Market uncertainty leads to lower mortgage rates WPSD Local 6
PADUCAH — There could be a silver lining to all the economic uncertainty: lower mortgage rates.
Despite slower than expected economic growth, mortgage rates in the U.S. continue to drop.
That's good news for homeowners and those looking to buy.
If you've been on the fence about a home loan, act now, because mortgage rates are at record lows.
"The debt ceiling debate may have had some impact but probably not as much as the volatility in the stock market, said Mark Link, chief credit officer with Paducah Bank.
Link said all that volatility on Wall Street is good news for folks in Main Street America, especially those looking to apply for a home loan or refinance an existing loan.
Freddie Mac says renewed market concerns about European debt led investors to shift funds to U.S. treasuries. That move caused mortgage rates to decline.
Thirty-year fixed rate mortgages averaged 4.32 percent for the week ended Thursday.
That's down from 4.39 percent the previous week and last year's rate of 4.44 percent.
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American Bank FHA Streamline Mortgage Refinance - Client Tells All
www.Lowestpymt.com Blythe Hannes contacted American Bank after receiving a letter from her mortgage company offering her a lower payment. She also ...
is it easy to refinance my mortgage with Bank of America?
I currently have a 30 year fixed mortgage that I obtained one year ago at 6.00%. I was looking today's rate and a 15 year fixed mortgage is 4.875%. Do you know how easy or hard is to refinance through Bank of America? Average closing costs to refinance? Thank you
My personal experience with BOA was that they are difficult to deal with, tack on a lot of questionable fees that if not disputed, can cost you hundreds more and in general were arrogant. maybe in today's economic climate they may be more accommodating.
When I refinanced 3 years ago, I went to BOA (holder of my mortgage), Wachovia, Wells Fargo and WaMu. The best deal I got was 1% less than BOA nad 3/4% less than the others. Wells Fargo came in lowest at 5.25% APR, quickly and with few junk fees.
Check them out and compare. If you have good credit, good equity and in a viable economic commuinity you are in the driver's seat. Good Luck
Bank of America won't refinance our house although we have a first and second mortgage with them now.?
Our property is a unique home, made of steel with a metal roof, finished out normally inside with 2x4 walls, etc on 10 acres, but because there are no homes similar in the area that have sold in the last 6 months, they won't refinance. It appraised for $200,000. We're only asking for $116,000? What has changed ? They have our 1st and 2nd now. They say it has nothing to do with our credit rating, it's fine.
Welcome to recession! Sorry to say, but real estate has practically kicked the bucket, and barely anyone can re-finance anymore.
Welcome to the new America!
so, refis and especially cash out refis just aren't being done.
try again in about two years.
Bank of America is not the long term investor. They may collect payments and service your loans but they are looking at the new loan as a new investor (because they will likely sell the loan to someone). They are afraid they will have trouble packaging your loan and selling it. If it was more like dozens of other homes in your area they would not have a problem.
You said that you home is made of steel with a metal roof; is you home a manufactured home? or something like that? If it is, this changes everything and the lending requirements are crazy strict because the bank says these homes are more risking to lend on. In most cases, banks will not do a 2nd lien/loan/line of credit on these homes. If this is the case and the bank has already done this 2nd lien for you, it is possible that the 1st and 2nd time the financed you (you may have done both liens at once) they had no idea that it was a manufactured home with land. This happens more than you would ever think, and the bank probably won't tell you they messed up, they just won't relend to you.
Also, the fact that you have more than 5 acres sometimes hurts your property value as far as the bank is concerned, it just gets more complicated. If you defaulted, it would be hard to resell (thats what they say.) Usually because you have a larger acreage, as soon as you inform them of the 5 plus acres, they usually require a URAR or a standard walkthru performed by a licensed appraiser. At that point, it they figured out that it is a manufactured home, thats probably when the bank decided not to refinance.
I would call the person you last dealt with and ask them if you could speak with the manager in the department that made the final decision to decline the refinance, and they will give you a detailed reason for the decline. If you applied in person at a bank branch, the person to talk to is not the branch manager, they usually have no power or involvement in the decision. You will usually speak to someone on the phone in the home equity department. They are usually called loan underwriters or loan closers.
I hope that this information is helpful and you can make that phone call and be prepared.
Try at other banks.
Go to BofA and theaten to take you business to the other bank.
It has to be about your credit rating, the local housing market, the appraised value of your home.
Experienced Realtors steer clients away from those like the plague.
Refinancing mortgage with Bank of America ripoff?
A little background: my fiance and I bought our first home in February 2008. We qualified for a first time homebuyer loan. The interest rate is 6.3%. We do not pay PMI. We have about 11% equity. We have paid on time every month, and even paid a little extra towards principal.
A couple of weeks ago, I checked BOA's mortgage rates and a 30 year fixed were at 5%. Refinancing into one fixed mortgage at that amount would save us a significant amount of money each month.
So I call to ask if we can refinance. They said we wouldn't have to pay PMI, but the rate they offered me was 6.6%! I asked why I wouldn't get 5%. They said it was because we didn't have a whole lot of equity yet. But I feel that's unfair because if I were a new customer just buying now, I would be getting 5%. Is this typical?
I'm pretty unhappy about this. I am contemplating applying for a mortgage at another (local) bank so we can refinance to a lower rate, but that means I'd have to go through that whole horrible loan process again! It would have been much easier with Bank of America since we already hold the mortgage with them.
Should I be more persistent with them? Or just accept my fate and let the "historically low" interest rates pass us by?
Hi, yes you're right, we have a split loan, I forgot to spell that out. The interest on the larger chunk is low-ish but the smaller one is higher. Combined, the weighted average is 6.3%. I did suspect that they might tell us we would have to pay PMI if we got a regular 30 year fixed, but they said no, they just offered a ridiculous interest rate higher than our current. They did say, well yes, new customers will get a better rate. But how then are people refinancing at low rates? I guess they are going to another bank?
I'm trying to understand one particular comment...
"Refinancing into one fixed mortgage at that amount would save us a significant amount of money each month. "
Are you implying that you have 2 mortgages? Maybe you did an 80/10 type of loan where 80% is your first, 10% is on a higher rate second? and the balance of 10% was your down payment?? Many loans are structured this way to avoid PMI. It works, but you're stuck with a higher interest rate on the 2nd (usually in the 8-9% range).
it is likely that at 6.6%, they are figuring PMI into the interest rate if they end up refinancing at less than 80% loan to value.
It sounds like B of A offered you a lender paid pmi loan which is why the rate was higher.
Can i refinance my mortgage if i got 20k in credit card debt?
My 5/1 arm will readjust in 8 month. I have a credit score of 730.
Due to credit crunch, will the bank still refinance my mortgage with the 20k credit card debt with Chase/Jp morgan and Bank of America.
The only way it matters is in calculating your debt to income ratio.
If you can afford the new mortgage payment plus your existing(credit card) payments and you have enough equity(FHA allows you to refinance up to 97% of the appraised value) you should be just fine.
(that was funny)
Is your ARM readjusting to a high rate? The prime rate is .25% right now, almost nothing.
Remember there are prepayment pentalties too.
Do you know how much it will be readjusting to? You might be happy just allowing it to do its thing.
Banks are not lending right now unless you have 10 or 20% down. You might be in for some trouble trying to re-fi.
And expect Chase to block your credit limit. Don't pay late or they will hike up your interest to 32%.
/
Second, how much equity do you have in your home? The value has decreased in many homes. You home could be worth less than your mortage balance. To refi, you need at least 20% equity.
Third, that $20K in credit card debt will work against you in getting approval for a decent interest rate mortgage. You should take the next 8 months and work on pay it off.
How do I refinance when my mortgage is more than the property value.?
My husband & I purchased our condo with two loans from Bank of America: a 5/1 ARM @ 5.25% and a 2nd mortgage @ 6.75%. I would like to refinance our mortgages before the rates adjust. However, the value of our home has decreased over $100K. I have called Bank of America to get a loan modification and the woman I spoke to said we do not qualify. Is anybody else having this problem and how did you get a refinance?
The answer is simple. You DON'T get to refinance. Any lender will have the property appraised. Since you owe roughly $100K more than the property is now worth, the best you could get is a new loan for about $100K less than you owe, and would have to come up with the missing $100K out of your pockets.
The reason you don't qualify for loan modification is that you are apparently still able to make the payments on your original mortgages.
Live and learn.
There is not really help for you.
When Congress told us they were getting $300 BILLION in July to "help the homeowners", they meant the BANKS, not us.
Because the banks actually own the land, they government is helping them, not you.
Sorry. Yet again Congress has stolen from us and lied to our faces (http://www.VoteTheBumsOut08.com).
The only hope you have is the FHA or HUD. Go to http://www.fha.gov or http://www..hud.gov
Search for loan modification.
And yeah, if you, like me, are making your payments and don't want to trash our credit, there is NO help for us. Only the ones that do not pay. Sweet.
Good luck
I'm in the mortgage industry but I recently met a lawyer who deals exclusively with loan modifications all over the country.
Email me if you want, and i will forward his contact information to you. He will give you a free consultation and let you know if he thinks he can help you or not. It's probably worth your time to explore having a professional help you out of this mess, as the results they get can be a lot better then the results you can get on your own.
edit:
Also, just FYI, if you stop paying the 2nd, it will ruin your credit, but they won't foreclose. Since the first mortgage will get paid first, the second mortgage holder really has no recourse against you except to put the bad marks on your credit report.
Bank of America has the worst mortgage customer service?
My husband and I recently tried to refinancing our home with BOA. We have been a BOA customer for several years now, have a good credit rating, and were wanting to refinance and pay-off a portion of our existing mortgage. The representative at the branch was really helpful, but then the application was sent to the central mortgage department and everything became a disaster. The appraiser appraised the house at 40K under the market value. When we told BOA that an appraiser hadn't contacted us and, to the best of our knowledge, hadn't been out to the house, we were told to find at least comps in the price range we were looking for and they would send out another appraiser. We did, seven of them, but the mortgage department has yet to respond.
Anyway, in the last two and a half weeks, we have applied for and been approved for a refinance with countrywide. A real appraiser appraised the house for what we thought it was worth.
Has anyone else had a bad experience with BOA?
My husband is a real estate agent and hates them. For the clients he’s had who went through BOA, the loan processors were slow and would not respond to him when he needed various things from them to complete the transaction. On the rare occasion he actually got to talk to someone, he was not impressed with their intelligence or service skills. The best part is that my brother-in-law is a branch assistant manager for BOA and his processor’s service was just as crappy for him as for the other clients.
you apply for a mortgage..and never hear from the personal banker. they had us transfer the applications to another state....and we never heard from it again.
BofA also 'low-ball's a lot of appraisals.....even when I found better comps...our Underwriters didnt want to take it
What does the Fed's three-quarter point cut today mean for mortgage refinances?
I got a jumbo loan in October 2007 at 6.125% (I'm in the SF Bay Area). Since the Fed rate has been cute by 2 points since then, and I understand that as of June my loan will become a conforming loan, what kind of refinancing rate could I reasonably expect to obtain this summer? By "reasonable," I mean nothing shady, just run of the mill Bank of America or Wells Fargo type solid deals.
Thanks!
Honestly there is no way to know. I manage at the national headquarters of Midwest's largest privately held mortgage bank and we have no idea what is going to happen with rates. While you are correct that you will soon have a conforming loan, we are anticipating a tiered rate structure amongst the major end investors. I would not be surprised to see a new subset of rates that falls between conforming and jumbo. 6.125% is not a horrible rate in this market for a fixed, jumbo product.
If you have further questions feel free to email me, unlike most people who answer questions on here I actually know what I'm talking about and have the credentials to back it up.
Edit: I just recieved this email from an answerer that I will not name
"unlike most people who answer questions on here I actually know what I'm talking about and have the credentials to back it up."
Granted there are a bunch of idiots and kids but pardon me for stepping on your holy feet YOU ain't the only one with credentials that far out weight yours.
_______________________________________________
It's ok to disagree with me, but if you are going to do so please at least use proper english! Ain't and out weight...HA!
The fed's have cut rates alot lately but the banks/lenders are hedging their bets that they can make up their losses with not giving better rates to consumers. This is not what the Fed wanted to see.
It takes awhile for these rate cuts to filter down as well, so just hang on. We're all praying for rain sort of speak!
The Fed's 3/4 point rate was on overnight loans from the Federal Reserve Bank to the local banks.
The local banks can still charge whatever they can get away with.
If I stop making mortgage payments on my rental house, can the bank force me to sell my primary house?
I live in California and both properties are in California. Primary in San Francisco, rental in Richmond.
If I let the banks foreclose on my rental property can they come after my primary home?
The value of my Richmond property has gone down by 40%, and I owe more to the banks that what I could sell it for. I have been struggling to make the monthly payments since last Nov 2007, and as a real estate agent, I have had no sales since 12/07. Therefore I can no longer make my mortgage payments. I cannot sell or refinance my rental property due to the decrease in value.
I have contacted Bank of America, Washington Mutual and the many "consumer" counseling sites such as 999-hope for help. But all tell me that unless I stop making payments the banks will not talk to me about modifying terms. However, once I stop making payments I will then ruin my credit. And so I have until May 15, 2008 to either make my payment or not. And at this moment I am thinking of stopping payments.
On the upside, if you default on your primary residence, you can escpape the ordinary income & tax of debt cancellation http://www.irs.gov/individuals/article/0,,id=179414,00.html
Unfortunately, this does not apply to investment properties. It may be better to let the primary residence foreclose & then move into the rental home.
Most banks will not work out a short sale or loan modification until you prove assets, income, etc., in addition to being late on payments to the point of foreclosure process being on your doorstep.
I need a mortgage but my credit is HORRIBLE!?
I need a mortage but my credit is HORRIBLE due to an overzealous ex-husband and his get rich quick schemes. I have since left the marriage and I am on my own with three children. I have a really good position with an established firm and I make a good salary. I am near completion of my PhD but my credit score is about the lowest in the nation. Last time I checked, the medium score was 480. I recently, began, for the first time to repair my credit but this takes time. I've already paid money down on the house, which was a hugs mistake, since I should have checked my credit first. I've looked around and was told that Bank of America would work with people with low credit scores but a call to them was left unreturned. I live in Florida. Any suggestions on companies that I might approach? Because of my credit predicament, I am sure my rates would be over the roof, but right now, I need a mortgage and will refinance when my score is in a better place.
Your thoughts please...
Do you really NEED a mortgage, why not consider renting until you can build your score. If you continue to apply for loans knowing that your credit is bad, you will be lowering your score with the inquiries.
It is very unlikely that you will find any lender willing to take a risk on a 480 score.
You may also try rent-to-own properties. Although i don't know if they offer those in florida. If they do, this would be an alternative, so check that out.
how can i get a lawyer to help me fight the bank of america in a lawsuit on a contingency basis ?
This bank back in june of 2005 allowed two fraudulent charges to go through on my credit card one for 1140.00 and another for 699.00 back to back made from a paypal account that somehow they got my credit card number and sent this over sea's which this put my credit limit over its limit and was over my daily spending limit on my cc this then raised my interest rate and dropped my Credit score from a 733 down to a 640 and my wife saw these charges and left me and eventually divorced me thinking i was responsible and she was in her last year of law school so i had to refinance my house and instead of getting was then a fixed 5.25% rate i ended up with a 6.9 variable which has cost me over 900.00 a month since this went through thats 900X360 months = minimum 324,000.00 more to my mortgage which then after i just ran out of money had to file bankrusy just to save my house from forclosure plus they never took off these fraudulent charges and i ended up paying them off with my new mortgage
Two pieces of advice.
1) Learn how to use the period button on your keyboard Wow, that was a long sentence! lol....
2) Do a search for attorneys that belong to NACA (do a Yahoo search).
And ignore Ted, who doesn't know anything. There is a rapidly growing number of attorneys that are taking on consumer debt cases, and FDCA violations on a contingency basis. Why? Because the laws are very clearly worded, and if you follow a very specific procedure you will easily win. And that means the lawyer can make some real fast and easy bucks. Your case is not that clear cut, but if you win there is a very clear amount of damages that you will win.
Look around for a NACA attorney.
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