Refi... I don't think I can... can any experts point me in the right direction?

[easytoremember]

My mortgage was first with Countrywide closed in May 2007. Bought with 0 down and at 7.375% on a 30 yr fixed.

Since then Countrywide went to Bank of America, now it got sold off to a company called Green Tree Servicing.

I called them and asked and they said to do the research on my own and see if I qualify for something then call them back... I'm pretty busy and am looking for more guidance than that. Any ideas where to start?

[awsomeears]

My friend does this for a living, if you want his info contact me.....

[88Nightmare]

my mother just refinanced her house... 30 year fixed at I think 4% apr, through chase.

[PureSound15]

You'll have to hope that you're one of the few that isn't upside down due to the 0% down in 2007 and what home values are now.

Anyway - if you're not going to be in your home for 15+ years I'd go a 15 year ARM with a 30 year AM for the rate savings.

[Wagonbacker9]

Its all going to depend on where your financed principal is vs the home value...

[wrath]

Bust out the calculator and figure it out for yourself as to what you can really do and if it is worth it. My parents refinanced again into a 15 year 3.675% APR loan, no escrow. I can't do a 15 year loan comfortably and I'd never get my money back on a 20 year or 30 year refinance.

You may find out that you're upside down.

[easytoremember]

I'd bet I am underwater on it. I think my ltv is probably 110 or 115% or so... due to the drop in values. I thought I heard a couple weeks ago that Obama was trying to erase the ltv requirement for streamline refi's, no?

[Wagonbacker9]

You should be able to get an estimate on your house's value using zillow.com.

my "zestimate" is nearly dead on with where my appriasal came in. Not that you should expect the number to be dead nuts, it should give you a good starting point though. If you're close to the value, have good credit, and pay on time then you should probably be able to find someone willing to do the refi. But I wouldn't count on the first place you try signing off on it.

[PB86MCSS]

I'd bet I am underwater on it. I think my ltv is probably 110 or 115% or so... due to the drop in values. I thought I heard a couple weeks ago that Obama was trying to erase the ltv requirement for streamline refi's, no?

I heard this as well but nothing since then, not sure if it has any legs. I'd love to see it happen for my own personal reasons, being underwater and not being able to re-fi due to this. IMO it puts the risk on the banks much more again but not the taxpayer (barring another bail out of course). A big benefit from doing it to help the economy from the massive amount of people who can afford to keep their home (and want to) who would in turn save a lot on interest, theoretically put that into the economy again. I know we would and it would help in our plan to look into purchase another home and rent this one out, which was the plan all along.

We tried re-financing twice, appraised value was too low. We don't have much equity and bought in the fall of 2007, upside down for sure. The positive spin is that you can use that low appraisal to try and lower your assessed value and save a little on property taxes. We dropped our assessed value 18k from the lowball appraisal, should save us a few hundred on taxes per year going forward. Appraisals come in all over the place, comps used can be a joke sometimes, usually in this market foreclosures or short sales which kill your value especially if you're in Milwaukee County. It's a roll of the dice whether your appraiser has a clue or not as well as how much equity you have.

Our Zillow price is 30k+ where our appraisal actually came in. Yep, our appraiser was a fucking dipshit. So caution in using that price.

[Wagonbacker9]

We tried re-financing twice, appraised value was too low. We don't have much equity and bought in the fall of 2007, upside down for sure. The positive spin is that you can use that low appraisal to try and lower your assessed value and save a little on property taxes. We dropped our assessed value 18k from the lowball appraisal, should save us a few hundred on taxes per year going forward. Appraisals come in all over the place, comps used can be a joke sometimes, usually in this market foreclosures or short sales which kill your value especially if you're in Milwaukee County. It's a roll of the dice whether your appraiser has a clue or not as well as how much equity you have.

Our Zillow price is 30k+ where our appraisal actually came in. Yep, our appraiser was a fucking dipshit. So caution in using that price.

Yeah, I should mention that my house had some VERY solid comps on the assessment that were sold within a year, and about half the houses in the neighborhood are still with their original owners, and thus have not had mortgages on them in a very long time. Very stable, and thus much easier to assess.

[Wagonbacker9]

http://www.clarkhoward.com/news/clar...upside-/nFNdM/

Only good if Fannie or Freddie owns your mortgage though...

[PB86MCSS]

Thanks for the link...didn't know changes actually occurred. Will have to follow up with our bank soon to see if/when we can take advantage of it.

* After reading some more, it appears if you still are paying PMI, you won't be able to qualify for it. Which we do...great. If someone doesn't have to pay PMI and has that much equity, they probably could of re-financed anyway before due to having that much equity. If this is true, doesn't help nearly as many owners as it could.

[Wagonbacker9]

I didn't read it over very carefully, but the PMI problem would basically mean that you're ~5 years into your loan, and (had values stayed stable) would have 20% equity. Now, theoretically you could have paid off 20% of your principal and still have 0% equity in your home. This is the group it appears to be targeted at.

So you're right, basically, it only covers people who have a ~5yo mortgage, not people who have ended up upside down in far less time than that.

[PB86MCSS]

We're just over 4 years into our mortgage currently but only have about 8% equity, we put about 3% down IIRC. "Real" equity, we're upside down probably 20-25k.

[Wagonbacker9]

Yeah, that hurts. I'm in a 3% down FHA, but thanfully just signed it a couple months ago, so my rate is amazing, and I don't think I could get worse than 0% equity at this point. I guess I'm a little surprised that 4 years in you're only at 8% equity.

Edit: just did the math on my amortization, and its pretty close to that. Damn. LOL

My PMI is projected through 2019.

[pOrk]

3% down is a risky loan to begin with, they suggest 20% for a reason.

We have 50% equity and have been here almost 3 years, making double payments the entire time is helping tremendously.

[Wagonbacker9]

3% down is a risky loan to begin with, they suggest 20% for a reason.

We have 50% equity and have been here almost 3 years, making double payments the entire time is helping tremendously.

Risky for who? Barring losing my job, the percentage I put down has no effect on my ability to pay the mortgage. And realistically, I'm paying an extra $150 a month (PMI) to mitigate the risk the bank took on in giving me the low down payment loan. The money it is saving me on rent vs had I had to save up for 20% down is WELL worth it though. I can't wait until the day I'm at 50% equity though, color me jealous. Hopefully Lyns gets a real job soon! haha

[PB86MCSS]

We would of loved to have more equity but it wasn't an option, neither of us had a combined 30+k laying around in a bank nor deep pockets of mommy & daddy (not saying you did, but I know of some who have, not that I blame them). I don't know of many people who could put down that kind of coin without having equity in another property already (aka first time home-buyers). To get that kind of down payment we would of had to keep renting, probably still yet, in order to buy...which at the time was a foolish notion. Of course, if one could see the future and home prices dropping this much, we would of never bought this place . Also couldn't afford double payments, otherwise we would of . Additional amount? Sure...the best laid plans don't always go as one would think though.

[pOrk]

25 years ago it was impossible to get a loan without mommy and daddy signing for you AND 20% down, how did people buy homes back then? My parents gave me a pretty generous house warming gift, 2 weeks of labor helping me install new floors and paint. I had to sell everything to get the down payment, and I stole my house. Just saying though, can't expect a bank to refi on an upside-down house after what happened 4 years ago. Why refi an already risky loan? Its NO RISK to the buyer, all the risk lies on the bank. You get in trouble, you walk away with a bad credit score for a few years. The bank takes a 30k+ loss on the house at a minimum.

[wrath]

25 years ago it was impossible to get a loan without mommy and daddy signing for you AND 20% down, how did people buy homes back then? My parents gave me a pretty generous house warming gift, 2 weeks of labor helping me install new floors and paint. I had to sell everything to get the down payment, and I stole my house. Just saying though, can't expect a bank to refi on an upside-down house after what happened 4 years ago. Why refi an already risky loan? Its NO RISK to the buyer, all the risk lies on the bank. You get in trouble, you walk away with a bad credit score for a few years. The bank takes a 30k+ loss on the house at a minimum.

25 years ago housing was a much larger portion of people's income whether they rented or owned and housing was always exactly 3 times the average family income with renting typically costing 10% more than buying. People would stay with family until they saved up enough money. Imagine how much money we would all have if we didn't spend $250/month for a family of three on TV and phones?

There is a reason a bank charges interest, it is to pay for that risk. Further, banks require private mortgage insurance which offloads their risk (you are buying the bank private mortgage insurance).

I'm fine with my $1500/month mortgage payment on my FHA loan. Have to live somewhere. I'm less enthused about some of my other bills. My house is worth what I paid for it, but I had to put $20k into it to get there. I'm fine with that. It'd bother me if I had to move to find work but I don't have that problem.