Looking for suggestions concerning interest rates (Phoenix: sale, mortgage, refinancing)

[Toolguyb]

Living in Phoenix obviously the value of my home has signifigantly decreased. Right now with the government doing everything it can can to try to get people to buy homes the interest rates will probably drop below 4%. Refinancing would greatly benefit me as it would most people. Now unfortunately I will not qualify for any government programs because I am not a deadbeat and I pay my bills on time every month including my mortgage. I put down 20% on my home 1.5 years ago when I purchased it and that money is now gone. My home will not appraise for 80-20 loan to value. Is there anything I can do other than purposely stop paying my mortgage to qualify for government programs to take advantage of these interest rates.

Thanks,

[altus2006]

Originally Posted by Toolguyb

Living in Phoenix obviously the value of my home has signifigantly decreased. Right now with the government doing everything it can can to try to get people to buy homes the interest rates will probably drop below 4%. Refinancing would greatly benefit me as it would most people. Now unfortunately I will not qualify for any government programs because I am not a deadbeat and I pay my bills on time every month including my mortgage. I put down 20% on my home 1.5 years ago when I purchased it and that money is now gone. My home will not appraise for 80-20 loan to value. Is there anything I can do other than purposely stop paying my mortgage to qualify for government programs to take advantage of these interest rates.

Thanks,

Someone last week posted on this topic. As I remember, they were told by the bank to call back after not making their payments for 6 months.

So, the people like you and many others in your situation are paying the price for all the crooks that are responsible for this mess.

altus2006

[azjack]

If you have a future A.R.M. re-set that is worrying you, you can ask the lender to do a modification to a fixed rate. If they say no, then you are no worse off by asking. And when I say ask, I mean request the relevant forms (you will not be the first) and send them in. Keep additional copies of everything so that you can re-send it when the understaffed department loses part of it.

If you already have a fixed rate and are still employed, I do not see a problem. Not everybody gets the best available rates at any given time. Accounting for risk, 4% on a mortgage loan would be a below market rate.

[sh9730]

I did read a post on another board that there is TALK (and only talk at this point) of maybe FINALLY helping people in your situation. Basically you could refi rate/term (no cash out obviously) for your remaining loan amount regardless of current market value of the home. There basically would be no appraisal.

This is very similar to those of us with FHA loans that can do what is called a "streamline" refi. No appraisal, credit check, or income verification as long as we are current on our existing FHA loan and the new payment is lower than our existing payment. The theory is that it can only enhance the governments chances of being paid back since we are making a larger payment already. This is not free, alot of the normal refi fees apply, but some can be rolled into the loan for little or no out of pocket.

As for the potential new program, the theory is that since so many loans are Fannie/Freddie backed, which is now almost all owned by taxpayers, this streamline like program might help jumpstart some economic activity, and of course a lower payment only makes repayment MORE likely and the govt wont have to payoff on as many loans. In the meantime the mortgage companies make some fees, the borrower has more money in pocket, which would then go into the economy elsewhere.

I dont think the plan is for it to be completely streamlined like FHA. I think you will still have to show income and credit worthiness, but the value of the asset will not come into play.

Personally I think its a great idea....alot better than people walking away!

[YAZ]

Just a little FYI for that small minority looking to purchase a home in AZ:

If you're not going the FHA or VA route, forget about putting less than 10% down. I checked five major lending institutions; no way.

We have an LSR at 5.25%, and put an offer in a home this evening. Here's hopin' it goes down to 4.75% before closing...and an acceptance of the offer of course.

[hootie]

Anybody recommend who is really good to refinance through? My loan is with BofA (their alright), and a coworker really recommends Compass. Somebody has to know somebody who has the rock bottom rates and low closing costs? thx!

[altus2006]

Originally Posted by hootie

Anybody recommend who is really good to refinance through? My loan is with BofA (their alright), and a coworker really recommends Compass. Somebody has to know somebody who has the rock bottom rates and low closing costs? thx!

If you can join a credit union, they tend to have the best rates and fewer closing costs.

The one I have used for the last two loans didn't charge us any standard bank type closing costs such as origination fee, discount points, appraisal, credit report, etc. on our refinance (or new loan either). We just had to pay the standard prepaids and some of the document costs.

altus2006

[MotleyCrew]

Originally Posted by Toolguyb

Living in Phoenix obviously the value of my home has signifigantly decreased. Right now with the government doing everything it can can to try to get people to buy homes the interest rates will probably drop below 4%. Refinancing would greatly benefit me as it would most people. Now unfortunately I will not qualify for any government programs because I am not a deadbeat and I pay my bills on time every month including my mortgage. I put down 20% on my home 1.5 years ago when I purchased it and that money is now gone. My home will not appraise for 80-20 loan to value. Is there anything I can do other than purposely stop paying my mortgage to qualify for government programs to take advantage of these interest rates.

Thanks,

You claim not to be a deadbeat yet you are looking for a government handout. Why don't you just suck it up like the rest of us and wait until the values come back?

[Captain Bill]

Originally Posted by altus2006

Someone last week posted on this topic. As I remember, they were told by the bank to call back after not making their payments for 6 months.

So, the people like you and many others in your situation are paying the price for all the crooks that are responsible for this mess.

altus2006

Seems like bad advice on the part of the bank. After 90 days of missed payments, the notice of trustee sale is issued, with a scheduled sale date 90 days from that date. So if one waits 6 months to call back, the house may get sold out from under them. .

[altus2006]

Originally Posted by Captain Bill

Seems like bad advice on the part of the bank. After 90 days of missed payments, the notice of trustee sale is issued, with a scheduled sale date 90 days from that date. So if one waits 6 months to call back, the house may get sold out from under them. .

There is a lot of the left hand not knowing what the right hand is doing in the mortgage and banking system now.

altus2006