My advice is to ask your agent to foot 50% of your loss if something goes wrong because of his advice. See how quickly he/she back tracks.
These people are nothing more then template filler on computer. You are better off doing exactly opposite of what is suggested by agent
SlimTim said: indealtiger said: gwu1986 said: indealtiger said: ... 4. Our agent says not to include loan and appraisal contingency to make our case strong. Is that good?
Yikes!
I think that is very poor advice. Is competition that strong in the bay area?
Thanks for the reply. The house is pretty new (7 yrs) and is in good condition. Good houses are in demand and offers are made pretty fast.
I know even now - in possibly the weakest RE market in history - that good houses in good locations will sell quickly for a good price. But I agree, this is extremely risky advice. There is so much that can go wrong and is entirely out of your control. Did your agent talk to you in detail about these things, and how big your liability would be? The worst case is probably fairly unlikely, but it is probably very very bad and again, may not even be in your control.
Waiving a resale contingency is extremely risky unless you are financially able to sustain two properties/mortgages for an extended time... I made the mistake of waiving resale on my home in PA, in 2006's market, and came within a week of having to substantially lower my asking price vs. losing my deposit. I got lucky, and in this market, I wouldn't bank on luck.
Is this a decent deal? Given our current mortgage, it looks like ~22 mo payback compared to our current payment. I've not factored in any cost of capital, just a straight $5442.93/x-y (x = current payment, y = new payment).
Should add that his assumptions on the loan amounts needed are incorrect by ~$2K, but that shouldn't make much of a difference.
Is this a decent deal? Given our current mortgage, it looks like ~22 mo payback compared to our current payment. I've not factored in any cost of capital, just a straight $5442.93/x-y (x = current payment, y = new payment).
Should add that his assumptions on the loan amounts needed are incorrect by ~$2K, but that shouldn't make much of a difference.
thorotaxi said: What's the story with the second? Is that a new HELOC you're opening? An existing one that's staying put? What's your total LTV?
Ooops, sorry about that. We're looking at an 80/10/10, so total LTV would be 80% as far as the first is concerned. He quoted a 90/10 with a PMI buydown, but the closing costs were $12K.
I just called up Navy Federal. The "mortgage specialist" I talk to (definitely not a loan officer) said that with our credit scores (740+) and 5% down on a ~200k purchase price, NavyFCU could offer a loan with 95% LTV at 5% interest with NO PMI for a standard conventional 30 year fixed.
The person I talked to didn't sound 100% like she knew what she was talking about, but I have found random references around the internet that NavyFCU waives PMI with just 5% down. I'd previously assumed that this just required some outrageous interest rate. I'm just a little worried that she pulled the rate quote from one mortgage program and the "no PMI" from an entirely different mortgage program. Can anyone confirm a similar experience?
If accurate, I'm going to have a heck of a time deciding between 4.375%, 1pt with $145/month PMI (MMNJ has been great to talk with!) and this NavyFCU at 5%, 1.25pt, no PMI [or 5.25, 1pt, no PMI, though the 1/4 here definitely seems worth it].
>80% LTV with no PMI (commonly called Lender Paid Mortgage Insurance (LPMI) is not available with most investors anymore. And the one investor I know of (Wells Fargo) who did offer it eliminated the product yesterday (3/30). Then again, Navy FCU is its own entity but 5% no PMI sounds ridiculously low.
MMNJ
jamori said: I just called up Navy Federal. The "mortgage specialist" I talk to (definitely not a loan officer) said that with our credit scores (740+) and 5% down on a ~200k purchase price, NavyFCU could offer a loan with 95% LTV at 5% interest with NO PMI for a standard conventional 30 year fixed.
The person I talked to didn't sound 100% like she knew what she was talking about, but I have found random references around the internet that NavyFCU waives PMI with just 5% down. I'd previously assumed that this just required some outrageous interest rate. I'm just a little worried that she pulled the rate quote from one mortgage program and the "no PMI" from an entirely different mortgage program. Can anyone confirm a similar experience?
If accurate, I'm going to have a heck of a time deciding between 4.375%, 1pt with $145/month PMI (MMNJ has been great to talk with!) and this NavyFCU at 5%, 1.25pt, no PMI [or 5.25, 1pt, no PMI, though the 1/4 here definitely seems worth it].
jamori said: I just called up Navy Federal. The "mortgage specialist" I talk to (definitely not a loan officer) said that with our credit scores (740+) and 5% down on a ~200k purchase price, NavyFCU could offer a loan with 95% LTV at 5% interest with NO PMI for a standard conventional 30 year fixed.
The person I talked to didn't sound 100% like she knew what she was talking about, but I have found random references around the internet that NavyFCU waives PMI with just 5% down. I'd previously assumed that this just required some outrageous interest rate. I'm just a little worried that she pulled the rate quote from one mortgage program and the "no PMI" from an entirely different mortgage program. Can anyone confirm a similar experience?
If accurate, I'm going to have a heck of a time deciding between 4.375%, 1pt with $145/month PMI (MMNJ has been great to talk with!) and this NavyFCU at 5%, 1.25pt, no PMI [or 5.25, 1pt, no PMI, though the 1/4 here definitely seems worth it].It is my understanding NFCU does not charge PMI. "No PMI on most conventional loans"
MortgageManNJ said: but 5% no PMI sounds ridiculously low. My thought exactly .. though they are a pretty sizable CU with restrictive membership requirements, so maybe they can do their own thing. Hopefully I can talk with a real LO soon and get that clarified.
Two mortgages: 1st, rate 4.625%, 80% LTV, 30 year fixed. 2nd, rate 6.125%, 9.99% LTV, 15 year fixed
Total Est. closing costs: $3,042.05 ==================================== 802 Loan Discount (0.25 %) $616.00 803 Appraisal Fee $275.00 804 Credit Report $21.50 806 Loan Doc Pre Fee $150 809 Processing Fee $352 810 Tax related service Fee $63
1101 Settlement / closing fee $200 1102 Abstract or Title Search $35 1103 Title Examination $200 1108 Title Insurance $685 1104 Title Insurance B/1106 Closing Protectio $85 1111 Hold Sig. / Special Tax Search / Title $110 1201 Recording fee $140 1301 Survey fee $50 1303 ALTA endorsements $225 1304 Wire Transfer Fee $55 1305 Title company credit $-200
MortgageManNJ said: but 5% no PMI sounds ridiculously low. My thought exactly .. though they are a pretty sizable CU with restrictive membership requirements, so maybe they can do their own thing. Hopefully I can talk with a real LO soon and get that clarified.
I like them a lot. For my last go round they werent competitive though. I have used their realtor program twice now and was VERY pleased. Its nice when you get Cash Back for buying and selling your house
Sounds like the loan they were telling you about is the way to go.
MortgageManNJ said: Typically no -- for 2 reasons:
a) The appraisal in in WF's name -- and it needs to be in the name of the lender or broker who is actaully doing your mortgage. Good luck trying to get Wells (or any other lender) to assign the appraisal into another company's name. Very rarely will they do it.
b) Many lenders have an Approved Appraiser List -- so even if the appraisal is able to be assigned, the lender may require a new appraisal because they are not on their list.
MMNJ
What MMNJ said above is true... here's my experience with it.
About 4 years ago when I did a refi, I got the contract info of the guy who did my appraisal. When I found a way better deal else where, I contacted the appraiser directly and ask them to do (what they call) a "re-type" (basically changing the name on the appraisal) which they typically charge around $100 to do a retype (but the appraisal can't be too old). Paid them $100 and they sent the appraisal (with the new name) to the new lender the next day. (But like MMNJ said above, make sure that the new lender does or does not have an "Approved Appraiser List"...)
About 3 months ago I did a refi, the broker let me pick my own appraiser as long as he was listed in the lender's Approved List... called a few places and find an appraiser that I made a deal with him, if I did a retype he would only charge me $50...
Hello, Longtime lurker but newbie to refi's and I’m requesting some advice, if you need additional info please just ask and I will respond quickly
Current mortgage 80/10/10 5/1 arm (from TierOne Bank in Omaha, Nebraska) $182,500 1st and $22,500 for the second I have paid for approximately one year The odd thing is I have a cheap conversion factored into the original terms. $650 to convert to a 30 year fixed on the 1st
Current rates on the refi (5/31/09 11am) 182,500 at 5% costs for refi = 650 or buy 1pt at 4.875 650 + 227 = ~900 No other costs except for the conversion
Planning on staying in the home only 2-5 years though I want to be out from underneath this 5/1 arm just in case. Job is currently semi-secure.
What are your thoughts? Is it worth going with this company because of the cheap conversion factor or should I be shopping for better rates and pay a higher refinance fee?
a) I presume TierOne also holds the 2nd -- even if they do not, I would highly advise you call whoever is holding the existing 2nd to check and see if they are cool with you subordinating the 2nd (which means keeping the existing 2nd) at your current LTV. Many banks and mortgage investors have capped the maximum you can borrow at 80% (1st lien balance + 2nd lien balance divided by current home value)
b) presuming you are OK subordinating, 4.875% with 1 point is a little higher than you can get in this current market (presuming you have a 740 or higher credit score.
One thought: even if you get PMI (mortgage insurance), you may want to consider combining both loans into 1 new one -- not knowing the rates on both loans kind of makes it a mystery as to whether that would be a financially prudent decision, but it bears consideration (especially if your 2nd mortgage is above 7.00% on the rate)
MMNJ Q=thebug40]Hello, Longtime lurker but newbie to refi's and I’m requesting some advice, if you need additional info please just ask and I will respond quickly
Current mortgage 80/10/10 5/1 arm (from TierOne Bank in Omaha, Nebraska) $182,500 1st and $22,500 for the second I have paid for approximately one year The odd thing is I have a cheap conversion factored into the original terms. $650 to convert to a 30 year fixed on the 1st
Current rates on the refi (5/31/09 11am) 182,500 at 5% costs for refi = 650 or buy 1pt at 4.875 650 + 227 = ~900 No other costs except for the conversion
Planning on staying in the home only 2-5 years though I want to be out from underneath this 5/1 arm just in case. Job is currently semi-secure.
What are your thoughts? Is it worth going with this company because of the cheap conversion factor or should I be shopping for better rates and pay a higher refinance fee?
art07154 said: I got 4.75% no point no origination fee.$2620 in closing cost from Wells fargo.I think is fair and I am going for it.What do you guys think?
I just called Wells Fargo. My loan is 460k in bay area, CA. Got quoted 4.875% with 1% origination fee. (Total closing cost ~ $7000) Requested to waive off origination fee.. no dice..
Just got locked into 4.5% 30YR with 1.25 points on a 240k loan, coming from a 5.875% 30YR, and going through National Bank of Kansas City. I'm in California; 760+ FICO and 62% LTV, on a condo.
I closed today on my Bank of America (BoA) $417K, 30-year FRM re-fi in CA, LTV <50%, at 4.5% with 0.5 points. There's no impound account. Total closing fees, not including 0.5 points and prepaids (interest), were $1085.00. The breakdown of the $1085.00 is as follows:
809 Lender closing fee: $850.00 (appraisal - an auto-appraisal and lender's title insurance comprise this fee) 1101 Settlement or closing fee: $125.00 1113 Courier fee: $35.00 1201 Recording fees: Mortgage $57.00 1204 Record subordination: $18.00
811 Application fee (which I paid after applying, not at closing): $450.00
So total fees for the loan, outside of interest and points: $1535.00
Timeline:
01/15: Applied over the phone via BoA Premier Banking Mortgage. Didn't lock rate. BoA had 2 months backlog for applications. 02/10: Locked at 4.875%, 0.125 points 03/19: Because of large rate/points decreases, renegotiated loan at 4.50%, 0.5 points. 03/31: Signed loan documents. Submitted for closing (recording) after rescission period.
Current re-fi rates with BoA for $417K in CA with the same <50% LTV are:
Oh, and this included subordination of my $250K BoA HELOC (much easier to do when it's at the same bank), although the line had to get reduced to $180K in order to meet DTI requirements for the re-fi.
Just locked into 4.375 15YR with 1 point on a 319000 loan. Coming from 5.625 30YR. Closing costs around $4200 thru GreenLightLoans. 800+ FICO. Refi. Vacation home.
I think that is very poor advice. Is competition that strong in the bay area?
t these things, and how big your liability would be? The worst case is probably fairly unlikely, but it is probably very very bad and again, may not even be in your control.
Hello MMNJ and all others who replied,
Thanks so much for your comments and insights. I feel this could be very help info for a lot of newbie's like me. I will have this in mind. Waiving the loan and appraisal contingency is not a smart move. Better be safe than sorry, if not this house another one will always come by.
MeraNamJoker said: I just called Wells Fargo. My loan is 460k in bay area, CA. Got quoted 4.875% with 1% origination fee. (Total closing cost ~ $7000) Requested to waive off origination fee.. no dice..
Hi, I am not sure if you are a first time or refi. But I spoke to a BOA agent today and this what the GFE I got for a conforming jumbo.
4.875% 30 year fixed 0 points ~$1500 fees ~0.25% rebate
How do I deal with this guy?I locked at 4.75% no point no original fee with local Wells fargo here in Virginia.Set date for closing on the 9th.The LO called he can't give the rate that we locked??#. 9 days before the closing date.I paid $475 for application/appraisal?I never sign any rate lock document and paid with Visa for the fee?
art07154 said: How do I deal with this guy?I locked at 4.75% no point no original fee with local Wells fargo here in Virginia.Set date for closing on the 9th.The LO called he can't give the rate that we locked??#. 9 days before the closing date.I paid $475 for application/appraisal?I never sign any rate lock document and paid with Visa for the fee? It should be easy to dispute that charge on your credit card... I'm not sure what other recourse there is.
I am having trouble with Wells Fargo, too. I called and got a rate with the LO, and he told me he could guarantee the rate if I applied within 3 days, which I did. A few weeks later I get the GFE in the mail, and they added half a point to the rate and $1,000 in closing costs to the qoute I was given. I emailed the LO, and he told me he would look into it. That was 2 days ago, and I haven't heard anything, yet. Luckily, I haven't paid any application fees, but I would recommend folks write down what they are promised.
The U.S. labor market worsened again in March, as private-sector firms cut 742,000 jobs in March, signaling another terrible employment report on Friday, according to the ADP employment index released Wednesday. It was the largest job loss recorded by ADP in its nine-year history.
makitaws said: weigojmi said: MMNJ or anyone. Are discount points/origination deductible only on a mortgage for a new purchase or for a refi as well? Thanks. Points on a new purchase can be deducted all at once in the year of the purchase or amortized over the life of the loan
Points on a refi can only be amortized over the life of the loan. i.e if you paid $1000 for a 30-year loan, you can deduct 1000/30 each year
Note that if you refinance again, you can immediatelly deduct any leftover points. Lets say you deducted 1000/30 3 years in a row, then refinanced; at that point you immeidatelly deduct 1000*27/30; in addition to say 500/30 (assuming you paid 500 in points for the next refinance)
How does this apply to someone who is paying AMT ?
okayfine said: How does this apply to someone who is paying AMT ?
Thanks.
Obviously, standard internet disclaimers apply here (IANAL, consult your tax professional - especially when considering AMT calculations, etc.)
But, my understanding is that in general points paid on refinancing are treated the same under AMT as they are under the normal tax regulations.
HOWEVER, the standard tax deduction for mortgage interest is NOT treated the same under AMT. The interest on "home equity" loans is not deductible under AMT... and that extends to the interest on the portion of a refi loan over and above the principal amount of the loan immediately prior to the placement of the refi loan that replaced it. So if you do a cash out refi, you don't get the full tax deduction on the interest on the new loan.
I am hoping MMNJ or someone else knowledgeable could help - just trying to decide if this is a good deal or not... Currently we have a jumbo at 6.375 with WF, 500k remaining. We are wanting to refi with a 500K High balance conforming loan. Broker is offering us 5% today (30 day lock), 4.5% if we pay $6875 for 1.325pts. Plus we have to pay 1/4 pt. for no escrow. We also currently do not escrow. Going rate of $400 for appraisal, which we need to come in at around $630k to avoid PMI. We spoke with an appraiser that said it could go either way - we could appraise for that much, or we could appraise for $570K range, which puts us dealing with PMI. Either way we would be saving money by refinancing, even with PMI. I guess I am just wondering how difficult is it to remove PMI once you get to the proper LTV, and is it worth it to us to buy the points? Of course we PLAN on being here for a number of years, but who ever really knows? Lots can happen that could change that. Any advice would be greatly appreciated. Thank you.
Funny.. when I type this it looks normal, but then the vowels are all messed up when it posts!!???
Unfavorable repricing is a risk. MBS prices are down -4/32, below the 9:45 et pricing level of unchanged. All three economic reports released at 10:00 et came in stronger than expected, pushing MBS prices lower.
Rates are at risk of going up if current levels hold.
Quick question for the gurus out there. I just read in the local newspaper about the option to convert a variable rate loan to a fixed rate if your loan has that provision. How likely is this provision and what is the difference in rates typically? Is this not a common practice as I haven't seen this discussed at all here. Thanks!
Parli said: Quick question for the gurus out there. I just read in the local newspaper about the option to convert a variable rate loan to a fixed rate if your loan has that provision.The article probably talked about HELOC's with a fixed rate option. Regular first mortgage ARM's never have a provision that allows the borrower to simply convert the ARM to a fixed rate mortgage.
And I have a Chase HELOC with a good variable rate (prime -.26). Like a lot of HELOCs, they offer a lot of flexibility - you can lock a portion and have multiple balances at different rates, including one at the variable term. I think there was a low fixed fee to do this - $50 as I remember, but about 2 years ago the fixed rates were incredibly uncompetitive. They seemed unrelated to the variable deal and were something like 7 or 8 percent.
I'd ask about it - fixed rates should be very low now. But don't get your hopes up, I had a lot of better options for fixed rates when I checked into it.
There are many convertible ARMS out there (usually convert to the FNMA 60 day yield + a margin) -- and there is a conversion fee associated with it. That being said, most of the convertible ARMs are of the 1 Yr and 3 Yr variety -- is no great bargain but if you cannot refinance then is a good option to have.
Who takes an ARM though in this psycho low fixed rate market......?
MMNJ geo123 said: Parli said: Quick question for the gurus out there. I just read in the local newspaper about the option to convert a variable rate loan to a fixed rate if your loan has that provision.The article probably talked about HELOC's with a fixed rate option. Regular first mortgage ARM's never have a provision that allows the borrower to simply convert the ARM to a fixed rate mortgage.
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