Looking to refinance mortage

Mayberry40 · Joined: 08 Feb 2010 Posts: 5 Location: Central Ohio

I am looking to refinance my home loan and equity loan (combine both of them). I checked my credit score 915 and want the best interest rate I can get.
How do I shop for the best deal? I'm new to this.

m2c · Joined: 03 Aug 2005 Posts: 937

First, I won’t touch you with a ten-foot pole even though you are in my market area. This is important only as to my first piece of advice – loose the attitude. I know it comes with working for the government but consider Chase, not necessarily a paragon of virtue, is very large and bound to draw the random complaint. Justified or not, any lender cannot say a word in print since borrower privacy is the holy grail – a now win situation. Personally I don’t think you’re going to find the “best” deal there but don’t knock they off for some Internet junkie.

The “government”, your pal, believes the savior to your dilemma is the “new GFE”. Well, actually, with refinances it works well and provides a minimum of deception. Look at Block 1. Our amount happens to be $495 but this is not the holy grail; pay more attention to Block A as well as the APR. Notwithstanding what “the government” has told you, you will likely find all quotes within a narrow range. Just remember, interest rates, like the stock market, change throughout the day – a five-hour old quote is relatively meaningless when compared with a current quote – fees are “frozen” for at least 10 business days but rates and YSP, if applicable, vary.

Most of your closing costs are going to be in the title area. Locate your Owners Title Policy and location survey. Both may entitle you to reduction in title charges. Most LOs will ask about these but bring this up in case the LO is having a “senior moment”.

You’ll be hopping to a mortgage model for FICO but likely you’ll avoid LLPAs (this is mortgagesse for higher cost). You might even pick up a ¼ point discount discount depending what your loan-to-value is. Hop on efanniemae.com and hit the link to “2010 announcements …” and look for announcement 08-38. Yes, you’ll have to go to the year 2008 – the “2010” is just a mask to confuse you – remember, the government is “your friend”. No way a LO should be able to divert this possible benefit but you should just be aware of the potential although you’ve got to be looking at a 60% or less LTV.

Refis including HELOCs are tricky since HELOC rates are current so low. Just make sure the LO breaks out the refi savings on the existing first mortgage on an EQUAL REMAINING term basis. LOs will typically do this automatically since Ohio has a “tangible net benefit” requirement (think it’s in ORC 1345). Problem is that the Ohio government left everything undefined although other state’s “safe harbor” examples are far from perfect. A HELOC with an adjustable rate makes things even fuzzier. Bottom line is that if the LO tries to talk you out of refinancing he/she probably “speaketh the truth”

Mayberry40 · Joined: 08 Feb 2010 Posts: 5 Location: Central Ohio

I have read and reread my post..........where is an attitude??

m2c · Joined: 03 Aug 2005 Posts: 937

Ops ... where's all the stuff I remembered about bashing Chase. I've fished around to see what post I thought was yours. Couldn't locate. Sorry.

m2c · Joined: 03 Aug 2005 Posts: 937

Mystery solved. I went on "profile" and was reading your 2/8 post "Online mortage loans". You were a bit heavy on Chase.

MrPink1130 · Joined: 11 Feb 2010 Posts: 17

Combining mortgages together....
if the second mortgage was a equity out loan, max ltv will be 80% on a conventioanl loan and 85% on a FHA loan.
but going over 80% on an FHA will cost you PMI on a monthly basis and FHA has an UFMIP fee of up to 2% of the loan size...like 2 points

I have no idea what a 915 credit score is.....highest credit score is 850 and highest I've ever seen was 837 in the last 7 years of pulling credit

post what the balnces are for both mortgages and what you beleive the value of the home to be.....

go to mortgage dot com, and click on VALUEFINDER at the bottom left corner of the page and tell us what the value is......also if you could give me the zip code that would be great too

joe1 · Joined: 11 Nov 2008 Posts: 20 Location: California

Mayberry,
try bankrate.com for a good deal.