Would I have any issues refinancing my mortgage?

Question by streetkings01: Would I have any issues refinancing my mortgage?
I’m currently looking to lower my mortgage payments by refinancing. My and my wife purchased a home in Aug. 2008……we are looking to refinance but my wife was laid of from her job in Feb. of this year. Since she is not employed but is collecting unemployment……would that be an issue with refinancing since she has no income coming in from a job?
My annual gross salary X 3 doesn’t add up to the total value of the home, but I haven’t been late on a payment once! I dont know how much the appraisal will be, but I did redo the kitchen, changed all the windows & doors…..so the value should be more than the original appraisal, plus the other townhomes in my complex have been selling for more than what I paid for the last 6 months. I mean I dont see an issue with lowering a payment that I’ve proved is not an issue handling…..so why would it be an issue handling a payment that would be $ 100+ cheaper? This is just my opinion and the banks have different criteria……but thats the reason why I’m asking the question.

Best answer:

Answer by wizjp
uh…will lower your ability ro repay and probably your credit score a bit.

Might be better to wait till she is back to work IMHO

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5 Responses to Would I have any issues refinancing my mortgage?

  1. David Z says:

    yes that is a problem. Only your income will count.

    Good chance appraised value of home has fallen also. Refi appraisals are always lower than purchase appraisals.

  2. Steve D says:

    Depends on whether you can qualify to cover the mortgage based on your salary alone. Take your gross annual salary, multiply it by three – if teh total is more than the balance on the mortgage, you should be okay, if less, you will have difficulties, and if it is significantly less, then you won’t get approved.

  3. SG Elite says:

    It depends on your spouse’s creditability to return to the job market.

  4. Tina Marie I'm sad today says:

    It shouldn’t be an issue since your house payment will go DOWN and your not in default of your loan. It will cost you a couple a grand to refinance.

    edit: you have already quaified for the loan, it’s yours. Refinancing doesn’t change the loan amount that you have already qualified for. Refinancing just gives you a lower interest rate and will make your payment smaller. Whoever thumbed me down doesn’t have a clue of what they’re talking about. Honestly do you think that just because your wife isn’t working right now that your loan amount has changed? No ,absolutely not, you are still responsiible for the amount you owe. Refinancing just means you want a lower interest rate. It’s done all the time. I’ve done it before but it did cost me almost 2,000.00 to refinance but I also cut off 15 years of payments. Contact your mortgage co. Your not applying for a new loan!

  5. Landlord says:

    As long as you earn enough to qualify on your own you will be OK. They will not count unemployment, as that will expire, and likely very soon.

    Also remember that you can only refi up to 80% of the appraisal value.

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