Refinancing moving forward. Had a nice surprise today when I learned an appraisal would not be needed.
yeh there is. On your initial mortgage if you pull out your amortization schedule it will show when the pmi drops off. Since during your mortgage, the terms were put in place so lets say your loan to value was 95% regardless of where your value is today your mortgage still looks at the value that was at the time of your refi/purchase so whenever your amortization scheduled showed you falling under the 80% ltv your pmi would be removed
You should have rec'd a amortization schedule with a copy of your mortgage docs. Its a bulky thing probably 20 pages or so just a big schedule of your mortgage payments. there should be a pmi column on that showing when the pmi is removed.
thats a pretty good deal because generally there is a appraisal waiver fee of $75 and a lender fee on top of that generally around 500 + title fees/atty
so if you are just getting charged for title fees thats a great deal! without appraisal a deal generally costs around 1000-1500 everything included. Just remember to watch your hud-1 settlement statement page 1 and 2 (page 1 is a summary of charges, page 2 breaks them out) ensure you know what your being charged for. If it doesn't make sense ask questions. If you think you are getting robbed tell them you are not paying for a specific fee. Remember everything is negotiable! purchase or refi it does not matter. Title fees are somewhat set in stone but I have saw broker credits to lighten the burden often.
Here are ten factors credit agencies consider when calculating your credit score, listed in order of importance:
1. Major derogatory items on your report – Bankruptcy, collections, foreclosure, and slow payments will put a huge dent in your credit score.
2. Time at your present job – The longer you are at your job, the better.
3. Occupation – Professionals get 50 points, but a typical blue collar employee will only get 25
4. Time at present address – Living in your parent’s basement until you’re 35 isn’t necessarily a good thing, but it will help your credit.
5. Ratio of balances to available credit lines – The lower the better. Don’t be afraid to increase your credit limit to lower the ratio.
6. Homeownership – If you own a home, you get an additional 10 points over those who rent.
7. Number of recent inquiries – Don’t apply for 20 credit cards just to get a free t-shirt.
8. Age – Credit agencies consider being over 50 to be the best age.
9. Number of credit lines – If you have too much credit, it can actually hurt you.
10. Years of credit in the credit bureau database – Time is your friend. The longer you have good credit, the better.
not sure why harp but you can go with a regular program at 94% ltv you would have pmi but you could refi
Also have you ever check out DU Refi plus loans? there was a cutoff in Jan 09 I believe but if your original mortgage was prior to that you would qualify up to 125% CLTV or 105% LTV with the current terms of your existing 1st mortgage. Which means if your original mortgage did not have pmi this one would also not have PMI. The only kicker here is that your previous loan had to be sold to the agencies...Fannie/Freddie/Ginnie
With the DU Refi plus you should be getting rates at the same% as a 30 year fixed which today is about 4.125%
actually here they are today
4.125% on a 30 year fixed, 3.375% on a 15 year fixed, and 3.0% on a 5/1 ARM
^^ thanks for the insight & links ruetzal. To shed a little more light on my situation I do not currently pay PMI, so a refi ideally would not have it either.
If I understand the links correctly DU Refi Plus = HARP program.
I *think* the reason my quoted rate is so much higher than market is the .75% LLPA (Loan Level Price Adjustment) that applies to condos over 75% LTV. That's what it says in the docs I just found anyway. That's consistent w/the rate jack I had last time around (also w/HARP)... it's actually .25% worse than the .5% kicker I had before.
Open to other ideas/angles... not sure that 4.5% is worth it for me.
I know WI/IL have this rule it differs in every state if the non borrowering spouse has to sign or not. Although in every state you should be able to obtain a mortgage with only 1 spouses info. Granted he/she qualifies for the program
My only other option would be to take out a 2nd to get your LTV below 80% then refi, you would have to do the math since 2nd's have a higher rate. Although if your rate is in the low 5's high 4's its probably not worth your time. Also 2nds are somewhat hard to get these days although a line of credit is easier but even a higher rate.
FYI PMI is going up across the board still these days. Rural Housing and FHA has increased there premiums in recent months. Catching up for lost time I guess
Kind of a obvious statement here but everyone should keep in mind there are a ton of ways to lower monthly debt/pmts
I just recently had my car/hoi priced out by a buddy to see where my insurance should be at. Its a soft hit to credit so no big deal. Just by him pricing me out I inturn went to my insurance company and they dropped my monthly bill $40 per month.
Today just called my cable/internet company and they lowered my payments by $37.
Keep up on these companies especially when you see your payments rise. There is to much at risks for these guys today to lose customers. Its kind of funny how much people are willing to negotiate these days.
stupid crap like this makes a difference.
we all have to critique our monthly payments. My old man always tells me that the easiest way to become a millionaire is have customers pay you monthly. Its really true! Now to find a way to do that
So in short rates aren't dependant on your credit they are a factor of the market and with a poor score you would take Rate Hits to the Mortgage Rate. With good credit there are no rate hits so you essentially can obtain the market interest rate.
Last edited by ruetzal; 10-13-2011 at 03:13 PM.
Edit, just did a quick search...looks like rates would go up MUCH more than what you listed:
Last edited by Mk3_gurl; 10-13-2011 at 05:16 PM.
if you can get a 4.25% with a 740 score... don't expect 4.75% with a 550 score.
the only real way to know what your rate will be is to apply. ruetzal might be able to guess if you know your score. but your personal situation, where you apply...etc.etc.etc. can all have an affect on the rate you get.
ok, I'll post up because I'm actually looking to do something. I called Quicken Loans, gave them my info, then some sleaze bag tried to hard close me on a loan. no dice, that's not how I roll.
I want to refi my 30yr 5.75 fixed (24yrs remaining) down to either a lower payment or a shorter payoff time.
Credit score of 740, plenty of cash in the bank. I owe about $6Gs on my Amex. I just started a job, money is so-so, but will increase in the next couple months.
Guy at Quicken said my DTI ratio wasn't good since I owe on my Amex (literally my only debt) and he could only get me an FHA with PMI. Dealbreaker. I had to fight to get the PMI off the first time, not gonna deal with that again.
I'd like to drop to shorter term like a 15yr if my payment can stay the same, or I want to stay at a 20-25yr if I can significantly drop my monthly.