Posted on March 23
My first choice, if possible, is not only to refinance my first mortgage for a lower rate without extending the term, but also, to escrow my own taxes and insurance.
If I can’t find a first mortgage product that allows me to escrow my own taxes and insurance, can I chose my term?
If not, can I payoff my first mortgage with a second mortgage product? If I can payoff my first mortgage with a second mortgage (assuming the second mortgage rates are lower), can I pick a 20 year term if the 15 year term makes my payments higher than I want to pay? How do I find out either of these rates?
If I want to refinance for a first mortgage for 22 years, can I do that? If so, what are the rates? I can’t seem to find any rates other than 15 or 30 year rates for refinancing. Do I use the 30 year rate for a 22 year term?
Escrows (Taxes & Insurance) conforming loans are priced based on you Escrowing – so, if they are not included, there is an extra 1/4 point assessed to your closing cost (or a bump in the rate). You wrote, “escrow my own taxes and insurance”; I gather that, you do not want to escrow, you would request an Escrow Waiver and you would be responsible for paying your own taxes & insurance and would be assessed the extra fee for your decision.
20 year & 30 year amortizations tend to be very close in price, however, 15 yr loans are 3/8% to 1/2% lower rate. A 15 yr payment would be about $239/month more than a 20 yr amortization, but, you would save about $1200 in interest the 1st year. If you can afford the extra payment, the 15 yr option is worth considering.
Posted on March 23
I must admit $7,400 in costs for a 65k loan sure seems steep. Do you have a GFE? When did you take title? For conforming no-cash loans, you’ll need to have at least 6 months on title.
Presuming your payoff includes the ‘construction costs’; it should not be considered cash-out; however, you would need to be on title for 12 months.
Presuming you have title vesting sufficient for the type of loan you need, it sure looks like, you should be able to obtain a favorable rate and origination costs of under $2,000, add escrow set-up, title and any taxes/recording.
Posted on March 23
You are definitely not alone! It’s important to understand that, it’s not your current service provider.
The program was designed so that, you don’t have MI to refinance at new lower rates. The Guidelines were written so, 2nds could be subordinated to allow significant negative equity, and people that put 20% cash down didn’t have to get MI on a new loan. It is a wonderful program, but, like most programs, there are some people that just don’t fit the mold.
However, the MI companies, at least to my knowledge, were never able to facilitate a program to allow people to reduce their rates. I gather, the Govt didn’t want to bail out the MI companies – which is what would have happened in your case, since, the MI company is at risk with so much negative equity. It is boggling to me, a program could not be provided for people that pay their bills on time, but, have MI.
Although a better understanding of what’s behind the curtain might help you, the information won’t help you get a new loan with today’s great fixed rates.
Posted on March 28
I understand that some people either prefer to own, or prefer to live in a home that is not generally available for rent. In fact, there are some Condo Associations that do not even allow rentals.
If you decide that, owning is the option for you (and mom), you can indeed dramatically decrease the monthly payment by using an ARM. However, with the likely pressure on rates in the future, you will want to make sure the initial period of the ARM is more than adequate for the time your plan to either own the home, or, are prepared to pay off the Mortgage Loan.
But, please consider the advice you’ve received about renting, if indeed monthly funds are limited, a rate adjustment could be devastating.
Posted on March 28
To my knowledge, there are no Jumbo loans available to 90%; however, you should be able to get a 417k conforming 1st, and a HELOC to get to 90%.
Posted on March 31
You mentioned that, you’ve paid off all creditors. How long has it been since you’re had a delinquency? We have programs that go down to 580; but, they require an electronic underwriting approval – which doesn’t always happen with recent deratory items. Let me know if I can help.
Posted on April 01
We offer lot loans – 75% LTV under $300k loan; 70% 301k to 399k, and 65% up to 500k. The loans are 3/1 year ARMs with rates in the mid 4′s (credit, income & LTV affect the rate).
Please let me know if you have any other questions about the program.
Posted on April 11
Unfortunately that property doesn’t seems like it was a very good purchase. If your current lender can’t/won’t make any adjustments, it looks like you’ll need to take a long term approach to this property. It’s important to note that, your current lender didn’t sign-on as a partner in your real estate business – all they did was agree to loan you the money you requested – just because the property value got killed, it’s not fair to expect they should participate in the loss.
Posted on April 14
If the home is a rental, you can’t refinance as a Primary Residence. Since nearly all lenders pull a transcript of your IRS tax returns you’ll want to make sure you are upfront with your lender.
Posted on April 20
Conforming guidelines allow cash-out up to 75% LTV (must own more than 12 months). We can lend on more than 4 properties, but, I suspect you’ll have some difficulty with the cash-out on investment properties.
I would recommend you, consider developing relationship with a business banker, if you’re considering using the cash-out to acquire additional properties, you may find commercial lending very attractive.
Posted on April 24
I have some options that might be able to get close enough to your goal to make it work. Please give me a call our email if you’d like to talk. We go to 90% LTV to a 650k loan.
Posted on April 26
If you need to get all the way to 125%, you’ll almost certainly only be able to get new financing from your original lender.
Posted on April 27
I write quite a few loans and what your realtor said is not correct. Of course, the seller has a significant number of their own closing costs, but, you’ll have all of your origination, title and taxes. If you’d like a summary of the typical buyer side costs, please let me know and I’ll gladly help you with a quick summary.
Posted on April 27
The answer will depend on the contract. Some do, some don’t. If you don’t have a contract yet, you can certainly write in what you want.
Posted on May 01
For every benefit of one, there is normally a correlating benefit to the other. Some people like the security of a complete banking relationship, whereas, others would prefer to save an 1/8 discount point that a broker might be able to provide.
You’re never wrong working with an originator that you know you can trust.
Posted on May 03
It is fairly common for people to take a conforming 1st and a HELOC 2nd, but, since the HELOC can adjust on a monthly basis, that option is quite risky giving the consensus that rates will be increasing.
We offer 30yr fixed Fixed rate Jumbos to 80% LTV to $1,000,000 loan; rates today are 5.125% with 3/4 point discount and about $1,060 of other closing costs (presuming 720+ mid score).