I have an 80/20 loan at 8.75 and 10.5. I have been in the home for 9 months. I don’t know my credit scores but I would guess my credit is honest to excellent. I don’t really have any equity but I really need to get a better rate. I live in NJ. Any advice?
Except a touch drastic has altered in your financial profile over the last 9 months, you probably won’t do any better.
If your income and credit scores are the same, rates have not altered a lot over the last 9 months ( alittle lower yes, but not a lot). You qualify for what you qualify for.
Also, with a rate of 8.75%, it looks like you may be in a sub-prime type of loan which usually comes with a 2 or 3 year pre-payment penalty. You don’t want to get stuck paying this penalty.
If you financed 100% of the buy price, you don’t have any room to play except the real estate market in your area has gone way up (unlike the rest of America that has slightly declined). If the value has gone up, most lenders will make you wait 12 months to use the new value.
If you have no pre-payment penalty and values have gone up and your credit score has increased, then you should look to refinance. Otherwise, just sit tight and work on boosting your credit score and/or wait for the pre-payment penalty to expire.
if your credit don’t improve much, you don’t have equity in your house- there is no point to refinance your house in this time, because you probably end up with similar interest you have right now, but i will go and question around anyway.