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Looking to refinance for around $60-$65k with 815 credit score

Recently divorced. My single family primary home is going into my name. Need to refinance and looking for the lowest fixed rate. Fair market on the house is $120,000, but only appraised for $85k in 2009 because it was a foreclosure, we used a first time home buyer FHA loan, and sold to us for $75,000, so probably worth $100k? We also updated to a new metal roof from the old shingles on the garage/house I owe $47k. I'm looking to ask for $60-65k to do some updates and wrap up most of the closing costs. My credit score is 815. My annual income is $38-$40,000. Problem is, the last couple top banks with low rates I inquired with via online short forms are saying I'm not asking for enough $ to be eligible. I really do not want to ask for more than this amount. Please advise if you are able to offer a rate between 2.5-2.75% or very close to that. Thank you! by Gemini61583469 from , California. Oct 25th 2020 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,423 contributions

A couple of things... First if you house was worth $85,000 eleven years ago, it's probably worth way more than you think. Second, because it costs a lender just as much to service a $65,000 loan as it does a $650,000 loan. Lenders generally do not make loans that small because they can't make a profit doing so. If you were to find a lender willing to make a mortgage at that low of an amount, it will likely have rates in the high 3s to low 4s. If you really insist on keeping the loan amount this small, I suggest you connect with your local community bank or local Credit Union. Keep in mind that you may need to settle for a Home Equity loan, which is a type of loan that banks and credit Unions actually don't sell on the secondary market. The rates are higher than on a traditional mortgage, but they will issue them for much lower loan amounts. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ 480-889-9000.

Oct 25th 2020
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