Im currently living in MD, and am looking to refinance my home. I bought in 2007, at what appeared to be about the peak of the market, and got an great rate at 6.00% at the time. My house went from a value of 235K to 204K. As we all know, interest rates have dropped significantly. I want to refinance without having to pay huge fees. My problem is that my credit union will not refinance me because The LTV is about 95%, and it seems like just about every other mortgage company requires PMI, which I my credit union does not require. Has anybody refinanced in a similiar situation? How do I get the best rate?
find out you credit scores; do adjustment to get it as high as possible use bankrate.com called the listed mortgage companies. provide credit score, loan amount/year ask for quote with no closing cost.
Your 95% LTV will be difficult with the current economic situation. But you can try calling.
95 LTV, No PMI, rate at 6% is a bad combination for finding a financially sound refinance option.
liljose13
Member
posted: Nov. 14, 2009 @ 6:36a
I have great credit, last time I checked was around 796. So that shouild not be a problem, but some of the refinance options I seen require you to have more than 80% LTV. I have the cash to do it, with cost or without, but I want to buy an investment property instead, while homes are a lot cheaper in FL.
liljose13 said: I have great credit, last time I checked was around 796. So that shouild not be a problem, but some of the refinance options I seen require you to have more than 80% LTV. I have the cash to do it, with cost or without, but I want to buy an investment property instead, while homes are a lot cheaper in FL. You only have 5% equity in your primary house. You should not be buying more property now.
liljose13
Member
posted: Nov. 14, 2009 @ 10:03a
Some people may argue that, but I have enought money to buy a second home cash. I also have no problem paying my house payment now, but since the interest rates are low I would like to save a little bit of money to pay it off faster.
tester99
Member
posted: Nov. 14, 2009 @ 2:49p
Buy 2nd Property at great rate, strategically default on your primary property. Get anything you need before defaulting on the original, Cars,etc.
Pay your bills on time after the foreclosure and in 3-5 you'll be set.
liljose13
Member
posted: Nov. 14, 2009 @ 5:32p
Nevermind, I guess I am not going to get the answer Im looking for here. I am not going to default on my house, I have the money to buy an investment house cash, and still keep up with my payments on my current house. I was just interested in refinancing this house I live in currently because of the low current interest rates.
retmil
Senior Member
posted: Nov. 14, 2009 @ 5:53p
I would think your current mortgage company would refinance you with your LTV as long as it is a rate and term refi with no cash out. Who is your current lender? If you have the cash to buy another house maybe you should pay down your primary homes balance to get the LTV where you need it to avoid PMI. I'd post your scenario on brokeroutpost.com and get some suggestions there. I'm sure there is a way, there always is when someone can make money off of you.
tester99
Member
posted: Nov. 14, 2009 @ 7:48p
Oh sorry, I guess if you have cash then I would advise putting that towards your current house to bring down the LTV and then refi. After that if you have enough money and your other bills are payed, then you go buy your investment house.
MariahJ
Addicted Member
posted: Nov. 14, 2009 @ 10:46p
Refi under the Making Homes Affordable program. The rates will be slightly higher than market, but still significantly lower than 6%. Your LTV can be up to 125%. Absolute Mortgage Co. is the company I did my refi with. It was not through the MHA program, but I know they participate in it. http://www.absolutemortgageco.com/rates.aspx
What does the amount of equity in OP's primary home have to do with buying an investment property? If the investment property cash flows well, I say go for it.
liljose13
Member
posted: Nov. 15, 2009 @ 7:32a
I currently do not pay PMI, and I may have to refinance with a VA loan if I cannot refi under the Making Homes Affordable program. My bank is Navy Federal Credit Union. They dont require PMI on most of their loans.
tester99
Member
posted: Nov. 15, 2009 @ 10:56a
He left out some details on his primary loan, If he is underwater then he needs to bring some money to the table.
If he has cash and can buy down his loan to 80% LTV at the current appraised value he avoids PMI. Do all that first and then get another house.
sethdallob
Senior Member - 1K
posted: Nov. 16, 2009 @ 10:17a
liljose13 said: I have great credit, last time I checked was around 796. So that shouild not be a problem, but some of the refinance options I seen require you to have more than 80% LTV. I have the cash to do it, with cost or without, but I want to buy an investment property instead, while homes are a lot cheaper in FL.
When posts like this stop popping up, I'll call a housing market bottom.
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