mortgage options, joint or individual
Posted 10 July 2012 - 06:45 PM
The first is a joint mortgage in both of our names. 30 yr fixed at 3.875, 5% down payment. My lower credit (approx 650) is hurting our rate and PMI payment.
My wife has the ability to qualify on her own at a rate of 3.5%. Together with a lower PMI payment, the monthly payment difference is $144. The only catch is that her debt to income ratio is 51%. To qualify by herself the lender said she would need to at or below 44%. To get there, I could refinance 2 auto loans in my name only. This would require me to bring in about $2000 cash and would increase the monthly car payments by a total of about $25-30. So, the net monthly savings would be about $120.
What should we do? A $2000 one time payment vs $120 per month over 30 years sounds like a no brainer, but time is also factor. To refinance the cars, get the proper documentation to the lender and then everything approved will take some time.
All this for being late 33 days on a BoA credit card.
Thanks in advance.
Posted 11 July 2012 - 07:32 AM
Posted 11 July 2012 - 05:24 PM
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