Would I qualify for a mortgage refi?

[EagleKeeper]

Originally posted by: BoberFett

Originally posted by: Common Courtesy
Your 5 + 25 is what they call a balloon. The payments are setup as a 30 year; but after 5 years, (or earlier) you need to get a new loan. The old one becomes due.
If you have no $$ to pay off the balance - you default and lose the property.

An ARM by any other name...

With a ARM, you have the long term morgage - it is just that the rates will bounce around.
The balance is not due after the first go around

The baloon can be deadly when the time comes and your financial situation has taken a turn for the worse.

I had a balloon from the seller in the late 80s. It allowed me to get into a house quickly (job relo) with ziltch paperwork. 1 Month before I had to refianance, I was laid off.
Lender that I was trying to refinance with jacked the rate up 4 pts when they went to verify my income the following week.

Over a barrel, I could do nothing, even though I had a job offer coming down the pike.

Had I an ARM, they would not have been able to jack me.

 

[Vic]

Even though your LTV/NPV is borderline, I'd suggest considering a HAMP mod instead of a refi, but your lender is Countrywide/BAC Home Loans and you could die of old age before you got a decision from them.

 

[StageLeft]

Originally posted by: OCguy
If your loan is currently a Fannie Mae backed loan, you can go to 125% with no MI on the HARP program with some lenders.

That program is putting my future kid through college right now.


I am slammed because of that program and low rates. We are doing 4.5% at par all day.


@Dullard: That is a horrible way to go. You can get a standard ARM with a 9% ceiling in the 3s right now, no need for a balloon.

Is this reliable? It says fannie owns it. I do manage it via countrywide and closed with them but who knows what's on in the background.

So I would have a good shot at about 100% LTV and not pay PMI? What would closing costs be for something like this? I heard average rate is a hair under 5 and you're saying many are 4.5%?

Even though your LTV/NPV is borderline, I'd suggest considering a HAMP mod instead of a refi, but your lender is Countrywide/BAC Home Loans and you could die of old age before you got a decision from them.

So I can't call up Jonny-mortgage-guy in the phonebook and tell him I want to clear out my existing loan and redo? I'll look up what the HAMP or HARP means...

EDIT: for hamp i read that The borrower must have had a change in circumstances that causes financial hardship, or be facing a recent or imminent increase in the amount of the borrower's monthly payment that is likely to create a financial hardship., which won't work. HARP seems it could work, though...

 

[Perknose]

Jeebus Christ on a Hot Cross Bun, OP, you right and or left-wing slimeball, I . . . wait, what? Mortgage rates? Oh, ok, carry on.

 

[Via]

Damn, I locked my rate at 5.25 when I first got serious about buying about 2 months ago. I should have waited.

Oh, well... water under the bridge. Being self-employed probably prevents me from getting the best rates anyway.

 

[TheSlamma]

Originally posted by: BoberFett
It has nothing to do with good with money. Even people who are good with money might not be up for paying 50% of their gross income toward their mortgage to get it paid off in 5 years. And if you can't pay it off in 5 year? Then you get to refinance. And do you really want to gamble that you'll be able to refinance in 5 years? What will rates be? Aren't you better off locking in a standard 30 year mortgage at 5% and paying additional to principle than getting a mortgage at 4% and then having to refinance at a completely unknown rate in a few years? What happens if inflation kicks in like some suggest? 10? Back up to 15-20% like in the 80s?

Sigh.. well again we miss the part about NOT for everyone including the OP and clearly not for you.

Your 5 year mortgage is a terrible idea unless you're talking to someone who already has the cash in hand and simply wants to remain liquid rather than tying up their cash in property.

I'm one of those someone's. My wife and I have balanced our savings so it's always above what we owe, we've used that money to gut and remodel our kitchen and 2 baths and tons of other work on our house (it's a HUD home that was a complete disaster we got for very cheap due to that) while making massive principal payments on our mortgage with our income and our savings buffers, If I lost my job today the house could be paid off on Tuesday. When we signed for this 5/1 our plans were to have it paid in 2 years.. we're on track for May 2010 so that's 20 months total so I think we're being good with our money. For the month of September we paid just under $120 in interest, It fits us just fine.

 

[BoberFett]

Originally posted by: TheSlamma

Originally posted by: BoberFett
It has nothing to do with good with money. Even people who are good with money might not be up for paying 50% of their gross income toward their mortgage to get it paid off in 5 years. And if you can't pay it off in 5 year? Then you get to refinance. And do you really want to gamble that you'll be able to refinance in 5 years? What will rates be? Aren't you better off locking in a standard 30 year mortgage at 5% and paying additional to principle than getting a mortgage at 4% and then having to refinance at a completely unknown rate in a few years? What happens if inflation kicks in like some suggest? 10? Back up to 15-20% like in the 80s?

Sigh.. well again we miss the part about NOT for everyone including the OP and clearly not for you.

Your 5 year mortgage is a terrible idea unless you're talking to someone who already has the cash in hand and simply wants to remain liquid rather than tying up their cash in property.

I'm one of those someone's. My wife and I have balanced our savings so it's always above what we owe, we've used that money to gut and remodel our kitchen and 2 baths and tons of other work on our house (it's a HUD home that was a complete disaster we got for very cheap due to that) while making massive principal payments on our mortgage with our income and our savings buffers, If I lost my job today the house could be paid off on Tuesday. When we signed for this 5/1 our plans were to have it paid in 2 years.. we're on track for May 2010 so that's 20 months total so I think we're being good with our money. For the month of September we paid just under $120 in interest, It fits us just fine.

Ahhhh, so this is all just about bragging. Now we're getting somewhere.

Shit, if this is about bragging then I should probably tell you about how my wife and I owned our first house outright by the time we were 30.

What is this "Pay off in five years" crap you're talking about? What kind of low life scum sucking bottom dweller needs five years to pay off a house? You apparently.

Damn, you must be poor. Go stand in line for your food stamps chump.

 

[OCGuy]

Originally posted by: Via
Damn, I locked my rate at 5.25 when I first got serious about buying about 2 months ago. I should have waited.

Oh, well... water under the bridge. Being self-employed probably prevents me from getting the best rates anyway.

Hmm...rate locks are generally 12-60 days......how long did you lock it for??

Being self employed wont hurt your rate.

 

[Via]

Originally posted by: OCguy

Originally posted by: Via
Damn, I locked my rate at 5.25 when I first got serious about buying about 2 months ago. I should have waited.

Oh, well... water under the bridge. Being self-employed probably prevents me from getting the best rates anyway.

Hmm...rate locks are generally 12-60 days......how long did you lock it for??

Being self employed wont hurt your rate.

It's too late - I bought the house already.

 

[StageLeft]

Bump first post update.

Ocguy

I am slammed because of that program and low rates. We are doing 4.5% at par all day.

What do you mean at par? Apparently I HAVE to go through my current loan holder with this, so I take whatever they will give me. I go to yahoo finance and about 5% is what 30 year are at now, presumably some are paying with points, so countrywide/BAC is giving a fair rate...?

 

[OCGuy]

Originally posted by: Skoorb
Bump first post update.

Ocguy

I am slammed because of that program and low rates. We are doing 4.5% at par all day.

What do you mean at par? Apparently I HAVE to go through my current loan holder with this, so I take whatever they will give me. I go to yahoo finance and about 5% is what 30 year are at now, presumably some are paying with points, so countrywide/BAC is giving a fair rate...?

So your HELOC is subordinating to the new 1st loan? So basically you are doing an 80% rate and term refinance on the 1st....

5.375% is an OK rate for that program. Because you have to go through your current servicer to do the HARP program for Fannie backed loans, you are pretty much at their mercy. They are making some money for giving you that rate (probably over a point), but it may be better than bringing in the point up front.

By the way, to make sure that the guy is not bulls*itting you about your loan qualifying for the program, go to the Fannie and Freddie sections here see if they have your loan:

http://loanlookup.fanniemae.com/loanlookup/

http://www.freddiemac.com/mymortgage/

 

[StageLeft]

Originally posted by: OCguy

Originally posted by: Skoorb
Bump first post update.

Ocguy

I am slammed because of that program and low rates. We are doing 4.5% at par all day.

What do you mean at par? Apparently I HAVE to go through my current loan holder with this, so I take whatever they will give me. I go to yahoo finance and about 5% is what 30 year are at now, presumably some are paying with points, so countrywide/BAC is giving a fair rate...?

So your HELOC is subordinating to the new 1st loan? So basically you are doing an 80% rate and term refinance on the 1st....

5.375% is an OK rate for that program. Because you have to go through your current servicer to do the HARP program for Fannie backed loans, you are pretty much at their mercy. They are making some money for giving you that rate (probably over a point), but it may be better than bringing in the point up front.

By the way, to make sure that the guy is not bulls*itting you about your loan qualifying for the program, go to the Fannie and Freddie sections here see if they have your loan:

http://loanlookup.fanniemae.com/loanlookup/

http://www.freddiemac.com/mymortgage/

Yep I ran it and it's a fannie. That's too bad I can't get a lower rate. I think in the end I'll buy the points to pull it down to 5%. I ran the numbers closer and can hit break even in 34 months and we won't be moving unless something fairly bad happens, which isn't statistically likely.

The HELOC came after my first loan originally but cannot be touched by this so it will have to sit there, according to this guy (and what I read online).

So I'll have 80% at 5% and 20% at prime-.5%. My HELOC is something like 2.75 or 2.85 now, which is fantastic. It was almost 8 when I opened it back in 2007, though, and I imagine it will go up again in the not-too-distant future, so I am getting some money together in case i need to pay a bunch of it off. Right now it makes no sense to with an interest rate that low.

 

[TheSlamma]

Originally posted by: BoberFett
Ahhhh, so this is all just about bragging. Now we're getting somewhere.

Shit, if this is about bragging then I should probably tell you about how my wife and I owned our first house outright by the time we were 30.

What is this "Pay off in five years" crap you're talking about? What kind of low life scum sucking bottom dweller needs five years to pay off a house? You apparently.

Damn, you must be poor. Go stand in line for your food stamps chump.

Yep that's what I was doing, bragging. :roll: I sat there waiting for you to finally ask that specific question just so I could brag. Why didn't I just start off by bragging since that was my entire point.

 

[StageLeft]

Under the program I was allowed one rate reduction. I saw a headline last Wednesday about rates matching historic lows set a year ago so I called again and locked in instead of 5% with 1.5 points I now have 4.875 with 1.25 points. I think some people are able to get that rate without points but I'm at the behest of BoA and no options so I have to do what they say.

 

[cganesh75]

i keep calling bank of america to get in on this program, they keep shooting me down saying they can only do 105% even though fannie mae says 125%.. frustrating. i am half tempted to call other lenders.

 

[Genx87]

i keep calling bank of america to get in on this program, they keep shooting me down saying they can only do 105% even though fannie mae says 125%.. frustrating. i am half tempted to call other lenders.

Heh US Bank claims if I am over 105% they tack a point on. So my rate would be over 6% + 2 points down for closing. Since my loan is freddie mac I apparently cant take it to other lenders unlike a fannie mae loan. I agree, it is quite frustrating trying to figure out what is what.

 

[StageLeft]

It does seem luck to be some pure luck of the draw whether your lender is going to work with you or not. Also if you are really in a bad way you can get it redone with the hamp I think and if you're not too bad at all you can do harp but then there are tracts of no man's land where you're kind of in between.

 

[StageLeft]

Rates today have hit a new historic low.

 

[ZaneNBK]

Rates today have hit a new historic low.

Yup, I'm talking with my bank now and going through preapproval for a 4.78% loan. Supposedly if my credit score was a little better I could've gotten 4.65%. Hopefully everything goes smoothly but my employment is a bit odd so that might through a wrench in the works, though the loan officer doesn't seem to think so. I work for a Canadian company with no US office so they pay me as a contractor even though they consider me to be a regular employee. Otherwise I'd have to pay Canadian taxes and file for a refund at the end of the year.