit off your $50k.

**tervsforme** · 09-16-2008, 08:45 AM

My mortgage guy called me yesterday to refinance, something must be in the air. He can lower my interest rate a whole point. I can't do a 15 year yet as I'm still paying off debt, but hopefully in a few years!

Good luck!

**Greebo** · 09-16-2008, 08:51 AM

Well of course you *could* pull another 10k out of the house in order to refinance...(NOT RECOMMENDED)

50k isn't a lot left - what is your current interest rate?

**ansley** · 09-16-2008, 12:40 PM

Originally Posted by Greebo

Well of course you *could* pull another 10k out of the house in order to refinance...(NOT RECOMMENDED)

50k isn't a lot left - what is your current interest rate?

I don't understand (What else is new). We owe just a little less than the house appraised for (too bad we can't get a Boston appraisal) so how could we pull another 10K out of it.

I must have miss understood your other question. 50k is the least they will do a loan for. We owe about 35k and are stretching to make the payments. Our current rate is 8.5% for 30yrs. If we could get the 6.125% for 15yrs and pay the closing cost up front we would have the same payment but much less interest and be debt free faster (per DR mortgage calculator). I am just not sure where we would get the closing cost.

As to a credit union, I thought that was only an employee benefit. Neither of our employers have a credit union. If I am mistaken about that please let me know. I will check into finding one.

**Michelle** · 09-16-2008, 12:58 PM

Originally Posted by ansley

Most houses around here aren't that much except for NICE houses.

Wow

Where do you live? You couldn't get a shoebox here for that little

**Greebo** · 09-16-2008, 01:01 PM

Originally Posted by ansley

I don't understand (What else is new). We owe just a little less than the house appraised for (too bad we can't get a Boston appraisal) so how could we pull another 10K out of it.

Ah - you didn't specify how much the house was worth, so I was assuming it was worth more.

I must have miss understood your other question. 50k is the least they will do a loan for. We owe about 35k and are stretching to make the payments. Our current rate is 8.5% for 30yrs. If we could get the 6.125% for 15yrs and pay the closing cost up front we would have the same payment but much less interest and be debt free faster (per DR mortgage calculator). I am just not sure where we would get the closing cost.

So the original loan was 50k at 8.5%, so your payment ought to be about... $384/month plus tax/insurance, is that about right?

If you are stretching to make your current payments, then I don't think taking a 15 year mortgage right now is a good idea. Refinancing to a 30 with a better interest rate would give you more breathing room, and then you could still pay extra on the mortgage *as your budget allows*.

In a refi- the closing costs usually can get rolled into the mortgage.

Some credit unions are only for employees, but some aren't. You'll just have to shop around at this point.

Check out www.schwab.com - they might be able to help. They were very good to work with when I got a HELOC. (Pre DR)

**Greebo** · 09-16-2008, 01:08 PM

ansley: I think everyone here would be able to give you input and advice that's more on target if we had a better picture of your overall finances. I know you've been going through a lot, and its got to be frustrating, and I'm sure its a little scary and maybe embarassing to think of putting your "dirty laundry" out there on the internet for all to see, but please consider giving us a fuller financial picture, so that we can look for more specific areas that can be helped.

If you are willing, please provide the following:
Income - Sources, Take home amount, regularity status (regular paycheck, variable amounts, irregular deadbeat ex, etc)

Budget - Your monthly expenses - food, housing, clothing, utilities, car, insurance, etc. Everything you spend money on, on a per-month average

Assets - What is it, and what's it worth. Cars (make model and kelly blue book value), house (value), anything else of value

Debts - Who to, how much, % interest rate, and minimum payment (will also appear in budget)

With a clearer map of where you are now, we can help you more fully figure out how to get to a better place.

Give it some thought?