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By UpInSmoke
Does anyone have any idea if I can expect for my mortgage scores to drop after refinancing?
Here's my situation:
I signed the loan docs for my refinance just this week. It's supposed to fund on Monday, September 28th. On Tuesday, September 22nd, I put an offer on an investment property that was accepted the following day (Wednesday, September 23rd). I received a soft pull pre-approval, however I'm waiting until my refinance funds before doing a complete hard pull application, because I don't want any problems with refinance. Should I be concerned that my score is going to drop when my old mortgage is paid off and before my new mortgage is reported? Right now, my middle score is 747 and I don't want to scores to drop before I get pre-approved for my investment property purchase. Should I hurry and apply as soon as I know the loan is funded, so I don't take the risk of my score dropping because of the payoff of the old mortgage? Any of you mortgage gurus have any knowledge, insight or experience with this situation?
Thank you in advance!
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By clarrkkent
I started the refinance process a LOOOOONG 64 days ago. I signed documents on Wednesday this week and haven't heard a peep about closing other than a request for employment verification this afternoon. Turns out my rate lock expires today and it appears the loan hasn't closed. The lender offers complimentary rate locks and has been extending it each time the deadline is met. I didn't receive any such documentation today and, of course, I can't reach anyone on the loan team since it's after hours.
Wondering if I'm screwed. And by screwed I mean the rate I selected is now $2500 more expensive for closing costs (swinging from partial credit to now paying points).
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By frenchy69
Hi
I would like to refinance my current house,I purchased my house back in 2017, for 300k
I did 80 and 20 to avoid a PMI,
My 1st mortgage was 4% and 2nd ( 20 % )was 6,5% .
I could refinance for 15 yrs @ 2.75 % rate, or 3.375% for 20yrs.
Which is the best route ? I know 15Yrs will save me tones of interest.
The difference in a payment is about $269 more .
Should I go with a 20yrs and pay $200 more toward my principal ? or pay $269 go with 15 Yrs.
My goal is to own my house in 10 yrs ,pay extra toward my principals .
Also the closing cost in 15Yrs is only $500 the 20 yrs is $1500 .
Are these fees negotiable ?
Any suggestions ?
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By SMViera
New account...old user. Hopefully I can get some good advice from the experts here. I am hoping to refinance my mortgage and have some questions about how to proceed.
Info:
Salary: 78K/year..solid employment in the medical field. Same employer for the past 8 years
Scores at the moment: Mid score is 690, clean report with no negatives on any. My scores have dropped due to high utilization of CC
DTI: high (75%)
I built and closed on my house in Nov 2018.
Owe: $295,000
Value: $400,000 (give or take a few thousand) I put 20% down to avoid PMI
Current interest rate 5.25% 😕
By the end of this month, I will have paid off 32K in CC debt. I will have an additional 20K left on my reports but on cards with high CL's so my utilization will be low on the ones that are left.
Other monthly obligations:
Car #1 $657/month
Car #2 #330/month
CC's: $400/month (remaining 20K that is left over..this is an estimation but should be pretty close)
So here is what I am hoping will happen (keep in mind...could be very different from reality as I really don't have a lot of knowledge about this) That's why I am here.
I am hoping to wait until June to start the refinance process once all the cards that I am paying down have a chance to update to zero balances. What are the chance my scores would boost up to the 740+ mark (wishful thinking??) I want to pull out some of the equity to pay the remainder of the CC's, would this be an option or advisable? I assume that if pulling money out leaves less than 20% equity in the house then I would have to start paying PMI...is that correct?
Am I taking a risk waiting until June? Although to be honest I doubt I will be approved which my current DTI.
What are the chances of me getting approved at all?
Is there anything else I should be considering?
I will say that I am working two jobs at the moment which is how I am paying down my cc debt. Its only a six week contract but pretty lucrative. Will that income factor in to my DTI?
Thank you,
-S
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By FunnyDonut
Short Answer: It saves you a lot of money
According to a recent research from Freddie Mac, the average borrower could save $1,500 just by getting one extra rate quote when applying for their mortgage. With five quotes, they could save $3,000 or more.
Wow, so I should really do it. But how exactly should I do mortgage shopping?
Preparation: Estimate your mortgage rate
There is an old Chinese saying from The Art of War that “If you know your enemies and know yourself, you will not be imperiled in a hundred battles.” That’s exactly why this step matters. Having a rough idea of what interest rate you can expect is crucial for you to play well in this game.
There are many factors that determined your interest rates including base rate (update daily), loan amount, location, LTV (loan to value ratio), credit score, house type (single family vs condo) etc.
So to help yourself estimate, you can talk to your friends who have done mortgage recently and ask about their rates and how they get them. There are also some anonymous mortgage reporting site (such as rate.exposed) to get more data point. Keep in mind the best way to estimate your rates is comparing with people with similar cases.
Now, let’s pick up the phone and start dialing
You can follow the steps here:
Call 5 lenders, ask them to quote and write the numbers down Find the best quote from the 5 lenders, let’s call it lender A Call the rest 4 lenders again asking them to match (or even beat) the quote from lender A. If you get a quote better than lender A, go back to step 2 and step 3 to call the rest to match Until the number can’t go lower and the rate is within your expectation.
Extra Tip 1: Ask for special program
Different lenders have different promotional program. For example, Wells Fargo has relationship discount where for every $250k asset you move to WF bank account, you get your rate reduced by 0.125%.
You might just save yourself $10k but just a simple ask
Extra Tip 2: Credit Hard Pull
Many people are worried about hurting the credit scores by having too many lenders hard pull your credits. In fact, if you do them within a short period of time, multiple credit inquiries will combine to count as only one.
Also, if you know your credit score in advance, you can simply just ask them not to pull and tell the lender the number. That should be more than enough for lenders to come up with a quote for you.
Extra Tip 3: Pay attention to fees
Some lenders do the trick to lower your interest by increasing some less obvious fees including closing costs, points, etc. So whenever you get a mortgage quote, always look at the full picture before making any decision.
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