I thought I had a unique situation. After reading the article below, this is not so unique.
I got a call from clients that I did a mortgage for many years ago. They indicated that they were having difficulty making their mortgage payments but they were current, never having missed a payment. They wanted to take advantage of today’s interest rates, but were told by their existing note holder, that they didn’t qualify for a refinance.
They would tell me that their son had recently gotten married and the four of them discussed living together, could all four of them participate with a refinance?
Fortunately, there was sufficient equity to accomplish a refinance. The property value was around $300,000. The existing mortgage was $191,000, the interest rate was 6.875%. We did a $220,000 mortgage at 3.5% and as part of the refinance we paid off all the parents credit card debt. Their monthly mortgage payment is $1,493, which was $601 less than they were paying and the parents no longer have any credit card debt.
By: Steve Cook