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Hi All:
Currently I am on a 30 year fixed at 4% mortgage on my house. I am very tempted to refinance my place place to take advantage of the amazingly low rates going on right now. The problem is, I quit my full time job in December 2015 and started my own consulting firm in Jan 2016. I have a steady income with my projects and all, but when I approach a couple of banks for refinancing they say I do not qualify since my company is only 6 months old. Is there a way out or am I SOL? Thanks for the read and your time.
The easiest "fix" is a non occupant coborrower. However, that means mom, dad, whoever, would need to be added to title and could slightly increase recording charges. It would have to be someone you trust, obviously. Only you can determine if the hassle is a benefit.
I had the same issue a few years back. Until I had 2 years under my belt (and 2 years of tax returns), I couldn't get anything. Up until that point I had great work history, credit, etc... When I bought out my car's lease & had to refinance the remaining amount, my boyfriend (now my husband) had to co-sign for me--felt like a teenager. Try talking to some more lenders--maybe a broker rather than a bank. No guarantees, but in my business (real estate) I know that not all lenders are created equal, so if it were me I would do a little more looking before giving up.
First, 4% is a great rate. I have a closing on Friday where the buyer is getting 4.5%. No reason to refinance your 4% rate.
Second, no one is going to refinance you with a brand new company. You can't show any history of income and expenses. How do they know the company won't fold in 2 months and then you have no money? With 2 years of history, they feel more comfortable. There are loans where you can do a no asset loan where they don't care about your income, but you're not going to get anywhere near 4% as you're too much of a risk not letting them know any of your information.
Thanks all! Just as an FYI- if you are in the same situation as me and looking to refinance then check your local banks if they do Porfolio Mortgage. It basically means the bank finances your mortgage and does not sell it. These kind are pretty flexible. Thanks to fellow member MikePRU for suggesting it to me!
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