VA IRRRL Refinance @ 15 months?

[DesertLife]

My EQ Fico Credit Score is 723 and TU is 732 as of 12/12/12, so I know I may am close to the line in terms of what they like to see for credit score, but hope I'm OK.

Penfed used CREDSTAR to pull report, and listed as "Real Estate/Public Accommodations" on Dec 9, 2012.

[Cdnewmanpac]

this is a good deal IF you plan to keep the house at least two years. it will take 22 months of lower payments to offset closing costs. after that, you start to save money.

[DesertLife]

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@Cdnewmanpac wrote:
this is a good deal IF you plan to keep the house at least two years. it will take 22 months of lower payments to offset closing costs. after that, you start to save money.

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Thank you, it's true. I do plan on keeping the house at least two more years and realize it will take those 22 months to begin saving money. I do plan to be paying extra on the mortgage (the same amount I was paying pre-refi) in the interest of paying down the loan quicker which will be another benefit of the refi.

[DesertLife]

Received the Credstar credit score disclosure today in the mail.

Equifax Beacon 5.0 - 723; Same as the MyFico score I purchased on the same day which is nice to know.

Key Factors that adversly affected score:

Serious delinquency

Number of accounts with delinquency

Too many inquiries last 12 months

Length of time accounts have been established

Anyone see something Penfed is likely to have a problem with? Also should I call them and be proactive about seeing if there's anything I can do to help them process my loan? I did receive an email from the loan officer assigned to my file, however he said he would reach out when he had time and is processing applications in the order they were received. Should I try to be the squeaky wheel? I've heard that closing in 90 days with Penfed, especially around this time of year is going to be a close call.

[DesertLife]

Went through preliminary discussion with loan (originator?) today, not the processor. Making sure all my ducks are in a row. Is the house now or has it been for sale in the past 6 months? no. etc.. etc..

Everything looks good so far. Debt to Income "back-end" ratio (housing expenses + all other debt payments) @ 22% well below PenFed's 45% limit (as told to me on the phone). Checking on the second note for $15,000 which doesn't have to be paid until the mortgage is paid off or home is sold (not sure if this counts and the note becomes due or not). If the note becomes due we'll have to roll that loan into the loan which means it won't be an IRRRL streamline any longer, but a VA cash out loan which apparently to me only really means that they'll have to re-verify income, assets, etc. whereas for the streamline they don't.

[DesertLife]

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@DesertLife wrote:

Penfed Good Faith Estimate:

December 10, 2012

Loan Amount: $144,100

Term: 30 Years

Interest Rate: 3.00%

Initial Monthly Payment: $607.53 per month ($160.19 per month less than currently paying).

Escrow Required

Adjusted Origination Charges: $65

Settlement Services Total: 775.75 (Appraisal: $50, Tax Service Fee: $59, Premum Tax (state): $201, Credit Report: $8.75, Flood Cert Fee: $7.00)

Title Services & Lender's Title Ins: $1882.60

Pest Inspect Fee: $250

Gov't Recording Charges: $207

Initial Deposit for escrow: $1245.24

Daily interest charges: $177.66

Total estimated settlement charges: $4,603.25

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Received updated title insurance & recording fee costs from title company today:

346.56 lenders title ins.

433.20 escrow fee

20.00 reconveyance fee (for "discharging" old mortgage and dealing with new one)

90.00 approx. for recording fee (73 first page + $1/page County recording fee)

889.76 TOTAL 

Which reduces the closing costs by $1,199.84

The title company told me that if the the lender doesn't quote within 10% of what you're actually charged they have to pay the difference, so they always quote high, often really high as we can see here.

New anticipated closing cost amount: $3403.41

Minus escrow refund (held with current lender): $1,059.16

Minus $50 b/c pest insp. should only be $200 not $250

Total Closing Costs Anticipated to be Realized: $2,294.25 Which also means only 1 year 2 months to recover expenses for refinance!

[Anonymous]

Any update? You and I have similar numbers. I'm interested to see the results.

Thanks!

[DesertLife]

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@Anonymous wrote:

Any update? You and I have similar numbers. I'm interested to see the results.

Thanks!

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Your credit score is a bit higher which is great!

I'm on to the next step; I just received my pre-qualifiication letter yesterday. I now have to send in:

Copy of mortgage note

DD214

Recent credit card statement

Termite Inspection less than 60 days old

Appraisal (Since it's VA they are scheduling it)

Bank Statements from on period with any large deposits documented

Rate: 3.00% 30-YR Fixed with rate expiring early Feb. Tentative signing/closing Early March. 0.00% Points 0.00% Origination Fee.

[Anonymous]

That's awesome!

Appraisal? I thought I read somewhere where an appraisal was not necessary for IRRRL?

My purchase price was 143k @ 4.5% on September 2011. I currently owe 138k. I'd like to get atleast a 3.5% or lower. I'm calling my bank today on this.

[DesertLife]

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@Anonymous wrote:

That's awesome!

Appraisal? I thought I read somewhere where an appraisal was not necessary for IRRRL?

@Anonymous purchase price was 143k @ 4.5% on September 2011. I currently owe 138k. I'd like to get atleast a 3.5% or lower. I'm calling my bank today on this.

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Great, but if you're checking out USAA, make sure to also check out PenFed as I am with both banks as well. Also check out your local credit unions. We have really similar numbers for home purchase price, etc. You're right about the no appraisal necessary for the IRRRL refinance. I'll have to check with them about that.

http://www.benefits.va.gov/HOMELOANS/irrrl.asp