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TL;DR version is that i am about to close on a refi thought the HARP program with Citi. When we started this process we went into harp believing through Zillo or whatever that site is called that our house was under water. That site SUCKS.
Part of the process called for citi to require us to get an appraisal. When we got the appraisal back we found that we were NOT under water, but in fact above water by about 40K over the loan value. Loan value right now 306, house appraised at 350.
Now, Citibank wants to close next wednesday. Loan details are 4.5 30 year fixed, down from 5.875. We will save as of right now close to 500 bucks on the refi, which is for sure a win.
However, by looking around i am seeing that on various sites i could get a 4.1 APR through quicken loans or other sites.
Should i stop the process and shop around some more, or should i stick with the refi and stay at 4.5 percent.
Does that 4.5% rate include them paying for closing costs? If not, that seems high, but I don't recall you saying what your credit score is. Not sure if you know, but Citi is no longer going to do mortgages. They're finishing up what they've already started, and they're not taking on new loans. With that, they could careless about you getting the best deal right now as they aren't worried about repeat business or referrals. I just had a buyer pull her loan from them because they changed her rep again as everyone is getting moved around or laid off from the mortgage origination department.
TL;DR version is that i am about to close on a refi thought the HARP program with Citi. When we started this process we went into harp believing through Zillo or whatever that site is called that our house was under water. That site SUCKS.
Part of the process called for citi to require us to get an appraisal. When we got the appraisal back we found that we were NOT under water, but in fact above water by about 40K over the loan value. Loan value right now 306, house appraised at 350.
Now, Citibank wants to close next wednesday. Loan details are 4.5 30 year fixed, down from 5.875. We will save as of right now close to 500 bucks on the refi, which is for sure a win.
However, by looking around i am seeing that on various sites i could get a 4.1 APR through quicken loans or other sites.
Should i stop the process and shop around some more, or should i stick with the refi and stay at 4.5 percent.
Definitely shop around. Seems high, but we don't know all the specifics. I wouldn't use Quicken or Lending Tree or any online crap. Go to a local lender (bank, credit union, broker).
I agree with Tim, shop around. Ask friends or relatives the name of a broker they used. You usually get the worst deal when you deal directly with any big bank.
I agree with Tim, shop around. Ask friends or relatives the name of a broker they used. You usually get the worst deal when you deal directly with any big bank.
I was thinking of that, however my big concern is that
A: the new lender won't accept the value of the house as given by citi's appraiser, and they send out a new appraiser who says 'screw, you are under water'.
B: that by doing this is am going to be only saving a ltitle bit more a month. It was a lot of effort and mental strain to get to even this point.
Then you've already answered your question. You don't want to start over, so why ask us to make the decision for you. Close on the loan, and save your $500 a month, and move on.
I was thinking of that, however my big concern is that
A: the new lender won't accept the value of the house as given by citi's appraiser, and they send out a new appraiser who says 'screw, you are under water'.
B: that by doing this is am going to be only saving a ltitle bit more a month. It was a lot of effort and mental strain to get to even this point.
Appraisors should be using similar data--closed houses in the area. I can understand some 2 or 3% difference or even may be 5% but over 12.5% from one to the other? That looks to me a lot of difference.
What make you believe that you are underwater and start the process as such in the first place? Just zEstimate? I mean I can easily guess what the value of my house is by just looking on the homes that sold in my neighborhood, I don't need any zstimate.
Did you see the appraisal yourself? I just can't imagine that much percentage change from two appraisors. But I am not appaisor and I don't know your specific situation. You only can answer.
Good luck
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