Can't refinance mortgage!

dragonfire101 · Aug 17, 2008

I been trying to refinance for 6 months now. Can't find anyone. I'm only trying to refinance $130k condo and between me and my wife make almost 100k a year and never was late with a payment.

My little brother and girlfriend who are in their early 20's who have only had steady employment history for the past 6 months and between the both of them make 50k a year are closing on a 180k home. WTF is up with that!

finny · Aug 17, 2008

Is the condo worth more than $130k?

Are you trying to refinance with the same fin institution? It usually is easier to go with the same one.

Have you tried mortgage brokers? They work with a lot of financial institutions and they have their own contacts and they can be more effective at times then going your own route.

dragonfire101 · Aug 18, 2008

Yes, tried a mortgage broker. He had my condo appraised at 143k, but can't find any bank to accept. He said this is the problem with all his clients and he actually had to get a second job. He tried several different places he uses.

I have another appraisal at 134k. This was through a federal/state program, but they haven't been able to work out any numbers also and waiting on them also.

I'm with Countrywide right now. They offered me a deal, which would be more than I'm paying now. I owe 120k on the condo. After closing, cost fees etc I would be borrowing a little more or the same that I originally borrowed with a higher monthly payment.

Its crazy.

Sassy · Aug 18, 2008

That is crazy. Unfortunately, banks & lenders are having so many problems right now that a lot of people are in your same boat. I know that isn't much comfort.

Since neither one of our houses have sold, we're having trouble getting a loan for our new place. We wanted to lock in while the interest rates were still good. It's very frustrating. Our houses have been on the market for 1 year and 8 months and we've reduced the prices on them. In the past couple months, we haven't even had any body look at either one. In the meantime, we have a bridge loan on our new place. Basically only making interest payments on our new place... this isn't including the other two house payments.

In your case, can you come up with any extra money to put down? Sometimes the amount you put down can help give you some advantages.

Marvin Martian · Sep 7, 2008

PM me man... I may can help you...

parrajm · Sep 7, 2008

institutions may be trying to hold out for the rate hike a lot of guys at the fed want to happen. also, even though you have good credit and good income, what it comes down to is that there is a stigma associated with having loans on the books for homes. my old man just refinanced and had to go through hell to get it done with a credit score of over 800. its just the times we live in at the moment sadly. i hope you get the help you need.

morepain · Sep 8, 2008

unless you have alot of equity, which as you know after fees and such you don't...they are not going to touch it. I am in the same boat bro, sux but i just finally accepted it and went on.

morepain · Sep 8, 2008

plus if you really do the math unless you are dropping a couple of full percentage points it will take many years to break even on the deal after all closing costs, fees etc...it may be to your benefit to not mess with it even though it seems like a good idea at the moment.

dragonfire101 · Sep 9, 2008

morepain said:
plus if you really do the math unless you are dropping a couple of full percentage points it will take many years to break even on the deal after all closing costs, fees etc...it may be to your benefit to not mess with it even though it seems like a good idea at the moment.

I would be dropping hopefully to at least 7% because interest is at 9% and increasing again. Who can afford a $50 dollar increase in mortgage every few months. It will be a few hundred by the end of the year.

Pekkerwood · Sep 9, 2008

Dragon:

Rates should drop about a full point soon. The biggest reason is to identify why you can't get it done because that may not change. Is it credit score? Debt to income? That reason needs to be solved and your mortage broker should make you aware of what this is.
Pekkerwood

dragonfire101 · Sep 10, 2008

Pekkerwood said:
Dragon:

Rates should drop about a full point soon. The biggest reason is to identify why you can't get it done because that may not change. Is it credit score? Debt to income? That reason needs to be solved and your mortage broker should make you aware of what this is.
Pekkerwood

Reason they gave is not enough equity in the home since homes have gone down and I can't get an appraisal high enough. I bought it on a 20/80 2yrs ago. My current credit score is ranges between 760s-770s and I make plenty income.

I was just offered 5.6 yesterday, but they need my condo to appraise at 140k.

dragonfire101 · Oct 29, 2008

Finally able to refinance. I was able to at 6.5% with no closing cost.

I could have got about 5.9%, but closing cost were crazy 5-7k. I don't plan staying at this home for more than 5 years so I took the higher rate with no closing cost.

HELLA SWOLE · Dec 12, 2008

dragonfire101 said:
Finally able to refinance. I was able to at 6.5% with no closing cost.

I could have got about 5.9%, but closing cost were crazy 5-7k. I don't plan staying at this home for more than 5 years so I took the higher rate with no closing cost.

How did you get no closing costs?

I have been thinking about refinancing due to the drop in rate. I am currently paying 6.124%, and have been advised I could get to 5.125-5.5%, but the closing costs are like $4K!!! No worth it....
I only plan to be in this condo for another 3-5 years...

Kane · Dec 13, 2008

You end up with a higher rate because the mortgage company is going to get their money somehow. It sounds more attractive to the customer who ends up thinking they're not paying closing costs but in the end, they are. Instead of paying it upfront at closing, you end up having it tacked onto the loan and end up paying it over many years.

dragonfire101 · Dec 16, 2008

Kane said:
You end up with a higher rate because the mortgage company is going to get their money somehow. It sounds more attractive to the customer who ends up thinking they're not paying closing costs but in the end, they are. Instead of paying it upfront at closing, you end up having it tacked onto the loan and end up paying it over many years.

Yes, but I chose no closing cost because I plan to sell or move within next 5 years otherwise I would have taken lower rate. So hopefully I make out some how. If not I guess they got my either way.

maldorf · Jan 14, 2009

Sassy said:
That is crazy. Unfortunately, banks & lenders are having so many problems right now that a lot of people are in your same boat. I know that isn't much comfort.

Since neither one of our houses have sold, we're having trouble getting a loan for our new place. We wanted to lock in while the interest rates were still good. It's very frustrating. Our houses have been on the market for 1 year and 8 months and we've reduced the prices on them. In the past couple months, we haven't even had any body look at either one. In the meantime, we have a bridge loan on our new place. Basically only making interest payments on our new place... this isn't including the other two house payments.

In your case, can you come up with any extra money to put down? Sometimes the amount you put down can help give you some advantages.

We went through a similar situation last year. We built a new home and had the old one to sell. Took us about 7 months to sell it. We had to make 2 house payments for about 4 months since the new home finished before the old one was sold. We used a home equity line of credit to help come up with the downpayment for the new one and the interest rate on it was insanely low. The monthly payment on our old house was about 1/2 what it was when we had the 30yr on it. Those home equity lines of credit are awesome if you have enough equity in the house . We ended up selling the house for almost 10% less than what we bought it for 6 years ago. Was just nice to get rid of it. Sometimes you have to just cut your loses eh.

maldorf · Jan 14, 2009

morepain said:
unless you have alot of equity, which as you know after fees and such you don't...they are not going to touch it. I am in the same boat bro, sux but i just finally accepted it and went on.

They usually want that 20% down. Third federal is awesome though. They only require 15% down and you pay no PMI. THats who we use and I reccomend them.

maldorf · Jan 14, 2009

dragonfire101 said:
I would be dropping hopefully to at least 7% because interest is at 9% and increasing again. Who can afford a $50 dollar increase in mortgage every few months. It will be a few hundred by the end of the year.

Third federal is offering 4.95% now on a 30 year fixed with no points. just pay closing costs. We have a loan with them and dropped our rate from 5.85% to 5.20% buy just paying a fee of $495!! This is awesome. We didnt even have to have the house appraised again. This avoided the problem of having our home appraised at less than what we built it for. MAybe your lender offers a similiar program??

maldorf · Jan 14, 2009

For my part of the country, here are the deals now from 3rd federal.
Takne from the email I get daily on their rates. If it drops a whole lot more I will lock in a lower rate again for that small $500 fee.

30 Year Fixed Rate

4.95% with 0.0 discount points
30 Year Fixed - No Cost

5.7% with 0.0 discount points
15 Year Fixed Rate

4.7% with 0.0 discount points
15 Year Fixed - No Cost

5.45% with 0.0 discount points

Sassy · Jan 14, 2009

maldorf said:
We went through a similar situation last year. We built a new home and had the old one to sell. Took us about 7 months to sell it. We had to make 2 house payments for about 4 months since the new home finished before the old one was sold. We used a home equity line of credit to help come up with the downpayment for the new one and the interest rate on it was insanely low. The monthly payment on our old house was about 1/2 what it was when we had the 30yr on it. Those home equity lines of credit are awesome if you have enough equity in the house . We ended up selling the house for almost 10% less than what we bought it for 6 years ago. Was just nice to get rid of it. Sometimes you have to just cut your loses eh.

Believe me I'm willing to take any offer we can get on either houses, but we haven't even had anyone look at either house in months. I've never seen anything like this.

This month unemployment where my house is located went up over 10%. I lot of the Mexicans who usually pay cash for houses have left town looking for work else where. People are leaving the keys in the mail box and foreclosing. My agent said they have seen as many as 8 foreclosures in a day. She recommended me taking it off the market and renting. So that's what I'm trying to do. I had one lady looking at it. I offered her $750 a month (3 BR/2 BA w/ 2 car garage), but she didn't take it.