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    • By Mido
      Hello CV and everyone,  Wanted your brutal opinion because I am in the process of refinancing my FHA loan and just received the loan closing disclosure (CD) today but wanted to know if I'm doing the right thing and/or its worth it or Not.
       
      My current FHA loan as follows:
      Appraised Property Value $400K
      Current Loan interest rate is 3.25% (closed this loan 13 months ago) 
      Original Loan Amount $393K
      Current Principal Balance $383K (30yrs loan and nearly 29 yrs left).
      Loan Maturity date 08/2049 
      Current Monthly payment $2400 (Principal $671+ Interest $1,038 + Escrow $690)
       
      VS.
       
      My FHA refinance loan will be as follows:
      Appraised Property Value $400K
      New Loan interest rate is 2.75%  
      Original Loan Amount $387K
      Principal Balance $387K (30yrs loan).
      Loan Maturity date 11/2050
      New Monthly payment $2391 (Principal + Interest = $1,582 + Escrow $542 + PMI 267)
      Cash to close from borrower (me) $2089
       
      Thank you all for your feed back.
    • 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!
    • 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
       
       
       
       
       
       
       
       
       
       
    • 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.
    • By GLW
      Hi Folks - I'm scheduled to close on a new construction home 8/30. The kids start school here in MD on 9/3. They enroll in new schools and I want to get them settled as much as possible. That background might come in handy for the scenario that I'm seeking advice on.
       
      Here's the scenario: purchase price is $439,540. I'm currently doing an FHA loan with 3.5% down. My mortgage credit score is 726. The loan estimate has me paying $300 month in PMI. The issue is that in October I get my yearly sales bonus; at that time I can put down the ~$90K needed to cover the 20% down payment to remove PMI. Questions for those experienced in the industry:
       
      1. Should / can I delay closing for two months? If so should I go conventional?
      2. Should I move forward with the FHA loan and refinance quickly? How soon can one refinance?
      3. Should I move forward with the FHA loan and simply pay $90K on the principal of the loan and reduce the amount to have PMI removed?
       
      Thanks for your help in advance.



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