Another followup but I have concrete details now and need advice
We have a primary mortagage (224,000) at 6.25% (30yrs..started in 2004 so 22yrs left) and equity line (59,000) at 8%.(6 yrs left).looked with our local banker to get a better refinance. We were doing all under the wife's name..her FICO is 709 (Mine 690), equal income of around $145K each and her debt to income ration was around 29% so apparently adding my income didn't really help. When she was "pre-approved" the estimated an appraised value but the actual appraisal came back at 323,000 which is lower than expected but not underwater. They are now offering 5.39% 15 yrs on the primary mortgage and then convert the 59K to a variable rate with closing cost of $389.00. They are wanting to close Tuesday on the primary mortgage. Their arguement for the higher rate on the 15yr is the cheaper closing costs. It doesn't completely pass the smell test because the pre-approval was 3.74% combining both..I understand the LTV came back lower due to the appraised amount but this seems high to me. The fear is another application will deteriorate our credit but I of course want the best and legitimate deal possible..this is in the state of WV btw...application process started 3/14..we got the results of the appraisal yesterday..it would be ideal to bundle both at a 15yr-20yr rate if needed but that's an LTV of 88% and IDK if that's even possible with our FICO..but I would think the primary mortgage could be worked out better at least. I really need some direction here because the they are making it seem the clock is ticking but I want to get the best possible deal and not harm our credit with too many hard searches,,all the numbers I've put forth are concrete as of today and IDK how to get much more detailed than this by Offsui_867_345 from Charleston, West Virginia. Apr 6th 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
I know you've done your best to disclose as much info as possible, but there is still stuff missing.. is your current loan conventional or FHA./ VA/ USDA?... is your refinance a conventional FHA VA USDA?? if your current loan is conventional, is it owned by Freddie Mac or Fannie Mae?? so you can see much more info is needed but I don't need any more details to tell you your lender is full of it.. your right about the sniff test.. this deal smells rotten... if you're looking at 15 year financing, you should consider FHA... you will pay 1.75% upfront fee which can be financed, and there will be mortgage insurance which is equal to about .5% in interest rate, but the going rate for a 15 year FHA is 3.5%... add the .5% for mortgage insurance, and your effective rate is about 4% for 15 years... and there should be enough lender credit to pay your closing costs... by going FHA, you can finance both first and 2nd into one mortgage so long as the LTV is 97.75% or lower, which based on your numbers above, you are... there are also conventional products available but the highest LTV would be 85% on a cash out refinance, and you would also have mortgage insurance.. with FHA, there is no difference in the rate with your 690 score vs her 700+ score, so you would both go on the loan.. the biggest mistakes people make are these... they contact the local Bank...Big mistake... and they contact their current mortgage company.. another big mistake... you should contact a local mortgage broker, not the local bank and definitely not one of those 50 states internet lenders... the broker has lower overhead, lower fees, and lower rates... feel free to contact me, I would be happy to discuss your situation... ( I do not lend in WV)... WilliamAcres.com
Natalie Loudan (nloudan)
#42 ranked lender in Virginia - 5 contributions
I am in Winchester VA and I think a more detail conversation over the phone would benefit you. There are many questions to be answered. The one statement I can make is that if you are not confortable with the "new deal" that the bank is offering, do not feel pressured into closing. Take the time to do the research and then compare all the options available to you. Please call me today at 540-450-2700, I am working in the office with clients all day today. Thank you for the opportunity and I look forward to working with you.Natalie Loudanwww.mylenderforlife.com540-450-2700
J.D. Peck (TheJDPeckLendingTeam)
#44 ranked lender in Colorado - 82 contributions
It would appear that you're looking at a conventional probably without mortgage insurance, based upon the rate, I would guess U.S. Bank (but I could be wrong). At 88% LTV, you should definitely consider an FHA. Even with the mortgage insurance, it will still be significantly cheaper than what is being offered to you due to the fact that the MI Premium is lower on a 15 year. I know this newly structured loan seems better than what you currently have, but it also seems to me that the lender you're working with is taking advantage of your current situation. Call a local broker and avoid the "big bank".
Melvin List (melvinlist)
#143 ranked lender in Florida - 124 contributions
I would get a second opinion from a local mortgage broker!! That rate is not even in the ball park for a 15 year term. Do you know if your loan qualifies for HARP 2.0?I only lend in Florida!
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