Zillow Advice: Refinance - Home Affordable Refinance + prepayment penalties on current loan

Thanks but I realize that ...

Fri, 06 Mar 2009 03:39:00 GMT

Thanks but I realize that I will have closing costs for a refinance, no way to avoid those obviously.

My point was for a "loan modification", I assumed there were no fees charged to the borrower, under the Home Affordable Modification program.

That is another reason I was going to investigate that route before the refi route.

I may have read it wrong and if so I appreciate being told so.

Thanks again.

Newsflash: They won't ...

Fri, 06 Mar 2009 03:33:00 GMT

Newsflash: They won't do your refinance for free.

Even if you refinance through your servicer, you will incur the costs of the refinance. The costs can, in most circumstances, be rolled into the new loan.

That's one of the reasons why Fannie Mae and Freddie Mac opened up the refinancing options to Lenders and Mortgage Brokers. It will give the homeowner a chance to "get the best deal" for their new loan, by allowing spirited competition, which will help the economy, and the mortgage industry, by putting people back to work.

That means that you will be charged for services rendered, one way or the other.

Countrywide used to refinance existing customers, and charged a "standard 2.5% origination fee" as part of the service. It's all in the fine print.

I'm sure it will be something like that... maybe not 2.5% but something comparable, plus closing costs.

Good luck.

If I can qualify for a modification, ...

Fri, 06 Mar 2009 03:29:00 GMT

If I can qualify for a modification, with my recent hardship and meeting their formulas of 38% D.T.I., etc, then why would I not take what they offer me?

If they say no on the modification, no problem, then I go with the refinance route, even if I have to wait for my new job to start in June, then I'm SURE I will qualify.

From what I have read, I would qualify for the modification, so I'm trying, it would benefit me more.

Sorry to ruffle your feathers but I'm just trying to get into a better loan........one way or another.........and I'm investigating all options.

In the end, I'll take whatever benefits me the most.

Hold on, why do you think ...

Fri, 06 Mar 2009 03:14:00 GMT

Hold on, why do you think you will be approved for a modification? If you will approve for a refinance they will refinance you plain and simple, you can't pick and choose. If you don't qualify for a refinance (both cases you have to disclose your income and job) then they will do a Net Present Value test to estimate if it is worth doing a modification or just foreclosing. It's not a buffet line, you can't pick what you want.

My wife is still employed ...

Fri, 06 Mar 2009 02:55:00 GMT

My wife is still employed and we both have 800+ F.I.C.O scores.
Plus, I've actually been hired for a new position that starts in June.

We also have equity in our house ( 85% L.T.V ) and the loan is owned by fannie so I'm sure I will qualify for the refinance program.

My point was that I might try to take advantage of the loan modification option to avoid the prepayment penalty on the refinance. I don't have to tell them I have a new job and then I get my loan redone for free.

Anyway, I did the math and we qualify for both scenarios.

Thanks for responding though, I should have been more clear in my post.

You need to have a job, they ...

Fri, 06 Mar 2009 02:44:00 GMT

You need to have a job, they need to base the refinance or a modification for that matter on your income. Once you have a job contact your lender and see what they can do for you. The refinance program is for Fannie and Freddie owned loans not for every loan.