http://www.bankrate.com/finance/mortgages/do-you-qualify-for-refi-plan-1.aspx

Unfortunately, no. Mine is a conventional, not insured by Fannie or Freddie.

With a 5.5% fixed rate mortgage and not at risk, I would probably have to stand wayyyyy at back of the line before I would be consider for qualification.

This is what is happening to 70% of Americans who live within their means and pay their bills on time - only to bail out the 30% who don't and not meet the "qualification guidelines."


No good deed goes unpunished.

At least consider a refi. We're closing next week on a 30 yr fixed at 4.50%.

C.H.E.A.P.

My mortgage is so low, a 4.75% APR probably wouldn't make enough difference in my monthly payment to justify the closing costs.

I had this crazy notion over the years to do jump ahead payments and brought it down to a balance that most banks feel is a waste of time.

Rumor has it by mid-2010 housing prices should start inching up - I'l like to have as much equity in the house as possible when I sell because that will be a sizeable chunk of my retirement funds.

BUT, I am looking at real estate in the Phoenix suburbs (where I plan to retire in 5-7 years). Houses are incredibly cheap there and I may be able to pay cash .... before I sell my house here.

We started the refinance process back in Decemeber and just closed two weeks ago.

We had 6.5% (30yr Fixed VA) and we are now at 5.0% (30yr VA fixed) with having to pay down no points.

Its a good time, and it is possible! Saves us something like $700 a month!

This is interesting. They are not counting second mortgage toward 105% limit. How long will this last? My APR adjusts in a year to a possibly very low rate - based on LIBOR 6 month + 2.25%. I wouldn't mind having an APR of 3-4%. But of course nobody knows what the LIBOR is going to be in a year. I want to wait and see how this turns out next year.

just refi'd to 4.5 30 year fixed....amazing

I just locked in at 4.875% yesterday through he "Home Affordable Refinance" program. I'll recuperate the closing costs in just six months! BTW I am living within my means and pay my bills on time.

The Congressional Budget Office estimates the cost of this program is $27 per American, so thanks everybody. People have to realize that even if they do not qualify or even own a house, the program helps stabilize the housing market which mitigates blight, supports the tax base upon which municipalities levy local taxes to maintain local services, and frees up cash to be spent elsewhere in the economy which supports the job market.

notme Wrote:
-------------------------------------------------------
> This is interesting. They are not counting second
> mortgage toward 105% limit. How long will this
> last? My APR adjusts in a year to a possibly very
> low rate - based on LIBOR 6 month + 2.25%. I
> wouldn't mind having an APR of 3-4%. But of course
> nobody knows what the LIBOR is going to be in a
> year. I want to wait and see how this turns out
> next year.


Rates will not go much lower than where they are. With the fed funds rate at 0.00% essentialy, they can't really go any lower.

If you have the money to do it - as well as some equity and a decent credit score - you can always break the ARM and move it to a conventional type.

Just did Wrote:
-------------------------------------------------------
> We started the refinance process back in Decemeber
> and just closed two weeks ago.
>
> We had 6.5% (30yr Fixed VA) and we are now at 5.0%
> (30yr VA fixed) with having to pay down no
> points.
>
> Its a good time, and it is possible! Saves us
> something like $700 a month!


Yah, IIRC the rule of thumb on a 30 year fixed is that every point change in the interest rate yields a $500-600 shift in mortgage payment.

We went from 5.50% to 4.50% and the payment went down by about 500 a month, We're also bailing on the impound account requirment because our LTV is 50%

If people could post things like points paid on the loan as well as the rate what would give a better comparison.

It looks like the turnaround may happen in mid 2010, but it will likely be an L-shaped move. Only a fraction of distressed homes are currently on the market, and the banks will have to unload all of that shadow inventory before we can see a true turnaround.

0.375 points.

4.875%, zero points, ALL other fees capped at $2,500 as required under the Obama plan.

Friends of mine trying to buy a house are saying they are getting into bidding wars in Fairfax County. Yet I'm an asshole for suggesting people should take this time to buy a house because some folks on here think the foreclosure rate in Detroit has something to do with the market in NoVA.

After doing a mortgage calculation based on 4.5% (4.75% APR) vs 5.5% (5.75% APRO, the monthly payment change based on my mortgage balance (rolling in ~ $2,500 closing costs) would be $52.11. It's just not in my best interest at this time.

Is it really true that lenders are not including second trust loans among debts when qualifying an applicant? Isn't that how we go in this mess in the first place?

This sounds like a recipe for disaster - deja vu (hoepfully on a lesser scale)

Junes Wrote:
-------------------------------------------------------

>
> Is it really true that lenders are not including
> second trust loans among debts when qualifying an
> applicant? Isn't that how we go in this mess in
> the first place?
>
> This sounds like a recipe for disaster - deja vu
> (hoepfully on a lesser scale)


I recently closed on a commercial loan and had to list everything. Is it true that borrowers are avoiding listing these loans? Probably.

WashingTone Locian Wrote:
-------------------------------------------------------

> I recently closed on a commercial loan and had to
> list everything. Is it true that borrowers are
> avoiding listing these loans? Probably.

Whether they choose to list or not, they would show up on a credit check.

WashingTone Locian Wrote:
-------------------------------------------------------
> Yet I'm an asshole for suggesting people
> should take this time to buy a house because some
> folks on here think the foreclosure rate in
> Detroit has something to do with the market in
> NoVA.

I never called you an asshole, I thought we were having an intellectual discussion/debate on the topic. Just because I disagree with you doesn't mean I think you are an asshole or stupid or anything of the sort, sorry if my arguments for my position on the state of the housing market were somehow offensive. All I have really argued is there is no rush to buy anything, as any recovery will be slow and the shadow inventory still has to work through. Buy this past March, buy next March, probably not much difference in dollars per square foot if you do any shopping around. But that's my opinion and nothing else.



Edited 1 time(s). Last edit at 05/07/2009 10:04PM by pgens.

No but if you're currently renting, it means $10,000 out the window paid to a landlord that could have gone towards paying down principal...

Tell that to someone who paid $600k in this county three years ago for a house that now sells for $450k, with an amount owed of $550k. That person may argue that perhaps renting, which still gives you a roof over your head, would have been the better deal.

Rent is not money thrown out, it is a an expense that pays for housing. This housing market threw out the myth that buying a house is always financially more beneficial than renting. Plus if you know anything about amortization, you know that you are paying a few dollars toward principal in the starting years of your loan while the vast majority of the payment is just interest. Unless you make extra payments toward principal, the first few years of the loan don't really put a dent in principal owed. People instead used to rely on appreciating value to increase equity, but see paragraph one on how that can work out.

I posted this because so many people think , it is the best time to refi. Even if the rates are great , not so many people can.

Even if you have great credit and have never been late ( like me ) .

I want to refi but my 700k house is worth 500k now so - what do people like me do? I have 6.25% fixed. I guess I can't refi , so I will stay here. No biggie. Just unfair to all those people who work hard and pay bills on time. Why can't we get the 4-5% rates? Cause we where never late??

TheFacts GIRL !

Over a year ago I proposed somewhere on here that we should dispense with all the qualifications and unfairness and simply grant everyone who wants one a $5k tax credit toward closing costs on a refi to a fixed-rate mortgage on a primary residence. That solution lets anyone who can afford to be in their home to stay in their home even if they started with a predatory loan they didn't understand. But no, we waste time with silly illegal principal reduction plans and targeted benefits that don't get homes off the market and don't reduce the rate of foreclosures.

Take the $8k "first time homebuyer" credit. The key to getting the housing markets moving again is getting houses sold off so the currently-listed as well as shadow inventories can make their way through the system. The $8k should go to _anyone_ who wants to buy a home. Make the credit claimable on the 2011 tax year so that anyone living in a home they buy this year through 2011 can claim the tax (that rids us of the problem of home flippers). That gets houses sold and creates a little bidding competition again, which should at least stabilize prices and reduce supply. As the economy and jobs recover demand will pick up and we'll see appreciating house values again.



Edited 1 time(s). Last edit at 05/08/2009 10:13AM by pgens.

pgens Wrote:
-------------------------------------------------------

>
> I never called you an asshole, I thought we were
> having an intellectual discussion/debate on the
> topic.

I know. I was just throwing around hyperbole.

TheFacts,

You say you guess you can't refi, but did you contact your lender and ask? If refinancing though your current primary lender, they are on the hook whether you refi or not, so it is in thier best interest to do a refi to make your payments more affordable and hope you don't walk away from the house. Can't hurt to call them.

According to the rules you must own a loan through Fannie Mae or Freddie Mac to get those rates.

True, the Making Home Affordable plan requires the loan be held at Fannie or Freddie. Congress is soon to pass legislation that will include FHA loans, too. BUT - some banks, including Chase and Citi, began doing modifications on thier own before these plans even came out. Chase has done over 15,000. Maybe it helps them clean up thier books or clears the original mortgage out of the toxic mortgage-backed security its bundled into, I don't know.

I do know if you use a few rollover minutes to call, it can't hurt and costs nothing to ask.

If you or anyone else does end up doing a refi, you'll need to have some cash on hand at closing. I'm closing tomorrow and have to come up with a sizable chunk. It's more of a timing issue than a real cost, as I won't make a June payment and there are issues related to escrowed taxes. All stuff I would have paid anyway, but ends up being put up front depending on the day of the month and when local taxes are due.

TheFacts Wrote:
-------------------------------------------------------
> According to the rules you must own a loan through
> Fannie Mae or Freddie Mac to get those rates.


The fact is I know people in my office who are refinancing at below 5% without going through Fannie or Freddie.

Ok.. called the bank and was advised I do not have enough equity in my house anymore to refi for those low rates. Plus my loan is not a Fannie Mae or Freddie Mac so I do not fall in those rules to get the best rates. So I did try. Apparently there where two or three forclosures in my area and now my house that was once worth 800k is now selling for 500-530k. I owe 600k so I am unable to refi. sucks! oh well.. she told me to keep checking.

Folks who pay their bills on time need to stop acting like second-class passengers on the Titanic cheering on the iceberg. Seriously, if too many 'irresponsible' people screw up, the pain will eventually come my way.

formerhick76 Wrote:
-------------------------------------------------------
> Folks who pay their bills on time need to stop
> acting like second-class passengers on the Titanic
> cheering on the iceberg. Seriously, if too many
> 'irresponsible' people screw up, the pain will
> eventually come my way.

Or they can open up the refi benefits to all homeowners and we'll have no second-class passengers.

Can you get an Obama loan modification? **new changes **

Take the test!


http://www.bankrate.com/finance/mortgages/can-you-get-an-obama-loan-modification-1.aspx