Home refinancing (Ditech)

[Overgloc]

What about their No closing fee? Anyone use them? Any other company offering no closing fee? Trying to get a lower Interest rate and lower payment and Pay off some high interest credit card and Car Load bill . Current Int Rate is 6.5% and still own 96k house value @ 150k+, Was gonna refinance for 120k to pay off all the bill and Have one Payment to deal with.

good Idea or forget about it?

 

[SmoochyTX]

Diltec?

 

[Overgloc]

Oop Ditech My bad.

 

[bunker]

Ditech is owned by GMAC so I wouldn't worry about them being shady.

As far as the financials go, it's something you're going to have to get a calculator out to see if you're saving any money in the long term.
Keep in mind, if your credit rating isn't top notch you're not going to get their lowest interest rate.

 

[Vic]

From a certain perspective, they are shady. The low interest rate they advertise on TV is not the same as their "no closing fee" interest rate. You gotta pay points and fees to get that rate. They're not actually being shady per se when they do this, and they are in compliance with the law (note the advertised APR).
And yes, many companies are capable of offering a variety of no point,no fee, or no cost options. As there is no free lunch, however, the rub comes in a higher interest rate.

You won't be able to get lower than 6.5% fixed on a "no fee" from them (or pretty much anyone) today (or tomorrow), especially not at 80% cash-out refi, and especially not borrowing only $120k. It's just not out there. Maybe 2-3 weeks ago but not today.

Plus, you shouldn't refi a car loan into your mortgage. Do you really want to paying on that car 30 years from now?

 

[Overgloc]

The house is Value @ 150k+ and 96k left to on the House. What i want to do is borrow 120k from a mortgage lender and pay off the house and any other bill i might have and be stuck with on payment for 30 years. Going from Ditech no Closing cost sound good But was gonna try to get a lower int Rate. Credit is good for both myself and the wife 750+ Becon score. What i really want to know if anyone have deal with Ditech and their no closing cost AD.

 

[Vic]

Yes, many companies offer no closing cost deals. Like I said, it's a common and popular program from most banks, lenders, and brokers.
The issue is that you gotta make up the costs with a slightly higher interest rate. The problem there is that you're not going to be able to get a lower interest rate for that particular program at today's market rates.
For a no-cost on a cash-out refi at 80% at that loan amount on a 30 fixed, you're probably looking at 6.875% to 7.0% even today, even with the best of qualifications. 6.5% will cost you probably at least a discount point plus fees. Feel free to shop around though. Don't wait to lock in.

 

[SoulAssassin]

6.25% - no closing costs https://www.penfed.org/productsAndRates/mortgages/overview.asp

Anyone can be a member.

 

[Vic]

Originally posted by: SoulAssassin
6.25% - no closing costs <a target=_blank class=ftalternatingbarlinklarge href="https://www.penfed.org/productsAndRates/mortgages/overview.asp">https://www.penfed.org/productsAndRates/mortgages/overview.asp</a>

Anyone can be a member.

I ran the numbers through their website and they're saying 6.25% 30 fixed with ~$1,900 in non-recurring closing costs (plus regular recurring costs) for what he's looking to get. Still very reasonable though.

 

[Overgloc]

Thanks A bunch guys!! Looking around some more to make final decision .

 

[Vette73]

Ditech seems to be higher then most on their rate. I think their CEO, or high up person, even admitted they were not the lowest so they have to offer more services, i.e. gimmicks, to get customers.

I am looking for a 30year fixed no point mortgage right now. Seems there might be some in the highs 5's to 6% range.

 

[xgsound]

The math should work. Less interest and deductablity adds up well. Just remember you're not paying off the debts, you're only moving them around to lower costs.

How about trying to get a equity line of credit for $25K in addition to your current mortgage. This puts the same money up to consolidate bills.

This would offer some differences, if you're interested. It keeps your current decent interest rate and current payoff date on the main mortgage. Many banks offer fixed rates for equity loans/ lines of credit, and they are more commonly processed with minimal (zero to $150) costs. This smaller loan could be payed down to nothing (try to apply any extra money monthly) easier than the whole $120,000, and you'll feel like you did (because you did) something when you wipe it out.


Jim