With unemployment continuing to soar people are asking themselves; How do I negotiate a mortgage refinance if I've lost my job? Well, it may not be as hard as you think, if you have a good credit score and have maintained a good relationship with your bank. While you certainly shouldn't feel at ease, you should know that there are some basic things the bank will want to look at before they assume the risk of the loan. So if you want to know; How do I negotiate a mortgage refinance if I've lost my job, you will need to read on.
What is your current credit score?
If I wanted to negotiate a mortgage refinance if I've lost my job, the first thing I would do is get a copy of my credit report, so I knew my score. This will give you at least some indicator of what your chances will be. Generally speaking, as score of over 700 is considered to be good. Of course, If I wanted to negotiate a mortgage refinance after I've lost my job, I wouldn't get too comfortable with "good." Still, if you are over 700 you will be more likely to have some options. What do credit scores mean?
Are you likely to get a job soon?
If you want to negotiate a mortgage refinance after you've lost your job the bank will want to have an idea of how soon you can get back to work. In poor economical times, most people will have a more difficult time finding work, so you can assume this will make the task a little harder, but it will vary depending on your profession.
How much did you make?
If I wanted to negotiate a mortgage refinance after I lost my job, the bank would look at my past income rates. If I only made $10.00 per hour, regardless of my profession, it would help my cause. Even during tough economic times you are more likely to get a position at this rate of pay than something substantially higher. If you could afford the payments at $10.00 per hour, you may be okay at $9.00. Of course, if you made $30.00, it may be a little to harder to negotiate a mortgage refinance after losing your job. You can still get good interest rates if unemployed.
Is there any other income?
If married, how much does you spouse make? This will help the bank determine if you can make payments based solely on your partner's income. If you still could swing the payments, you will have a better chance.
How much equity is in the home?
The more equity you have in your home, the better. Ultimately, the bank determines the risk of giving you a loan. If you have a large amount of equity, the bank is likely to get their money back even if you default. If you don't have much equity, it will be harder. If you want to how to negotiate a mortgage refinance after you lost your job, equity levels will be very important.
Will someone cosign?
If you can get a family member in good standing to cosign the loan for you, at least until you get back on your feet, you will have a better chance. This isn't to be taken lightly, many families have been strained by this type of arrangement. Only do this if you are sure you will not go into default. If you want to negotiate a mortgage refinance after you lost your job, this will probably work, but it may come with a price tag that goes beyond money, if you miss any payments.