Self Employed and refinancing? think again!!!

[Joel Fraser]

Hey Everyone.....Here's one for you that I just can't figure out....Wifes Credit 760Mine at 745liquid cash, 75,000Total gross income 195,000net income---agi (from tax returns) is around 95,000No credit card debt...20 yr job history at current employerno car payments, etc....first mortgage at 500,000home equity at 117,000total mortgage debt is 617,000house just appraised at 1.1 millionHave made additional pricipal payments on both the 1st and the Home Equity.I have a 5 yr interest only ARM that will change in December 09' currently at 4.75% changing to 6.5% and want to go to a Fixed rate 30 year mortgage. Bugetwise, the increase to a fixed rate mortgage would be no hardship, and actually a walk in the park.What we were told is that the Debt to Income ratio is too high....(which I agree based on AGI) but we have never been late on anything, etc, etc.....(self emplyed, taking advantage of my write offs) I currently have a 5 yr interest only ARM that will change in December 09' at 4.5% changing to $6.5. Looking to refinance now because the rates are good, but it looks like the banks don't want make this loan. Its hard to believe they would think my wife and I would be a risk....lets take forclosures, wouldn't this be one of the houses they would love to forclose on having 500,000 in current market equity?And to ad, I was raised being taught to pay off your credit cards at the end of the month, don't have any car payments, have at least 6 months of reserve for emergencies, maximize 401k matches and contribute to an IRA. All of these things were told to me from my father, who has done very well in life. But I guess this isn't our Daddy's world anymore.....Anyone have any suggestions? Sell the house, take the cash, buy something else with Cash and not worry about a mortgage ever again? I understand that my position is a lot better than some, but its still hard to believe. I would think the Mortgage Industry and/or the Fed would be trying to come up with solutions for others that are in my situation, rather than just shut it down.