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Is it easier to refinance a mortgage than it is obtain a new one?


southernmel1st
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Yay, this is my first post here in a long time! I have been a long time member here.

My credit situation has drastically changed. I am CreditKarma Equi 635 Trans 648 with an Exp 639

These numbers have gone up over the last couple of years with lots of hard work.

My question is.....my ex boyfriends parents bought us a house 2 years ago and we signed mortgage papers to pay them instead of acquiring a conventional mortgage. 

We are both named on the deed with his mom as ETAL.

My ex, unknown to me, was a drug addict. I sent him packing back up to NJ with his parents approval. They are allowing me to keep the house and continue to pay them

until I am able to refinance. This is a godsend. 

Now, I am looking for some direction on what is the best way to proceed. What kind of mortgage should a single female with decent income consider?

Is refinancing easier?

 

Thanks in advance to everyone here :)

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I would consult an attorney and a tax advisor before doing anything.

 

In the interim, get your mortgage scores.  

 

 

The Kreddit Karmahaha skores are worthless (and not just worthless for mortgages, I'm talking comprehensively worthless).  

 

The Experian score you cited is almost certainly also not a mortgage FICO (where did you get that one?).

 

Edited by cv91915
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23 minutes ago, cv91915 said:

 

I got that one from the Experian website. 

And why do you suggest me consult an attorney and tax advisor?

We are not disputing anything. My ex's parents are agreeing to a number for me to refinance which means that I do not have to pay my ex his portion of the equity. They are taking care of that since none of this was my fault.

 

Quote

 

 

 

I would consult an attorney and a tax advisor before doing anything.

 

In the interim, get your mortgage scores.  

 

 

The Kreddit Karmahaha skores are worthless (and not just worthless for mortgages, I'm talking comprehensively worthless).  

 

The Experian score you cited is almost certainly also not a mortgage FICO (where did you get that one?).

 

 

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1 hour ago, southernmel1st said:

And why do you suggest me consult an attorney and tax advisor?

Junkie ex is on the deed, part of the "loan" has been forgiven, and I'm guessing that you didn't purchase the home for full market value.  

 

This is a potential hornet's nest for tax consequences and you need to get him off the deed.

 

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Well, part of the loan hasn't been forgiven perse....I paid all of the bills while we were together including the house payment. I supported both of us which is why his parents encouraged ME to keep the house over him. They didn't trust him to get himself straight. 

But I see what you mean. I can typically be naive when it comes to matters of the heart. 

But in your experience, is it easier to refinance? or is it just the same kind of thing? 

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18 hours ago, southernmel1st said:

Well, part of the loan hasn't been forgiven perse....I paid all of the bills while we were together including the house payment. I supported both of us which is why his parents encouraged ME to keep the house over him. They didn't trust him to get himself straight. 

But I see what you mean. I can typically be naive when it comes to matters of the heart. 

But in your experience, is it easier to refinance? or is it just the same kind of thing? 

I have no idea if the ownership transfer was done properly or if the seller financing was memorialized into a mortgage/deed of trust and a note that were recorded correctly at the courthouse.

 

The bigger issue is getting the home in your name only and then the trailing tax consequences of loan forgiveness and a change of hands for less than full market value (maybe twice).

 

You really need to make sure that's all done properly.  You are facing the real possibility of a very large tax bill from the IRS, and risking your ex coming back later and trying to assert property rights.

 

Please don't just skip ahead to the refi with your fingers crossed.  This could end very badly.

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I totally understand what you are saying. The property was in fact reported properly and we had a lawyer write everything mortgage related. I have checked the county records to confirm. I am listed on the deed. 

 

As for Shannon, unfortunately the criteria has changed for credit requirements post Covid. It is now a minimum 660 to obtain a tradition mortgage.

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37 minutes ago, centex said:

The mortgage score is the only one that will be relevant with almost every underwriter or program out there.

Agree with this.  When I was going through the process last year, the two lenders I used both pulled the versions that MyFico call the mortgage scores, and they were accurate to within a couple of points (likely the impact of the new INQ).

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  • 1 year later...
35 minutes ago, southernmel1st said:

I felt the great need to update! 

Last year I was able to finance my mortgage at $170,000 after closing and fees. Ended up with a wonderful 3.5% interest rate!

It was a long process because of credit but it went well! 

great news! thanks for the update :)

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