fla-tan

babs The HELOC becomes unsecured debt and normally would disappear in the BK. fla-tan

Credit First let me welcome you to the Mortgage Forum. We have a wealth of information and knowledge here. fla-tan Forum Moderator

Annual gross divided by 12. fla-tan

mrstmw The simple answer is all consumer debt is counted into the debt ratio, along with all potential housing expenses, PITI. fla-tan

chatterweb Rather than give the house(s) back, talk to your attorney about a loan modification. I will be putting a loan modification primer together and pinning it either here or in the Mortgage Forum, or both. A loan modification does not have to negatively affect your credit while a DIL most definitely will. fla-tan Thank you, We have no hardship chatterweb You do not need to have a hardship to qualify for or obtain a loan modification. fla-tan

chatterweb Rather than give the house(s) back, talk to your attorney about a loan modification. I will be putting a loan modification primer together and pinning it either here or in the Mortgage Forum, or both. A loan modification does not have to negatively affect your credit while a DIL most definitely will. fla-tan

No. Origination or Broker Fees are shown as a fee in the 800 series and are upfront fees paid to the lender/broker for doing the mortgage. YSP is paid by the lender to the broker for bringing the loan to them. The lender will give the broker a rate that is the "PAR" rate. This rate is the break even rate. The lender does not charge the broker discount points nor does the lender pay the broker "yield" for the loan. Today, the par rate is about 6.375% (6 3/8%). Yesterday it was about 6.5%. You are saying you were told the par rate yesterday was 7.125% which is way out of line. fla-tan

Optasia What are the middle scores for each of the borrowers? If the lower middle score is below 580 then the rates do make some sense, though they are still high. If your scores are higher, then they don't. I just priced out an FHA mortgage for a client yesterday with a mid score between 580-620 and paying a 1% YSP (money paid by the lender to the broker) the rate was 6.75%. Unless there is something that we are not being told, the LO's are looking out for their pockets and not out for your interests. If your mid scores are over 620 then the rates I mentioned above are accurate, if not then they will be a bit higher but not as high as you are being quoted. fla-tan

Optasia I combined both GFE's for simplicity. Neither GFE looks out for your best interests. fla-tan

Dennis You have gotten some good advice so far, but I have a couple of questions. Do you file taxes each year? If so, what is your net income and what monthly debt payments do you have each month? I would say that either an FHA mortgage would probably be an excellent option or maybe even a conforming mortgage may work as well. In either instance, get away from your current loan scenario as it sounds as if the only thing you are doing is making the bank money. fla-tan

fla-tan

fla-tan

fla-tan

fla-tan

marbol If you do not claim the assets you do not need to verify them. FHA does not require reserves so you may want to keep that in mind when you apply. fla-tan