Hey guys. A friend of mine is having money problems. His wife is out of work due to pregnancy. He has a 30 yr. motgage on his house. He has fallen behind on some bills so his credit is not good. Would it be possible for him to refi into a 40yr. mortgage until things got better for him? Any help is appreciated.
Without knowing what type of “bills” he has fallen behind on and the severity of his arrears, it’s difficult to tell—the subprime lending segment is all but extinct, so your friend might find his options limited or void…
Also, a 40 year mortgage will not save him a lot off the monthly payment, however, that would depend on the loan amount and what kind of rate he has on the 30 year right now. Sounds crazy, but a 40 year payment on the same loan amount as a 30 year payment is not a lot lower. Partially, this is due to the fact that the rate is usually higher on a 40 year than a 30 year.
Good to see you back on the forum. How us business up in Colorado?