Want to Refi but I am getting outrageous quotes.. (loan officer, fixed rates, interest rate)

[HarborEastGuy]

I have a 3/1 Int Only ARM at 5.375%
My loan is $298,000 on a home I paid $384,00 for.
Excellent credit and never late on a loan payment.

I see lots of 3/1 Int Only ARMs with Int rates anywhere
between 3.5% and 4% yet when I call to inquire about
refinancing these places tell me that best they can do
is get me 6% provided I re-pay my closing costs all over..
Even the place that originally processed my loan at 5.375%

What gives? Why do all these places like Absoulte Mortgage
and CitiMortgage advertise such teaser rates like 3.5% then
tell you they could get you 6% on refi and only if you have to pay
big fees? Is refinance just a license to get robbed by greedy
Mortgage Companies?

What happened to the Obama pledge to help get people into
lower interest loans? How does this work? I pay my loan
just fine and make "principal" payments here and there to pay
down the mortgage but I would like grab a lower interest rate.

And what ever happened to no-cost refi's that buried the closing
costs into the loan for a small bump in the interest rate?

I would like to get a lower rate but I keep being told these rates
are only good for purchases of homes and refi's don't apply.

[suzie02]

Are they pulling your credit? Could the be a mistake there that is causing such a high rate?
How much is your home worth now?

Regarding the Obama plan it only applies if you refi to a fixed loan.

We were going to go with Today's Rates
or https://home.ingdirect.com/pop_up/rateglance.html until our appraisal came in too low.

Good luck

[VictorBurek]

Not sure where you are seeing interest only arms at those low rates. You can get a principle and interest loan under 4% on a short term arm.

No cost loans are also still available.

Whoever told you rates were different on purchase loans and refi loans was lying to you. Whether you refiance or buy a home, the rates are the same for each transaction. i would suggest you contact a professional broker in your area that can shop you with multiple lenders to find the best deal.

[Mercury Cougar]

What's your credit rating?

[HarborEastGuy]

credit is 740.

So does anyone offer no-cost refi's ??

[VictorBurek]

Anybody can offer a no cost refi. All you do is bump up the interest rate, take the yield spread and pay the closing costs and the loan officer keeps the difference. It is extremly difficult to offer a no cost loan with an ARM, so must are done utitlizing fixed rates. Typically, lenders will not pay enough ysp on ARMS to allow for a no cost loan since the life of the loan will be short term.

[dad2jules]

Get a referral to a local broker in your area, because not all lenders have good rates on ARM's and brokers work with many lenders. Here in NC I have a 5/1 ARM interest only at 4.875% with no closing costs based on your loan amount. Our closing costs are below average- 3rd parties (lender, attorney, title, recodring, appraisal) are only about $1800 so these can be easily absorbed with YSP as Victor said.

[HarborEastGuy]

My current mortgage is with Citimortgage. If I refi'd with this same company, why do I need all the
stuff like title, appraisal, recording, etc re-done? Couldn't they just grand-father all the stuff into
a new loan if it's with the same mortgage place? I mean if I already have a loan with them what
sense does it make to re-do all these things? It's not like they have to protect themselves from
possible default since I already have the loan with them.. I just want a better rate??

[VictorBurek]

Tom63376, Citimortgage doesn't have your mortgage. They have sold it into the secondary market. They are only servicing the loan meaning sending bill and collecting the money. They than forward your payment to the end investor but they keep a small part to compensate them for servicing.

So, you need all that documentation again because there will be a new investor with your loan after you close.

[Fighter 1]

Originally Posted by VictorBurek

Tom63376, Citimortgage doesn't have your mortgage. They have sold it into the secondary market. They are only servicing the loan meaning sending bill and collecting the money. They than forward your payment to the end investor but they keep a small part to compensate them for servicing.

So, you need all that documentation again because there will be a new investor with your loan after you close.

I think the word to discribe you situtation is "SCREWED" ! sorry to say you just want a lower rate and I would like just a few thousands, but in reality neither of us will get what we want in todays world.