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 Post subject: refinance on mortgage
PostPosted: Fri Oct 26, 2012 9:00 am 

Joined: Fri Oct 26, 2012 8:37 am
Posts: 1
In June of this year we applied for a refinance on our home. We are not underwater. Our current loan is for 208000.00 30 yr fixed 5%. It has been one problem after another. First she tried to see if we qualify for a harp II loan which took about 2 months.
Told us we didn't qualify and said we could get a better rate if we had an appraisal. Had the appraisal($400) appraised at 325,000.00. This process took about a little over a month. She called and said our loan docs were ready,had us at 3.5% for 15 yrs. Let her know how happy we were about the 15 yr. The title co called and said docs were ready to sign and told me how much we needed to bring to the table which was $1000+ and had asked if ins and taxes was included, it wasn't. Let the mortgage person know that we were not happy with that and she said she would redo it. Yesterday title co called and said docs were ready, I asked how much payment, ins and taxes would be was happy with that. Double checked if it was a 15 yr loan and she said it was a 30 yr. Talked to the mortgage person and she said we did not qualify for a 15 yr. and she had made a mistake. So here we sit with 30 yr and about $7000 in costs added into the loan. We don't want to sign and are worried about working with this person anymore. We would at least like to look into a 20yr. Sorry for the lengthly post. Do you have any suggestions?


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 Post subject: Re: refinance on mortgage
PostPosted: Fri Oct 26, 2012 9:11 am 

Joined: Sat Jun 16, 2012 2:11 am
Posts: 192
From a person who lives in a country where 2/3 of all mortgages interest rates are fixed three months, and very few more than five: why is 15 years so good and 30 so bad? To me it seems riskier for the bank to lend on 30 years instead of 15 - why did´nt you qualify?

In US, is 30 year mortgage = fixed interest rate AND paying the loan down to zero in 30 years? If so, is that an anuity or 1/30 of the loan each year?

In Sweden, where the house bubble have not burst yet, standard is to borrow with three month fixed interest rate, and pay off the loan in 90-100 year pace (this is average since many don´t pay anything on their mortgage). Amazing, huh?


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 Post subject: Re: refinance on mortgage
PostPosted: Fri Oct 26, 2012 9:43 am 

Joined: Sat Jun 06, 2009 11:49 pm
Posts: 262
Location: Cincinnati, OH
Jel, need some additional information. Such as:

Credit Scores
Total of all other monthly debt (minimum payments as reported on credit report)
Monthly gross income for you and wife/husband

When was your current mortgage taken out? Did you check with Fannie Mae and Freddie Mac to see if either owns your loan? If not, do that now.

Fannie Mae: http://www.fanniemae.com/loanlookup
Freddie Mac: freddiemac.com/mymortgage/ (add http:// before it)

If your current loan was taken out prior to May 31, 2009, and Fannie Mae or Freddie Mac own your loan, then you should qualify for a HARP refinance. (keep in mind there are some situations where you may not qualify).

Now, if neither or the two own your loan (or if the current mortgage was taken out after May 31, 2009), then you would be looking at a normal Conventional/Conforming refinance. In order to qualify the lender has to run your file through either Fannie Mae or Freddie Mac's automated underwriting system (AUS) and get an approval.

One thing that will cause you to not get an approval is debt to income ratios. On a 15 year fixed your debt ratios will be considerably higher than on a 30 year. That may be the reason that they couldn't get it approved on a 15 year, and also why I asked for your income and debt information.

If you don't mind me asking, what bank/lender/broker were you working with?

_________________
T.C. Strait
Ohio Loan Officer / Manager @ Mortgage Broker
NMLS ID 164070
Ohio Mortgage Solutions
Ohio FHA Mortgage


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 Post subject: Re: refinance on mortgage
PostPosted: Fri Oct 26, 2012 10:50 am 

Joined: Thu Jun 23, 2011 3:24 pm
Posts: 87
jel wrote:
So here we sit with 30 yr and about $7000 in costs added into the loan. We don't want to sign and are worried about working with this person anymore. We would at least like to look into a 20yr. Sorry for the lengthly post. Do you have any suggestions?


TCstr8 is a professional, check out what he says. On a human level, I can't promise you if a different person at a different institution will be better or worse. The "$7,000 in costs added in" that you mention, are those total closing costs? Tcstr8 might be able to opine whether that is high or not.

One idea if nothing else pans out: If rate for the 30yr that's on the table is competitive & acceptable to you, one option is to say "yes" to the 30yr but work out your own amortization table to pay off in 15 or 20 yrs or whatever sweet spot of shorter term/higher payment works for you.

I am not sure whether you weren't happy with the original 15yr payment because you wanted taxes & insurance to be escrowed & the bank wasn't going to escrow for that (that is, you would pay T&I directly), or if you weren't happy because once the taxes & insurance were added in that the payment would be higher than you wanted. If it was an issue of bank escrowing, you could always budget monthly yourself for a DIY "escrow". If it was the PITI total amount, that would likely be an issue with any lender's 15 yr mtg.


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 Post subject: Re: refinance on mortgage
PostPosted: Sat Oct 27, 2012 9:20 pm 
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Joined: Wed Sep 23, 2009 9:01 am
Posts: 5316
I agree TC is a pro and has always given good advice here. I would personally trust him.

But...there is no excuse for how you were treated. I would not put up with the bait and switch and would be knocking on other doors on Monday. Your appraisal is valid for 30-90 day so there is a clock ticking. Move on and don't call the liar back.


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 Post subject: Re: refinance on mortgage
PostPosted: Sun Oct 28, 2012 8:04 am 

Joined: Sat Jun 06, 2009 11:49 pm
Posts: 262
Location: Cincinnati, OH
Just to be clear, I am not defending this loan officer and their obvious lack of integrity and/or skill.

I just wanted to pose a possible reason for the decline on the 15 year fixed.

As most of you know, you can always contact me via email to discuss specific situations (I'm only licensed in Ohio so I'm not trying to sell you on using me.....unless you are in Ohio :D )

tc DOT strait AT gmail.com (trying to avoid spam bots picking up my email)

and DoingHomework, I appreciate that endorsement. Did you happen to see that email that I sent back to you (months after you emailed me)? Sorry about that, I just don't check that account

_________________
T.C. Strait
Ohio Loan Officer / Manager @ Mortgage Broker
NMLS ID 164070
Ohio Mortgage Solutions
Ohio FHA Mortgage


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 Post subject: Re: refinance on mortgage
PostPosted: Sun Oct 28, 2012 12:00 pm 
Moderator

Joined: Wed Sep 23, 2009 9:01 am
Posts: 5316
TCstr8 wrote:
and DoingHomework, I appreciate that endorsement. Did you happen to see that email that I sent back to you (months after you emailed me)? Sorry about that, I just don't check that account

Yes I did...and I am moving forward with what I asked advice about. Thank you!


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