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Answers (8)
- Jeff Thomas, "MortgagesInVirginia"
- Contributions:118
The realities of the local condo market, The Dodd-Frank Bill and HVCC have put a hurt on lots of homeowners wanting to refinance. Not being able to transfer your appraisal to another lender has significantly put a cost burden on homeowners. Dodd-Frank has reduced an LO's ability to help pay a clients closing costs, another burden on the consumer. You might have some leeway though with BofA since you are currently with their servicing department. Try them first.
Jeff Thomas
Jeff Thomas
- Nick Pakulla, "MD DC VA Mortgage"
- Contributions:63
Also, you will likely want to stay with your current lender and see what they can offer beacuse in Virginia you will have to repay state and county taxes on the entire loan amount if you switch lenders.
- James Ryan, "GreatRateFolks"
- Contributions:1038
Hi again Patrick...
I refied through BofA and it was a superior experience...I placed my own loan there a year or so again. I also know a great LO there local to Arlington that is a whiz helping clients with the various programs you may qualify for...I daresay you can get BofA to roll both loans together and close you fast at a decent rate. They can also waive the appraisal!
Jim, American Bank
- Shane Milne, "ShaneTheMortgageMan"
- Contributions:463
Also, when you refinance your 1st and you do not refinance your 2nd, your 2nd mortgage needs to give permission for the refinance to occur, the reason being is that when you obtained the 2nd mortgage it was under the circumstance that if you ever paid off your current 1st mortgage (refinancing or coming up with the cash) that your 2nd mortgage would slide into 1st position on title. Further, because you are changing the terms of your 1st mortgage financing from when you obtained the 2nd mortgage, your existing 2nd mortgage lender will want to make sure you can still qualify under the 2nd mortgage guidelines when you obtained it (or something similar to those guidelines). That entire process (both of those two items together) is called "re-subordinating", as the 2nd mortgage will remain subordinate to your new 1st mortgage lender. 2nd mortgage lenders can be finicky about that type of stuff, for the most inane reasons (like even when you are going to dramatically improve your financing situation by refinancing your 1st mortgage)... however when you are refinancing your 1st mortgage with the same lender as who your 2nd mortgage lender is with, particularly under the Making Home Affordable refinance program, it increases the chances that the 2nd mortgage lender will play ball/permit the 1st mortgage refinance to happen. From experience, I know that Bank of America's subordination department gives special consideration to 1st mortgage refinances under the Making Home Affordable program, so I think your chances will be good as long as your home value, credit & income check out.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
For Fannie Mae, find out first if you can even get an approval through the Automated Underwriting System (any lender familiar with the program can run one for you), and if so, can you also get an appraisal waiver. If you get an approval and a waiver, you can pretty much go to any participating lender.
If you get an approval but do not get the waiver, then it gets more complicated. Appraisals are transferrable, but most lenders will only accept their own appraisals. There are a handful that will take a transferred report, but if you want to shop, you should do that first and select a lender before you order appraisal.
- patrickc81
- Contributions:4
Hi all,
In response to your questions, some additional details... my 1st loan is Fannie Mae, and my 1st and 2nd lender are both the same -- Bank of America.
One question -- is it possible for me to get an appraisal and use that same appraisal with different lenders when shopping around? I've heard Fannie Mae allows you to refi with a different lender.
In response to your questions, some additional details... my 1st loan is Fannie Mae, and my 1st and 2nd lender are both the same -- Bank of America.
One question -- is it possible for me to get an appraisal and use that same appraisal with different lenders when shopping around? I've heard Fannie Mae allows you to refi with a different lender.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3428
A regular refi you likely won't qualify for as your combined loan to value (CLTV) will exceed your appraisal value. The HARP allows unlimited CLTV and allows you to potentially refinance your primary loan up to 125% of your current value, so from what you have written, assuming your primary loan is confirmed as owned by Fannie Mae or Freddie Mac, you are at least eligible for HARP.
With credit score at your range, the approval is not a given, so you have to find an originator that covers your area and is familiar with the HARP programs. If your loan is Fannie Mae, you would have a chance to get an appraisal waiver. If your loan is Freddie Mac, you might also be able to get a waiver, but only if your work with your existing servicer.
For your loan amount "no cost" should be a viable option as long as you are OK taking the higher rate which allows the costs to be paid by lender. Coming from 6.75 existing rate, you will certainly see a significant improvement if you are able to get approved for the program.
With credit score at your range, the approval is not a given, so you have to find an originator that covers your area and is familiar with the HARP programs. If your loan is Fannie Mae, you would have a chance to get an appraisal waiver. If your loan is Freddie Mac, you might also be able to get a waiver, but only if your work with your existing servicer.
For your loan amount "no cost" should be a viable option as long as you are OK taking the higher rate which allows the costs to be paid by lender. Coming from 6.75 existing rate, you will certainly see a significant improvement if you are able to get approved for the program.
- James Ryan, "GreatRateFolks"
- Contributions:1038
Hi Patrickc81...
I suggest strongly you contact both your lenders presently. I am sure, at the very least, the first trust company will offer to roll you into a fixed rate and they could possibly do it for very little in closing costs and NO appraisal. I am afraid the days of "no cost" refi's are gone, due to new regulations from the Dodd-Frank Act. Feel free to email your Congressman, Senators, and please email Mr. Frank and Mr. Dodd too, and let them know your displeasure at this fact!
That all being said, there are very few lenders offering over 90% LTV financing save FHA. Refinancing into an amortizing loan even at a much lower rate may not actually lower your payments. I would guess you might save a bit, but much more likely your payments will remain about the same, but be amortizing...Of course, all this hinges on where the appraisal comes in. Due to HVCC, we unfortunately are no longer allowed to contact appraisers and get solid estimates before you shell out 375-450 dollars. Again, feel free to discuss your dismay at this new regulation with your government regulators.
If you reach a dead end with your lender(s), and you are still wanting to begin the process...pick a great lender here from Zillow and see where you break.
Best wishes, Jim, American Bank
I suggest strongly you contact both your lenders presently. I am sure, at the very least, the first trust company will offer to roll you into a fixed rate and they could possibly do it for very little in closing costs and NO appraisal. I am afraid the days of "no cost" refi's are gone, due to new regulations from the Dodd-Frank Act. Feel free to email your Congressman, Senators, and please email Mr. Frank and Mr. Dodd too, and let them know your displeasure at this fact!
That all being said, there are very few lenders offering over 90% LTV financing save FHA. Refinancing into an amortizing loan even at a much lower rate may not actually lower your payments. I would guess you might save a bit, but much more likely your payments will remain about the same, but be amortizing...Of course, all this hinges on where the appraisal comes in. Due to HVCC, we unfortunately are no longer allowed to contact appraisers and get solid estimates before you shell out 375-450 dollars. Again, feel free to discuss your dismay at this new regulation with your government regulators.
If you reach a dead end with your lender(s), and you are still wanting to begin the process...pick a great lender here from Zillow and see where you break.
Best wishes, Jim, American Bank
What kind of rates and payments can I get with HARP vs regular refi? Can I refi?
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