How to Refinance with 90%LTV (PMI, loan, approved, scores)

[iwant2refi]

I tried to refi and the appraisal came back low. My current 30yr fxd is with BofA and we tried to refi with them through a broker. The appraisal came back low. We originally put down 20% and have a 6.125% rate that we got in 2007. We have never been late. This is a Jumbo in los angeles. In order for us to refi we would have to put ALOT more money down to get to 80% LTV. But it was way too much additional $$. We are good borrowers and are getting the short end of the stick. EIther way BofA gets us to pay a high rate at 6.125 or they get a huge chunk of cash for us to get to refi. Does anyone know what our options are? We were even approved for the BofA refi loan with scores well over 770. Thanks!

[nmb30]

Originally Posted by iwant2refi

I tried to refi and the appraisal came back low. My current 30yr fxd is with BofA and we tried to refi with them through a broker. The appraisal came back low. We originally put down 20% and have a 6.125% rate that we got in 2007. We have never been late. This is a Jumbo in los angeles. In order for us to refi we would have to put ALOT more money down to get to 80% LTV. But it was way too much additional $$. We are good borrowers and are getting the short end of the stick. EIther way BofA gets us to pay a high rate at 6.125 or they get a huge chunk of cash for us to get to refi. Does anyone know what our options are? We were even approved for the BofA refi loan with scores well over 770. Thanks!

Hi Iwant2refi,

At 90% LTV, you will probably need to look at an FHA loan depending on your total loan amount.
What do you currently owe?

[bradykp]

Originally Posted by iwant2refi

I tried to refi and the appraisal came back low. My current 30yr fxd is with BofA and we tried to refi with them through a broker. The appraisal came back low. We originally put down 20% and have a 6.125% rate that we got in 2007. We have never been late. This is a Jumbo in los angeles. In order for us to refi we would have to put ALOT more money down to get to 80% LTV. But it was way too much additional $$. We are good borrowers and are getting the short end of the stick. EIther way BofA gets us to pay a high rate at 6.125 or they get a huge chunk of cash for us to get to refi. Does anyone know what our options are? We were even approved for the BofA refi loan with scores well over 770. Thanks!

maybe it's different for a jumbo, but i just refinanced through a broker (was with BofA) with 90%LTV and i have similar scores.

[postmortem]

Originally Posted by bradykp

maybe it's different for a jumbo, but i just refinanced through a broker (was with BofA) with 90%LTV and i have similar scores.

are you paying PMI?

[SmartMoney]

Look around for a second trust of 10%, get your first trust to 80%.

Or,

Ask BofA to run the payment at 80% of loan to value. Is it worth it to plop down the additional cash? I have a customer bringing 63K to the table to slash $950 a month off her payment. It's either that or watch the home drain her savings.

[iwant2refi]

Thanks for the replies...we owe 700K. I dont think that we would want to plop down such a large amount of our savings. Rather save it for a rainy day or invest in something else. This is probably not our forever home. How difficult would it be to get a second for 10%?? That sounds like a good option. Would I do that through the same broker?

Also....I spoke with a broker today who says that he can get us into a 30yr fx @ 4.375% with paying about 500//mo PMI at our 90%LTV. Is he being real? I did not get a Good faith estimate. Rather he sent us the application with these details filled in. When I do finally find a good deal, How do I know if I am dealing with a legit party? With BofA it seems easy to deal with the mortgage pymts because they are servicing the loan and I can easily track the activity. But with a regular broker dealing with anonymous lenders (at least invisible to me) how do I know where my payments are really going? And I get even less uncertain as the loan moves around and gets sold over and over again...??? How I do I avoid fraud? What should I ask ?

[VictorBurek]

2nd liens are much harder to qualify and secure today when compared to a few years ago. There are many lenders doing 2nd liens so you should be able to get a second which would be the best way to structure your loan.

The broker will take your loan to one of the major lenders who will end up servicing your loan. Once the loan closings you will be contacted by the servicer who will inform you where you send your payment each month. even working with BofA, your loan will get sold over and over but the terms of the loan will not change.

Just in case you dont know, BofA does not lend you their money and hold your note for the life of the loan. They borrow money from various sources, fund a lot of loans, then package those loans and their are sold into the secondary market. They may continue to service the loan meaning send you the statment and collect the money.

Ask the broker which lender he/she intends to submit your loan to.

[bradykp]

Originally Posted by postmortem

are you paying PMI?

yes - of course. but it's worth it to me to pay PMI for 2 years, to have a solid emergency fund. i have the ability to be at an 80% LTV, but i'd be depleting my savings cushion to a low level that I'm not comfortable with. I'll make extra payments for 2 years, then request PMI be removed (most banks require it to remain for 24 months so that's the earliest I can be rid of it).

[bradykp]

Originally Posted by VictorBurek

2nd liens are much harder to qualify and secure today when compared to a few years ago. There are many lenders doing 2nd liens so you should be able to get a second which would be the best way to structure your loan.

The broker will take your loan to one of the major lenders who will end up servicing your loan. Once the loan closings you will be contacted by the servicer who will inform you where you send your payment each month. even working with BofA, your loan will get sold over and over but the terms of the loan will not change.

Just in case you dont know, BofA does not lend you their money and hold your note for the life of the loan. They borrow money from various sources, fund a lot of loans, then package those loans and their are sold into the secondary market. They may continue to service the loan meaning send you the statment and collect the money.

Ask the broker which lender he/she intends to submit your loan to.

BofA held my loan for about 4 weeks after closing before they sold it. But they continued to service it so it looks like you're paying BofA. that's probably what's going on with the poster's deal.

the bank you borrow from rarely, if ever, keeps the loan.

[nmb30]

Originally Posted by iwant2refi

Thanks for the replies...we owe 700K. I dont think that we would want to plop down such a large amount of our savings. Rather save it for a rainy day or invest in something else. This is probably not our forever home. How difficult would it be to get a second for 10%?? That sounds like a good option. Would I do that through the same broker?

Also....I spoke with a broker today who says that he can get us into a 30yr fx @ 4.375% with paying about 500//mo PMI at our 90%LTV. Is he being real? I did not get a Good faith estimate. Rather he sent us the application with these details filled in. When I do finally find a good deal, How do I know if I am dealing with a legit party? With BofA it seems easy to deal with the mortgage pymts because they are servicing the loan and I can easily track the activity. But with a regular broker dealing with anonymous lenders (at least invisible to me) how do I know where my payments are really going? And I get even less uncertain as the loan moves around and gets sold over and over again...??? How I do I avoid fraud? What should I ask ?

Hi Iwant2refi,

Like I said before, you may want to look at an FHA loan which is what it sounds like this broker is offering you. In LA County, the FHA maximum loan amount is $729,750 but you should be able to get a 30 year fixed around 4.125 to 4.25% (4.25% with zero points)