Need guidance on refinancing --- gurus please help! (PMI, loan officer, fixed rate)
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I live in Loudoun County in Virginia. My current home has $415k loan on it, and the current market value of the house is $390k (yes, I got hit big time by the crash). I am currently on a 5/1 ARM interest only loan that ends in about a year. My credit is excellent and I have no other debts or payments. Please let me know if it is possible for me to do the following.
1) Get one loan of $415k (100%) as a 30-year fixed loan from one lender only (principal and interest).
2) Roll my closing costs into the loan
3) Not pay PMI or any points
Any ideas if this would be achievable at a reasonable interest? If so, any recommendations on a path forward? If not, any suggestions on next steps while minimizing my damage?
One of the first steps would be actually finding out the value of your home.
If you already had the appraisal done, then things are going to be very gloomy.
If the value is 390k, then the 100% LTV would be 390k.
This can mean that you might have to bring the difference to the closing table. 25k plus the closing costs.
The 2nd thing to worry about is do you have 2 mortgages on the home? Did you take out the 2nd one simultaneously to the first mortgage? If the answer is 'NO' then it would be considered a refinance cash out.
If the answer is 'yes' then it will be a rate/term.
Let's start with step 1....have you had an appraisal done lately? If yes, how old is the appraisal?
Quote:
Originally Posted by Housingbubble
I live in Loudoun County in Virginia. My current home has $415k loan on it, and the current market value of the house is $390k (yes, I got hit big time by the crash). I am currently on a 5/1 ARM interest only loan that ends in about a year. My credit is excellent and I have no other debts or payments. Please let me know if it is possible for me to do the following.
1) Get one loan of $415k (100%) as a 30-year fixed loan from one lender only (principal and interest).
2) Roll my closing costs into the loan
3) Not pay PMI or any points
Any ideas if this would be achievable at a reasonable interest? If so, any recommendations on a path forward? If not, any suggestions on next steps while minimizing my damage?
Your loan needs to be the same as the value of the home. If you are upside down then you have to wait until the market goes back up. The bank doesn't want to give you more money than what the house is worth. It has nothing to do with what you bought the house for, it's what it's current value is.
I'm in the same boat (kind of), though my loan is a 30 yr. I'd love to refi but the value went down, so I can't do it.
I purchased mine 2 years ago (1st and 2nd mortgage). The first mortgage was a 2 yr ARM and the second was fixed. I didn't have to do PMI or Escrow my taxes. I went stated because all of my income wasn't taxed/documented and my credit was okay at the time, not perfect but border line. My loan amounts were a few thousand less than the appraisal came in during purchase time. My initial plan was to build my credit and refinance into a 30yr fixed in June 2008 (who knew the market was going to turn to chaos). Although I don't believe that the value of the homes in my neighborhood have decreased in value, I do believe that the 2-3 foreclosure properties in my community will effect me in terms of the value of my home? I spoke with a loan officer about 6 months ago, gave him my address and he told me that because of the foreclosure property my home wouldn't appraise for much more than what I owed on it. Is this correct? Do you think I have a chance of refinancing in 6/08? BTW, my credit hasn't done anything, actually decreased after the purchase of the home and I only have 1 credit card which I keep well below my limit and I've never been late on any payments. There are 3 collection accounts on my credit report which are 7 years old and I was told to not worry about those because they don't affect my FICO score due to them being so old.
If I don't refinance, how how do you think my payments could increase? The interest rate is based on the LIBOR index.
appraisals look for comparables that are 6months old...so you will be out of the red by June 2008. Also, depends on how many homes are in your subdivisio. Nobody knows what the rates are going to do in June.....
Quote:
Originally Posted by ayannaaaliyah
I purchased mine 2 years ago (1st and 2nd mortgage). The first mortgage was a 2 yr ARM and the second was fixed. I didn't have to do PMI or Escrow my taxes. I went stated because all of my income wasn't taxed/documented and my credit was okay at the time, not perfect but border line. My loan amounts were a few thousand less than the appraisal came in during purchase time. My initial plan was to build my credit and refinance into a 30yr fixed in June 2008 (who knew the market was going to turn to chaos). Although I don't believe that the value of the homes in my neighborhood have decreased in value, I do believe that the 2-3 foreclosure properties in my community will effect me in terms of the value of my home? I spoke with a loan officer about 6 months ago, gave him my address and he told me that because of the foreclosure property my home wouldn't appraise for much more than what I owed on it. Is this correct? Do you think I have a chance of refinancing in 6/08? BTW, my credit hasn't done anything, actually decreased after the purchase of the home and I only have 1 credit card which I keep well below my limit and I've never been late on any payments. There are 3 collection accounts on my credit report which are 7 years old and I was told to not worry about those because they don't affect my FICO score due to them being so old.
If I don't refinance, how how do you think my payments could increase? The interest rate is based on the LIBOR index.
appraisals look for comparables that are 6months old...so you will be out of the red by June 2008. Also, depends on how many homes are in your subdivisio. Nobody knows what the rates are going to do in June.....
Great thanks, let's just hope no more foreclosures occur before June '08 Of course I'm just looking to refi into a fixed rate, not interested in pulling out any cash. Just don't want my payments to skyrocket - although there was something in my documents about a cap on the amount it could increase - although that means I would probably be paying more interest and a lot less principal-correct?
if your loan to value is 100% you can refi with a mycommunity mortgage.
you can try to dfo FHA at 97.75 for a better rate.
the rate normally goes up 2% on a 2/28.....and yes you pay more interest.
Quote:
Originally Posted by ayannaaaliyah
Great thanks, let's just hope no more foreclosures occur before June '08 Of course I'm just looking to refi into a fixed rate, not interested in pulling out any cash. Just don't want my payments to skyrocket - although there was something in my documents about a cap on the amount it could increase - although that means I would probably be paying more interest and a lot less principal-correct?
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Of course I'm just looking to refi into a fixed rate, not interested in pulling out any cash. Just don't want my payments to skyrocket - although there was something in my documents about a cap on the amount it could increase - although that means I would probably be paying more interest and a lot less principal-correct?
