Refinance without a job??

bonsApril 30, 2009

Is it possible to refinance to a great interest rate without being employed, or rather, having a small self-employment income? Here's the info.

I was laid off in November from a well paying job I had been at for 15 years (100K+/year). I am currently looking for full time employment.

I also have a small business (for the past 17 years) which I average $20,000 a year gross. Plus I get a little unemployment.

I owe about $162,000. and my house is worth about $500,000.

Excellent credit. No debt (other than the house).

My current interest is 5.37 (30 year fixed). I would like to get it into the mid-4% if possible.

Can this happen without full time employment?

TIA

Bonnie

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dave_donhoff

Hi Bonnie,
Some quick calcs show that a $20k documentable income (that is validated by an at-least 2 year past history) is unfortunately wayyyy too low to support acceptable debt-to-income ratios for a $162,000 loan, plus taxes & insurance.

Here are your options;
A) get a job (yeah, as if it were as easy done as said, right?)
B) seek a loan modification to get the payments restructured to your real CURRENT and reliable income cashflow situation.

I suggest the latter.

Good luck on both!
Dave Donhoff
Leverage Planner

    Bookmark   April 30, 2009 at 4:09PM
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joyfulguy

My knowledge regarding real estate and mortgages is somewhat sketchy ... but, for what it's worth, I agree with Dave.

ole joyful

    Bookmark   May 7, 2009 at 5:16PM
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