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Profile picture for yeseniagn

My current lender told me they cannot consolidate my 2 mortgages. 1st is 311K 5.875% 2nd is 34k 7.8%

However, they say I can refi the 1st loan for 4.75% with 10.4K closing costs. Isn't this way too high? Is this worth it? What options I have? we have excellent credit
  • April 15 2009 - Phoenix
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Answers (13)

Profile picture for MagicalHouse

If they are refinancing you under the Obama plan then you are not paying way too much.  From the threads I have read you have adjustments for LTV and CLTV which could add 2 points right off the bat, then you will need to fund new escrow accounts, title, etc. so be around 3 points.  How much are you really saving a month?  How long until you actaully see the savings (break even point)?

  • April 15 2009
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Profile picture for yeseniagn
I just got a called from another rep on WellsFargo and he mentioned the Obama plan. It seems the other rep didn't consider this program????. With that, he said the closing cost will be 6.5K with 4.75% (0.875 disc points). My monthly payment will be reduced by 252/month. 
He's asking me if I want to include the closing cost within the loan.


  • April 15 2009
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what's included in the closing? are you behind in payments, that seems reallllyyyyy high
  • April 15 2009
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Profile picture for Clearpoint

I don't know what your LTV or credit score is so I really can't be certain without more information but in my opinion its too high.  The second offer is a little over 2 points so thats not that bad if they are truly counting all closing costs (Title, appraisal, lender fees, escrows, etc.).  Put in a quote request or contact a local lender and get another opinion.

  • April 15 2009
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Profile picture for yeseniagn
After a long call. I got the following numbers from WellsFargo(my current lender):
30y
closing: 6.5K int 4.75% disc 0.875 monthlypay 2015 (inc tax&HOA)
closing: 5.6K int 5.3% disc 0.5 monthlypay 2093 (inc tax & HOA)

closing: 3.9K int 5.625% disc 0 monthlypay 2142 (inc tax & HOA)


20y
closing: 6.2K int 4.75% disc 0.75 monthlypay 2513 (inc tax & HOA)


Again my current loan is 311K 5.875% monthly payment 2,267(inc tax&HOA) It seems I have to live with the 2nd one 34K. I cannot do anything to reduce that rate (7.86%)

What should I do? I see great rates everyday on TV, radio, etc but when you actually ask for all the details, the news are not that great. Should I consider refi or not? I'm planing to leave in this house for at least 5y I think
  • April 15 2009
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Profile picture for Clearpoint

first of all forget about all the great rates your see on TV, they are always full of tiny print that spell out the actual deal.  And you are certainly not alone the programs costs make it difficult for many to benefit from the reduced rates and drives most of us crazy becasue it could have been a better program.

Here is a link that takes you to the Fannie Mae pricing matris that will show you the adjustments for LTV, credit score, subordiantions etc.  It might give you a better idea of what your being charged for.  Without more information I cannot give you recommendation on taking the deal or not.  ( I am assuming the loan is owned or quaranteed by Fannie Mae)

The rates not the problem its making sure the adjustments and costs fit the rate which may or may not depending on the criteria.

  • April 15 2009
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Profile picture for Clearpoint
Wow I need to learn to spell because Zillow will never get the edit button to work....
  • April 15 2009
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Profile picture for yeseniagn
Larry thanks for your information. I'll check the PDF document tomorrow since it doesn't seem to work for me today. I just see an empty document when I clicked on the link. I followed your recommendation and put a quote request. Have you heard about the National Bank of Kansas City? So far that was the best quote I see but I've asked to confirm the details again because I don't think they are including the right numbers.
Thanks again. I'll keep monitoring this discussion. 
  • April 15 2009
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Profile picture for Clearpoint

They seem to quote very low rates, but I agree with you they do seem to always be missing things.

When you have time post your quote request ID, that will give us more information and we can guide you a little better.

  • April 15 2009
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Profile picture for yeseniagn
The quote request ID is ZR-GDVHPLJ Just in case the current loan balance is 311K no 310K as it appears in the request. I entered the right one but the amount was changed at some point.

  • April 15 2009
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Profile picture for Clearpoint
Ok I am laughing at the quotes you received, they all quoted without taking into consideration the second.  If you get the link to work you will notice that their is an adjustment of 1.5% for the subordination.  I would be interested to see what closing costs they have included in the $6.5K.
  • April 15 2009
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National Bank of KC's quotes are a joke.
  • April 15 2009
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Note: Please call or email to confirm the rates and costs with me. Several factors can impact interest rates: credit scores,loan-to-value ratios,and market fluctuations can improve or worsen the rates you were quoted on Zillow.

So does this disclaimer mean the NB of KC reps dont take into acct the Credit Score and LTV when quoting on Zillow? I thought the point of getting all the info Zillow asks for was to enable us to give an accurate quote.
  • April 15 2009
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