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Refi or 2nd Mortgage

I am working to improve my credit. currently at 598. I have a large balloon payment coming due 8/2018 and I cannot afford. Would it be best to refi or take out a 2nd mtg on my home to cover me until i can improve my credit and refi? I have about $3k in debt monthly and make $45k annually. my home is worth $85k and I owe $88k. by BerryHenderson-Mi... from Waco, Texas. Apr 10th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

I'm afraid you have very few options.. First, 598 is very low, and lenders who offer 2nd mortgages have much higher credit standards since 2nd loan's are much more risky for the lender.. they will require a much higher qualified borrower. so, there are no lenders out there who will do a 2nd mortgage with a score that low.. 2nd, you do not have sufficient equity to take out a 2nd mortgage.. and 3rd, you do not have sufficient equity to do a cash out refinance or to combine both loan's into one new loan.. The reality is that if the note holder of the 2nd is in the business of doing 2nd mortgages with balloon payments when they know you cannot perform, only to take back the home.. then your pretty much out of luck.. but if they are reasonable... It's unlikely they will want to foreclose on a home that isn't worth what is owed.. my point is that you probably have a bargaining angle.. Contact the 2nd note holder and see if you can work out a discount on what is owed.. or at the very least,,, ask if they can extend the balloon date.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Apr 10th 2018
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