A subprime borrower preparing for refinance?
Friday, February 20th, 2009
indy_peru asked:
When I bought my house a year ago I was a subprime borrower. I have a mortgage through Option One a known predatory lender. However I have made all my payments on time and havnt had one problem. In one year my 2 year pre-payment penalty will be up as well as my ARM. My credit score has gone from 580 to 625. It is my understanding that the point in getting these subprime loans is to get your credit in order so in two years you can get a normal, fixed rate. Is this a correct assumption? I am asking because so many people are foreclosing on these ARM and subprime loans. Is it that these folks cant get refinanced? Will I be able to refinance? Thanks for all advice and opinions.
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When I bought my house a year ago I was a subprime borrower. I have a mortgage through Option One a known predatory lender. However I have made all my payments on time and havnt had one problem. In one year my 2 year pre-payment penalty will be up as well as my ARM. My credit score has gone from 580 to 625. It is my understanding that the point in getting these subprime loans is to get your credit in order so in two years you can get a normal, fixed rate. Is this a correct assumption? I am asking because so many people are foreclosing on these ARM and subprime loans. Is it that these folks cant get refinanced? Will I be able to refinance? Thanks for all advice and opinions.
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