Asked by Rob  |  Submitted November 06, 2014

I am trying to refinance at a lower rate, but missed my last mortgage payment. Are there any lenders that will work with me?

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  Answers  |  2

November 06, 2014

Hi Rob - well, not right now. If it's a conforming loan, once you have 6 months on time (all payments, not just mortgage) then there are many lenders that will refi for you. No lates at all within last 6 months, 1 mortgage late within past 12 months. But don't let that one you missed turn into a "rolling late - where you skip one and then start making the rest on time. You need to make up that one you missed - and sooner the better. Good luck!

$commenter.renderDisplayableName() | 09.30.20 @ 15:45


April 17, 2015

Rob, Mark's got it right on the guidelines for a mortgage late when it comes to refinancing. My follow up question to you would be to ask you why you want that lower rate? Oftentimes, we see the attractiveness of a 'lower rate' but it needs to make sense financially before you move forward - Two great rules of thumb to use when it comes to a refinance are these: 1) Will it save me at least $250 per month on my payment and, 2) Will I recoup the cost of the refinance within 24 months or less (in reference to closing costs)?

If you do refinance, even it goes down to a lower rate, and it doesn't meet those two guidelines, then it may end up being more expensive than staying put with that 'higher rate' you currently have.

One final question as food for thought - What will do you with those monthly savings (if you do save money on the new payment)? I would make sure that you're investing those funds at a minimal guaranteed rate of return to make your dollar do more than one thing at a time. Hope this helps.

$commenter.renderDisplayableName() | 09.30.20 @ 15:45