Mortgage Q&A

[ruetzal]

yeh granted you qualify for Harp 2.0 you can go to anyone offering it. BOA got out of the correspondent world so you shouldn't have to worry about your loan being sold to them after you close.

[auburnjosh]

yeh granted you qualify for Harp 2.0 you can go to anyone offering it. BOA got out of the correspondent world so you shouldn't have to worry about your loan being sold to them after you close.

I have a covential mortgage so I think I have to wait on the new program that is being rolled out.

[ruetzal]

the new program is out. Your mortgage had to be sold to fannie mae/freddie/ginnie. And had to be taken prior to think June of '09. It won't last forever so take advantage if you can. Rates are not going any lower.

[ruetzal]

3.750% APR on a 30 year, 3.0% APR on a 15 year and 2.875% APR on a 10 year

haven't saw these rates dip to this level for awhile, I'm sure it won't last long. So if you have the option to lock today at or near here i would

Also here is a good tip when shopping around for a refi

Will you match or beat any deal I find elsewhere?
That's it! If they say, "No," keep shopping. If they say, "Yes," then add them to your list as a potential person to work with. When you ask this question, it lets the lender know you are going to shop them, and they will be more likely to give you a better deal up front. The simple fact is some lenders won't work with a rate shopper. That's fine! You don't want to work with them either. This simple question will put you on the right path.

[ValveCoverGasket]

It won't last forever so take advantage if you can. Rates are not going any lower.

people were saying this 2 years ago
i think we have several more years of low rates and slow recovery....

[ruetzal]

3.75 on a 30 year offering to the public is the lowest level I have saw for quite some time. Rates are unpredictable but they have been ranging from 3.875-4.15 over the course of a year and a half.

the market has a long way to go but by looking at the financial sector most well known names are up 30% this year so far. Recovery in the market happens a lot faster than your home values do unfortunately. So whereas many think it will take some time it will most likely happen faster than they realize.

The Q1 Earnings have been quite good although they have been overshadowed by European messes. IMO the road to recovery is speeding up daily. Once the European markets get on board this thing will take off. Trust me. A lot of our rallies upward have been knocked down by outside countries problems.

if you don't believe me read Apples Q1 earnings report. A lot of cash sitting on the sidelines that takes about a blink of an eye to get into the market.

Out of my years of experience if I had a loan to lock it would have been done today

[auburnjosh]

the new program is out. Your mortgage had to be sold to fannie mae/freddie/ginnie. And had to be taken prior to think June of '09. It won't last forever so take advantage if you can. Rates are not going any lower.

No this is the program that just passed. It doesn't include Fannie or Freddie.

http://homeloanhelp.bankofamerica.co...e%20settlement

[ruetzal]

gotcha, yeh we only really hear about the ones that were able to do. That program is an internal slapping by the Gov't for these big banks. you will have to go thru your current servicer for a program like that.

[dunhamjr]

i think part of my question about an upcoming rental/investment prop refi got missed.

can an investment prop refi rate be bought down from 4.625 ?
or is buying the rate down on this type of property/program limited/restricted/not allowed?

new loan:
30yr conventional fixed, 4.625%

the loan officer talked about being able to buy down the rate, but when it came time to put the buydown in the computer, it wouldnt let him do it. does that make sense?

some other info
refi'd LTV will be right around 105%
the LO said that DTI ratio didnt matter for this program.
and i have excellent credit (777,811,818)

[ruetzal]

well it depends on that rate I wouldn't think there is room to go down, its a pretty good rate. There is a floor for investors on rates even on owner occupied. Regardless it never hurts to ask. You just have to compare both rates and see when the buydown pays off on interest savings. since monthly interest will be lower when buying down a rate you just have to see how many months it will take to re-coup that buydown payment. Then weigh it in with your goals on your property. If you are going to keep it for 30 years then its usually in your best interest. If its only a short term deal I wouldn't buy it down.

[ruetzal]

3.750% APR on a 30 year, 3.0% APR on a 15 year and 2.875% APR on a 10 year

[Shawn O]

Thanks for all your help, we are closing the refi on Tuesday!

Now the next up for us is renting it out and finding a rental property of our own for the next year or more (need documented rental income to qualify for another house).

[ruetzal]

thats great to hear Shawn, I am glad to help you out. If you have any questions let me know

[ruetzal]

3.750% APR on a 30 year, 2.875% APR on a 15 year and 2.750% APR on a 10 year

Just noticed that in 2 days will be the 1 year anniversary of this thread. Can't believe you guys have been listening to my BS that long

[SilverStoned1.8T]

Question for you...

I have inherited a mortgage from my wife on a townhouse that we currently rent out. This thing has two loans on it right now. Apparently when my wife bought the place, before we were together, she did an 80-10-10. The main loan is a 30yr conventional at 6.125% with about $130k left and the second or "10% loan" is a balloon loan at 7.75% with about $16k left that matures in 2017. So, needless to say, I have the next five years to figure out what to do with this thing before the balloon loan matures. What are my options? We're not stressed about the payment, the rent covers the mortgage and then some.

I know I can refinance the whole thing, but the house isn't worth the $146k she owes on it and the loans aren't owned by Freddie or Fanny. I'm not real worried about it right now because I have five years and maybe it won't be under water in five years, but I would like to figure out a plan now. Can I just refinance the balloon loan? Can I take out a home equity loan on my primary residence to pay off the balloon loan? What's the best plan for this thing? As I mentioned before, it's a rental now so I guess any refinancing at this point would be investor rates.

[ruetzal]

well first off its probably best to sit down with a loan officer and discuss your options.

Off the top of my head you can go up to 125% cltv with an FHA loan. Now I do not know the specifics on a investment FHA property.

Since the first is separate from your 10-10 I think you may be in some luck because different programs allow for higher CLTV's and with your first being the 80% you could probably re-write your first and leave the other 2 open. Also you probably could consolidate the 10-10 into a LOC loan (line of credit) to pay those off

there is a lot more things I would need to know about you personally before we could really get down to your goals and the possibilities. I am assuming you also own a primary residence? if so not sure your debt/value on that one. It may be possible to refi your primary and draw out money to pay off your 10-10 at your other place then refi your first over there stand alone.

A guy like you would really need to sit down a talk with a LO in your area. If you need I know a guy in MD if you need a good LO.

Always keep in mind once you establish the options and goals its best to get quotes from 2-3 lenders these days for comparison. It will be well worth your time to do your homework.

[ruetzal]

3.625% APR on a 30 year, 2.875% APR on a 15 year and 2.750% APR on a 10 year.

[AJB]

Wow money is cheap. Wish someone would buy my house so I can move on.....

[ruetzal]

3.625% APR on a 30 year, 2.875% APR on a 15 year and 2.750% APR on a 10 year

rumors are already floating around about Harp 3.0 which the biggest change would be that your mortgage would NOT need to be sold to fannie/freddie/ginnie. ofcourse it will have to be passed by congress as of yet.

[ValveCoverGasket]

Wow money is cheap. Wish someone would buy my house so I can move on.....

itll be that way for a while, no rush!

[Shawn O]

Sent you a PM about something.

[ruetzal]

3.5% APR on a 30 year, 2.75% APR on a 15 year and 2.75% APR on a 10 year



these rates keep getting better as the market has been crumbling.

[Mister MK4]

Wish I could get it on this but LTV is too high at 92%.

[dunhamjr]

Wish I could get it on this but LTV is too high at 92%.

unless i am mistaken, you may be able to.

the harp 2.0 or whatever it is that chase is using to do my rental refi is allowing me to do it at 105% LTV.

[hugoaswho]

yeah by the time they change the date on the harp 2.0 to do my refi the prices will be at 200% ltv....

[BAM6I4]

This may have been asked before, so I apologize if it has been....


But, does it matter how many times/how often you refinance? Does it hurt your credit or affect you in any way?

I'm thinking about refinancing for the 3rd time in 5 years due to the low rates.

I'm currently at 4% 30yr fixed and can get 3% for 15yr fixed for about $400 by refinancing with my current lender.

However, I just did the last refi in Sept 2011, does that matter? My mortgage guy said it had no affect but I was just checking. And he said he hasn't seen the 2.75% mentioned above, has anyone else scored that?

Thanks

[dunhamjr]

This may have been asked before, so I apologize if it has been....


But, does it matter how many times/how often you refinance? Does it hurt your credit or affect you in any way?

I'm thinking about refinancing for the 3rd time in 5 years due to the low rates.

I'm currently at 4% 30yr fixed and can get 3% for 15yr fixed for about $400 by refinancing with my current lender.

However, I just did the last refi in Sept 2011, does that matter? My mortgage guy said it had no affect but I was just checking. And he said he hasn't seen the 2.75% mentioned above, has anyone else scored that?

Thanks

my personal experience is that it really doesnt matter much.

yes its a new inquiry. yes its a new credit line. but its replacing a line of credit as well. you MIGHT lose a couple of points in a refi... but credit scores are in constant flux anyways. its not going to affect your buying power unless you are absolutely right on the cusp.

3 times in 5 yrs is a bit often. but you are getting a good rate deal. the thing i would worry about is any closing costs you keep incurring on these refi's. you have to think about the payback time on those costs... so if you go in and refi too often, you might not really be getting the payback you think you are.

the current deal you are talking 4% 30yr to 3% 15yr for $400 seems amazingly cheap. be sure that it really is $400 not just $400 out of pocket.

1% is a big enough drop to warrant another refi in my mind. but i would be aware of the payment change you are going to experience going from a 30yr to a 15yr.

[BAM6I4]

my personal experience is that it really doesnt matter much.

yes its a new inquiry. yes its a new credit line. but its replacing a line of credit as well. you MIGHT lose a couple of points in a refi... but credit scores are in constant flux anyways. its not going to affect your buying power unless you are absolutely right on the cusp.

3 times in 5 yrs is a bit often. but you are getting a good rate deal. the thing i would worry about is any closing costs you keep incurring on these refi's. you have to think about the payback time on those costs... so if you go in and refi too often, you might not really be getting the payback you think you are.

the current deal you are talking 4% 30yr to 3% 15yr for $400 seems amazingly cheap. be sure that it really is $400 not just $400 out of pocket.

1% is a big enough drop to warrant another refi in my mind. but i would be aware of the payment change you are going to experience going from a 30yr to a 15yr.

Ok, I didn't think so but I do agree with you that 3 times in 5 years seems crazy.

However it's always proved worth it even with the fees, which have been getting cheaper and cheaper for some reason.

Little history...I've never rolled anything into the loan, don't escrow and have confirmed payoff amount on existing loan is the same as the new balance on the ref loan.

Original loan was 6.625%, 30yr fixed, seller paid closing > 10/07 - BOA
1st refi was to 5%, 30yr fixed, paid roughly $1800 closing> 2/09 - BOA
2nd refi was to 4%, 30yr fixed, paid roughly $900 closing > 10/11 - Union Savings

3rd and most likely final refi will be to 3%, 15 yr fixed and according my loan guy just under $400 in fees.

I am aware of the payment spike but the funny thing is the payment will only spike to roughly $5 more than my initial payment was when I first purchased the house due to a higher balance and interest rate even though the term is 1/2 the length.. My payment is significantly lower than it was when I bought the house due to dropping the rate 2.6% and having a slightly lower balance.

While the payment wouldn't be as comfortable as the one I'm enjoying now, I think it'd still be comfortable enough and seems well worth it.

[Slipstream]

3.5% APR on a 30 year, 2.75% APR on a 15 year and 2.75% APR on a 10 year



these rates keep getting better as the market has been crumbling.

Bah! Locked in a month ago at 3.875, thinking that was the rock bottom of the market. It seems the market found a bigger shovel.

[ruetzal]

Bam its not a great idea to keep refi'ing all the time but in the market it makes more sense every day. And I am sure you will find after this refi you will probably be out of the refi market for quite some time

I think its definately worth your while to do it again, your going down 1% + with low fees, granted he probably up'd the rate a hair to cover some costs, but in reality its still a great rate for the price. Upfront costs are re-couped thru the term of your loan and granted you stay in the full 15 years this time you will more than make up for it. Keep in mind the cost of a 4.5% ~ rate vs a 3% rate over the course of 15 years. You will definately save a few bucks

Us lenders need to try to keep our borrowers happy for about 5 months after we sell the loan, since if the loan pays off within 180 days we have to pay back the premium we sold it for. However this is nothing you need to worry about

Also the reason fees are coming down is due to the gov't interaction in capping Broker Compensation and causing the market to be very very competitive, this is also due to the quality of borrowers that are able to refi has vastly improved over the last few years. Better borrowers lower fees, just how it works. thats why Brokers were able to rob bad borrowers blind in the past

for the guy above me I feel for you, it was very hard to predict over the last 30 days the S&P would drop so bad and everyone flies to T-Bills causing the rate drops. I believe they will come back up a hair but for the most part you will have some time.

For the comment about the Lender not seeing my rates on their sheets. WAnt to keep reminding you people that you HAVE to shop around. Rates differ greatly between us and I suggest you seek out 4-5 lenders and ask their rates before applying. If your like me you have an idea where you rate quality wise and what rates you should be getting. Also fees differ greatly too! be sure to ask about those and question everything. With the quality of loans these days banks are hiding crap in attempt to make some more cash since Mtg's are a commodity today they try to make money where they can.

[ruetzal]

also if you locked in to a higher rate but have not closed yet you should be going back to your bank and renegotiating a better rate. If they can't give you one someone else will and with this big of drop it probably be worth your time forgoing the appraisal cost and going somewhere else, granted your lender was smart enough to charge you upfront, if you don't have any $ in the deal and you haven't closed I am sure they will renegotiate and if not you simply walk away and find another lender.

[ruetzal]

3.625% APR on a 30 year, 2.875% APR on a 15 year and 2.875% APR on a 10 year

[tbvvw]

3.625% APR on a 30 year, 2.875% APR on a 15 year and 2.875% APR on a 10 year

I'm curious on the 15 yr APR you quote...

The best I could get last week was 3.25 APR, 15 yr, 60% LTV, 800+ fico, and I work for the big bank where I'm borrowing the money (total fees is ~$200).

[ruetzal]

http://ratesinmotion.com//rates.html
^link to website where we post

Posted rates are all about Bank appetite. We work with about 15-20 banks in the country and we sell to whoever posts the best ones. So your bank may have a bit less appetite for low rate mortgages. We just went thru a dip in rates, they are coming back a touch today but your bank may have forgone a quick dip which was somewhat foreseeable.

Thats why I keep posting to shop around, even as crazy as it sounds you may get a better deal than your work place can offer.

these rates are for better borrowers 700 + credit, good LTV, single family homes. they can change based on property type, location, credit, etc. They should be used as a guideline of where you should be around/offered.

As always I am here to help to get you the best deal out there

[tbvvw]

Thanks for the info and link...