Refinancing Penalty
Question: We recently bought a house in December 2002. Due to credit problems showing up on my credit rating (from a card I had guaranteed), my name had to be excluded from the contract. We ended up doing the loan and the house contract on my wife’s name. My name is not on the loan or the purchase contract. We got a 2 year ARM at 6.5%, with prepayment penalty of 6 months interest if refinanced in the first 2 years. This has become quite a burden.
I am wondering if anybody can give me suggestions on how to get a lower rate without incurring the refinancing penalty.
I have got my credit rating fixed now. Can I have my wife sell the house to me, and I refinance it. The value of the house has improved by 10%…so the LTV might be better when we finance again. Am I clutching at straws?
Answer: Everything depends on what rate you have now. What rate do you have?
Just refinance with both of you on the deed. It is painfully simple.
I mean no insult, but, your story does not wash. Either you had an incredibly inept mortgage person (you don’t exclude people from the loan for one bad credit card. It just isn’t done) or your credit was more messed up than you let on.
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