I heard through some secondary contacts there are some "pools" of loans with MI securitized in a manner which will make them ineligible for the Fannie/Freddie programs. I do not understand or have the exact information- just heard there are some which will not be included. This will make it confusing for some consumers as it is not a topic discussed -probably due to the smaller number loans impacted. Not sure if this is what the "op" has incountered - just thought it is worth a mention here.
Does not appear to be the case.
If your loan is a Fannie Mae loan you can work with other Lenders since MI is not involved.Have you checked to see which agency - Fannie or Freddie?
If your refinance closed on May 12th, a Tuesday and it is a Primary residence, there would be a 3 day right of recission prior to funds being delivered, making the funding date 05/18/2009. Prepaid interest from 05/18 to 06/01. The interest due to previous lender would be through May 19th if the payoff funds delivered via wire or overnight.
The mortgage should be based on the $332,000 value x 20% plus the difference to the seller. Your math is correct.
Conforming guides base the LTV on the lower of the sales price or appraised value. I do believe a couple of States regulate MI from appraised value. Once you have MI, most servicers require a 12 to 24 month pay history and an appraisal supporting a 78% LTV prior to dropping the MI.
Do they have a lock/float agreement? A document between you and their company which identifies the rate, cost and time frame should not be against their company policy.I have mine signed at application, either the "float" portion or the "lock" portion of the agreement just so there are no misunderstandings regarding rate and expiration dates.I do not provide any documentation between my company and my secondary market relationships.
Agree with Michael, I am hearing not to expect a change any time soon.
Andrew has this spot on!"give your current guy a chance to make you happy, or go somewhere else."What??Why lock? Why not just float until you are ready to close?As Andrew mentioned- secondary market investors will scrutinize all areas of pull through to help evaluate the quality of relationship. The consumer should be given accurate expectations with regards to locking, lock time frames, floating and what happens if the market improves or if they expire prior to funding. Once you lock - you have made the decision to secure those funds for delivery at closing. It's a two way street - you do not want to hear about them going up once you are locked, you expect delivery. So does my investor if they go down. Secondary marketing places a "hedge" to protect those funds from market movement and delivery within the stated period. It's not without a cost. Chris - how do you make your borrower happy when the market moves down after they are locked with you? Move to another investor? Try and negoiate a better position with whom you placed the initial lock? A re-negoiation is never going to current market and may require the loan be approved and closed within 7 days to avoid just renegoiating on a dip and a week later the market is back to where the loan was locked.Setting the expectations as you have in your post for consumers - is just wrong.
jacmollis3,It is the mortgage insurance which is the issue. Your loan does have MI - just a Lender Paid version. The Lender Paid a premium out of the higher rate they offered you in lieu of the monthly MI payment you would have normally paid. Your loan could very well be a Fannie or Freddie loan with Lender Paid MI, the mortgage insurance companies have failed to agree to "re-issue" the MI on Lender Paid on the HARP refinances.Since the MI is in your rate- you would need to compare the lower interest rate available for you now, with the cost of monthly mortgage insurance to see if there is a net tanglable benefit in pursuing a refinance.