Thanks for the info. I am in the market for a house.
well depending on who has the mortgage you may be able to work with them to lower your rate. I was able to refi my principal residence so I didn't have to take this route but my previous servicer was willing to re-write my deal with a lower rate ofcourse the fees to do it were kind of crazy so I didn't pursue it. I would give them a call and see if they are able to help you out, keep in mind they don't want anymore defaults so some places will re-write your loan without appraisals, etc. just to ensure you keep making payments.
You should see how they act on commercial properties these days, its quite funny. My work place owns several commercial properties and when they mature (they are generally on short term loans) they have no problem giving us the best rate and no appraisals or anything (they are scared to look) as long as our financials are good and we continue to make pmts they will re-write that loan for free
in a good market they want appraisals and applications but in a bad market they just want you to keep paying however you can. Its kind of a catch 22 these days.
I would definately contact your servicer and see what they can do though. Just don't get into a modification you want a refi.
I just want to add a post to state that just cause you are underwater on your home does not mean you aren't able to refinance your primary residence.
The gov't has a "refi plus" program that mimics the terms of your first mortgage with the current market rates. The program allows you to refi up to CLTV (combined loan to value) 125%
If your current 1st mortgage did not have PMI under this program you will Not have PMI as well. Essentially just a rate refi, its a great program for a lot of people and most do not know of it. There are some specifics you have to meet but if you are a good borrower and have a job with good credit you won't have any problems. The only hiccup is that your current mortgage has had to be sold to Fannie/Freddie/Ginnie to qualify. If you don't know if your was I can post the link to the website for you to check, its kind of a b**** cause you have to have your address very similar to the way fannie has it in there system but let me know if anyone needs the link.
It never hurts to try to pursue this route
Any word on which lenders are the best for these rate modifications? I have two homes that are both worth about half of what I owe on them (friggin FL.....) but from what I can figure out, there's no help for anything like that with the max LTV being 125% on all the programs. I earn more than enough to continue paying them, have never been late, etc etc so I'm not in any distress, but it annoys the hell out of me to see rates at half of what I'm currently at and not being able to refi to a lower rate.
I couldn't speak about all lenders out there but I am pretty sure the bigger banks (IE Citi, Wells, BOA, Chase, GMAC's) would be willing to work with you. My specific instance was with Citi, they were willing to re-write my 1st with them at a lower rate (not the lowest but lower) but the fees they wanted were pretty steep, so I passed and went with the DU Refi Plus.
You would have to call your servicer and ask them if you could work out a lower interest rate in your mortgage. Now it can vary greatly depending on the terms, I was just suggesting that you could try to contact them and see if they had anything available for you to do.
Also On the DU Refi Plus it allows CLTV meaning if you have a first and second you could go up to 125% CLTV but if you only have a 1st mortgage I think the cutoff is around 105/110%. Also your loan had to be sold to the agencies.
here is some reading on this program. If you search google "du refi plus" you will find much more. Most local banks won't participate in this program since they don't sell their loans they retain them. But any lender that sells their mortgages most likely has access to this program.
here you go
click on "property elgibility" single housing..click accept and then punch in your address and it should give you the area on the map and it may be hidden but if you look around it should say elgible or not
benefit with these programs is that you can go to 100% ltv
I know big gov'ts plan for sticking it to investors right?
well keep in mind, renting has been doing extremely well these days, I think going forward you could probably keep raising monthly rent for the next few years. Hopefully getting you a decent or acceptable spread between your mortgage and the rent coming in. Which will hopefully keep you afloat until the housing markets come back. FL got hit pretty hard since its a 2nd home state but generally areas like FL come back faster than other areas once the market starts its northerly accent.
Thanks just let me know if I can help in the future.
4.375% on a 30 year fixed, 3.5 % on a 15 year fixed and 2.625% on a 5/1 ARM
I see this question a lot, here is an example
“I am currently in the loan process and getting ready to close. Rates have went down and my lender can’t get me a better rate because I am already locked in.” Do I switch lenders? What do I do?
You have a few options. Before you jump ship you should consider what you are actually losing by doing so. Let’s say your refinancing a $200k mortgage at 4.5% on a 30 year loan. This would be a $1013 P & I payment. Lets assume rates dipped 1/8th or .125% and you wanted a rate of 4.375%. That rate sounds better BUT is it? At that rate your P & I would be $998. That is a $15 a month difference in payment. That is $180 a year or $900 in 5 years. I know every bit you can save is great, but what you need to know is that your appraisal most likely will not go from lender to lender. So you would need to get a new appraisal done which could result in a different value and cause a different set of issues. Your new lender may have more strict guidelines as well. An appraisal could be $400 on the first one which you would lose and $400 on the new one. That is a cost of $800 to save $900 over 5 years. Is it worth it? What is your time worth? That up to you.
My point is that .125% of a point in rate is nice but may not be worth it in the long run. Let’s assume you have a larger loan amount and rates dip a half a point. Then obviously there needs to be a discussion with your lender. Most lenders will renegotiate your lock with their investor to get you a better rate in order to keep you as a client. They may negotiate some costs as well. Talk to your lender and find out what there re-lock policy is. Everyone is different.
On a side note, if the rate you locked in 3 weeks ago was a quarter higher than what you could have got with a different lender. That’s a different issue!
psn - pappas64
^ thanks for the response. Yeh most lenders will try their hardest to retain customers these days so its important to ask. I will say as well re-locking loans do cost lenders money so the fee is justifiable plus if you wanted to go somewhere else you probably would have to get a new appraisal done anyway
4.5% on a 30 year, 3.625 % on a 15 year and 2.956% on a 5/1 ARM
think this will be the story for sometime maybe a little bouncing back and forth for a bit. I rec'd an interesting email from some top consultants in our business. The were quoting a so called "very smart economists"
"At the end of this month, June 30th, the Federal Reserve will stop buying Treasury bonds. What will happen? Will Bernanke be forced to start a QE3? Actually, a very smart economist we know thinks that the worst that will happen is rates going up 50 bps."
I can agree to this. I mean do we really think the Gov't will allow Interest Rates to jump above 7% in a economy that has barely started to scrape up the ground under our feet? We have a long way to go to impove our conditions and high interest rates will almost take any wind out of any sail out there. At 5% there would still be an attractive spread between risk free and a risk based asset. Well hopefully it would be enough to attract private capital. I guess we will C.
Do you know anything about mortgage insurance?
Here are the specifics:
Home Price = $200,000
Down Payment = $7000 (iirc, fha requires 3.5% down)
State = AZ
My wife and I both have very good credit, just not a lot of money to put down.
I have another thread going about this specifically....http://forums.vwvortex.com/showthrea...gage-Insurance
i have nerd tendencies
i work in a world of shoulds (>ლ)