Should I do a no-doc mortgage only in my name vs both of our names?

My husband and I have a first mortgage with a 6.5% arm that will start adjusting up in September. We have a second mortgage at 10.5% that is fixed. The total balance is around $455,000.

We have two refinancing options on the plate right now:

1) Our credit union can refinance our first mortgage at 7.5% fixed for 30 years, but not the second mortgage (They don閳ユ獩 do mortgages that big). It will increase our monthly payment by $300 to $400/month and the new mortgage will be in both of our names. We can handle the increase without a problem.

2) A Mortgage company will refinance BOTH mortgages into 1 mortgage at 7.5% and our payments would stay the same, BUT the mortgage would be in my name only because his FICO score is mid 500閳ユ獨 and mine is around 715. He makes twice the money I make, so they would put his score first if he was on the loan, too. It would be a no-doc mortgage, so they would not know my income, which is half of his.

Any down sides to Option 2? I'm worried.

Should I do a no-doc mortgage only in my name vs both of our names?

Your situation is a very common one and their is nothing wrong about being on the mortgage by yourself. Your husband can still be on title. Make sure to ask your mortgage company to add another quit claim deed in the loan docs. One will be there already to remove your husband from title and you both can sign another one to put him right back on when the loan is done. Depending on your equity position, you should be able to do better than 7.5% with 1 loan on a %26quot;No Doc%26quot; or %26quot;No Ratio%26quot; program. I will be happy to speak with you if you have any more questions.

Should I do a no-doc mortgage only in my name vs both of our names?

I think that you need to talk to a lawyer in your state. If only your name is on the mortgage, and god forbid, you were to get divorced, would you have the total obligation to pay back the mortgage??

Should I do a no-doc mortgage only in my name vs both of our names?

option 2, just keep him on title.......

Should I do a no-doc mortgage only in my name vs both of our names?

The only down side is that you will be totally responsible for the mortgage. If that doesn't bother you, then go ahead.

I truly think there are much better options available, though, so you should probably spend a little more time researching what's available. Neither option you've quoted seems like a very good deal.

Should I do a no-doc mortgage only in my name vs both of our names?

hmmm...

A no doc loan with a 715 score at 7.5%? That sounds really expensive.

A loan for you, by yourself, as NO RATIO should be 6.625%, 6.746% APR. Unless there are other factors not included in your question.

Hey! I happen to know a mortgage lender! LOL

Should I do a no-doc mortgage only in my name vs both of our names?

I'd ask your credit union if they ever ran your loan through an automated underwriting engine.

Hard to know without knowing exactly why your husband's scores are so low, but it's not uncommon that with your scores, in a joint application, you'd qualify for the best rates. If they say anything like A-minus, level 1-5, they're on the right track.

Never hurts to get a 3rd offer. Every company has different products available, and loan officers who do things differently as well.