Todays Best Mortgage Rates Self Employed
by Melissa from Virginia
Ask Kate about today's best mortgage rates for self-employed homeowners: We moved to our dream home in 2007. I had a brand-new master's degree and a year of experience in teaching. I thought I could find a job with no trouble. So we put 20% down and got a no-doc mortgage loan at 8.375%, sure that I would get a job with no problem and refinance. Ha!
Melissa continues... (I should mention that mine is the only income; my husband is disabled but has been denied SS benefits.)
Finally I realized that I needed to start my own company, and I have - but it doesn't support the family yet. It doesn't even pay the mortgage yet. Fortunately, we still have about $750,000 of savings left, but we're drawing that down bit by bit.
Meanwhile, here we are with this awful mortgage! I've paid it every single month without fail, but can I refinance these days with no "real" job, just a fledgling business?
Kate Answers: Today's Best Mortgage Rates for Self-Employed Homeowners
***zz-portrait-left.shtml*** Dear Melissa,
You know the familiar saying about hind sight. Sigh... But I am happy to hear of your savings. However I also understand your urgency to begin generating income.
In the meanwhile though, what can be done to refinance your 8.375% mortgage rate?
Today's economy does not hold as many home refinancing options for small business owners. Not to say there are no options but many will not improve your interest rate.
It's interesting to note, even though it might not be of much comfort to you, a no-doc mortgage at 8.375% would have been considered a premium interest rate not too many years ago. But I certainly understand wanting to get the lowest rate possible before an unexpected worldwide event causes them to spike.
So let's go about this with a 2-prong plan!
Shopping for Experienced Mortgage Brokers
This will save you time. The experienced broker should be able to determine if you can better your 8.375% at a blink of the eye, without wasting your time.
Get your ducks in a row before making your phone calls by going to Kate's Personal Mortgage Planner
. Mortgage originators will appreciate your organization because it helps them respond to your questions more accurately.
Your Personal System for Paying Off a House Early
- Secondly, take control of your financial situation by starting a personal debt-reduction program.
If you are unable to significantly lower your monthly payment due to a fledgling business that has not yet established a record of income, start your own debt-reduction plan.
Although you did not mention consumer debt (credit cards, car loans, personal loans) in addition to your mortgage, I know you will like Super Kate's 6-Step Magical Plan for debt elimination and early mortgage pay-off
Stay in the Know at My Mortgage Blog
I also suggest watching my Mortgage Blog
for updates to the proposed HARP 3.0 mortgage refinance plan
. Still awaiting a compromise in the Senate, it promises hope for homeowners in need of affordable mortgage payments, including no-income-verification for the self-employed business owner.
Lastly, Monica from Ohio has a similar situation to yours. I answered her question at Mortgages for the Self-Employed Explained
Good luck and best wishes,
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