Posted on: 08th Jun, 2010 11:18 pm
New member here, I was hoping someone could shine some light on my situation?
I bought my home last year and am now looking into refinancing. I spoke with my current lender today of which after leaving I was pretty confused on what was the best desision.. I did get a GFE, but still am not sure if it would be a wise to take the plung.
What exact information do you guys need to give me your suggestions? I can post up my GFE and all my info, I just need know what exactly you will need to know to give me accurate advice.
I really appreciate it, my head has been spinning and it just gets worse when I try and research my dilemnfia. Hopfully I came to the right spot! Excellent forum by the way!! :D
Thank you.
I bought my home last year and am now looking into refinancing. I spoke with my current lender today of which after leaving I was pretty confused on what was the best desision.. I did get a GFE, but still am not sure if it would be a wise to take the plung.
What exact information do you guys need to give me your suggestions? I can post up my GFE and all my info, I just need know what exactly you will need to know to give me accurate advice.
I really appreciate it, my head has been spinning and it just gets worse when I try and research my dilemnfia. Hopfully I came to the right spot! Excellent forum by the way!! :D
Thank you.
hi zacariah,
do you have equity in your property. this is one of the major criteria which you need to satisfy in order to get a refinance. unless you've 20% equity in your property, you won't be able to get a home loan refinance. apart from this, you should also check out whether or not you're getting an interest rate which is lower by 2% compared to your present interest rate.
while you refinance your property, you'll have to pay the closing costs for originating the loan. if you want to offset the closing costs, you'll have to decide as to how long you plan to stay in the property. if you stay in the property for around 8-10 years, then you will be able to offset the costs.
thanks,
jerry
do you have equity in your property. this is one of the major criteria which you need to satisfy in order to get a refinance. unless you've 20% equity in your property, you won't be able to get a home loan refinance. apart from this, you should also check out whether or not you're getting an interest rate which is lower by 2% compared to your present interest rate.
while you refinance your property, you'll have to pay the closing costs for originating the loan. if you want to offset the closing costs, you'll have to decide as to how long you plan to stay in the property. if you stay in the property for around 8-10 years, then you will be able to offset the costs.
thanks,
jerry
Thanks for the reply!
This is where I am not so clear, because my lender for some reason said I didnt need an apraisal and if I did get an apraisal that it could possibly screw things up because she suspecting my value has dropped. But How could she avoid doing an apraisal? Any idea? She was pretty sure of herself when relaying this to me. Ill email her right now infact to see again why we dont"need" an apraisal and get back to you guys. If I remember correctly, she was saying something about my loan being a FHA loan, and that I "lucked out" because I didnt need an apraisal.
As far as the rate goes, currently I am at 6% and I got quoated 4.85%.
I am also confused because while taking down all my info, she asked me how much I have in my checking and savings, she said she needed this info. She also needed my husbands info even though he is not on the loan, she needed to run a credit checkon him as well. We are married, but when I first bought the house he was my fiance. I thought that now we are married and since he has such a great credit score it would be a good idea to add him to the loan, but the lender said it woldnt effect my rate or anything else if I added him, but rather make it a big hassle.
Right now I can say YES, I can live here for 5 more years because I like living here and really have no plans on leaving, but I understand things change. I just think it would be nice to have a lower mortgage in casde I want to rent out the house later on and make some money on top of it.
I am being told that its going to cost something like $3000 closing costs to refinance. Here is my GFE
This is where I am not so clear, because my lender for some reason said I didnt need an apraisal and if I did get an apraisal that it could possibly screw things up because she suspecting my value has dropped. But How could she avoid doing an apraisal? Any idea? She was pretty sure of herself when relaying this to me. Ill email her right now infact to see again why we dont"need" an apraisal and get back to you guys. If I remember correctly, she was saying something about my loan being a FHA loan, and that I "lucked out" because I didnt need an apraisal.
As far as the rate goes, currently I am at 6% and I got quoated 4.85%.
I am also confused because while taking down all my info, she asked me how much I have in my checking and savings, she said she needed this info. She also needed my husbands info even though he is not on the loan, she needed to run a credit checkon him as well. We are married, but when I first bought the house he was my fiance. I thought that now we are married and since he has such a great credit score it would be a good idea to add him to the loan, but the lender said it woldnt effect my rate or anything else if I added him, but rather make it a big hassle.
Right now I can say YES, I can live here for 5 more years because I like living here and really have no plans on leaving, but I understand things change. I just think it would be nice to have a lower mortgage in casde I want to rent out the house later on and make some money on top of it.
I am being told that its going to cost something like $3000 closing costs to refinance. Here is my GFE
I cant post my GFE for some reason, sorry
Question to lender: I wasn't so clear on why we don't need an appraisal? How could we avoid that?
Answer from lender: It is called a streamline FHA refinance. That is why you have to pay closing costs out of pocket. If you wanted to finance them, then you would have to get an appraisal.
Answer from lender: It is called a streamline FHA refinance. That is why you have to pay closing costs out of pocket. If you wanted to finance them, then you would have to get an appraisal.
Here is an email/reply from my lender today:
"I am just looking into the streamline refinance now. Is true that if I don't want to inquire any cc (any money out of pocket), I can opt for a higher rate?"
Her reply:
"Yes you could go at a higher rate and get us to pay the fees (approximately 5.25%). You would still have to give us the up front $500 and your monthly savings would come down. Just let me know what you want to do."
Thanks
"I am just looking into the streamline refinance now. Is true that if I don't want to inquire any cc (any money out of pocket), I can opt for a higher rate?"
Her reply:
"Yes you could go at a higher rate and get us to pay the fees (approximately 5.25%). You would still have to give us the up front $500 and your monthly savings would come down. Just let me know what you want to do."
Thanks
It used to be that FHA did not recquire an appraisal to do a streamline refinance. That does not exist today like it did before Februaryu, 2010 whe the process changed.
Now, you can do a streamline refinance without an appraisal, but, you are no longer permitted to cover the closing costs by raising the loan amount to cover the closing costs. that means you must pay the closing costs out of pocket or the lender could raise the rate to cover the costs.
Also, your monthly payment must decrease by 5% or more or it is not permitted at all.
Now, you can do a streamline refinance without an appraisal, but, you are no longer permitted to cover the closing costs by raising the loan amount to cover the closing costs. that means you must pay the closing costs out of pocket or the lender could raise the rate to cover the costs.
Also, your monthly payment must decrease by 5% or more or it is not permitted at all.
