FHA Short Refinance Program For Underwater Homeowners–Questions Remain Over ... Red, White, and Blue Press
As reports continue to arise concerning potential new foreclosure prevention assistance plans that may become available in the coming weeks there are still homeowners who are looking at current programs that could potentially help them, but may have seen lackluster results. One of the more well-known programs that has been unable to help homeowners, but in the eyes of many had the potential to do so, has been the FHA short refinance program as this initiative was set to aid underwater homeowners by allowing them to receive a principal reduction and refinance into a more affordable home loan rate so that more affordability might be gained on the mortgage payments of troubled homeowners.
Yet, questions still remain over whether this option is still available, and if so how they may be able to participate in this particular program. It goes without saying that there are homeowners who could potentially benefit from this particular program since underwater mortgage difficulties have continued to creep into the lives of homeowners as a result of home price devaluation in many areas. The problem that homeowners face though usually centers around the fact that this program has been voluntary and, as a result a mortgage servicer having to forgive around 10% of the mortgage principal and then allowing homeowners to refinance into an FHA-insured mortgage, it has been unpopular among many banks and investors.
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No closing Cost Loans, Refinance. Orange County, CA. Fred Solomon's mortgage ...
Interest rates are down at least one full percentage point just in the last week. If you are on an adjustable and you are lucky enough to still ...
How much money do you have to pay for closing cost when you refinance home loan? ?
I would like to refinance my house to get lower rate. My loan is 200,000. I m a first time homeowner, my current rate is 6.5 %. I ve own my home for about a couple of months, my credit is good, not excellent. I would like to know a ball park on paying closing cost. Also is the closing cost money i need to come up with?
2%
unfortunately the national average is 3 1/2 % closing costs
and yes all no closing cost loans are charging a Higher rate to use that yield spread to cover closing costs for you!
What is the average cost of closing on a home refinance loan and why is it so high? I being charged $6500!?
My credit rating is 581, is this why??
Closing costs vary greatly by lender. There are some that are fixed figures, but the rest is tied to the loan amount.
Shop around a bit, ask for a truth in lending good faith estimate of closing costs. And don't stop there. Ask about transaction fees, pre-payment penalties, late fees - anything that could also cost you money down the line.
Make sure you are comparing apples to apples before you sign on the line.
You have the bank charges, and these can vary from zero to 2% of the loan.
Then you have "prepaid" items, including interest to the end of the month, and the amount they want to hold in the escrow account to pay your taxes and insurance when due; these can be several thousand dollars, but that's still your money, even after closing.
Then you have the attorney fees, including the title search and title insurance, and filing in the Land Records, and probably plus the cost for the closer to send the docs back in the overnight mail.
Your credit score impacts the loan availability and the interest rate, it doesn't impact the closing costs so much.
HELP Lender lied on home loan, cost me refinance. House in foreclosure need financial help.?
Not only lender lied, contractor hired for remodel has left the state with $250,000.00 and left house unsellable, no roof on 2 buildings, the list goes on. I am recently divorced after 30 years, and I have 6 kids. My health is very poor do to a propane leak left unfixed during remodel, and im unable to work. I have had perfect health prior. I am going to loose everything i have worked for for 30 years. my exhusband is a 100% disabled veteran, and unable to help much. I had perfect credit up until April of 2006. I need some kind person to help me and my kids financially until I can sell home to repay them. Im not asking for anything free, just help!!!!! 2 kids are not in college because of this and one has quit school to help me keep the lites on and food. I am in bad shape, PLEASE SOMEONE HELP!!!!!!
I'm sure someone who knows more about this will give you some concrete advice, but in the meantime, go to the library and borrow some Suze Orman books. They're really accessible and she gives advice to a lot of people in desperate financial situations. I'd also consider seeing a lawyer about the lender and contractor. Good luck to you. Things will work out in the end. Also, there's always financial aid for college.
You may also want to check out
http://abc.go.com/primetime/xtremehome/casting.html
What should a refinance loan cost?
My credit union wants to charge me $5,654 in closing costs to refinance my house for $200k. The house is worth more. I'm shocked! What are all these fees--origination, underwriting, processing, administration, preparation and "loan discount" and should I pay them? Why do they want prepaid interest when it is in the payments? Why reserve 2 mos insurance? The "estimated settlement charges" are $8,365--is that excessive?? Thanks anyone for any help. If I carry it myself and my son makes payments to me (he lives in the house but can't get his own loan yet) can I get a home equity loan any cheaper?
Actually, for a $200k loan that sounds well below market. What I'd expect from a credit union.
The loan origination fee is typically 1% of the amount of the loan and is standard practice industry wide.
Underwriting, processing, administration, and preparation are common "junk fees" that you'll just have to live with for the most part. You can negotiate them in theory but most lenders are "take it or leave it."
Closing fee is mandatory, the closing agent has to get paid!
Titlle insurance is mandatory, at least the lender's coverage, and the borrower has to pay the premium. If you have a current title policy within the past 5 or so years they may accept that, however.
The loan discount fee is the points on the mortgage. It buys down the interest rate. You can negotiate this but if they are reduced or eliminated your interest rate will rise. A VERY rough rule of thumb is 1/2% discount fee reduces the interest rate by 1/8% - 1/4%. Once your rate lock expires the loan will float to market rates up or down.
Prepaid interest covers the interest on the loan from the closing date through the end of the month. This is because mortgage payments are paid in arrears, unlike rent which is paid in advance.
The 2 month reserve for insurance is deposited into your impound account with the lender. Part of your payment is advance payments on future insurance and property tax bills. Lenders are allowed a 2 month cusion over and above estimated expenses to cover for bills that are sometimes higher than estimated. Having an impound account is pretty standard but is not legally required. If you have very strong credit it's possible to get a loan without impounds -- my loan is like that, I manage my own property insurance and property taxes. If you self-manage the lender may require copies of the paid bills from time to time. If your lender agrees to drop the impound (if your credit is strong, by all means ask!) the estimated settlement charges will be lower as will the monthly payments.
A home equity loan is almost always more expensive than a conventional mortgage, at least as far as the interest rates go. Locally where I am, first mortgages are about 6.4% right now but a home equity loan is 7.5%. Home equity loans are very rarely fixed rate so the rate is subject to periodic adjustment, often as frequently as every month. The closing costs MIGHT be lower, you'll have to ask for a Good Faith Estimate to get some idea on that.
All of those fees (execpt loan discount, I'll get to that later) are to pay various people involved in the loan process.
The loan discount is a fee you are paying upfront to lower your interest rate. Depending on how long you plan on keeping this house, this may or may not be a good deal.
Insurance? They are setting up an escrow account for you, so that your payment will include insurance (probably taxes as well). You can ask them if you can still get the same deal if you don't include taxes and insurance in your payment, or you can ask for only taxes to be included.
The final settlement charges of $8,365 may or may not be a bad deal, depending on what kind of interest your are getting and what type of product.
You can definitely get a home equity loan cheaper as far as closing costs are concerned, but rate will probably be higher, so you need to take in to consideration how long your are planning to keep that equity loan. If you think that you are going to keep it for a long time, the higher interest rate may become more expensive than the cost of refinancing.
Can a veteran get help with closing costs to refinance a home mortgage loan?
Try this, Its good
http://mortgagerefinancingatlowrate.blogspot.com/
Check with your current lender. They might be able to save you some closing costs. Also look at www.va.gov It'll redirect you to a loan section that is worth reading.
Will WAMU really refinance your home with no closing cost or is that a lie?
I'm a loan officer and lately I've heard that Washington Mutual will do your home loan with no closing cost and the will use your old appraisal. Is this true or are there closing cost when it's all said and done?
they will use the old appraisal if it's a rate/term refi or if DU waives it.....streamline Refi
anyone can do NO CLOSING COSTS...if the going rate is 6.125% with closing costs....they will charge 6.75% no closing costs. they raise the rates by at least 0.5%
nothing in life is for free
You can read the whole story at the supplied URL.
http://www.iht.com/articles/ap/2007/11/01/business/NA-FIN-US-Subprime-Mortgages-Scandal.php?WT.mc_id=rssap_business
Nothing is free, ask questions, use a broker. Everything has to be disclosed with a broker.
Great Western gave me my first mortgage on a house when I was in college over 40 years ago. I decided to buy a house and rent out bedrooms to my fellow students rather than pay rent.
It was one of the best decisions that I have made in my life.
Great Western gave me a mortgage when no other lender would. I worked my way through college and was self employed most of the time.
No lender and no REALTOR even wanted to talk to me. But Great Western did.
I bought that house directly from the seller who was selling the house without a REALTOR.
That house was the best investment that I ever made in my life.
I paid $15,000 for that house back in 1967
I recently had that house appraised at $860,000.
I see one of the responders posted an issue of inflated appraisals.
I agree that is a problem with all lenders, not just Washington Mutual.
The way that I see it, it is your job as a purchaser to protect your interests.
One way that I do that is that I hire my own appraiser when I am purchasing a property. I make the sale contingent on my apprasal, not the lender's appraisal.
I also hire a real estate attorney who writes the language that makes that work. The language of the standard real estate contracts is not sufficient to make that work. You need a good real estate attorney to write that language for you and more importantly enforce that language in the event of a dispute.
Invariably my appraiser is lower than the lender's appraiser.
I give the seller two choices. That is the seller may either reduce his selling price to the value determined by my appraiser or I withdraw my offer and buy another property.
The seller is to agree to sign instructions to the title company directing the title company to return my deposit to me. If the seller fails to sign those instructions, and some sellers do, then I have my atorney notify the seller that he can be fined for unreasonably refusing to direct the title company to return my deposit to me and also under the terms of my contract the seller will be liable to pay my attorny fees as well if he fails to sighn documents directing the title company to return my deposit.
I have never had a seller continue to refuse to sign after he was contacted by my attorney and my attorney has explained the terms of the contract including the special language that my attorney added to the standard contract.
Essentially my experience with Washington Mutual is that they are one of the most honest lenders out there, however I do agree that they should increase the quality of their appraisers.
However I also think that you should do like me and hire your own appraiser to protect your interests. Then the issue of the lender's appraiser becomes irrelevant.
Nurses don't work for free.
Firemen don't work for free.
The guy on the phone at Wamu does not work for free.
He also doesnt have to be licensed as he works for a corporation.....he probably doesnt want to be called a loan officer...he's likely referred to as Production Staff.
If they can get you to go with a higher rate and a bigger loan........they will get paid more. As long as they produce they get a small base pay and commission based on total loan amount volume in the month.
Read up on whats going on with WaMu.
http://www.bloomberg.com/apps/news?pid=20601206&sid=aFSwsh_NlJYk&refer=realestate
Should I refinance my home loan now, 12/16/08?
I have a 5 year ARM. I have $105,000 remaining on my loan. I am now in the last year of my ARM loan. The ARM rate is 4.625% and will adjust to a different rate November 2008. 30 year fixed rates are now 5.125%. Should I refinance? What are they additional costs to refinancing? Do you think the 30 year rate will go lower? How much would closing costs be? Thanks.
I see someone mentioned loan modification and that's only to prevent foreclosure not to refinance. I would say refi unless you have a large prepayment penalty and you plan to stay in the home.
As for closing costs the only out of pocket expense you should have is for the home appraisal and it's averaging $300.
Hope this helps.
I don't like to guess about the future, I am usually wrong. If 5.125% is affordable and makes sense, then do so now. Closing costs are negotiable.
If you wait, they could go up or you might have other issues making obtaining a loan more difficult.
What is the different between loan,refinancing,home equity?
I want to know which loan is really the best. I want to borrow about $120 gran but after looking at all the charges that loan in 30yrs will cost me $350gran, that doesn't sound right to me.
Hey I used to be a loan officer for several years. This is a generic answer and may not fit your needs, however here goes. A home equity loan/line is a secondaray mortgage the Loan is a fixed rate product that borrows against the difference in the mortgage current and the appraisal on the property thus equalling equity. The line I wouldn't touch with a 100 foot pole it has a variable rate of interest and it has been fluctuating all over the place with all the recent changes in the market and prime rate all over. On the issue of refinancing something to consider is what was the rate on your home when you got the original mortgage? If is at or around 5 percent. LEAVE IT!!! You won't see a rate like that again for quite some time. Its not worth rolling that low rate into a new mortgage to get equity out of it and thus suffer an increase of possible up to 8% depending on your loan to value in the house. Meaning how much of your equity is left if you refinance. The less equity in your home means the higher of an interest rate you will receive. Lenders are tricky and will take you for a loop if you let them. If you need additional money for whatever you are trying to achieve and cannot come up with the cash. Listen the best way to go is a home equity Loan with a fixed rate and the minimal amount needed not a penny more. Most draws are grouped into the thousand dollar category. Meaning If you need 10,100.00 you will have to take a home equity line in the amount of 15,000.00 or that is what they tell you. If you complain enough you can get the loan for the amount you need only. Bankers will try to get you up to up your original draw from say 10k to 25k to get a discounted rate on interest. Don't do it. Also they try to get you to back your equity loan with a third open ended line of credit that they tell you that it dosent have to be drawn off of. There benefit they offer is that if will waive the annual maintanince fee if you get both. Do NOT DO THIS!! People often get themselves in bad financial situation they dont need to get into because of it. I have seen people say yea that would be a good thing to have in case of emergency and then they end up maxing out both the equity loan and the line of credit. Remember that all three of those products are tax dedicutable ,the mortgage interest. On the refiance your cost include mortgage appraisal, tax, recording fees, loan originator fees, however on home equity since it is only a secondary lien against an already preexisting mortgage offers the benefit of free apprisals and fees( with most banks) if you get 10k or more. Also no closing cost on a home equity loan/line and you do pay closing cost again with a refinance. The rate may be cheaper on a refinance than home equity but a true mortgage loan officer can recommend the correct solution if they are honest. Does the fees and closing cost equate to saving compared in relation to the home equity loan/line and possibly a short term higher interest rate. Good Luck!!
Why are there closing costs when refinancing a home loan(other than a bank fee to process the loan)?
I think it is something that was put in by lawyers so they could earn more money. They all want to get their piece of the pie.
Can we refinance our home to cover the cost of outside debt?
We are $20,000 in debt with health care, credit cards, and student loans. We have $70,000 in home equity so far. Could we refinance our home and pay these outside debts?
cost home loan no refinance - News
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Are Lower Mortgage Rates Working? For Some, Yes; for Others, No - RisMedia.com (press release) Are Lower Mortgage Rates Working? For Some, Yes; for Others, No January applications for new and refinanced home loans reached a record high for Wells Fargo Home Mortgage Group, which processed 477 applications, |
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Foreclosure exposure: Numbers are no comfort to those losing shelter - Yakima Herald-Republic Foreclosure exposure: Numbers are no comfort to those losing shelter One Yakima real estate broker believes a majority of foreclosures resulted from homeowners refinancing existing loans for amounts exceeding the property's |
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Moody's cuts MGIC, Radian ratings to junk; Genworth lower too Mortgage insurers, which cover potential lender losses on loans to borrowers who can't come up with a 20% down payment, have seen claims skyrocket in the |
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America's New Housing Problem: Unemployment - Forbes America's New Housing Problem: Unemployment While home prices were on the upswing, an unemployed borrower could sell the property or refinance, raising cash, but now, with property depreciating, |
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How to Help Distressed Homeowners by Offering Free CMAs - RisMedia.com (press release) How to Help Distressed Homeowners by Offering Free CMAs Short refinance: Like a short sale, a short refinance (short refi) calls for the lender to accept less than the full balance due on the loan, |