As I mentioned before, my ultimate goal for 2013 is to be debt free except the house... That's hard to do when you're already living paycheck to paycheck & cutting corners here & there. It's hard to really make headway unless you have a couple hundred dollars to play with in the beginning. We decided to try to refinance our house. With the current interest rates so low, we could easily save a few hundred dollars per month. It's a no-brainer!
Well, we already knew that the value of homes in our area is down. We were then told that they will only refinance at 85% LTV, plus trying to roll in closing costs, it left us with little room for play, and we were going to have to pay $425 upfront for an appraisal-/ non-refundable. That was a $425 risk we weren't willing to take.
After much disappointment, we discussed everything with my mother-in-law who is lonely since her husband passed away in September. She has struggled to make ends meet & she seemed thrilled to have us sell our house & move in with her! We figure we can at least get what we owe out of the house & walk away. We will live with her for two years while saving money for a down payment on a new house. We will help her with the bills & be company for her. It's a win- win!
So now, the loan officer I was dealing with, emailed me to say there is another option for us that requires no appraisal... The HARP program. I don't even think our mortgage is owned by Fannie Mae or Freddie Mac, so what the heck is she talking about? A loophole?? My thoughts... Why in the hell didn't you mention this sooner???? It's not that I regret our decision to sell our house, but we worried soooo much about whether or not we could refinance and stressed ourselves out over nothing...& she knew that! She waits until now... to say there's another option.
I guess as the old saying goes, everything happens for a reason... & I feel it all worked out for the best. If we get out from under this house now, we will be in a better position to buy a new house in a couple years.
