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I own a condo in Coral Springs. I bought it for 63,500 in 2001 and due to refinancing in 2007, I will own close to that amount again if I refinance with Bank of Am for 5.87%. My condo is probably only worth $40-45000. I have asked Bank of Am for a principle reduction, but was told I could not get it since I have been paying my mortgage and I have over 3 months of mortgage etc in my savings account. I just don't get it. They are willing to let me refinance on something that is not worth it, yet I can not get a reduction of my princiipal. I don't know what to do. One other point I am thinking to go ahead with refinance is because I have an adjustable mortgage and in 2 years it will adjust. Is it a good decision to refinance?
Bank of America should require an appraisal on any property they are giving a mortgage on whether its a 1st mortgage or a refi loan. they usually don't send out the appraiser until they have checked out (your finances/credit score) everthing else first and you have dotted the I's and crossed the T's and paid 300 to 450 bucks for the appraiser. I have never heard nor seen a bank financing a loan for more than the actual market value of the property aka "the collateral". This would be the first question I would ask you B of A represenative. If my property doesn't appraise for the loan value do I still get the loan? I would bet the anwser is a resounding "NO"
I own a condo in Coral Springs. I bought it for 63,500 in 2001 and due to refinancing in 2007, I will own close to that amount again if I refinance with Bank of Am for 5.87%. My condo is probably only worth $40-45000. I have asked Bank of Am for a principle reduction, but was told I could not get it since I have been paying my mortgage and I have over 3 months of mortgage etc in my savings account. I just don't get it. They are willing to let me refinance on something that is not worth it, yet I can not get a reduction of my princiipal. I don't know what to do. One other point I am thinking to go ahead with refinance is because I have an adjustable mortgage and in 2 years it will adjust. Is it a good decision to refinance?
B of A won't refinance, if the LTV is greater than 80%. IMHO, You have little options.
One suggestion, post your question to "mortgage" section. You will get more help there.
B of A won't refinance, if the LTV is greater than 80%. IMHO, You have little options.
One suggestion, post your question to "mortgage" section. You will get more help there.
BOA may refinance up to 125% of the appraised value if the property is the loan is with Fannie/Freddie under the new Obama plan. But as previous posted mentioned, they will certainly order an appraisal first and you 'may' have to pay the closing costs..... you should be able to find out that upfront.
BOA may refinance up to 125% of the appraised value if the property is the loan is with Fannie/Freddie under the new Obama plan. But as previous posted mentioned, they will certainly order an appraisal first and you 'may' have to pay the closing costs..... you should be able to find out that upfront.
rkumar is right on. You can be upside down on your property and refinance today in many cases.
to the op...borrowers don't deserve a principal reduction because their value has dropped. sounds like you did a cash out refi at one time to boot.
I WANT TO TELL EVERYONE TO STOP BUYING CONDOS BECAUSE THE BANKS ARE NOT REFINANCING THE CONDOS. I TRIED TO GET MY CONDO REFINANCED AND WAS TOLD THAT THE BANKS DO NOT WANT TO REFINANCE - SO WHY EVEN BOTHER BUYING THEM. PLUS, THE MAINTENANCE FEES ARE RIDICULOUS AND KEEP GOING UP. IT IS NOT WORTH IT.
I WANT TO TELL EVERYONE TO STOP BUYING CONDOS BECAUSE THE BANKS ARE NOT REFINANCING THE CONDOS. I TRIED TO GET MY CONDO REFINANCED AND WAS TOLD THAT THE BANKS DO NOT WANT TO REFINANCE - SO WHY EVEN BOTHER BUYING THEM. PLUS, THE MAINTENANCE FEES ARE RIDICULOUS AND KEEP GOING UP. IT IS NOT WORTH IT.
Banks will refinance condos. I have several clients that own condos that are refinancing now.
Bank of America has their own in-house refinance guidelines. They will refinance their own portfolio, even when no one else will touch it. I have sent several of my past customers with BofA loans (from when I worked there), right back to BofA because they were the only ones that could touch it due to the high LTV. Many of the files qualify for no appraisal, no underwriting, which is permitted only on loans the bank currently holds.
Bottom line: If you can do anything, it's only going to be at Bank of America.
ALSO, REGARDING MORTGAGES ON CONDOS: I've been giving seminars to various real estate boards and mortgage bankers this past month. Yes, condo guidelines are about to get very difficult. However, the new changes do not apply to refinances (in most of the cases).
I cringe when I am talking to a borrower and find out the property is a condo. Throws a whole extra set of hoops to jump through. There also can be a price hit, so it often costs the borrower more for financing.
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Condos
