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View Full Version : Best Mortgage Co. To Refinance?



Carl C
10-21-2010, 02:25 PM
I've been busy painting and fixing up the house and am ready to refinance. I am paying 6.625% and hear that the current average rate is 4.6%. Who should I apply with? My credit score is good & I'd like to get that 4.6% rate.

Forrest
10-21-2010, 02:39 PM
I can highly recommend James B. Nutter & Co. They only lend for primary homes, not second homes, investment property, or vacation homes. I've used them for two houses so far and have always received good rates and no junk fees. They don't sell your mortgage either, it's all kept in house.

http://www.jamesbnutter.com/

Carl C
10-21-2010, 08:46 PM
I can highly recommend James B. Nutter & Co. They only lend for primary homes, not second homes, investment property, or vacation homes. I've used them for two houses so far and have always received good rates and no junk fees. They don't sell your mortgage either, it's all kept in house.
http://www.jamesbnutter.com/

Thanks, I will try them.

Ghost
10-21-2010, 09:00 PM
ANYONE, just get on it right away. You could save a fortune from your current rate. I just re-fi'd for the second time in 8 months. If you take negative points, you can do it for zero cash outlay, nothing but a drop in payments. If you know you will be in the property for a long time, that may not be as advantageous, but with some potential for even crazier rates to come, I like the negative points path because multiple refi's don't keep grabbing cash. You can refi as many times as you like without paying out of pocket for rates.

The Hedgehog
10-21-2010, 09:04 PM
Honestly, it will be no better than a combo of your originator and their underwriter. If either sucks, than whole will your experience. Period.

FYI, if they are doing 30 year mortgages, it is VERY likely that it will be sold. They may retain servicing (where you make the payments) but the mortgage will be sold. Unless they have unlimited capital or can stand 30 years of interest rate risk, it will go out the door. I would not get too hung up on that. I will agree that it is a little easier to do business with someone that retains the servicing. If you hook it up on auto deposit, you may very not ever know that the servicer has changed.

I would recommend going with a reputable outfit that is located in your town. Although transactions should be arms length from the appraisal process, the appraisers know where their bread is buttered and are likely to be less conservative for the local guys.

The non-local guys did well in the hay day. Better go local now. You want someone that has experience. They will tell you what you need on the front end. If they get some business done, they will have the ear of the underwriter. In the end, they all have to conform. The ability to make them conform makes for a better experience. I would call around your market.

Carl C
10-21-2010, 10:53 PM
I don't care if the mortgage gets sold. It seems like they all do eventually. I'll look into a couple local companies too. It's with CitiBank now.

VetteLT193
10-22-2010, 10:12 AM
First and foremost check with your current mortgage company. If you are up to date on your finances there is a Federal program that they will refi you under. Depending on your current company there might be zero closing costs going this way, which saves a ton of $$.

read about it here: http://makinghomeaffordable.gov/

Carl C
10-22-2010, 11:14 AM
First and foremost check with your current mortgage company. If you are up to date on your finances there is a Federal program that they will refi you under. Depending on your current company there might be zero closing costs going this way, which saves a ton of $$.
read about it here: http://makinghomeaffordable.gov/
I think I will call CitiBank first. Of course I'm counting on the appraisal to be sufficient. I painted the house with two coats, all by brush. Reroofed the small garage, put up the privacy fence and other things. That's why I haven't been posting much here lately!

VetteLT193
10-22-2010, 01:55 PM
I think I will call CitiBank first. Of course I'm counting on the appraisal to be sufficient. I painted the house with two coats, all by brush. Reroofed the small garage, put up the privacy fence and other things. That's why I haven't been posting much here lately!

With the program I posted above, the appraisal has to be within 125% of loan value. i.e., your house can be worth 100 grand but they will refinance 125k. Plus, if yours is like mine, they get an appraisal from an online system so you don't have to pay for it... if that number says it is ok you are good to go. otherwise you have to get a real appraisal.

The Hedgehog
10-22-2010, 04:00 PM
With the program I posted above, the appraisal has to be within 125% of loan value. i.e., your house can be worth 100 grand but they will refinance 125k. Plus, if yours is like mine, they get an appraisal from an online system so you don't have to pay for it... if that number says it is ok you are good to go. otherwise you have to get a real appraisal.

Have you actually tried it?

Carl C
10-22-2010, 04:20 PM
I will look into all suggestions here very soon. I work all week-end and can finally get up to the cabin next week for some deserved R&R. :) I am too f*king old for all this work.

handfulz28
10-22-2010, 07:32 PM
First and foremost check with your current mortgage company. If you are up to date on your finances there is a Federal program that they will refi you under. Depending on your current company there might be zero closing costs going this way, which saves a ton of $$.

read about it here: http://makinghomeaffordable.gov/

That's the program that isn't actually doing much. And it's intended for people who aren't up to date. You DO NOT WANT a modification under this program.

Shop your re-fi as if you were borrowing for a new purchase. There's really nothing special about it. If you're going to call Citi, don't call Customer Service call their New Accounts department.

Donziweasel
10-22-2010, 07:36 PM
Carl, I got 4.25 fixed on the Lazy P through ING last December.

It also ain't cheap to refinance, but usually worth it. Appraisal, title and escrow fees, bank fees, etc....it can add up.

Ghost
10-22-2010, 08:23 PM
Carl, I got 4.25 fixed on the Lazy P through ING last December.

It also ain't cheap to refinance, but usually worth it. Appraisal, title and escrow fees, bank fees, etc....it can add up.

If it helps, this is what I meant about taking negative points. When rates are x, you can get x+.5 % or so and also get a cash payment for taking a higher rate. That cash will offset the fees, and you don't take a higher principal balance. If you refi a couple times in a row as rates drop from stupid low to ludicrous, paying the fees adds up. Taking the negative points route hedges your bet.

Carl C
10-23-2010, 10:52 AM
4.25% is crazy low!!!

Donziweasel
10-23-2010, 01:13 PM
Carl, I have two other freinds that went through ING and got below 4. I think it is worth chekcng them out.

I don't think local banks are going to offer you the best rates right now. Huge companies like ING seem to be offering the stuff under 5 and even under 4.

The only advice I can give, is don't have too many financial institutions check your credit, which is the first thing they will do. Too many inquiries will drop you credit score like a blown Alpha behind an Ilmore.

Good luck.

handfulz28
10-23-2010, 03:25 PM
don't have too many financial institutions check you credit

FWIW, there was a change that provides something like a 30 day window before scores can be affected, for just this reason. So you can shop around a bit without worrying about breaking below a scoring threshold.

Should've shared earlier: www.bankrate.com
Not a bad place to poke around and get a feel for the market in your area. Low- to mid- 4% for 30yr/zero points should be market average.

Carl C
10-23-2010, 04:54 PM
Thanks everybody, I will look into this real soon.

VetteLT193
10-26-2010, 08:00 AM
That's the program that isn't actually doing much. And it's intended for people who aren't up to date. You DO NOT WANT a modification under this program.

Shop your re-fi as if you were borrowing for a new purchase. There's really nothing special about it. If you're going to call Citi, don't call Customer Service call their New Accounts department.

That is the other part of the program.

The part I am talking about you MUST be up to date on your payments.

I am about to refinance mine through this program. All you have to do is call your mortgage co. and ask them about it. My brother in law just did his through it. His is through Chase, and they did a no closing cost loan. I'm going slower because my bank wants closing costs. The Feds are letting the banks decide the closing costs part, which is kind of BS, but is what it is at this point.

My Bro in law lives across the st. from me, bought 3 years after me and is 'upside down' in his house and it refinanced with zero problems through the plan. Our house appraises fine.

The Hedgehog
10-26-2010, 08:28 PM
That is the other part of the program.
The part I am talking about you MUST be up to date on your payments.
I am about to refinance mine through this program. All you have to do is call your mortgage co. and ask them about it. My brother in law just did his through it. His is through Chase, and they did a no closing cost loan. I'm going slower because my bank wants closing costs. The Feds are letting the banks decide the closing costs part, which is kind of BS, but is what it is at this point.
My Bro in law lives across the st. from me, bought 3 years after me and is 'upside down' in his house and it refinanced with zero problems through the plan. Our house appraises fine.

Very interesting. Some of these types work well and some don't. I was really wondering. My guess is that Fannie and Freddie like them. They get a better securitization strip now (another 25 bips or so). It will probably depend on the servicer. If you OWN a big servicing portfolio, you are incented to sand bag as your value will go up in smoke (or refi's).

BTW, if the Feds mandated some sort of cheap closing cost, the banks would not do it. They would just be "busy," kind of like I did when someone came up to my office looking for some sort of BS SBA handout loan. They are for-profit organizations (just like mortgage companies and myself). No money, no deal. No BS, just the way business works.

My bank was a preferred SBA lender in the day. It usually went something line this:

Borrower: Hey, is there anyone here that does some of them SBA loans?

My assistant: Why sure, we do, here is an application. Please fill this out, answer all the questions and bring it back.

Me:(running the hell out of the back door quietly), "Thanks Val"

I would originate the hell out of some commercial business, but was never hard up enough to do a SBA deal. I tried a few times but it was never worth it. Not enough bang and too much paper work. Some do. Maybe they will in a program like this, but if the incentive is not there, it will be SLOW.

Inferno
10-27-2010, 07:53 AM
Being an owner of a Mortgage Co. it better sometimes to make 2 payments extra a year. Put on the check "Apply to Principle Only" and you will take a 30 year loan to a 15 most of the time. My advice before you quickly refiance is to sit with a few lenders , have them do a Hud 1 to see what your costs will be and also an amortization schedule. The main fees to look at are Attorney($300) ,Title Insurance ( don't need it if you've owned the home for a long time or is been in the family)and the Origination fee that can be adjusted.The main question on doing a refy is "How long will it take to recoupe your costs....??? Don't forget were like USED CAR salesmen and 90% of the time your loan will be sold,as that how we make more profit. Good luck and do your homework before signing on the dotted line.

CHACHI
10-27-2010, 09:13 AM
I refinanced this past summer with my current bank and it was "a new mortage" all over again. Apprasial, lawyers, fees, all the fun stuff, but we did close at 3.75.

Ken

Carl C
10-29-2010, 12:27 PM
Guys, I ran into a little problem. I tried my current mortgage holder (CitiBank). I am self employed and my income to debt ratio is not good if you get my drift. They used to do no documentation loans but things have tightened up. I was all set to go with 4.5% until they crunched my reported income numbers. Then no deal. My credit score is 759. Any ideas which way to go under these circumstances?

John, I assume that ING requires proof of income per tax returns?
I file tax returns but the numbers are not high enough ;).

Ranman
10-29-2010, 01:19 PM
Carl,

Try contacting the guys I've listed below. I have worked with Paul Gonyea on two mortgages (most recent is a refi on my house last May) and they have done business with our executive team on several occasions as well. These guys are awesome and they shoot straight. Their no cost programs are legit. Just tell them your situation and if they can't help you no one will be able to. They are in Birmingham.

Paul Gonyea
(248) 258-4977

http://www.ncfinancial.net/index.php

Carl C
10-29-2010, 01:38 PM
Carl,

Try contacting the guys I've listed below. I have worked with Paul Gonyea on two mortgages (most recent is a refi on my house last May) and they have done business with our executive team on several occasions as well. These guys are awesome and they shoot straight. Their no cost programs are legit. Just tell them your situation and if they can't help you no one will be able to. They are in Birmingham.

Paul Gonyea
(248) 258-4977

http://www.ncfinancial.net/index.php

Thanx, will do, but probably not til Monday now.

Donziweasel
10-29-2010, 05:15 PM
Carl, mine was based more on the appraisal of the Lazy P than my income. Too be honest, I personally don't make that much. Lets just say I somehow manage to live above my means.

ING wanted an appraisal that was going to come in at 30% above the loan. That is all. When it came in, it was more like 100%. They were VERY happy and went for it. This was in the meat of the recession during December of 09.

I just checked with ING, they are offering 3.25 on a 6-30 year. Check it out-

http://www.ingdirect.com/tb/index.html?utm_term=ing%20mortgage%20refinance&utm_medium=CPC&utm_source=Google&utm_campaign=OM_Brand

Carl C
10-29-2010, 05:25 PM
Thanks. At least I have a couple options to try next week.

Carl C
12-01-2010, 12:09 PM
No good. Everyone goes by debt to income ratio. No more no documentation or low documentation loans :(. Looks like I am stuck with 6.6%.

The Hedgehog
12-01-2010, 06:11 PM
No good. Everyone goes by debt to income ratio. No more no documentation or low documentation loans :(. Looks like I am stuck with 6.6%.

Frankly I never knew that there was another proper way to underwrite credit. D/I is, should have always been and always should be king.

Low doc and no doc is the main driving factor behind most of our problems. I am not saying that you are a bad credit risk, but many did slip through the cracks.

Yes it is kind of a bummer for folks with cash income but on the other hand they don't have to report like folks such as myself. Any tax breaks from that usually far outweigh a percent or so on the mortgage.

Carl C
12-02-2010, 08:01 AM
Frankly I never knew that there was another proper way to underwrite credit. D/I is, should have always been and always should be king.
Low doc and no doc is the main driving factor behind most of our problems. I am not saying that you are a bad credit risk, but many did slip through the cracks.
Yes it is kind of a bummer for folks with cash income but on the other hand they don't have to report like folks such as myself. Any tax breaks from that usually far outweigh a percent or so on the mortgage.

Yes, no doc loans were abused. And then when real estate became an investment it was only a matter of time before it crashed. They can work if not abused though. I'm in pretty good shape as far as still having equity in my home and my credit score is 759. I would be a perfect candidate for no doc but it isn't happening anymore. I'll be OK; The difference would have been about $150 a month. I do pay taxes. I pay so much in taxes it is ridiculous! Property taxes on two homes, thousands of dollars in school taxes for two districts and I've never had children:mad:. I pay thousands in sales taxes that I don't charge my customers because doing business in a flea market is different, prices are often negotiated. Thousands in SS taxes for which there is no way to avoid. Income tax is minimal with the deductions I have. Anyway, I appreciate the tips offered but it didn't work out. Thanks anyway. :)

The Hedgehog
12-02-2010, 10:13 PM
Yes, no doc loans were abused. And then when real estate became an investment it was only a matter of time before it crashed. They can work if not abused though. I'm in pretty good shape as far as still having equity in my home and my credit score is 759. I would be a perfect candidate for no doc but it isn't happening anymore. I'll be OK; The difference would have been about $150 a month. I do pay taxes. I pay so much in taxes it is ridiculous! Property taxes on two homes, thousands of dollars in school taxes for two districts and I've never had children:mad:. I pay thousands in sales taxes that I don't charge my customers because doing business in a flea market is different, prices are often negotiated. Thousands in SS taxes for which there is no way to avoid. Income tax is minimal with the deductions I have. Anyway, I appreciate the tips offered but it didn't work out. Thanks anyway. :)

Yes, and you guys pay all sorts of property taxes up there.

Phil S
12-02-2010, 10:48 PM
Any tax breaks from that usually far outweigh a percent or so on the mortgage.


Carl, every situation is different, but I think HH hit it here....

In my humble opinion, (which always makes it fact by virtue thereof), a good CPA can help a small business owner enormously...tax, depreciation, etc....

Do what you do best, and employ others to help.

WKR,
Phil S.

osur866
12-03-2010, 04:08 AM
I had success going thru my current lender, did a streamline and was able to get 3.675% paid no points and very little fees. Steve