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Refinancing the mortgage now is impossible

K

krunchykrome

Lifer
I've been trying to get a hold of a human being on the phone from our mortgage company for two days. Yesterday, I was on hold for 2.5 hours, and then I gave up. Today, I've been on hold for an hour.

I want to refinance our 30 year fixed mortgage to a lower rate; I'm assuming they don't have the manpower resources to accommodate all of the people who either want to refinance or want to talk to someone about problems paying their mortgage.

This is extremely frustrating.
 
Many lenders are only taking apps from their existing customers right now, due to volume. We're in the refi process with USBank, our current servicer, and they're definitely not taking new business.

I called, and a person answered, did a quick screening, then queued us for a call back from a mortgage rep. Got that call like 3 days later to get the ball rolling, and just mailed in our full doc package yesterday. Appraisal is getting scheduled, but I can't get a hold of the guy after he called and left me a message.

It's a mess, but if you're persistent, it'll happen.
 
What generally are the costs associated with doing a refi (administrative, etc.)? We've only done it once and for free.
 
Originally posted by: rh71
What generally are the costs associated with doing a refi (administrative, etc.)? We've only done it once and for free.
Click to expand...

Depends on the bank and the loan. I'd say $1200-$1600 is pretty typical.
 
Originally posted by: rh71
What generally are the costs associated with doing a refi (administrative, etc.)? We've only done it once and for free.
Click to expand...
The bank wants their cut (often approaching $1000). The bank also will likely want protections of their money before they loan it to you. You'll likely need a new appraisal (a few hundred dollars). You'll likely need title insurance (a few hundred dollars even though you already have title insurance that covers the same thing, such a scam). You may need inspections for things like termites. There also could be various filing fees (which shouldn't exist since the bank is already taking a cut). Finally, you might choose to pay points (prepay a portion of the loan in exchange for a lower interest rate; this could be thousands or even tens of thousands of dollars and may not be a good deal, luckilly it is optional).
 
Originally posted by: rh71
What generally are the costs associated with doing a refi (administrative, etc.)? We've only done it once and for free.
Click to expand...

I think it depends. I've called 2 different places (none of which are my current lender). One company is a bit shady, and they said that there is no money out of pocket. Wachovia is the second company I spoke with and they quoted me at about $6,100 out of pocket.

Countrywide will be calling me back later today with some numbers.
 
Originally posted by: krunchykrome
Originally posted by: rh71
What generally are the costs associated with doing a refi (administrative, etc.)? We've only done it once and for free.
Click to expand...

I think it depends. I've called 2 different places (none of which are my current lender). One company is a bit shady, and they said that there is no money out of pocket. Wachovia is the second company I spoke with and they quoted me at about $6,100 out of pocket.

Countrywide will be calling me back later today with some numbers.
Click to expand...

$6100?

WTF man?

That has to be with like 1.5 points and a couple months of interest and/or escrow factored in.
 
Originally posted by: krunchykrome
Originally posted by: rh71
What generally are the costs associated with doing a refi (administrative, etc.)? We've only done it once and for free.
Click to expand...

I think it depends. I've called 2 different places (none of which are my current lender). One company is a bit shady, and they said that there is no money out of pocket. Wachovia is the second company I spoke with and they quoted me at about $6,100 out of pocket.

Countrywide will be calling me back later today with some numbers.
Click to expand...

they call it good faith estimate. however, the final numbers may not be close.
 
http://www.askcarolynwarren.com/page1/page1.html

Can't vouch for any of these individuals, but have read Carolyn Warren's book and highly recommend it. :thumbsup:

Regarding title insurance, I think there is some way where existing policy can be reissued at reduced rate because they use the search of records for liens, etc. the lawyer did during initial issuance (forgot what google search I did a long time ago about that subject, though).

 
Originally posted by: spidey07
Originally posted by: ivol07
Can someone refi if they're upside down on their loan?
Click to expand...

Sure, you'd just have to put up the difference in cash.
Click to expand...

And 20% on top of that. Most will not touch a refi unless you have 20%+ in the house. Me and my wife are right at 18% right now.
 
I believe 20% equity, at least (probably more in market that lender feels still has significantly more downside) is minimum to typically refianance.

If you are a distressed mortgage borrower and underwater 5%, then all of that mortgage relief programs the Obama administration introduced may help.

According to Carmen Wong Ulrich, anything under 7% is considered cheap mortgage money historically. I also read somewhere that 1% rate reduction is minimum criterion to even start considering refi. You can divide monthly savings in mortgage payment into total closing costs to see how many months it will take to break even. Haven't searched around, but reading some sites, I get impression 30 year fixed rates are range bound between say 4.75% - 5.25% for optimal borrowers.

 
Originally posted by: Marlin1975
Originally posted by: spidey07
Originally posted by: ivol07
Can someone refi if they're upside down on their loan?
Click to expand...

Sure, you'd just have to put up the difference in cash.
Click to expand...

And 20% on top of that. Most will not touch a refi unless you have 20%+ in the house. Me and my wife are right at 18% right now.
Click to expand...

Must be a a regional thing. Most of the banks around me (Central IL) have 95% financing. Of course we haven't seen the bottom fall out like the large city markets in many areas.

Heck, my house even appraised $30,000 more than it did 3 years ago.
 
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