Question for the Money Doctors
Question submitted on Dec 19, 2011.
QuestionI am 66 years old, have been unemployed for 6 months, and want to know how to refinance my mortgage.
You haven''t given me enough information to fully answer your question, so this answer will be general.
It will be hard to refinance your mortage if you cannot show the lender, even if it is the existing lender, that you have to show a stream of cash flow to adequately make the monthly payments. The lender will also look at the amount of equity you have in the property and your other assets.
You may need to find someone with good credit and income to co-sign this loan with you to be able to refinance. Or find someone willing to be a guarantor on your loan.
Your best best would be to contact the existing lender to see if they can lower your interest rate.
If you have retirement assets in an IRA, you can offer to roll it over to the lender to provide extra security for your mortgage. Although it cannot technically secure the loan, it show good faith on your part.
For additional information visit http://www.360financialliteracy.org/