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| | Author | Messages | |
charann
Posts:231
 | | 10/03/2007 11:09 AM |
 Alert | Just wondering, we are considering refinancing our house. We have 2 loans, one is a normal 30 year fixed, the other is a ballon one that is fixed for either 15 or 20 years.
Thought maybe someone here recently refinanced and could let me know what to expect. | | | |
| | bstoneaz
Posts:404
| | 10/03/2007 11:49 AM |
Alert | Once again, this is one of those questions no one on here will really be able to answer for you. The market is such right now that it really depends on a lot of factors. A year ago anyone could buy a house, 80/20 loans were the most common way to get into a house with $0 down and they worked great for people with credit issues. However, the market tumbled (as we all know) and house values suck. You are one of those people who have an 80/20 it sounds like, you're house is likely worth less than you owe between both mortgages which means it's going to be VERY hard to get the house re-financed unless your credit is near perfect. Which, if your credit was near perfect you probably wouldn't have an 80/20 loan to begin with.
So, in short, call a couple of mortgage brokers who deal with many banks, have them run your credit and see what tey think they can do. If they think they can help you then go ahead and get the house appraised. I wouldn't pay for the appraisal until you have a lender who thinks they can help you and the new payment makes sense. Also, remember you're going to pay closing costs, again, and it may not be wise to re-finance with those extra costs. Oh, and one more thing, a lot fo 80/20 loans came with pre-payment penalties, does your have one? If so it generally equals about six months of interest (on both mortgages) which could easilly be another $10K or more in extra fees tacked onto your new mortgage. | |
Just the good ol' boys,
Never meanin' no harm,
Beats all you've ever saw, been in trouble with the law since the day they was born.
Straight'nin' the curve,
Flat'nin' the hills.
Someday the moutain might get 'em, but the law never will.
Makin' their way,
The only way they know how,
That's just a little bit more than the law will allow.
Just good ol' boys,
Wouldn't change if they could,
Fightin' the system like a true modern day Robin Hood. | |
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| | bbq man
Posts:47
| | 10/03/2007 12:59 PM |
Alert | no chance in hell
you will not be able to refi for at least 2 years | | | |
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| | LeonPotter
Posts:613
| | 10/03/2007 1:36 PM |
Alert | <div class='NTForums_Quote'>Posted By charann on 10/03/2007 11:09 AM
Just wondering, we are considering refinancing our house. We have 2 loans, one is a normal 30 year fixed, the other is a ballon one that is fixed for either 15 or 20 years.
Thought maybe someone here recently refinanced and could let me know what to expect. </div>
I didn't recently refi. It was just over 14 months ago.I did it thru Desertschools. They still have the loan program available. The requirements were a 80% Loan to value and a credit score of 660. At the time, they had a one rate if you met the conditions. Now they have a "rate range." My guess it is based on a range for credit scores.
There aren't any fees for anything. Just apply and they tell you where you stand. They do an appraisal but they is part of the fees that are waived if you keep the loan for two years. No money is required upfront at anytime.All fees are waived if 2 yr condition is held. My total was around $200. No prepayment penalties other than the approx $200.
I would avoid a mortgage broker and I'd deal directly with the lender. Recently, I looked into getting a heloc through Desertschools(minimum credit score 700 and 80% LTV for best rate). I did the application and appraisal. I withdrew because rates dropped since my application. So, I'll try again after the minimum wait period to reapply. Again, I didn't pay anything for the application nor for the appraisal even after canceling during the process.
If you haven't done so, get your credit report and score through one of the agencies.( Desertschools used experian).This way you see what you have to work with without your credit being pulled by another party and it affecting your credit score downward.
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My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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| | charann
Posts:231
| | 10/03/2007 2:34 PM |
Alert | Basically the reason we ended up with the mortgage we did, which is 80% fixed for 30 years and 20% fixed at 15 years is because, the builder's lender kept pushing us into a 5/1 Arm, which we didn't want to do. we wanted a 30 year fixed and the bank finally agreed, but then decided, because we couldn't use our retirement as income (our retirement is pension and unlike a 401K, we can't just withdraw money for an emergency), the bank gave us the loan they did. Stinks, but is better than the 5/1 Arm, because at least we have 15 years to refinance, giving us time to get the market to increase.
The bank even said, the credit scores were awesome mid to high 700's. of course, if i knew then what i know now, we would have used Desert schools. come to find out that most builders will let you use your lender and still get the incentives, which we didn't realize at the time.
our home price has dropped about $50,000 from when we bought it, which is to be expected in this market. So, I guess we will have to wait to refinance. We did call one of the companies that has 1 of the mortages, they want 5% in closing costs. I was always told, refinancing closing costs weren't as high as a normal mortage closing costs, but i guess i was wrong. | | | |
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| | LeonPotter
Posts:613
|
| 10/03/2007 2:52 PM |
Alert | 5% in closing cost?? Egad. Just do your best to be in position to refi later. Overpay(assuming no other debt required with higher interest rates.)No matter what goes on with home values you'll save money.
Interesting, your bank didn't look at the pension as a favorable source of income (are you receiving pension now?) Desertschools didn't ask for assets. They only considered sources of income.(They did not factor in GI Bill because it isn't a long term source.) Well, assets are a source of income, but Desertschools wasn't concerned with "emergency money".
I'll say this, my loan is an adjustable. The fixed version was 1% higher than the ARM AND 1% origination fees which ARM didn't have. At the time of refi, rate was 6.25%. At the time of reset 6.125. Currently, it is 5.75. It is tied to the 10 year treasury.(1% margin rounded up to nearest 1/8th) | |
My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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|  | jrj2448
Posts:2
| | 10/04/2007 11:28 PM |
Alert | | As with any purchase, shop around for the best rate, terms, etc... In this market, most brokers will waive some fees if they are sure they can get your house refinanced. Remember, when the market turns south, brokers and realtors need to make money also, most would rather make a little instead of nothing. | | | |
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| | LeonPotter
Posts:613
| | 10/05/2007 8:34 AM |
Alert | | I Love the term "in this market". Brokers fees are negotiable in any market. But, I still wouldn't use one. I go directly to the source. | |
My answer WAS "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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