Posted on: 26th Jul, 2010 02:26 pm
i would like to refinance my mortgage to get a low fixed rate, but have had no luck yet talking to loan brokers or wells fargo who owns my loan, apparently because its not owned by fannie mae i can't do anything to change the terms as per obama's plan.
i had to refinance my mortgage to pay off my ex-wife in 2007. my house was worth 600k then, and the mortgage was $350k interest only @5.65% for 10years, then would start to adjust after that.
i want to refinance to take advantage of the low rates and get a fixed rate. zillo estimates my house is now worth ~$340k, and i owe ~$345k. the problem is i owe what its worth and nobody wants to do a rate reduction refi.
i have been in my job for 10 years, i have zero debt, i have other assets and great credit. my credit rating is 960. i do not want to sell my stock to pay down $50k on my mortgage in order to get a refi. i wan't to keep my assets liquid in case anything happens and i need the money. i've owned the house for many years, i don't understand why i can't get a rate reduction refinance. wells fargo said they can't help me because i am paying my mortgage. the only way they can help me is if i was going into forclosure. should i stop paying my mortgage to try top get a loan adjustment? that just doesn't make sense. i don't know why they just don't charge me points and do the rate reduction refi and be done with it.
does anyone know of any program for people in my situation? i don't want to ruin my credit just to change my loan, but i could be saving money if i refinance and i'm scared of what future inflation will do to my payments.
thanks,
michael
i had to refinance my mortgage to pay off my ex-wife in 2007. my house was worth 600k then, and the mortgage was $350k interest only @5.65% for 10years, then would start to adjust after that.
i want to refinance to take advantage of the low rates and get a fixed rate. zillo estimates my house is now worth ~$340k, and i owe ~$345k. the problem is i owe what its worth and nobody wants to do a rate reduction refi.
i have been in my job for 10 years, i have zero debt, i have other assets and great credit. my credit rating is 960. i do not want to sell my stock to pay down $50k on my mortgage in order to get a refi. i wan't to keep my assets liquid in case anything happens and i need the money. i've owned the house for many years, i don't understand why i can't get a rate reduction refinance. wells fargo said they can't help me because i am paying my mortgage. the only way they can help me is if i was going into forclosure. should i stop paying my mortgage to try top get a loan adjustment? that just doesn't make sense. i don't know why they just don't charge me points and do the rate reduction refi and be done with it.
does anyone know of any program for people in my situation? i don't want to ruin my credit just to change my loan, but i could be saving money if i refinance and i'm scared of what future inflation will do to my payments.
thanks,
michael
Anyone?
Bueller ?
Bueller ?
Keep the loan you have or use some money to pay it down to refinance.
Do not go past due to get a modifcation. Just because the mortgage is late does not mean you get a modification. You probably would not because you have too much liquid assets. Then you ruined your credit and do not get a modification anyway.
It is okay you check Zillow for value. Zillow is often not all that accurate. You may find that a real appraisal for mortgage purposes comes out higher.
Not sure what county and state the property is located so I do not know if your mortgage is too high for FHA mortgage which has county limits. You can refi with FHA up to 97.75% of appraised value and conventional up to 95% of value.
Do not go past due to get a modifcation. Just because the mortgage is late does not mean you get a modification. You probably would not because you have too much liquid assets. Then you ruined your credit and do not get a modification anyway.
It is okay you check Zillow for value. Zillow is often not all that accurate. You may find that a real appraisal for mortgage purposes comes out higher.
Not sure what county and state the property is located so I do not know if your mortgage is too high for FHA mortgage which has county limits. You can refi with FHA up to 97.75% of appraised value and conventional up to 95% of value.
Thanks for the reply jveenstra!
The property is in San Jose, CA.
I don't want to ruin my good credit, so I won't be going delinquent.
If I remember correctly, someone said FHA was going to be a lot of paperwork and cost a lot and I would end up with PMI on top of it too so I really didn't really consider that an option.
The property is in San Jose, CA.
I don't want to ruin my good credit, so I won't be going delinquent.
If I remember correctly, someone said FHA was going to be a lot of paperwork and cost a lot and I would end up with PMI on top of it too so I really didn't really consider that an option.
FHA is not really any more paperwork.
I mentioned FHA because you already indicated the value of the property may not be high enough to avoid PMI with a conventional loan. Depending on the appraised value and the amount of money you would have to spend to get the mortgage below 80% of value to avoid PMI. FHA is an alternative to consider depending on all the circumstances.
If you have a choice between FHA and conventional, probably do conventional. If FHA is the only choice, consider the FHA loan to get out of what you have now.
Good luck!
I mentioned FHA because you already indicated the value of the property may not be high enough to avoid PMI with a conventional loan. Depending on the appraised value and the amount of money you would have to spend to get the mortgage below 80% of value to avoid PMI. FHA is an alternative to consider depending on all the circumstances.
If you have a choice between FHA and conventional, probably do conventional. If FHA is the only choice, consider the FHA loan to get out of what you have now.
Good luck!