Question by lllx_TampaFL_xlll: How do I refinance my home in Miami, Fl… MY INTEREST RATE IS TOO HIGH?
This question is acutally being posted for my parents… They bought their home for 190K and the property is now.. (after the market dropped)…valued at 216K… Thank goodness the property isn’t worth less then what they initailly paid for.
During that time, they obtained a variable interest rate.. and as all variable rates tend to do, it went up to 9.5%.
They own a business, however, it isn’t producing as much money as it once was. For this reason, they need to lower their mortgage payments. Things are getting tighter and tighter and heaven forbid ANOTHER forclosure in this horrendous Miami housing market.
They asked me to find out if there were any options in refinancing and what are the steps in doing so. Please Help!! If anyone needs additional info so that I may obtain a more accurate answer, just ask. I will gladly be the mediator for my parents =).
Thank you all so much in advance for your much appreciated help.
Best answer:
Answer by ahivalaloca1985
Well im pretty sure that as long as they have been paying on time for at least 5 years than they will b able to get a new loan with any big bank like country wide or wells fargo.
Know better? Leave your own answer in the comments!
Their best bet is to try and get an FHA loan.
The good news is they are not upside down. The bad news will be what their agi will be because most self employed people write off so much on their taxes that they end up not qualifying.
Let me know if you need more info
you’re parents have about 10% equity which is decent for an owner occupied home. you’ll need to have them talk to a mortgage broker to see what loan products might be available for them. self employed people are having a very tough time getting financing.
one option that might want to consider is an extended right of rescission. most adjustable rate mortgages didn’t accurately disclose all of the lender information required by the truth in lending act and so the borrower has an extended right of rescission (give the loan back). when this happens the lender must refund all payments made by the borrower and the borrower must tender reasonable value to the lender (through cash pay-out or give the lender the property).
while that is what the law technically says the practical application of the law is somewhat different. usually the lender and borrower renegotiate new loan terms that are more favorable to the borrower. the catch is that the lender could refund all the money and your parents wouldn’t be able to get a new loan and would have to find a new home. not likely but it is a real possibility.
if you have more questions you’ll need to contact my attorney who specializes in rescissions and is licensed to practice law in florida.