Sean Ogilvie's Q&A

Absolutely correct, must be a large enough improvement to get that float down. 

Before you lock you may also want to ask your lender if they have a "float down" policy and ask what needs to occur to in order to achieve that rate reduction.  It will vary from lender to lender but some lenders offer rate reductions for free if there is enough improvement in the market. 

Yes, Cash Out Refinances can effect your interest rate or your closing costs. 

What do you currently owe on your home and what is your home currently valued at?

That doesn't sound right to me, but I would call the VA and ask them about this particular builders "policy" to know for sure.  Maybe tell the builder that you will be checking with the Veterans Administration yourself.  Sounds a little fishy, most likely it's just that they don't want to deal with VA financing and a VA appraiser, but that doesn't make it right.  Good luck to you!  

77ruiz,How much longer do you have before your first adjustment period?  Pull out your loan paperwork and grab your Note.  This will tell you what index your ARM is tied to and should also indicate what your margin is as well as when your first adjustment will be.  Is this loan Interest Only for the first 5 years? 

Since your loan is not owned by Fannie or Freddie then unfortunately you cannot use the Making Home Affordable Refinance.  But you should not have a problem  doing say an FHA refinance right now, but yes, your new loan would have PMI if you are at a 95% LTV.  I would also consider you luckier then most people if you were able to refinance with PMI. But if the PMI payments offset any monthly savings that a lower rate would grant you then you might be better off sticking with your current mortgage. Have you experienced a hardship which has led you to having difficulty making your existing payments? If so, then you might want to go back to Wells Fargo to see if you qualify to have a loan modification done. 

1. Is your mortgage owned by Fannie Mae or Freddie Mac?(check here) http://makinghomeaffordable.gov/loan_lookup.html2. What is your home's current value?

Private Mortgage Insurance:"PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI." More Info here:http://www.frbsf.org/publications/consumer/pmi.html#what

Agreed!  Most AMC's seem to employ a patchwork of appraisers of whom most produce questionable reports that ultimately end up costing homeowners and homebuyers.  Has anyone heard anything about the H.R. 3044 bill in Congress to impose an 18 month moratorium on HVCC?  Any thoughts on that?