topic Re: ReFi Q for the mortgage Pros.... in Mortgage Loans

ReFi Q for the mortgage Pros....

BungalowMo — Mon, 24 May 2010 15:52:44 GMT

I am hoping to refi later this year (maybe early august). Is anyone doing refi's for those of us underwater?

I have no idea what my home may appraise for. My current mtg hits 3 years this month. 0 lates. *almost* clean reports (90 day late on a school loan in 09/04)

TU score of 753, EQ is 687 & as of last year, my EX was 671 with that report being much better now. By July a handful of inq's (1 - 2 on each) will no longer factor into my scores & my util% as of today is 25.

Not sure what else you might need as far as info.....

Thanks!

Re: ReFi Q for the mortgage Pros....

Lel — Mon, 24 May 2010 16:11:47 GMT

What is your current interest rate? Is it a fixed rate or adjustable?

It would be a good idea to get a sense of what your home might appraise for now. If you still have a little bit of equity, then you might be able to refinance to a better rate with FHA. But if you're really upside down, then your options are limited. If the latter situation applies, then you can go to the Making Home Afforable website and see if you might qualify for a Home Affordable Refinance (not the modification program - big difference here especially with regard to effects on credit score).

Re: ReFi Q for the mortgage Pros....

BungalowMo — Mon, 24 May 2010 16:17:38 GMT

My rate is 6.62 fixed. My balance...207k on 215.

I'll have to check out that refi link. Yeah...I heard some nightmarish tales about the modification program where you purposely get behind. I'd never agree to that intentionally. I worked way too hard to get to where I am!

Re: ReFi Q for the mortgage Pros....

ShanetheMortgageMan — Mon, 24 May 2010 16:25:59 GMT

Definitely need to check out the link. It'll direct you to the Fannie Mae or Freddie Mac websites where you punch in your information to determine if Fannie or Freddie own the mortgage. If they do, then you are eligible for the Making Home Affordable Refinance options. Fannie Mae's is called "Refi Plus" or "DU Refi Plus", and Freddie Mac's is called "OpenAccess". Any lender that offers the program should be willing to refinance you up to 105% of your home's value, however I've found that if you are above105% LTV only the existing servicer has been willing to refinance those mortgages.

Re: ReFi Q for the mortgage Pros....

BungalowMo — Mon, 24 May 2010 17:10:02 GMT

I know it's a Freddie loan. But how can I figure out the LTV when "I" can't get the appraisal?

Went to the site & checked yes for all & they say I may qualify for the refi. So this has to be with my current lender? I asked Chase back in Feb, just to get some info & they forwarded (is that a word?) my call to an outside lender! I wasn't ready for any kind of credit pull or anything. I was just looking for refi info & it seemed they (Chase) wouldn't refi my loan.

grumblegrumblegrumble

_______________________________________

ETA: Found this doing a google search..... Freddie Open Access

Seems they'll refi for 125% LTV

Re: ReFi Q for the mortgage Pros....

Lel — Mon, 24 May 2010 17:12:28 GMT

Any comparable sales in your area that might give you some insight?

For a really, really, really rough idea of what your home might be worth, you could check Zillow. But you might be better off going back to your lender and inquiring about refinancing. They might be able to look up a "desktop appraisal" to see where you stand. You could also call your former real estate agent to ask what your home might sell for these days.

I think one of the major lenders also has a website where you can look up the value of your home, using their own proprietary formula. A while back I recall looking up my house on there as well, but I can't remember which lender it was. It probably isn't much better than what you get off Zillow. In the end, nothing will accurately substitute for an actual in-person appraisal, but I think if you gather data from a few different sources, you can get a decent sense of where you stand right now.

The Home Affordable Refinance program theoretically will refi up to 125% of your home's actual value. So in theory, if your home is only worth $165,600 right now, you could still refi the $207,000 using this program. But like Shane said, not all lenders are willing to go this high. You'd still have to pay closing costs. This program should not result in any negative reporting on your credit reports - it would just show up as a new mortgage account.

Re: ReFi Q for the mortgage Pros....

ShanetheMortgageMan — Mon, 24 May 2010 17:16:49 GMT

Just to confirm, you went to http://www.freddiemac.com/mymortgage/ and entered all of your information there?

It only has to be with your current lender if your loan-to-value (based on the new loan amount) is over 105%, as outside lenders aren't willing to take on another lenders "underwater loan" when the loan-to-value is that high, and some lenders aren't willing to go over 105% even if it's their own loan. This may change, as we've seen the guidelines for these two programs gradually loosen up since they've been available. I've heard that Chase is a bit more restrictive than others lenders with this program.

It is hard to determine what your exact home's value will be, however if you still keep in touch with your real estate agent they can provide recent comparables that the appraiser would likely be using, and then a comparison analysis could be done with that information. It won't get an exact figure like an appraiser would be able to provide, but it'd at least be a starting point.

Re: ReFi Q for the mortgage Pros....

BungalowMo — Mon, 24 May 2010 17:30:44 GMT

Shane....

No, I went to the link in Lel's post. That was the first I'd seen your link. But anywho, I know it's a Freddie backed mortgage. Says so in my documents & on my cr's too.

I just can't imagine Chase giving up 6.6 to give me less. What's the incentive for them to do that?

Re: ReFi Q for the mortgage Pros....

BungalowMo — Mon, 24 May 2010 17:48:00 GMT

@Lel wrote:
Any comparable sales in your area that might give you some insight? This is a tough one. There isn't another place like mine, approx 95 yo craftsman bungalow, & most have single lots & mine is a double, with the house built on the center of the 2 lots.

For a really, really, really rough idea of what your home might be worth, you could check Zillow. But you might be better off going back to your lender and inquiring about refinancing. They might be able to look up a "desktop appraisal" to see where you stand. You could also call your former real estate agent to ask what your home might sell for these days. I'm already on Zillow & they have no "Zestimate"

I think one of the major lenders also has a website where you can look up the value of your home, using their own proprietary formula. A while back I recall looking up my house on there as well, but I can't remember which lender it was. It probably isn't much better than what you get off Zillow. In the end, nothing will accurately substitute for an actual in-person appraisal, but I think if you gather data from a few different sources, you can get a decent sense of where you stand right now.

The Home Affordable Refinance program theoretically will refi up to 125% of your home's actual value. So in theory, if your home is only worth $165,600 right now, you could still refi the $207,000 using this program. But like Shane said, not all lenders are willing to go this high. You'd still have to pay closing costs. This program should not result in any negative reporting on your credit reports - it would just show up as a new mortgage account.

I'll happily pay the closing costs to get a better rate. If I get my way....they'll pull the keys out of my dead hands when I'm 100! I don't want to go anywhere.

Re: ReFi Q for the mortgage Pros....

Lel — Mon, 24 May 2010 18:21:21 GMT

I see where you get your screen name from now....

It looks like you'd have to talk with your real estate agent or a lender to see what kind of number they might come up with.

As for why Chase might consider your application, you're right, Chase is going to look for some reason to offer you a lower rate. The MHA program was initially conceived to help borrowers who had experienced some sort of change in financial situation that made their mortgage difficult to afford. The refinance part of MHA is presumably more straightforward, because it's really just an incentive program for lenders to refinance homes to better rates for borrowers who have been good about paying their current mortgages. But it's limited by the maximum LTV that is permitted. Originally, it was only allowing LTVs up to 105%, but this was increased to 125%. I'm not certain how many people have attempted to participate in the refinance program.

One big difference between the modification program and the refinance program is that with the refinance program, you can approach any participating lender and ask if they will refinance you under MHA. That is, if Chase doesn't see any benefit from refinancing (and they probably don't), then you can take your business elsewhere. There could be many lenders, large and small, who would be willing to loan you $207,000 at 5.5%. But again, the key detail you need to nail down is the approximate fair market value of your home.

Re: ReFi Q for the mortgage Pros....

BungalowMo — Mon, 24 May 2010 18:38:40 GMT

@Lel wrote:
I see where you get your screen name from now.... Yeah....I fell in love with that place the moment I saw it. It was the first place I saw.

It looks like you'd have to talk with your real estate agent or a lender to see what kind of number they might come up with. My agent is right up the street. She might be able to get a ballpark # for me.

As for why Chase might consider your application, you're right, Chase is going to look for some reason to offer you a lower rate. <-- Do you mean "not" offer me a lower rate??? The MHA program was initially conceived to help borrowers who had experienced some sort of change in financial situation that made their mortgage difficult to afford. The refinance part of MHA is presumably more straightforward, because it's really just an incentive program for lenders to refinance homes to better rates for borrowers who have been good about paying their current mortgages. But it's limited by the maximum LTV that is permitted. Originally, it was only allowing LTVs up to 105%, but this was increased to 125%. I'm not certain how many people have attempted to participate in the refinance program.

One big difference between the modification program and the refinance program is that with the refinance program, you can approach any participating lender and ask if they will refinance you under MHA. That is, if Chase doesn't see any benefit from refinancing (and they probably don't), then you can take your business elsewhere. There could be many lenders, large and small, who would be willing to loan you $207,000 at 5.5%. But again, the key detail you need to nail down is the approximate fair market value of your home.

Lel, let's say for instance, I want to refi with Wells Fargo. (I've had Wachovia accts for years & wells just bought them out) I can go to them with any info they require and if they are a lender using this refi program, they can do an appraisal & tell me if I can refi with them or not.

I'm just hoping my 18 year history with Wachovia can be of some worth. I just feel like, if I can afford the payment I have now, I can certainly afford a lower one! Wouldn't that make sense? Just looking for someone to give me a chance.

Re: ReFi Q for the mortgage Pros....

Lel — Mon, 24 May 2010 19:10:04 GMT

@BungalowMo wrote:

Chase is going to look for some reason to offer you a lower rate. <-- Do you mean "not" offer me a lower rate??? No, I mean what I wrote. The default (by that i don't mean defaulting on the mortgage; I'm using the term in its technical decision-analysis sense) outcome is "no" to the refinance. If there is no fundamental change to your current financial or life situation, then there's little incentive for Chase to refinance your upside down loan. If Chase is going to offer you a refi under MHA, they're going to need a good reason to do so. If they think that you might have trouble affording your current loan, but are otherwise still a good lending risk, then they might be more inclined to refinance your loan. This way, they ensure a continual stream of payments (albeit with lower returns for them) and lower the risk of default (and now I mean nonpayment of the loan).

Lel, let's say for instance, I want to refi with Wells Fargo. (I've had Wachovia accts for years & wells just bought them out) I can go to them with any info they require and if they are a lender using this refi program, they can do an appraisal & tell me if I can refi with them or not. Precisely.

I'm just hoping my 18 year history with Wachovia can be of some worth. I just feel like, if I can afford the payment I have now, I can certainly afford a lower one! Wouldn't that make sense? Makes sense to me. Just looking for someone to give me a chance.

Re: ReFi Q for the mortgage Pros....

ShanetheMortgageMan — Mon, 24 May 2010 19:38:22 GMT

Just because it says it's a Freddie Mac mortgage on credit or references Freddie Mac in the closing documents does not automatically mean it's an eligible mortgage for the Making Home Affordable refinance program. The link I posted is a sub-link contained with the link that Lel posted, at the top under "loan look up" at http://makinghomeaffordable.gov/. If your property does not get a "hit" there then most likely it is no longer owned by Freddie Mac. If it does get a match then you may be able to refinance.

Why are you looking to refinance though? In an ARM, interest rate is high?

Re: ReFi Q for the mortgage Pros....

BungalowMo — Mon, 24 May 2010 21:13:12 GMT

@ShanetheMortgageMan wrote:
Just because it says it's a Freddie Mac mortgage on credit or references Freddie Mac in the closing documents does not automatically mean it's an eligible mortgage for the Making Home Affordable refinance program. The link I posted is a sub-link contained with the link that Lel posted, at the top under "loan look up" at http://makinghomeaffordable.gov/. If your property does not get a "hit" there then most likely it is no longer owned by Freddie Mac. If it does get a match then you may be able to refinance.

OK...filled out the form & Freddie is the owner of my mortgage

Why are you looking to refinance though? In an ARM, interest rate is high? No, I'm in a fixed rate / conventional, but I know I'm eligible for a lower rate. Being only 3 years into it, I may as well do it now. I don't plan on moving anywhere. This IS home.

Re: ReFi Q for the mortgage Pros....

ShanetheMortgageMan — Mon, 24 May 2010 21:30:12 GMT

Gotcha, interest rates have certainly come down in the past year.