Rob Robertson's Discussions

There are many reasons why homeowner's refinance:  To lower an existing interest rate, to shorten the term of a mortgage, to convert an ARM to a Fixed-rate mortgage, to access home equity to pay for a large purchase or expense, or consolidate debts.As it typically costs between 1.5% to 5% of the new mortgage's principal, and requires an appraisal, title search and insurance, escrow, origination and lender fees, it is important for you to determine whether the reasons for refinancing offers a true benefit, as it takes years to recover the costs with savings generated by the lower interest rate.One of the best reasons to refinance is to lower the interest rate on an existing loan.  Typically, a 1% reduction in the interest rate is enough of an incentive to refinance.  Reducing the interest rate not only helps to save money, but also increases the rate at which equity is built in a home and can decrease the size of the monthly payment.Refinancing can be a sound financial move if it reduces a mortgage payment, shortens the term of a loan, or helps build equity faster.  Also, when used carefully, it can also be a valuable tool in getting debt under control.Before refinancing you should take a careful look at your financial situation and ask yourself, "How long do I plan on keeping my house?"  Another good question you should be able to answer is "How much money will I save by refinancing?"A savvy homeowner is always looking for ways to reduce debt, build equity, save money and eliminate that mortgage payment.  Making sure it truly makes sense to refinance will help take the guess work out of the decision-making process.

I was just wondering if anyone has successfully exercised the conversion option (from Adjustable to Fixed Rate) that World Savings used to offer on the former "Pick-A-Payment" mortgage?  I have brokered a few World Savings loans, in the past.  As I recall, once your prepayment penalty period had expired (or 1 year seasoning, with no prepay) up until your 7th year you could pay a "conversion" fee of $200 and convert from the adjustable rate to a FNMA 30 year fixed.  Only stipulation was the mortgage payment history had to be perfect; you would get the 60 day FNMA pricing, plus .55% to the rate, and then your loan would be converted and then sold to FNMA with no other fees or escrow required.I received a call today from someone who has been trying to exercise this option with Wachovia since December.  She's fed up of waiting as this is the 4th month and Wachovia is stalling (loan is still in Underwriting, so she is told).  They made her re-appraise her property (at her expense) and her LTV is well under 40%LTV.Any comments would be appreciated and very helpful for all those who are interested.Thank you!

She is refinancing...With our Company!