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Capepuffin

? on refinancing

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I just refinanced last Nov. Now today I get a call from my mortgage co asking if I want a better rate! They want to refinance me again. They said that they could get me down another 1 percent.

Why would they call so soon to refinance again other than to make more money?

Would 1 percent be worth it?

Also, when I do refinance in the near(1 yr) future, should I go back to a VA loan?

I definately want a fixed rate again but I am unsure if the VA is the way to go.

I am at 7.99% through a band aid loan which I hate. Now my credit is better it was 600 now its 650. What do you think that I could get as a rate now?

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Been talking to our mortgage experts, and it seems that the interest is going to be based on your fico. I bet it would be worth it to re fi now. Isn't va loan just about the best to do if you can? I always thought they were right up there with fha.

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Yes, VA and FHA are almost exactly the same programs. I would think that you will be able to get into a prime lender program. this will depend on if you have a BK in the past 4 years. If not, then you would probably end up with better rates from a prime loan than an FHA/VA.

I for sure think that it is worth the effort to find out at least what the rates will be. Now for the real problem, that makes me wonder about the lender calling you so soon. I am sure that there is a pre-payment penalty unless you bought it out at the loan inception.

Charles

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He called again today. We would be switching from an adjustable rate with pre payment penalties to a 30 yr fixed without prepayment penalties. He said that he could give us 6.99%. Also he said that we could if we wanted to include our new car in the loan. We have $230k in equity in our home now. If we include the new car, our car payment of $500.00 per month would be gone and rolled into our loan. Our monthly mortgage payment would be around the same as we are paying now maybe $50 more a month. But of course all of the taxes on the mortgage we can write off. On the car loan we can't write off the taxes.

Should I do this? I am thinking yes because we will go down 1 point and have the 30 yr fixed that we want. No prepayment penalty either!

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Cape did you amoritize this loan senerio and see what adding that extra 500 a month to your payment would do for you? Maybe you should weigh the pros and cons of each thing and then decide if you should do it.

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Cape did you amoritize this loan senerio and see what adding that extra 500 a month to your payment would do for you? Maybe you should weigh the pros and cons of each thing and then decide if you should do it.

Yes I did. It adds $50.00 a month to my current mortgage payment. Plus I can write off on my taxes. I have been very concerned about making this $500. per month car payment. Plus I would be at a fixed rate with my mortgage which is what I want.

So that is why I am posting this to get responses that I might not think of concerning the loan. I know that I end up losing equity in my house but the way housing is rising around here I would think that in a years time I could recoup.

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If you make a commitment to yourself to put at least half of the car payment ontop of your normal house payment, you will have your equity back sooner than you think. If you could send the entier thing each month, you could knock a few years off I bet.

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If you make a commitment to yourself to put at least half of the car payment ontop of your normal house payment, you will have your equity back sooner than you think. If you could send the entier thing each month, you could knock a few years off I bet.

Great idea sis! We will see how finances go. It is so damn expensive living in this state!

I just ok'd the refinance after talking to DH and I am faxing the info. as I type!

Ring* Its adam, he received my fax! I gotta go!

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Well we are all set to go! I feel much more at ease now knowing that the car will be paid and our mortgage is now a 30 yr fixed rate and a point lower. It's a start! Who knows where the rates will be in a year! :roll:

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STOP!!!!!!!!!!!! I wish I saw this post earlier...ok..........rule number one.....when a Loan Guy suggest puting a car into the loan it is becaus ehe wants to get the loan amount (IE his paycheck ) bigger!. Also...how much in closing costs did you pay before? How much is he charging now? If you had gone with a VA loan in the first place this REFI would have been a no cost one and the lender would still have made mnoney. You have to look at it and find out if it is worth it. ALSO..at 6.99 it better be a free loan cause I think 6.99 is off of my rate sheets and this guy is going to make a killing on rebate. He did a diservice to you in november by putting you into a high rate ARM...which at the scores you had i dunno how he did it that high...........if you would like and I am sure first would offer this as well (and no i dont lend in MA) but I would be happy to talk to you on the phone or look at a GFE...I mean....wow.......slow down please for me!lol What if you could get a better deal and save 250 bucks more and not roll the car into it. Please take me up on this and gimme a call. :shock:

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Hey Will! Now this is my mortgage Co that I am currentlt with. Why would they keep screwing me? They are actually going by my husbands score because he is the higher earner and his score is only at 630. It was my sugestion to take some of the equity out of our house to pay for our new car. He did not know about the car until I sugested it.

What are the rates at right now? He is charging 3 points. I know that is high but right now we are in an adjustable rate and if we refinance w/someone else we get penalties. Now if we move that is a different story. I am disabled and have been out of work for 6 yrs. So our annual income is just about $55k. Where we live on Cape Cod, the houses are selling like hot cakes in our area. Luckily we paid $130k for the house 6 years ago thru a VA loan. Now our house has been appraised at $365k and in my neighborhood that is cheap. We are one of the smaller homes. So we have alot of equity.

By taking out the money that we need, we will only be paying $50 more a month, and I can handle that. We can also write off our interest where on the car we can't. A big thing is that we want a fixed mortgage. When they said that they would do a fixed mortgage I was happy.

What can I do differently to make this a better situation? Should I tell him no that the rate is to high and that there are to many points? Will this help me?

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I agree, STOP NOW..........!!!!!!!!

First this broker took you out of your VA loan, why, I have no idea. VA loans are different because you do not pay the additional MIP monthly as you do on an FHA loan. Is the mortgage company waiving the prepayment penalty that is on your current mortgage? There could be some hefty penalties involved here which wil eat into your equity.

There are so many gimmicks, ("I can consolidate all your debt into one simple monthly payment", not in quotes and not spoken, Stretch your car loan out to a thirty year payment plan.) He is charging you 3 points on the front. How much is he sticking on the back end. Rates on a 30 year fixed were at 5 5/8% on Friday for a VA loan, as well as conventional.

He got you once, do not let him get you again. Is this a direct lender or a broker? For instance, did you go to Lender A, and Lender A is who you make your payments to?

If I ever have to put someone into a band aid loan, I never charge much for the second time refinancing, other than to cover expenses of the processing , and enough to cover my time on hte loan, definitely never 3 points.

Oh, thank goodness for this forum. Take your pick and call, email, or communicate here on the forum. We encounter these scenarios daily, and if someone has a prepayment penalty that has to be satisfied, it creates a new equation to the cost of refinancing. It's not too late until you get three days past the closing table to back out of a refi.

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Better yet, go tell the broker you want to go back to the VA loan and watch his face. It (he/she) will not be able to charge three points, the Federal Government will only allow 1 percent on the origination fee. HA HA!!!

Another alternative, and I like this alot, would be to refinance into a FHA Adjustable rate mortgage @ 4 1/4% with a 2% margin. This will save you about $330/mo. verus what you are currently paying (based on $130,000 mortgage @ 8%). The payments can adjust only once per year and 1 percent maximum per adjustment period. Also there is a 5% lifetime cap, meaning that the rate will never exceed 9 1/4%. The extra principal factors will still apply as Sisflomi mentioned, the amoritization (the amount of principal actually going to the loan at the lower interest rates will provide enough extra cushion, that in the event rates do rise to the full amount, the effect will not be as noticeable. If you were to go this route, hang in there with your current scenario, you could have $9,000 in the bank after three years versus what you are paying now, and this will also act as a cushion should interest rates ever rise to the full amount. If you need an extra little bit to make ends meet for the combined car payment, you could do so. Money in the bank will serve a better purpose in crunch times, and get you through temporary hurdles.

I got an adjustable rate on my home in 1992 @ 4 1/2%, and have never been able to refinance to a lower rate. It eventually went to 6 7/8% at the highest point, but is now at 4 7/8% now, and next adjustment will most likely lower to 3 7/8% (darn that 1% cap).

What amount do you owe on car?, on mortgage? Find out what the prepayment penalty is on your current mortgage. You definitely need to do this, above all other suggestions.

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This is through Lender A and this is who I make my payments to. They are waiving the early penalty. What are points on the back? What it looks like now is:

Current mortgage 150k

Taking out additional 30k (for car)

total mortgage would be 189k

I don't know what the 9k is other than points and fees.

Also he wanted to roll the home appraisal into the loan.

total monthly payment 1,256

So how do I approach this. I really would like to stay w/the same co. for simplicity reasons. How can I get them to come down in points and possibly the finance rate?

If I do refi w/someone else I will have to pay the penalty fee.

Tell me what to say to this guy? To get me the best possible mortgage?

I have not signed anything yet. He is calling me tomorrow.

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Hi Willy -- found you ----

Yes this lender is trying to screw you over -- 3 points at 6.99%!!! Thsi is a toitla dis-service to you. The fact that they are "waiving" the prepay is just a trick so you don't shop.

How much longer do you have on the prepay? How much is the pre-pay. I would not be jumping on this.

Oh -- why would you current lender be doing this? Easy -- they get paid!!

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prepay penalty is 3 months of payments or $4300.

What could I expect to get with my scores being TU 682, EX 663, EQ 652

and my husband is TU 654, EX 632, EQ 620? My husband is a vet that is why 6 yrs ago we went with a VA loan.

Last year we had some financial difficulties and had to refinance in order to save our house. That is why we went with the 'band - aid' type loan. We didn't like it but we really had no choice when it came down to the wire.

We knew that we wanted to get out of this loan ASAP and go with a fixed rate. We also knew that we wanted to get our interest rate down. So when they called and said that they could do a fixed rate I was happy.

So we refinanced last Nov.02. We have another 2 yrs to go to get out from under this fee.

What should we expect for points and a rate with our scores? By the way we have a perfect payment history. I have a BK from 98. My husband has 1 collection account. We have at least 10 other accounts that are all paid as agreed never late.

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Counter offer this guy to 1 origination point, and 6 - 6 1/4% fixed, and eliminate the prepayment penalty. Just be straight up front with him, and let him know that you know that you can go to another lender and pay the stinking prepayment penalty, and come out with a better deal than what he is offering. Hey dude, look at what you are charging me. Maybe he will come around to his senses, and realize you are not an uneducated borrower. You are not, you can always come back to the forum and get more information.

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He said that 2.5 points and 6.99% was the best that he could do! He said that 6.69% was the national average today and that at 6.99% I would be lucky to get that rate.

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I told him earlier this am that the national average went down .25% over the weekend and that it was around 5.71%. He disagreed and said that it was 6.69%!

I would not have to pay any fees.

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I would walk from this deal and doa little shopping. I'm sure if you looked aroudn you could find something better.

Play hardball with them.

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take your offer to whichever military credit union that is around you. Military credit unions are different, they wont screw over a vet and will provide you with true honest help...if you arent going to even get another estimate then I dunno what to say, your scores are great and this guy is a bumb.......to even THINK about charging you 3 points and then making the 3 points he is going to make on the back is a bumb. Ad to put you in that crap deal to begin with is absurd....Please...you have three mortgage guys screaming at the screens here begging you to listen, we arent doing it for our pockets for sure, we just dont wanna see you being taken advantage of. WHY he took you out of a va loan is beyond me. Nice treatment for a Veteran for sure........schmucks..they are all around.....BTW, call your local VFW or any military related club and see if they have a member that is in the mortgage business.

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Thanks will, but I am looking around. It is not a done deal. I am just seeing if he will come down in the points and the rate.

If I go somewhere else, then I will have the huge pre payment penalty fee to pay. I am stuck for 2 more years with this.

Can I tell him that we want to do the VA loan? What do you think his reaction will be?

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