Life$trikes.Com » Mortgage Refinance

Mortgage Refinance Closing This Week (Maybe)

Raghu — Tue, 26 May 2009 12:59:38 +0000

Finally all the paperwork is done and Broker said, I can close the loan sometime this week. This would save my monthly payment by $60+ per month.

Current Loan – 30 Year Fixed, No Escrow, 5.25%, Refinanced on Dec 2009, lender – Countrywide
New Loan – 30 Year Fixed, No Escrow, 4.875%, No Closing Cost/Lenders Fee, Lender – Sun Trust.

HUD Statement

Usually with no cost loan, all the fees will be credited and only value where broker can manipulate would be the payoff amount. I got he payoff amount for next 7 days from Bank of America and it will be easy to compare the payoff amount with the HUD statement. So, hopefully closing should go without any issues.

Mortgage Refinance Without Appraisal

Raghu — Sun, 17 May 2009 16:12:57 +0000

I’m still waiting for the home appraised value to refinance. But, I really don’t understand why one broker would require Appraisal when another lender can refinance without Appraisal.

When I refinanced during last week of December, NMA didn’t order home appraisal. But, now with different Broker, they ordered appraisal. I’m puzzled by that fact that, the system that determines if a person requires appraisal or not can vary so much between brokers/lenders when my credit profile didn’t change much, as well as financial situation. It’s interesting and it would be nice to know the reasoning behind that.

My neighbor is refinancing for the second time with same company, but different broker. They have ordered this time around (May, 2009), but they didn’t order the appraisal last time ( Dec, 2008). Maybe I will try to network with a mortgage specialist through Twitter or LinkedIn and they might able to give some insights on this.

Bank Rate to the Rescue?

There’s is an interesting discussion going on at Get Rich Slowly – How to Select Mortgage Broker. If you happen to read the comments, some are thoughtful and shows how people shop to find cheapest mortgage rates. But, in some comments show that people don’t spend much time shopping for Mortgage rates. For instance when mortgage refinance shoppers blindly trusting the rates from BankRate and going with the lender who gives cheapest rate.

Mortgage Refinance – Round 2

Raghu — Wed, 06 May 2009 20:08:21 +0000

Back in December 2008, we refinanced existing mortgage. Back then we had 2 loans ( First Loan 5.625% and Second Loan – 7.75%) through National Mortgage Alliance, we were able to combine both the loans into single loan and got 5.25% No Cost loan without escrow account (without paying escrow waiver fee).

No cost Refinance – Round 2

During first round of refinancing we saved over $100 in monthly payment and when rates dropped again in March, I was trying to lock 4.875% with no cost loan. By the time I could reach out to the broker, rates were not available. But, around April 15th I was able to lock 4.875% No Cost, 30 year fixed loan. It’s been almost 3 weeks now after locking the rates. Rate lock is valid for 40 days.

Home Appraisal

Last time NMA serviced the loan without Home Appraisal, but this time around broker ordered the appraisal. I’m really not sure how and why credit file can change from December to April that can make the system to order the appraisal. I will know the appraised value in couple of days. It is going to tough 2-3 days wait. Loan amount should be less then 80% of the appraised value of the home. I’m not sure, how the broker will handle if there will be 2-3k lower than 80% amount.

How To Shop for Mortgage Rates – My Experience

Raghu — Fri, 19 Dec 2008 02:27:04 +0000

In the previous post, I had explained why I decided to do with No Cost Mortgage. Here, I will explain my experience in searching for No Cost Mortgage rates in this article.

No Cost Rate Lock

In my community almost 5 of my neighbors are going with No cost Mortgage. So, we formed a network to find the best mortgage rates. I started following Mortgage Professor Website for sometime now. I spent time searching for the site which will update the Mortgage rates instantly when banks send the rate sheets. There are so many sites that give the Mortgage rates, but one I found that reflects rates instantly was National Mortgage Alliance. NMA is recommended by Mortgage Professor. I got my HUD statement just before I started typing this article.

My experience with NMA so far is wonderful. But, having said that, they don’t have the lowest rate ( by 0.125%) that you can get. All my neighbours were dealing with 4 different brokers. I had locked 5.50%, 30 year fixed, no closing cost, no lender fee loan. My loan got approved in 1 week and NMA wanted me to close the loan ASAP. But, I wanted to delay the closing. It was due to 2 reasons

I had just paid December months mortgage. If I were to close on first week of Dec, then I will have to pay Interest rates for some 20 days. Its almost like making 2 mortgage payments in one month.
Since, rates were volatile, I wanted to see if I can still get lower rates.

No Cost Mortgage for 5.375%

Couple of days after my loan got approved, one other broker offered 5.375 No cost loan. One of my neighbor locked that rate. I had introduced, my neighbor to NMA. So, I called NMA and asked them to match the 5.375% and I did say my neighbor, who was talking to you last night locked 5.375%. Within few minutes, NMA called me and asked me to get a Good Faith Estimate and they matched 5.375% with escrow.

No Cost Mortgage for 5.125%

In another 2 days, same broker gave lowered to 5.125% and I tried to get that offer from NMA. Since, I had to pay $300 deposit to lock the rates, I was locked with them. It would take about 9 months to break even $300, if I had opted out to get 5.125%. But, I was not able to get GFE for 5.125%

No Cost Mortgage Loan for 5.25%

I was also talking to couple of other brokers. One of them was kind enough to send an GFE for 5.25%, No escrow, No cost 30 year fixed. I asked NMA to match that, and finally, they agreed. So, I’m closing tomorrow 5.25%, 216, 000, No closing, No lender fees, 30 year fixed.

Lowest Mortgage Rate

I could have ignored $300 and went with 5,125% (with escrow account) but I didn’t feel that was right to do, after NMA loan officer spent time on my loan papers. But, the broker who offered low rate was from www.cimginc.com ( Chris Murray). If you talk to him, you can use my name as reference ( No, I’m not an affiliate to them). I’m currently working with Chris for 4.875% No cost Refinance ( Update – May 13, 2009)

Why No Cost option is better for me?

I got 4.875% with $1700 in closing cost. The break even point compared to 5.25% will be about 34 months. Which didn’t sound right. 2 months from now, I might get 4.875% for No Cost loan and I can refinance again. I’m not locked in for 34 months to break even. With current market scenario, anything could happen.

My 2 cents

Find the lender/borker who you feel comfortable with.
Do NOT give your SSN, before doing some shopping.
Talk to 3-4 brokers or current lender, then lock the rate wih the lowest offer.
Try to lock the rates witout any deposit amount
Ask for rate float. If rates happen to drop before closing, make sure they will lower it.
Keep shoping for rates till the you close the loan
If I find rate lower than 5.125% I will post it here.