San Diego Private Bank California Refinance Mortgage Rates – Home Loans Dip to ... Subprime Blogger (blog)
It is also important to recognize that only the best borrowers of money will have any opportunity to lock into the lowest interest rates. Unfortunately, Americans have made poor financial decisions will likely find that it is nearly impossible to lock into the lowest rates.The general rule of thumb is that individuals should have a credit score that is above 740, a significant amount of home equity, and a very low debt to income ratio below 40% have any opportunity to lock into the lowest refinance mortgage rates in August of 2011. By not meeting these requirements is often true that individuals will find interest rate quote slightly higher than the advertised levels.
When making major financial decisions on the home loan it is always a wise choice to do extensive research and understand each and every step of the process. The HUD website offers many free articles that should help explain each and every step of the refinance process and how individuals can negotiate lower costs and fees.
Home Loan Refinance Rate | California Home Loan Refinance Rate
With the help of California, home loan refinancing rate it has turn simpler to hunting and find out the refinancing rate rampant in California that is good is to person, that might make a great disparity in saving allowance and providing the residence that the family needs. Moreover it might lend cash that may be used to do anything a instruct to. There are many sites that will take data from the .. more …
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California home loan mortgage rate refinance and hard money
www.lendinguniverse.com California home loan mortgage rate refinance and hard money, discount mortgage rates and getting a mortgage loan against ...
Which bank offers the lowest interest rate for mortgage refinance in California?
I need to refinance my second/investment home in Milpitas California and I'm looking for a mortgage broker or a bank that offers lowest interest rate based on 700 or more fico score. Preferably a loan program with minimum monthly payment is preferred.
find the best rate you can find and then add 1% (1 point is what is the standard to add when dealing with an investment home)
A mortgage broker is supposed to find you the best rate from all the companies she works with. If you don't have a good one shop around.
Here is a website to find the average and best rates:
http://www.bankrate.com/brm/default.asp
My home in California is on an ARM, and I want to get a fixed rate without refinancing, can it be done?
I read somewhere that this can be done with a loan modification through a workout specialist, but I have no clue how to go about it. Does the bank have the workout specialist, or do I have to hire one on my own? I know that there are new laws being passed in CA can anyone give me advice?
typically if you call up your lender you can talk to them about modifying your loan. Sometimes a pre payment penalty applies but at least you can possibly get a fixed rate. ARm loans are designed for those that planning on refing short term because you never want to let your arm period run out becaus the rate gets recast monthly based on the new loan value. If you payed only the minimum payment it may not have covered your interest on the loan and that would be added to the existing loan amount at the end of the arm period
Then the lender would have a workout specialist assess the situation to see what could be done to bring the loan current. It might mean adding the arrearage to the principal balance and re-amortizing the new balance for a different term so that you could afford the payments.
Your lender may offer a streamlined refinance which could minimize the expense of the refinance. Maybe you should check with them to see what kind of offers they have.
Before you do that, check on the terms of your ARM. Just because it is due to adjust does not mean that the rate is going up. Many conforming ARMs are adjusting down or staying the same as the indexes for the adjustments are down.
Look at your note or the ARM rider in your closing package to determine the index and he margin. Look up the current value of the index and add the margin. That will give you a good estimate for the new rate at the next adjustment.
If you have a non-prim ARM, you may be stuck with no other choice than to do a full refinance.
Good luck.
Which company is the best home mortgage lender to refinance with in california?
I am interested in refinancing my current loan to a fixed rate 30-yr loan. I'd prefer to deal with a lender that is in california. any recommendations? i'd like to hear about your personal experience with the company recommended. thanks!
It all depends on your credit score, type of property, length of loan, etc. You just have to shop them to find the best deal.
We have used a mortgage broker in the past. They run your information through a number of lenders and come back with the best deals they can find.
Some will say that brokers make money off your loan. I understand that they do, I still compare the programs to find the best for me. I don;t care what they make as long as it is a good deal to me.
I am a Mortgage banker in TN & KY
My refinance was ultimately done through a local broker here in Southern California. I used a great website to find the broker. The website that I used will eliminate the fees involved in doing a refinance. It's a pretty cool concept. Hope this helps.
I don't qualify for a refinance, my rate is adjusting up. Can anybody help me? or should i just foreclose?
My home is in california and I am currently upside down on it. The rate on my 1st mortgage is due to adjust soon. I don't qualify for a refinance because i've been late a few times. Should i just stop making payments on the home? My rate is adjusting to around 9% next month. If the home was a little more affordable I could manage but this is currently not the case. Are there any option other than refinancing? Please help.
The single most important way to determine whether you have been the victim of Predatory Lending, Truth In Lending Violations, RESPA, or mortgage fraud or deception is through the use of a Forensic Loan Audit. To effectively perform a compliance audit, you must be part detective and part mind-reader. A single residential real estate file can be covered by numerous consumer protection laws and regulations - Reg. B (ECOA), Reg. C (HMDA), Reg. Z (TILA), Fair Housing Act, and Flood Disaster Protection Act for starters. The applicability of any law depends on various factors that may, or may not, be evident in the loan file.
Get in touch with a calfornia real estate attorney that specializes in loan modification and litigation. Have a loan auditor analyze your last refinancing and see if any violations were made in your last refinance or purchase transaction. (90% of the time something was done illegally)
I can help you if you'd like. Shoot me an e-mail or give me a call. We review your loan documents (the papers you signed when you applied for the loan and the papers you signed when you closed the loan). We investigate whether the information and calculations provided in those documents was accurate, truthful, and met the requirements of the applicable federal and state statutes.
BEWARE! alot of people are jumping or have got into the business of loan modification to make a quick buck that are not licensed attorneys with the state. Most of them are the ones that put you in the situation you are in to begin with! Make sure you are speaking with a qualified firm that will look out for your best interests. Take it from me, DO NOT go for the cheapest deal. Your home and the foreclosure process is a serious matter.
Typical violations I have found in loan auditing include the following: RESPA VIOLATIONS, TIL ACT INCORRECTIONS, FORGERY, MISLEADING DISCLOSURES, EXCESSIVE OR INACCURATE ADJUSTMENTS, OVER STATED VALUES, GFE COMPLIANCE, EXCESSIVE POINTS AND FEE'S, USUARY VIOLATIONS, REVERSE ENGINEERING, PREDATORY LENDING.
We determine whether there were predatory lending violations of federal law which give rise to the right to rescind or cancel. If you are successful in rescinding the loan, you may be entitled to receive back all of the interest paid on the loan, all of the points and fees paid to get the loan, all fees paid by you to the lender in connection with the loan, and statutory penalties. This allows you to get a new loan with a smaller principle, meaning that your mortgage can be affordable.
TIME IS OF THE ESSANCE. GET HELP SOON.
Call me today: 310-736-6054
Leave a message if i don't pick up. Thank You.
So here are some options:
1) Talk to your bank. See if they'll freeze your interest rate. Even if only for a year or so.
2) If you have decent credit see if you can get an outside loan to pay the difference between what you owe and what the bank will lend. If you must come to the table to refinance--this might be worth it. Find an ethical mortgage broker who will reduce his/her fee to enable you to close your new loan w/o bring a lot to closing.
Be very careful about foreclosure.
Best of luck to you,
http://www.mylendingplace.com
Should I wait until next year to refinance my mortgage? I am buying a single family home in California?
I am skeptical of refinancing this year since the rates are up from last year. I am hopiing the rates will go down instead of up next year. Should I wait?
depends on what kind of a mortgage you got. If its an ARM GET OUT OF IT NOW! The rates are slowly dropping and many expect a nice drop next year also check to see if there are any penalties for refi and some will even make you pay for an apprasial before hand (don't do it)
Let me offer you some advice as a loan officer based in California: the market here is definitely cooling off, but that doesn't mean that it's necessarily a bad time to buy. If you're able to negotiate well with a seller (and this may be the perfect time for that) you could get a good deal. Remember that it's you that has the upper hand in the current market.
Rates are a tricky situation. There has been a bit of a dip of late, and I've been doing many loans for people in the area because of this fact. However, I don't personally see the point in "waiting for rates to drop" as much as most people. If you have good credit you can get a rate below 7% these days. Historically that's a spectacular rate. Unfortunately we're all tainted by our recent memories of folks getting 4%.
It's honestly never been a "bad time" to own a house if you plan to stay a minimum of 5 to 7 years. If you have any questions that I didn't answer, send me an email through my profile.
Beyond that it's a gamble. If you can tolerate the risk you might do well to wait until late Winter/early Spring to refi. At this point in time, I would not recommend waiting beyond early 2007. If the break even analysis shows that you will recover your costs in 2-3 years then do it now or early in the first quarter of 2007.
Here is a link to a daily rate lock advisory posted by a mortgage broker that I have used twice in the past.
http://www.interbankmortgage.com/DailyRateLockAdvisory
I have no financial connection to him, and only provide the link because it is useful information and I was happy with his service.
As it was said before, waiting for rates to drop is really not the way to go.... you never know what might happen that could send the rates through the roof and you will look back on this time and think to yourself, "I should have refinanced then!".
If you have any other questions, or need assistance, please contact me via my website http://www.slarson.com/contact or email me directly at Steve@SLarson.com
How long do you have to own your house before you can refinance at a lower rate?
I bought my house in July 2008 in San Bernardino County in California with a rate of 6.25%. I heard rates are dropping into the 4% area. How long do you need to own a home before you can refinance for a lower rate? I have an FHA loan and a neighbor told me that if I call FHA they can simply just switch the rate for me, but that definitely doesn't sound right.
It depends on what your mortgage states. I also have an FHA loan. It states that I cannot refi or sell for 9 years unless I repay the $5000 they gave me for closing costs. Read through your loan info and see what you can find out. It may be easier to just call your loan officer. They should be able to help you out.
Am Wendy Roux, am from England recently when I was searching for a loan so I post and ad in yahoo answer here just two weeks ago I was referred to Susfasa Loan Firm by Kelly Cole from Canada, when I offer a loan of (20.000 pounds) few day ago how after when I submitted my application to the Firm, by this God fearing man his name is Mr.Susfasa Lee so when I was your profile in your yahoo answer I decide to referred you directly to this kindly man of God please if you are in seriously in need of loan you can contact them via E-mail:susfasaloanfirm@yahoo.com or susfasaloanfirm@live.co.uk tell him that Wendy Roux from England referred you to him
Thanks and stay bless from Wendy Roux.
How do I overcome lowball bank appraisals to refinance my home? Can I contest an appraisal? Other options?
I purchased my 1950's California home in 2005 for $450k and subsequently sunk $175k into substantial improvements, making the total investment about $625k.
I currently owe $340k on this home and have no other debt.
I was attempting to refinance at a new, low rate, and get some cash out for my business. Yesterday I received a crushing appraisal from one of the bank's selected appraisers. The guy came back with $312k--less than 50% of my investment.
I personally took this appraiser through my home, pointing out all the improvements that had been made and where all the money was spent. I even gave him a breakdown of everything on paper that he took with him. I offered to provide him with before pictures but he wasn't interested.
He admitted in his report that he could not find any recent comparable sales in the area and had to go quite a distance out, into neighborhoods that I would not consider equal. He seems to have based his appraisal purely on the last known sale price of homes of similar age and size, and completely disregarded the $175k in improvements that I'd made to my home.
Obviously, judging a home's value by a recent sale price is flawed. We don't know what the circumstances and conditions of that sale were. Foreclosure, short sale? Judging a home's value by its age and dimensions is equally flawed as we don't know whether that home has been updated in the last 50 years, whether it's completely rotting inside or what.
His report also states that homes in the area have fallen 15-30% since 2005. Now, I would expect a super conservative appraisal to value my home at 70% of my purchase price and improvements at 80% of cost, putting the number closer to $455k. That would have put me at 25/75 LTV, and at least given me a chance to refinance.
Is it worth seeking other financial institutions, and pay another $400 for each additional appraisal? Do you expect my experience will be the same with all appraisers at this time? I've read that banks are encouraging appraisers to return values that represent an amount where at it would be impossible for a bank to lose money on the property in a foreclosure... roughly 60% of actual value.
Is it worth attempting to find independent appraisers and contest the bank's appraisal? Is there anything I can do to force a bank appraiser to value my improvements, or just value my home higher in general?
Do I have any other options? I'd really like to refinance while rates are amazing, and I'd love to get cash out or as part of a HELOC for my business.
Rhetorical question/rant: why would people want to avoid foreclosure when their homes are being appraised at 50% of value? How many years does it take to get a foreclosure off your record? How many years will it take you to earn that $300k that your home just lost in value?
You can not force the appraiser to value the improvements, they are NEVER part of the appraisal. The only thing you can do is try to force a change in the listed condition. If it went from from "poor" to "good" you appraise higher.
You can not force the bank to use any other appraiser then the one they have hired. It is their money.
As for your rhetorical question, it is because they borrowed MONEY. Cash money. Refusing to repay it does not make it a gift. They still owe a huge chunk after a foreclosure.
If you are unhappy with this bank you can try another, but your appraisal should not vary by much. They all use the same criteria.
The main value in a home is it's exact location. The improvements do matter but often they do not matter very much. It could be that they may not add anything to your value but it is more common that they add maybe 50% to 60% of the cost involved.
If there are no sales close by then the appraiser had to make some huge judgment calls. He should be able to determine the details of each sale and should be able to tell you what he found, but you will not likely change his mind about the value.
If you paid for a second appraiser the value would be different. I bet the more experienced appraisers would do a better job in finding good comparables and in making those necessary judgment calls.
Banks want to make loans, that is the way they make money. They may be very scared to do cash out loans though and that may be why the bank is not helping you argue your case.
2. You hit the nail on the head with your rant. Any homeowner who is bending over backwards to avoid foreclosure when the mortgage is 50% underwater is a complete idiot. This is particularly true in places like California, where most every homeowner has the option of walking away with no further financial liability other than what has already been paid towards the mortgage. Of course, there are not a hell of a lot of true "idiots" in this world. The result is that all of these save-the-homeowner programs that local politicians are pushing are falling on deaf ears, because only a true idiot, which are few and far between, would continue making full price payments for something that has already lost half its value.
There are different ways to appraise a home. One is comps, which doesn't seem to lend itself to you situation. Another is cost. This is how he should have appraised your home. Lets say you home is 1,000 square feet, it costs a $100 a square feet to build in that area for that type of home. If your home was new it would appraise for $100,000 plus the land. Your upgrades could come into play, so could the appeal of the home but all of that is subjective. Now that we have determined a price they have to figure in the age of the home, the condition of the home and the CURRENT MARKET, CURRENT MARKET which if it is bad will BRING DOWN THE VALUE of the home. Just because you put $$$$$$ into the home doesn't automatically increase the value.
Costs and value are different. The only time you can actually count on $ and effort being put into a home and making an actual profit is cleaning and paint. Elbow grease (20 bucks worth of cleaner) and a couple gallons of paint (100 bucks worth of paint) go a L O N G way in any market.
All real estate is local, and I can't speak for your area. But let me try to address some of your points, at least in general.
You say: "He seems to have based his appraisal purely on the last known sale price of homes of similar age and size, and completely disregarded the $175k in improvements that I'd made to my home."
ANSWER: Yes. Appraisers base an appraisal on recent home sales of "comparable" homes, generally described as homes in the same community or nearby, similar size, and when possible similar age. That's what they do.
Regarding your $175,000 in improvements, you didn't describe what they were. If they involved, let's say, adding living space (a room, a bath, bumping out the kitchen, etc.), then that should be reflected in the appraisal. However, if the improvements involved replacing laminate countertops with granite, replacing the vinyl entryway flooring with marble, etc., That adds comparatively little value from an appraisal standpoint.
You say: "Obviously, judging a home's value by a recent sale price is flawed. We don't know what the circumstances and conditions of that sale were. Foreclosure, short sale? Judging a home's value by its age and dimensions is equally flawed as we don't know whether that home has been updated in the last 50 years, whether it's completely rotting inside or what."
ANSWER: There's some debate about whether the conditions of the sale should matter. Many appraisers--and I agree with them--say it shouldn't matter. Look at it this way: A community has 10 homes for sale. Five are foreclosures or short sales, priced around $325,000. The other five aren't distress situations, and they're priced around $650,000. A buyer is interested in purchasing a home in the community. Which ones is the buyer going to look at? And which one is the buyer likely to purchase? The cheaper homes. And if those cheaper homes are comparable to the higher-priced ones (size, age, condition), then the cheaper homes will dictate the appraisers analysis.
You say: "His report also states that homes in the area have fallen 15-30% since 2005. Now, I would expect a super conservative appraisal to value my home at 70% of my purchase price and improvements at 80% of cost, putting the number closer to $455k."
ANSWER: The appraiser would know how much home values have fallen. 15%-30% is a broad range, but it's not a suprising range. I can show you areas about 25 miles from Washington, D.C. (a comparatively stable area financially) where prices have fallen by 70%. (Manassas, Woodbridge, some areas of Reston.) Even closer in, about 10 miles outside of Washington, I can show you areas where prices have fallen by 40% (areas of Falls Church and Fairfax).
Again, prices are extremely locally-based. But my point is that it doesn't surprise me to hear an appraiser say that prices have fallen by 30% since the peak of the real estate market.
As for the value of your improvements, as I noted, if it involved adding square footage of livable space to your home, then it'll return some value. If it involved upgrading what was already there, it'll return far less. Most of the figures I see (and this applies to value for resale) are in the 40%-60% return range. Sometimes it's higher--adding a second bathroom to a home that only has one, for instance. But that's unusual.
You write: "I've read that banks are encouraging appraisers to return values that represent an amount where at it would be impossible for a bank to lose money on the property in a foreclosure... roughly 60% of actual value."
ANSWER: Yes and no. Yes: Banks are encouraging appaisers to return very conservative values. Absolutely. But, as another answer points out, that still should be 100% of value. What you may have read may have said that banks will lend only 60% of the appraised value. That's the way they'd protect themselves in the event of a foreclosure.
Like I said, the appraisal you had might have been too conservative. But it's probably not off as much as you think.
What you might do is ask a good Realtor to do a CMA on your property. Now, that's not the same as an appraisal. But that'll give you another perspective and another number. And the CMA will be free.
Hope that helps.
All appraisals are for market value (what a typical buyer would pay). All appraisals must be supported by market data, facts and stand up in a court of law. Your option has no bearing on the appraisal. What you paid has no bearing on the appraisal. 2005 when you bought was the height of the market. Homes are not being appraised for 50% of value, homes are being appraised for current market value and because you owe more than it market value is not the appraisers fault.
Appraisers are required for follow USPAP mandated by federal law. Appraisers also have to follow lender guide lines like, 2 comparables must have sold within 90 days , no comparables may be used that have sold prior to 6 months, all comparables must be within one mile of the subject. Comparables should bracket the subject in square footage (some larger and some smaller). Line adjustments can not exceed 10% of the comparables sales price. Net and gross adjustments should not exceed 15%, the list goes on and on.
Not sure where you are coming up with return of 80% on improvements? My neighbor put a $30K roof on her house and I put a $8,000 roof on, both roofs added zero value to our homes, it maintenance that has to be done to keep your home at current value. I have a 50' x 20' deck with a hot tub, cost around $20K on an appraisal the return is around 5K.
Quote: I've read that banks are encouraging appraisers to return values that represent an amount where at it would be impossible for a bank to lose money on the property in a foreclosure... roughly 60% of actual value.
Fact Banks can not encourage an in anyway to increase the value or decrease the value (this is federal law) and a appraiser could lose his license and do jail time for doing it. This would be called a missleading report and I have NEVER and I mean NEVER heard of a lender telling the appraiser to under appraiser a home. That makes no since. The lender wants to make loans, and they make no money if they don't. They just dont want to loan more money than the home is worth.
Fact: The appraiser could care less what you think your home is worth and that not his job. His job is to appraise your home for market value.
Fact: Most homeowner think their home is
worth more than it really is.
Quote: He seems to have based his appraisal purely on the last known sale price of homes of similar age and size, and completely disregarded the $175k in improvements that I'd made to my home.
He should be using homes of similar age and size. It sound like you have over improved your home for the neighborhood.
Quote: We don't know what the circumstances and conditions of that sale were. Foreclosure, short sale? Judging a home's value by its age and dimensions is equally flawed as we don't know whether that home has been updated in the last 50 years, whether it's completely rotting inside or what.
Fact: appraiser would not use a foreclosure or a short sale as that would not be a arm' length transaction and would not be used. The appraiser does know if the comparables have been updated as MLS photos shows interior of the comparables and notes states this.
Sorry but it is what it is.
Using my equity to refinance from an ARM to a fixed rate?
I bought my small southern california home for $760K. I had my agent pull comps that has my home value at $810K. Zillow.com (which I know is just a best guess) has my home listed at $805.
I am 1.5 years into my 5/1 interest only ARM 100% financing and want to refi to a fixed rate loan asap. I owe $760K on the home. My credit score is 910 (Excellent). I want to put 5% ($38K) down on the home when I refinance.
Can I roll my existing equity into the new fixed loan?
(current market value $810K - $760K purchase price = $50K equity in home)
Yes, most lenders like to see 10% equity to approve a refinance. Right now, you're at about 94% loan to value, so you would probably have to put more into the house first. Also remember the closing costs you will incur. You might be able to get around this with a "favorable appraisal", but lenders are less flexible right now.
Also, what would your debt to income be? Remember that with a fixed rate mortgage, you'll also be paying principal, so your monthly payment will probably increase (since you're only paying interest now).
I'm looking to refinance my home while the rates are still low but i cant find quotes, only sites that want my
I can only find sites that want me to give them my information, and then they will give me a list of lenders in my area, Its frusterating because i would love to get the list of lenders in my area but i dont want to give out any personal information about myself to anyone besides the lender. And the few big lenders in my area wont work with me because of my fair to bad credit. I get enough spam to know not to give out my info to just anyone. If anyone has any info on lenders in california or info on refinancing, purchasing a home, or home improvement please reply asap. Thank you!
5.25% is what I saw just yesterday.. Heck just call your local bank, or credit union... Don't go to a broker till you have a little info in hand. The call is free.
Should I refinance now?? California?
Hello,
My wife and I just got our first home 5 months ago. We have a balance of $110,000 and our rate is @ 6.63%.
Rates are now around 5.05% and wanted to know if we should refinance. We currently have a 30 year fixed rate and would like to keep it that way.
Does anyone know how much we will save per month? We plan on living in our home for many years...
Thank you
*********Also*********
I do not want a loan that will cost me 5K.
I would like a loan with little to no cost. Does anyone know where these can be found? Our credit is over 700.
Thank you all
This is a MATH question so look at the numbers. Your current loan should hae PI (Pricipal and Interest) of $704.89 and there is also Taxs and Insurance added to this to make the full house payment. You may also be paying MI or Morgage Insurance is you have less then 20% equity in the home. But for BASIC numbers a loan of $110,000.00 at 6.63% Interest on 30 years will have a PI of $704.89 and the new loan you are considering would have PI of $594.12 so the GROSS savings would be $110.77 a month or $1,329.24 a year.
So the FIRST thing you need to decide is how LONG are you going to be in the home? Most people move every 5 to 7 years so let's just say that you stay LONGER then most and stay in the house 8 years AFTER you get the new loan. $1,329.24 times 8 is $10,633.95.
You STILL do NOT know if this makes sense to do because there ARE going to be loan generation costs that either have to be paid by YOU upfront with cash or the loan company WILL roll these costs into the new loan as a "FAVOR" to you giving you to MUCH talked about "no cost loan" other posters are telling you to take. But AGAIN do the MATH. You WILL need a new apprasil at about $500 depending on where you live, there WILL be costs to the loan company to pull your credit, verify employment, verify assets and debts, etc, etc. and let's just GUESS and say these "costs" total $3,000.00. IF you "roll" these into the loan then your NEW loan amount will be $113,000.00 at a PI of $610.32; wich reducing your monthly saving to $94.57 and yearly to $1,134.89 and after 8 years to $9,079.09 AND this is IF you do not pay "points" if you pay 2 points (or % of the loan amount) to get that reduced interest rate, your 2 points would add another $2,200.00 to the new loan amount and your 8 year savings goes to $7,938.86 AND if ANYTHING happens and you have to sell early your BREAKEVEN date is (yearly savings of $992.36 divided into the total loan cost of $5,200.00) 5.24 YEARS. So your new LOWER loan will return the cost of doing it in a little OVER 5 years and there is NOTHING for you but a even money situation. NOT GOOD. ANYTIME you invest money you SHOULD be getting a RETURN on that investment and in this case you are NOT.
The bank is more then willing to do this because they get MORE loan originazation fees, MORE interest on the higher loan amount, and a "happy client" because you got a reduced interest rate. Also the old money the bank loaned you was costing them a higher rate of interest as well so with the NEW Fed Rate of 0 to 0.05% they will make a PROFIT margin of 4.5% with NO risk to them. Your loan is UNDERWRITTEN by Freddie or Fannie so the "bank" simply writes the loan and then sells it to Freddie and gets paid a COMMISION for writing the loan.
So the question you NEED to be asking is what are the odds of me staying in THIS house with THIS loan for OVER 7 years? And what are the points and funding costs that will be added to the pricipal for the new loan. Compare the PI between the 2 loans and see how long it will take to pay for itself AND then get a return on that investment.