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Do you think, talk about helping out homeowners with mortgages up to 105% worth home price is BS?

We have a 30 year fixed mortgage @5.875% Principal balance 318K trying to refinance
I tried to refinance through Quicken, I am told I cannot refinance with better rates because my house is only worth 335K. Zestimate for my house is 403K and our credit scores are 752 and 792. 
  • November 16 2009 - South Brunswick
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Answers (6)

Best Answer

You should not have a problem refinancing as long as:
1) LTV not higher than 105%
2) Your present loan does not have PMI
3) Present loan owned by Fannie Mae or Freddie Mac

Probably going to receive quotes in the 5.25% range, so would have to look and see if refinancing from 5.875% to 5.25% worth the costs involved.
  • November 16 2009
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they guidelines are very strict for that program and others so the bank probably didn't tell you all the other reasons why.  Banks do not use zillow for property value they have in house or outsourced their appraisal process or desk top reviews as some call it.  you can fight them and go pay for an appraisal then and show them your home value, but i would imagine there are other reasons.  there are very very few that actually qualify for these programs, they are not BS, but they do help few.
  • November 22 2009
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So I am assuming that this is a single family home. Remember that every lender is different. How did Quicken determine what your value was without ordering an appraisal?

I would call your Realtor or a few appraisers to get an idea of what the current value is of your home. Check the recent sales around your home within a one mile radius that have the same type of home (beds/baths) to give you a better idea.

Still, if you go through a mortgage broker, he/she should be able to find a lender who will work with you. According to my pricing engine which is the same as what I use for the auto quoting system on Zillow, your LTV needs to be below 90.01% and at 90% LTV w/ a loan amt of 321K, i am getting a rate of 4.875%. You can also go FHA as the rate which I just got was 4.75% 30yr Fixed with a LTV of 96%. Those rates are only good for today. Wish you the best of luck on lowering your payments!
  • November 21 2009
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No BS at all xtomy - if you have a Fannie Mae or Freddie Mac loan.  I have closed more than a few since the program rolled out earlier this year. Just seek out a lender.

If your value can hold, you should be fine.  Rates lower than 5.25 now.

Those who are having problems with the new program are those with 2nd mortgages.  Having a 2nd can erode your chance of refinancing since the 2nd must be subordinated and the lender might say no.  It's happening a lot.

Good luck.
  • November 21 2009
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Find a good and reputable mortgagebroker in your area.

Good Luck.
  • November 16 2009
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Quicken, like many other internet sites, is useful to an extent.
A "Zestimate" for instance will never replace a full appraisal.
You really need to move further and speak to a local lender who can better assess your needs. 
  • November 16 2009
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