Q: We have a house appraised at $720,000. We recently applied for a refi and home equity loan since our current mortgage is based on LIBOR and we are concerned about interest jumps on our adjustable. We have never had an issue with not being able to make payments till now. My husband is a financial adviser and hasn’t been able to earn enough to pay our bills. We have dwindled our savings to nearly nothing. We were told our loan was going through until the mortgage guy was fired last month and now they are saying our debt to income ratio is probably too low. We need the home equity loan to hold us over until we can figure out how to increase our income, etc. Now what? My income has doubled but is very low given my profession (psychotherapist on insurance reimbursement payment which is disrespectfully low). We lowered our debt by selling his car but there really isn’t any other thing we can lower- we don’t finance anything but mortgage and cars.
A: The many challenges that you have outlined could be addressed by working with a loan officer who understands the complexity of your overall situation, and can help see if there are alternatives which might suit your situation. If you’d like, we can introduce you to someone at DE Capital to assist you and your family in this important decision.