Refinancing Advice?

[Brian]

Okay - we've been thinking about refinancing, but I am so leery. I've heard sometimes the additional costs/fees tacked onto the principal outweigh the benefit of the lower monthly payment. I've also heard you have to be very careful, as there are a lot of unreputable companies out there. Finally, we are upside down; so, how does that work...or doesn't it??

If anyone has any helpful insights or guidance, or knows of a reputable mortgage company, it would be much appreciated!

In case it matters - we have a 30 year fixed FHA mortgage,and have been in the house for about 3 years.

Thank you!!

Kim

 

[Shane]

Hard to refinance if you are upside down.. I have perfect credit. Have been turned down for a refi by 3 different banks. Just due to being upside down. They just aren't going to loan on a house worth less than your getting a loan for... Also you can shop and negotiate your closing costs.

I have a rule that unless I can cut the interest rate by at least 1.5% it's not worth it.

Been trying cus I'm at 6.5 and banks were offering 4... That's well worth the refi costs. They just won't let me.

 

[jw7]

OK, so the first thing you need to understand is that local mortgage brokers don't own your mortgage. They make a commission off selling your mortgage to a big bank like Countrywide or Chase Manhatten or B of A.

If you choose to refinance, just get quotes for a no-fee refinance. All the paperwork and closing costs and other fees are buried into the cost of the mortgage. Maybe not the best-best way to do it, but it allows you to compare. Makes it equal.

Advantage of doing a non-inclusive mortgage is you get to fully tax-deduct any expenses in this fiscal year. Advantage of doing an inclusive mortgage is that you can bury that cost year over year and deduct.

 

[jw7]

Hard to refinance if you are upside down.. I have perfect credit. Have been turned down for a refi by 3 different banks. Just due to being upside down. They just aren't going to loan on a house worth less than your getting a loan for... Also you can shop and negotiate your closing costs.

I have a rule that unless I can cut the interest rate by at least 1.5% it's not worth it.

Been trying cus I'm at 6.5 and banks were offering 4... That's well worth the refi costs. They just won't let me.

Ouch. That sucks. I re-fid twice from 7.75 down to 6.8 down to 5.5. Then I just paid the sucker off.

Did not consider the upside-down thing. Yeah, that going to be a problem.

 

[Shane]

Ouch. That sucks. I re-fid twice from 7.75 down to 6.8 down to 5.5. Then I just paid the sucker off.

Did not consider the upside-down thing. Yeah, that going to be a problem.

yup..It totally blows and it pisses me off.. With divorce and pay cuts I could really use the lower payment.

 

[Dr. Jones]

About to get under 4% with negative points. This will be my second refi in 3 years.

Dear USAA...... I love you.

 

[thirty-two]

Dear USAA...... I love you.

Love them, too.

 

[Brian in Mesa]

About to get under 4% with negative points. This will be my second refi in 3 years.

Dear USAA...... I love you.

I'm telling Verizon.

 

[Dr. Jones]

I'm telling Verizon.

 

[Brian]

Thanks everybody!

I was afraid being underwater would be an issue, but thought I would double-check...

p.s. Shane - sorry to hear about your divorce and dept cuts!

Thanks again - Kim

 

[Shane]

Thanks everybody!

I was afraid being underwater would be an issue, but thought I would double-check...

p.s. Shane - sorry to hear about your divorce and dept cuts!

Thanks again - Kim

Thanks my friend!