I owe $55k and want to refinance to borrow $45k to total $100k on a house worth $175k. I want the lowest fixed rate.
The house is in my parents name because of divorce and pops has cancer but he is willing to sign the papers so I can get solar and new a/c for my house and other small stuff around the house.
Or is there a better loan than refi for me? I am disabled on social security. Payments now are $448 but power bill gets as high as $700 a month.
The lowest 30 year fixed rate would keep your payment low and your affordability maximized. Rates are currently between 4 and 4.75% based on your parents FICO score. Your parents could also do a reverse mortgage if they wanted to keep the payment to a minimum and still keep the rate low. | 03.13.15 @ 00:59
How much equity do i need, to qualify for reverse mortgage? How does it work? | 04.16.15 @ 16:12
Reverse mortgages are a great option for some borrowers, but not for others. The costs (while rolled into the loan) are hefty, the rates are higher than conventional loans, and there's a boatload of counseling, etc, involved. The amount you can borrow depends primarily on age. Someone who is 62 might need 70% equity, versus someone who is 80 might need only 35%. It's all based on life expectancy. Only owners 62 or older can obtain reverse mortgages. Based on your income, a "normal" mortgage would not be doable, as your debt ratios would be too high to qualify. Reverse mortgages, at least for now, do not require borrowers to qualify based on debt ratios. | 05.06.15 @ 00:50
Couple of things on reverse mortgages: Every owner must be 62 or older, the loan is due when all owners no longer occupy the home, and the available credit line is based on the youngest borrower's age. Also, FHA will soon require reverse mortgage borrowers to prove their ability to pay home expenses, such as taxes/insurance/upkeep. If you and your dad both qualify, you could potentially do a traditional mortgage in both names, and the loan wouldn't be due when your dad moved out of the house. Hope these thoughts help, if you have more questions, feel free to contact me through my profile. I write loans nationally. Thanks, Ted | 06.01.16 @ 03:21