Need to Refinance an adjustable rate mortgage with so-so credit?

Question by JessicaZ: Need to Refinance an adjustable rate mortgage with so-so credit?
Hi,

My husband and I bought our home 2 years ago on with an adjustable rate mortgage. The interest rate has now come up and we need to refinance.

The problem is that our credit score is about 600.

Can we get a refinance? Our home is worth about 0K, we have K in debt, and we make about 0K per year.
Thanks Bob,

But we really can’t afford the extra costs. Our payment went from 00 per month to 80 per month.

What would the rate be for a credit score of 600?

Best answer:

Answer by Bob D
You can get a re-fi but you may not like the rate. Better off getting the credit score up to 640-660 would better then refi. Rates for medium to bad crdit have gone way up. Good credits have dropped. Your income is high enough that you can afford the extra months on the ARM until the credit score goes up. You may have to reduce extra expenses for a few months. Don’t go chasing multiple re-fi’s because each time you do it costs 3-5 grand. you need to factor that into the equation. My best advice. get credit score up and when mid -score of the three hits 660. Then refi.

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