Question by answer-man: Will I lose my house if bank refuses to refinance?
So I have been in my house for 11 years and have paid ALWAYS on time. I have 800 plus credit score, over a quarter million dollar in assets, but the Wells Fargo Bank is giving me a hard time to refinance because my wife and I are both self employed. We have provided tax returns and everything else that they have asked for but now they are bitching why our income went down 10% from 2010 to 2011. By refinancing our payment will go down from $ 1600 to $ 1200 so it will be nice to have that extra money.
What is the worst case scenario? If they refuse to refinance can we just keep living in the house as long as we pay the higher mortgage amount, which does not seem like a problem to us? Will a rejection affect our credit scores?
Answer by Go with the flow
Keep paying, they can’t touch your home.
The inquiry to your credit is 1 or 2 points and it’s temporary.
It almost sounds like you are refinancing for a longer term than what you currently have left
Please make sure you do not make this fatal financial mistake.
19 years left in your mortgage?
You better re-fi for a 15 year mortgage.
You want revenge?
Start paying extra towards your principal if you have your emergency savings fund in place and no other debt.
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