View Full Version : My Refinance Journey
Alright, I have a 30 year mortgage with 22 years left on it (been paying it off early). It is 5.8 percent.
Having discovered that my loan is backed by Freddie Mac (I had no idea), I find that I can do HARP.
I contacted my current bank and a loan officer on the other side of the country said he would refinance a 15 year mort for 3.75 percent. It would only cost 100 more a month. SWEET!
But I am going to do some checking around with other more local people that I have already worked with.
The guy on the phone is from out of state, the closing would happen electronically and all on the internet. I'd pay 300 right then and there over the phone and then closing costs in 90 days (that is how long they are backed up).
He was kind of distant sounding, not caring, and really pressuring. I did not like that.
When I got around to saying I wanted time to think about it, he became really short and wanting to get off the phone at that point. HEY! I only spent like 5 minutes with him total.
I am really seduced by 3 something percent and even with the 15 year, I'll still be able to pay more on it and have it done in like 10 years? 5 years?
yeah!!!!!!!!!!!!
The guy sounds skeezy. Do a bit more research and find some local help if you can. I do know someone who successfully refi'd with HARP.
BTW, saw this on MMM too. Glad to know more than one of us there is here (and vice versa).
A word of caution.
Three years ago when I was trying to refinance my mortgage that had been bought by another bank, the guy on the phone said the same thing. "Yeah, send us $300 (or better yet put it on your credit card) and we'll start the process". I did so, and to my utter amazement they decided that they didn't want to change it after all. They just sent me a letter that said "Sorry, we've determined that you don't qualify." No refund, no lowered payment, nothing. That was Chase.
About a month later working with my local credit union I got a line of credit against the house, paid off Chase and then paid off the Line of Credit (as it had much lower interest rate than Chase).
So, just be very careful before you give anyone somewhere else your money.
I thought pretty much all big loans for property have to give a "good faith estimate" or similar, so that everyone is clear on the terms. When we've refinanced (before the whole housing mess) we definitely had clearly laid-out paperwork to sign. It wasn't necessarily the huge book of stuff you get when you first buy, but it was more than one page and not all online. That sort of thing would make me really wary esp with anything you have to pay right away with a credit card and with nothing on your end you have to send. There's a ton of scammers out there so you're good to beware. Good luck on your refinance journey! Given your info, I may look into our very upside-down house though it's now a rental so that may not have anything like that available.
Today's rates on a 15-year mortgage from Wells Fargo bank are 3.125 = 3.434 APR. I would go local in your situation, not deal with a possibly shady deal over the phone.
jennipurrr
4-17-12, 11:06am
Heydude, what company were you talking to? I would google their name and HARP to see if people are grumbling on the internet.
Yesterday I finally got my stuff together...my current lender is not participating in HARP for investment properties, so I contacted Aim Loan (recommended by the FW thread). I was able to get approved for very competitive rates (3.85 - 15 yr investment property) and they said they would close within 30 days. It looks like my payment will be a few dollars lower and I am going from a 30 year loan to a 15 (well, I still have 24 years left on the 30). I went ahead and got the rate lock, which included paying $495 appraisal fee (less for owner occupied I believe). I was assured that this fee is held in escrow and if the loan was not approved by Freddie (which can happen with some investment properties) I would get it back. I got copies of all the standard truth in lending, good faith estimate, etc.
I can send you the person's contact info I dealt with yesterday. She seemed very professional. So far I feel pretty good about the process...we'll see how it goes.
Just met with a loan officer at my credit union to explore refinancing. They're quoting me 3.9% on a 20 year refinance. That would cut 2 years off my current 30 year but my payments would remain the same. (Because I'm headed to graduate school this summer I can't afford a 15 year loan right now nor would I be able to just make extra payments for the next three to four years.) The sticking point is that the value of the house has gone down due to the market, and she said qualification is going to be particularly iffy due to the fact that there's a foreclosure home still on the market just a house away. That and the fact that another house across the street was sold by the adult children of a recently deceased couple for $100k less than market value because they "wanted to just get rid of it," or so the neighborhood gossip goes. Because of these two factors the value of my house could be considerably less and I would no longer have 20% equity in the property and no hope of refinancing. Arrggghhh! I hate it when other people's responsible behavior so negatively effects my wallet!
The company, is the same national bank I have my mortgage with.
Jennipurr, i emailed you for the info!
Please, when you post, be sure to clairfy between a HARP refinance and just a refinance, as I believe the processes are seperate and have their own bar of what to expect.
DH and I are refinancing now. Not as good a deal as I'd hoped, but so much better than what we had. Our 30-year mortgage will go down by $400 a month, and when we get onother loan on our house paid off (possibly in 1 year and 5 months), we'll have $700 more a month off our current costs. My goal has been that when one of us dies (I am 69, he's 68), the other can manage financially. I think this will make that true. This is a big stress off. DH is better at earning and I'm better at frugal solutions, so together we make it happen.
jennipurrr
5-10-12, 4:51pm
We did not qualify for a regular refinance because our appraisal came in low (much lower than I even thought, due to a lack of sales and one really low sale, even though the low sale was on a property in deplorable condition). Anyway, we did qualify for HARP! So, we are wrapping up the documentation stuff and going to close within the next week hopefully. We got a rate of 4.25 for a 20 year loan. We thought about going with the 15, but it made the payment a smidge higher than it was on our 30. This way we knock 5 years off the loan (still had 25 left) and have our payment lower by about $70/mo helping the cashflow.
I hope things are working out for you Heydude!
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