Questions about Refinancing

[Anonymous]

I am working on refinancing our current mortgage and have a couple of questions:

1.  If I apply with a number of different mortgage brokers/banks will my credit be adversely affected worse than if I just apply with one mortgage broker?  I thought I read somewhere it won't but I want to be sure.

2.  Can I include closing cost and discount points in a  rate and term refinance?  

3.  I applied with AimLoan.com and was asked if I want to lock the quoted interest rate at the end of the application.   Is this standard?   Is it a good idea to do so?   The site said I would have to pay for the appraisal ($465 I think) immediately if I wanted to lock.  I have a second mortgage so I believe I will have to have that subordinated.

Thanks!

[Mortgage-Specialist]

As long as you know your mortgage scores, it is not necessary for lenders to pull your credit just to quote you a rate. As long as they know your score and loan to value (LTV) then they can quote you. If they tell you they can't then theyre either being dishonest or its an awful policy of theirs. The vast majority will easily be abe to quote you rate/fees.  

[Anonymous]

Thanks!   I won't know the value of our home until aimloan.com has the appraisal done.  Are you saying that once one mortgage company does the credit score and appraisal, other mortgage companies can use the information to determine my refinance eligibility?

[Mortgage-Specialist]

The appraised value is normally estimated. The lender can quote you rates based on estimated appraised values. For conventional loans, they typically cannot be transferred from lender to lender so you will want to shop prior to having your home appraised. Your time is valuable as well, I doubt you'd want to shop after youre near closing with your current lender - and start all over. Plus you'll be wasting the efforts of the current loan officer and their staff. 

[Anonymous]

Thanks!   Do you think a FHA loan might be a good option for us?   Here our our specifics:

Credit Score - Mid 700s

Main Mortgage Outstanding - $225k at 4.375% (conventioanl 30 year...approximately 22 years left)

Second Mortgage Outstanding - $45k at 10% (about 18 years left)

Credit Card Debt - $19k at 12.99%

Estimate Home Value - Around $300k

Ideally I would love to reduce the interest rate on the second mortgage and/or the credit card debt.

[Mortgage-Specialist]

It might make sense to combine it w the 2nd mtg. You'd have to  take into consideration how much you'd be saving along with how many years you'd be adding to he life of the loan. It may or may not make sense.   Long term - probably not unless you go with a 20 year term.  Short term - if monthly payment savings is nearly a necessity - then ya gotta do what ya gotta do.