What do you all tink of this deal? No papers signed

[Anonymous]

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dazednconfused wrote:

Myhearts - I think you could do better.  I just refied a few months ago, with scores a little [and I mean a little] higher than yours and got 7%, 30 year fixed, no pre-payment penalty.  I thought that interest was awful, but better than what my ARM was going to adjust to.   9.75% sounds really high for a 5/1 ARM.

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7% awful???  Even with a 750 score at 80% LTV you're lucky to get much better than 6.5% on a fixed.

We've been spoiled after 4 years of interest rates below 6.  That 7% is just fine with those scores.

[Anonymous]

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myhearts07 wrote:

I thought so as well.  The broker says that because of the crash with subprime lenders that the interest rates are changing constantly and because the appraisal was not done when she was talking with the lender, they could not lock a rate for me.  This whole deal is really starting to get on my nerves.

We have pretty decent credit with the exception of a few lates that are 2 or more years old.  I have one active collection with AFNI that I need to pfd again.  Other than that we are good. 

Eve

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I'd bet you can get a "Level 2" approval or perhaps better.  I would be glad to look at it for you, if you want.

[Anonymous]

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dazednconfused wrote:

Yes, I believe that the rates are changing constantly with the subprime crash, but 9.75% is too high.  That sounds like a sub-prime lending rate.  I don't think you really fit into subprime, you should be able to get a conventional mortgage.  Why are you going 5/1? 

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560 is definitely subprime, where have you been?  Although it could qualify for a Fannie Mae levels or "A-" product with Freddie Mac - which basically means just-below prime/conforming.

[Anonymous]

BK 7 was discharged 01/02

DH has 401K-  Abt $10K

No avail cash/svgs

No Lates

Current loan/ $252k

Appraised value   $345K-350K

[Anonymous]

Update...

Initial information is the same, however, the following accounts would be paid off:

HFC   $10K/ 32.99% interest rate  $304 MONTHLY PAYMENT

Home Depot   $3500/24.24% interest rate  $220 MONTHLY PAYMENT

SST/(previously WAMU) Visa  $2300/31.99% interest rate--  this is the default rate that we were put into because we paid 1 day late.  It is not reported as a late payment, shows on time, just an internal thing they did.  $50 MONTHLY PAYMENT

I feel like this might be a good trade off for the 9.75% rate on the refi because at least we wouldn't still be carrying that debt and even though there is a prepay penalty, we are not planning to move for at least 5 years so if we needed to refi, we could in those 3 years and we would have more equity in our home.  The pressure is really building now because those taxes have kicked in and our escrow is $3500 in the neg and in Sept. it be $7500 neg and our payment will skyrocket to $2800/mo.

What say you all?  Does this look like a better deal and we would get $4k back at closing?

Message Edited by myhearts07 on 08-18-2007 11:18 PM

Message Edited by myhearts07 on 08-18-2007 11:19 PM

[Anonymous]

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myhearts07 wrote:

Update...

Initial information is the same, however, the following accounts would be paid off:

HFC   $10K/ 32.99% interest rate  $304 MONTHLY PAYMENT

Home Depot   $3500/24.24% interest rate  $220 MONTHLY PAYMENT

SST/(previously WAMU) Visa  $2300/31.99% interest rate--  this is the default rate that we were put into because we paid 1 day late.  It is not reported as a late payment, shows on time, just an internal thing they did.  $50 MONTHLY PAYMENT

I feel like this might be a good trade off for the 9.75% rate on the refi because at least we wouldn't still be carrying that debt and even though there is a prepay penalty, we are not planning to move for at least 5 years so if we needed to refi, we could in those 3 years and we would have more equity in our home.  The pressure is really building now because those taxes have kicked in and our escrow is $3500 in the neg and in Sept. it be $7500 neg and our payment will skyrocket to $2800/mo.

What say you all?  Does this look like a better deal and we would get $4k back at closing?

Message Edited by myhearts07 on 08-18-2007 11:18 PM

Message Edited by myhearts07 on 08-18-2007 11:19 PM

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I would think about the fact that you are eliminating a huge monthly payment on your cards

that is probably endless at this point, skyrocketing escrow and taxes, and your scores will

recoup from eliminating the utilization, if you do it have a 3 year plan and get away from

the heavy use of the cards and refi again when your scores and the market levels out...

Just be careful you don't get in the card situation you have now and you will be O.K.

Message Edited by Tmleverage on 08-18-2007 09:41 PM

[Anonymous]

Yes,  I know.  Those card have been maxed since last year because of lack of finances to pay them down or off.  THat has been my problem this whole time.  No I would be extremely careful not to fall into that trap again.

Eve

[Anonymous]

That sounds pretty decent as long as it is saving you a decent amount monthly. When it's all said and done, what's your new mortgage payment, PITI, and your old one?  I saw the credit card payments but neither the old or new mortgage payment.

[Anonymous]

Old payment with PITI   2679.00

New payment with PII (not including taxes)  2395.00

[Anonymous]

Does "DH" mean "Dear Husband" or "Desparate Housewife"