Keep getting these refinance letters

[Client9]

Long story short I keep getting these letters on refinancing my current mortgage.  

One is from SCascade Mortgage in Minnesota.  One doesnt have a name but a phone # and the other is from Peoples Banking.  

The offers are very tempting and what they say I have heard grumblings about refinancing FHA loans without an appraisal and such.

Are these scams or somewhat legit?

[Lel]

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@Client9 wrote:

Long story short I keep getting these letters on refinancing my current mortgage.  

One is from SCascade Mortgage in Minnesota.  One doesnt have a name but a phone # and the other is from Peoples Banking.  

The offers are very tempting and what they say I have heard grumblings about refinancing FHA loans without an appraisal and such.

Are these scams or somewhat legit?

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I get these all the time.  Your mortgage is a matter of public record, and mortgage companies mine these records to find new targets for their solicitations.

This is not to say that they aren't legitimate companies.  But the stuff that they promise on their teaser mailings are the absolute best-case scenarios, and the stars would have to be in perfect alignment in order to get these terms.  They know nothing about your credit score, credit history, salary, home value, debts, etc. - that is, virtually nothing of that which is required to make an actual offer of credit.  They only know that you have a mortgage.

[IOBA]

Client9 - I get those too...and I don't even have a mortgage!  But I am super eligiable to refi my FHA with a streamline refi...  weu weu!!!   I am sooo tempted to take them up on their offers!  No credit check, no job verification...just a nice streamline refi.   How can things get any better?  

[Client9]

thanks!  The credit is good.  752 and 794 just last week from me buying the scores to see how things are going.  The scores used to be better as Macy's, Wells Fargo and Cabela's have not updated in over 3 months.  used to be 786  and 814 respectively.  

I will give these clowns a call and see what the deal is.  

[IOBA]

I am against doing the refinance, period.  Stick with what you have.

I was just noting that I receive these refi offers often and I don't even have a mortgage!   IF their information is that outdated regarding my mortgage status, how wrong is the other information?   And the only way to know is to let them pull your credit to find out how much you would really qualify for.

[Client9]

well, I am in year 3 of a 6/1 ARM.  I bought my place in November of 2009 and it has sunk underwater.  I am at 4% now.  The rate can only go up one full percentage point at the end of year 6, so this is why I was thinking about just amking the call if it is no money out of pocket and it saves me some cash.  I am actually one month ahead in my payments and I can always make the paymenst with what they are now.  

[Lel]

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@Client9 wrote:

well, I am in year 3 of a 6/1 ARM.  I bought my place in November of 2009 and it has sunk underwater.  I am at 4% now.  The rate can only go up one full percentage point at the end of year 6, so this is why I was thinking about just amking the call if it is no money out of pocket and it saves me some cash.  I am actually one month ahead in my payments and I can always make the paymenst with what they are now.  

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It would be reasonable to consider refinancing to a fixed rate product, but if you're upside down on the loan by a lot this is going to be difficult unless you have cash on hand to bring down your loan balance at the time of refinance.  Rates are very low right now, but have been rising recently.  It is possible that in 3 years the prevailing interest rates will be higher than the rate after your first adjustment.

What is the cap on your interest rate?

Rather than contacting one of the companies that sent you an offer, I'd start by inquiring at local banks or credit unions or with an independent mortgage officer.

[Client9]

I do belong to BECU and do all of my checking and savings there since 2006.  the home loan is now owned by Bank of America.  I am guessing BECU will want to do an appraisal which will not work and I am guessing BOA will not want to lose out on interest payments, so neither have that much incentive, but the answer is always no unless you ask.

[Client9]

OK, I made tha call to one of the letters that seemed the most legit by doing some research.  

I currently pay $1416/month.  My MIP is $97.00 and I am at 4%.  I also pay $30 for contents insurance on my own, which makes the payment $1446.00.  In December of 2014, the MIP will drop off to make my payment $1315.00.  But since I am on an ARM, it can go as high as 5%.  So who knows what the rates will be in 2014????

The new rate at 3.75 fixed which would also include my contents insurance ($30/month) would make my payment $1427.00.  The key is that the MIP is doubling in cost now but they are taking care of that one time $325 payment for contents insurance.

So I would save $20/month.  I would have the peace of mind that my rate is not going any higher or lower for 30 years.  And after 5 years, I can drop the MIP and save myself $196.00 and my payment in June of 2017 would be $1231.00

he also said they are working with lenders who are paying all of the title transfer fees and such.