Who's refinancing their mortgage?

[alkemyst]

Originally posted by: kthroyer
Hey alkemyst,

Sounds like you are in the mortgage business. Could you answer a quick question for me?

My home's value right now is about $220,000 (conservatively) The mortgage principal is at $160000 at 6%, but I have a home equity loan also with a balance of $30,000. If I just wanted to refi the mortgage, and continue paying off the HE Loan, do you feel that I would still need to pay PMI or put money down?

I know the two loans together are more than 80% of the home's value, but the $160,000 is around 72%.

Also my credit score is over 800.

Thanks.

You will need PMI more than likely, but you should be able to refi.

Most people's percieved credit scores (FICO and the like) are very different than the tri-merge a bank will pull.

Also score is just a starting point. Many people have very high credit scores but nothing that backs up their ability/proof to repay debts.

Many mortgage companies want to see some older tradelines (2+ years at least with decent limits)...people who ended up in mortgages over the last 3 years or so had a very easy and unrealistic experience to what 'getting a mortgage' can be like.

good luck though...they will do an appraisal...check zillow.com for homes in your area to see if you are really being conservative. I know some that have really been hit hard thinking they were in the ballpark or even low balling themselves to find out they were actually over-estimating by 20% or more.

I bought a modest house last year. If I wrote a check for $90k, I'd still need PMI to refinance.

 

[OCGuy]

Originally posted by: alkemyst

Originally posted by: kthroyer
Hey alkemyst,

Sounds like you are in the mortgage business. Could you answer a quick question for me?

My home's value right now is about $220,000 (conservatively) The mortgage principal is at $160000 at 6%, but I have a home equity loan also with a balance of $30,000. If I just wanted to refi the mortgage, and continue paying off the HE Loan, do you feel that I would still need to pay PMI or put money down?

I know the two loans together are more than 80% of the home's value, but the $160,000 is around 72%.

Also my credit score is over 800.

Thanks.

You will need PMI more than likely, but you should be able to refi.

How are you in the mortgage business????


A. FNMA and Freddie use your middle score out of TU, EP, EF

B. He could refinance his first and not pay PMI. As long as your first is 80% or less, and the 2nd agrees to resubordinate, you are fine. I have at least 15 files like this right now.

 

[alkemyst]

Originally posted by: Ocguy31

How are you in the mortgage business????


A. FNMA and Freddie use your middle score out of TU, EP, EF

B. He could refinance his first and not pay PMI. As long as your first is 80% or less, and the 2nd agrees to resubordinate, you are fine. I have at least 15 files like this right now.

A. is the same as I stated, they look at all three. It's not the same FICO a consumer gets.

B. It depends on the program and other variables. I never said he'd be required to have PMI.

good game though.

 

[OCGuy]

Originally posted by: alkemyst

Originally posted by: Ocguy31

How are you in the mortgage business????


A. FNMA and Freddie use your middle score out of TU, EP, EF

B. He could refinance his first and not pay PMI. As long as your first is 80% or less, and the 2nd agrees to resubordinate, you are fine. I have at least 15 files like this right now.

A. is the same as I stated, they look at all three. It's not the same FICO a consumer gets.

B. It depends on the program and other variables. I never said he'd be required to have PMI.

good game though.

I really hope you dont actually touch files.

 

[alkemyst]

Originally posted by: Ocguy31

I really hope you dont actually touch files.

go troll another thread asshat. If you have jealousy issues see a shrink.

I sure hope you don't drop TU, EP, EF abbreviations with your customers....many on credit forums write it as EX if you are talking Experian, BTW.

I work for a Top 10 homebuilder.

gg again though. you go boy!

 

[OCGuy]

Originally posted by: alkemyst

Originally posted by: Ocguy31

I really hope you dont actually touch files.

go troll another thread asshat. If you have jealousy issues see a shrink.

I sure hope you don't drop TU, EP, EF abbreviations with your customers....many on credit forums write it as EX if you are talking Experian, BTW.

I work for a Top 10 homebuilder.

gg again though. you go boy!

lol.....

 

[Sensai]

big refinance question.. i locked in on a 4.5 % 30 year rate with 1.25 points (and a lot of closing costs). closing this friday from a 6.125 rate for house that i've owned for 3 years.

there are rumors that the new stimulus could allow a window for refinancing at a 4% rate. of course it depends on the banks for points on that too or not...

question is.. should i cancel out my lock which is like 500 in all...and wait to see if the bill passes or take this on?

much thanks!

 

[Aharami]

i wouldnt worry about half a percent drop. 4.5 is damn good. I wish I'd locked in at 4.75 when I had the chance, but Im not really regretting it because right now Im not paying PMI and with a refi, Id have to pay a PMI. So 6.5 (current rate) and no PMI only comes out to ~$50 more than 4.75 and PMI. Also need the money for the upcoming wedding...

 

[PingSpike]

Originally posted by: Capt Caveman

Originally posted by: SirChadwick
Would any of you suggest that I refi right now? I just bought a 170k home 6 months (30 yr fixed) ago at 6.25%. We only put 3% down on it though so I'm not sure we're eligible.

Any help would be appreciated. We all love to save $ during times like this.

Yes, you can drop over a full point. Check with your current mortgage company as they may be able to waive a large amount of the closing costs.

I'm refinancing now and I bought last April.

My bank just charged me $750 and dropped my interest rate while keeping all the other terms the same.

Of course, I have a local bank for my mortgage that doesn't sell their loans.

I don't really think paying points is worth it, personally. Who the fuck knows what the market is going to do...things are crazy right now. You might be able to refinance at a lower rate without points then you have now 6 months from now. And then all those point fees are gone down the toilet.

 

[WannaFly]

I wish I could refi, I'm upside down, Loan value is ~210, house is prob only worth 170 or 180 now... Am I correct?

 

[alkemyst]

Originally posted by: WannaFly
I wish I could refi, I'm upside down, Loan value is ~210, house is prob only worth 170 or 180 now... Am I correct?

without bringing cash to the table, you will not be able to refi. You'd need to get to the loan to value they have set...many refi deals are at 20% loan to value...some will go less with PMI, I know of none that will go beyond 90% or so.