Considering a Refinance?

There are several reasons to refinance especially considering today’s historically low interest rates. So let’s discuss what a “refinance” actually is,  and the two types of refinances available. When you refinance your home,  you take a new loan against your home and pay off the old loan, basically “re-doing” the financing.

The first type of refinance, is known as a Rate and Term refinance. The goal of this type of refinance is to either lower the payment or shorten or lengthen the term of the loan. Homeowners seek a Rate and Term refinance for one or more of the following reasons: 1.) Take advantage of lower interest rates in order to lower their monthly payment, 2.) Remove a mortgage insurance premium being paid, or 3.)Shorten or lengthen the number of years remaining on the loan. Qualifying is often simplified for Rate and Term refinances and interest rates are lower than that of the second type of refinance.

The second type of refinance, is known as a “Cash-Out” refinance. If you are seeking to take money out on the equity you have in your home, what you would be applying for would be referred to as a “Cash-Out” refinance. In this type of loan, you take out a loan for more than you currently owe, the old loan is paid off, closing costs are paid, and you pocket the difference. Such loans are helpful for consolidating debt, paying for college, making home improvements, etc. These types of loans typically carry a slightly higher interest rate than a standard rate and term loan, and the qualification requirements are a little more stringent, but no more difficult than your initial purchase.

SO HOW MUCH CAN YOU BORROW? The same numbers are considered for a refinance as they are for a purchase, 1.) FICO, 2.) Income, 3.) Debt, 4.) Assets, and 5.) Your loan amount as compared to the home’s value.

If you would like to know more about how a refinance could benefit you, please contact us.

Tezra Rogers is a Real Estate Broker/Loan Officer (CA DRE #01744515/NMLS #01466173) with 17 years experience and at last count, 816 transactions under her belt . Her clients become family, and in this house there is always room for more. You may contact her at trogers@pacificbayestates.com or at the corporate office in Suisun City, CA at 707.759.4251. Follow her on IG @pacbaybroker.

You CAN Buy a House after Bankruptcy…Here’s How..

So here’s some truth for ya, back in March of 1997, after having just given birth to my first child Serenity in November of 1996, I decided to claim bankruptcy. The truth is I was afraid. My pregnancy was very risky. I was bed-ridden for months and unable to work. No work means NO MONEY. My debt mounted up and it started going into collections. At the ripe old age of 24 years old,  I was about $25,000 in debt. UGH!

In retrospect I probably could have worked it out, but as I stated, I was young and afraid. All I could think about, was what if the creditors garnished my wages and I couldn’t afford to care for my daughter. So I read a few books and proceeded to file Chapter 7 Bankruptcy by MYSELF. I couldn’t afford an attorney, so I did it my damn self. (That was awesome by the way…just sayin’).

Anywho, fast forward to 2000, and my life was going well. I had an excellent job. I had just given birth to my beautiful 10lb 1oz son just 6 months previously, when I was notified that the beautiful condo my little family rented along Port Hueneme Beach, was about to be sold. UGH!!! Of course we were given first right of refusal. But that meant little to me because I did not know how to buy a house.

I was freaking out. I loved our little house. I just had a baby and was back at work. Things were finally on track and now I have to move or BUY! I HATE MOVING!! So I decided I needed to find a way to buy.By that time, my bankruptcy was just 2.5 years old. I did know that it was on my credit report for at least 7 years, which lead me to believe that I could NOT possibly qualify for a home loan in a traditional sense.  But even with that in the back of mind, my mother knows that I am stubborn.

In my heart, I knew I wasn’t a bad person, I had just experienced a bad time. I made a decent income, I had re-established some positive credit references, and I had a little money tucked away in a 401k.  I was sure there was a solution somewhere. Somebody just had to believe in me and I was going to find them. My butt was researching and calling BEFORE YELP AND G Google, and all the social media sites took off! I lucked up and found a loan officer who said they could help me.  He said he could do an FHA loan. YAY!! There was hope.

After speaking to the loan officer, I realized I wasn’t the only one that had ever claimed bankruptcy. It happens. The Department of Housing and Urban Development (HUD) guaranties FHA loans with the average person in mind. People that experience life’s ups and downs. People who work but can’t save fast enough. Yes, so yhey offer programs for those individuals, they offered programs for me.

FHA loans allows for applicants to qualify for a loan 12 months after filing for chapter 13 bankruptcy, contingent upon on-time payments in the past 12 months. In regards to a chapter 7 bankruptcy, that waiting period is just 2 years, following the discharge of the debt. Of course you have to establish some positive credit references in that time frame, but it can be done!

SOOOOO…. if you are thinking there is little hope I am here to tell you that there is more than hope, there are real solutions and we can help! Reach out today to start building your tomorrow.

Tezra Rogers is a Real Estate Broker/Loan Officer (CA DRE #01744515/NMLS #01466173) with 17 years experience and at last count, 816 transactions under her belt. Her clients become family, and in this house there is always room for more. You may contact her at trogers@pacificbayestates.com or at the corporate office in Suisun City, CA at 707.759.4251.  Follow her on IG @pacbaybroker.