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How hard is it to refinance and find out what fees and rates banks will give you? Are banks less likely to work with an individual?
When I got my mortgage, my broker never gave me a rate that was better than a bank. On one or two days, he was the same, but for the most part he was higher always. I was communicating with a couple of bank loan officers and I guess it was relatively easy for them to do since its all about Loan-to-Value, credit scores, income pretty much.
How much more work is it for refinancing with a bank? Will they work directly with me?
I'm wondering if I should even bother going to a broker again to refinance given my experience with getting the original loan...
It should be NO MORE work to get a refi done at a bank, mortgage broker, credit union -- all have the SAME legal requirements to meet.
The rates tend to see-saw a bit, with some banks dipping below some brokers and vice verse. They need each other... I don't understand why you would have gone with lending option that had higher rates.
The complicating factor right NOW is that some people have loans that are larger than the value of the property -- that would be a deal killer for a refi. You would need instead to purse a "loan modification".
Hi Chet,
In order to pursue a loan modification, how would I know if and how much my property has dropped?
Would I get a professional appraisal myself before approaching banks?
Is it more work for a bank to spit out rate and fees information than compared to getting an original mortgage? Meaning are banks less likely to work with me to do one?
Are there more things for them to enter into their calcultor/system in order to tell me what refinancing rates they can give us and for what fee? For the orginal mortgage, like I said, it appeared to just be a handful of info that they needed upfront and then they would look at the verification documentation later...
In most markets a good honest real estate agent could almost certainly give you free "Competitive Market Analysis" that should give you a good idea as to whether you owe more than the home is worth. A lender would need to order an official appraisal before they'd approve your re-fi. I would be reluctant to attempt to refinance if the CMA did not suggest the property was worth signficantly more than I owed...
If you property IS worth much more than you owe, AND you are having a difficult time meeting your mortgage payment I would contact your lender. Some have programs in place to modify the terms of your loan, others are a bit behind the curve. If you are doing OK I don't think they are going to do anything just to keep more money in your pocket...
It is NOT any more work for a lender to do a refi -- banks make money when their employees do things that generate fees, reduce exposure to risk, and foster long term business with their clients, THAT is exactly what happens in a refi!
Approval is much the same for refi and purchase, and since the title is already clear, it is less work to reassign the lien, that is what a refi does.
How hard is it to refinance and find out what fees and rates banks will give you? Are banks less likely to work with an individual?
When I got my mortgage, my broker never gave me a rate that was better than a bank. On one or two days, he was the same, but for the most part he was higher always. I was communicating with a couple of bank loan officers and I guess it was relatively easy for them to do since its all about Loan-to-Value, credit scores, income pretty much.
How much more work is it for refinancing with a bank? Will they work directly with me?
I'm wondering if I should even bother going to a broker again to refinance given my experience with getting the original loan...
Don't bother. The only time I got a loan via a broker was on my first property. The real-estate agent steered me to his broker friend, who probably got a kickback and I got a terrible loan. For my subsequent loans, I just went straight to the bank of my choice. I got a decent loan with a good bank. Now I'm using a credit union. Just take a look around, or get recommendations and give them a call.
In my experience working with banks, credit unions, mortgage brokers, direct lenders, savings & loans and guys who have mysterously large amounts of cash and too many vowels in their names (kidding on the last onw) OVER nearly 4 decades I have found that there is NO CONSISTENT pattern of which source of funding will be lowest. The fact of the matter is that the various outlets for lending ALL NEED EACH OTHER and the prices(rates) see-saw between them. If you do not shop you will almost certainly miss out or get a bad deal.
It was not at all uncommon for some real estate agents to get generous referal fees for steering clients to one lending source -- in some areas that would be broker, in others a bank, in others a direct lender. Sometimes those sources DID have the best terms, but WITHOUT SHOPPING one would NOT know that...
Get a Realtor to give you a CMA and then get a M.B. to refi you if your CMA has enough equity to make it worthwhile and then, if your FICO is 700 or over tell them you want the prime rate of 3.5% and a 1% origination fee is all the fees you should pay. After what they've given Wall Street and GM, people, which is who all the politicians claim they're helping, should DEMAND their share.
Loan officers are in no position to effect political bailouts...
Quote:
Originally Posted by Keith G
PPGNY,
Get a Realtor to give you a CMA and then get a M.B. to refi you if your CMA has enough equity to make it worthwhile and then, if your FICO is 700 or over tell them you want the prime rate of 3.5% and a 1% origination fee is all the fees you should pay. After what they've given Wall Street and GM, people, which is who all the politicians claim they're helping, should DEMAND their share.
Keith G.
At this point in time there are no lenders that would be able to make such a mortgage.
If there are further direct interventions to supply such rates to borrowers the loan officers will be swamped.
Establish some friendly contacts now. Decide if the savings at current rates make sense, but go in expecting something that is not available and you will NOT be happy.
Last edited by chet everett; 12-20-2008 at 10:48 AM..
And I fall back to my mantra, find someone you trust, someone you click with over the phone. I work for a bank and am available 24/7 (for the most part) to my customers. So is my friend who is a broker. It really has very little to do with who we work for......banks can get hit with guideline changes unexpectedly, just as the broker can. Banks may have a slight edge over covering their loans from changes where the broker can pull your loan from one investor to another to avoid the change.
Find someone that will communicate to you how they are going to provide you the service you expect and how they propose you strategize for the best possible rate in your situation.
Everyone can lie and tell you what you want to hear. And many will. Many of us are trustworthy and provide guidance and advice that have our customers returning and then trust us with their children for their first home. Find us, we are in your back yard. Ask your friends for recommendations, but go one further. Ask them why they liked that lender.
Shopping the "best deal" usually leads to a disappointing experience. Find the right person and you will get the best deal with their help.
And I fall back to my mantra, find someone you trust, someone you click with over the phone. I work for a bank and am available 24/7 (for the most part) to my customers. So is my friend who is a broker. It really has very little to do with who we work for......banks can get hit with guideline changes unexpectedly, just as the broker can. Banks may have a slight edge over covering their loans from changes where the broker can pull your loan from one investor to another to avoid the change.
Find someone that will communicate to you how they are going to provide you the service you expect and how they propose you strategize for the best possible rate in your situation.
Everyone can lie and tell you what you want to hear. And many will. Many of us are trustworthy and provide guidance and advice that have our customers returning and then trust us with their children for their first home. Find us, we are in your back yard. Ask your friends for recommendations, but go one further. Ask them why they liked that lender.
Shopping the "best deal" usually leads to a disappointing experience. Find the right person and you will get the best deal with their help.
In additon to getting a good deal, some things I find important are the stability of the bank where I obtain my loan. I like the big guys, for some reason, even though they can and do make mistakes. I also like having a reliable online source for paying my mortgage etc., help via phone and branches if I have questions or problems during the life of my loan etc.
I used to work with banks in my former life, and I have some insider knowledge of which banks have good computer systems etc, so I tend to trust them more. Since then, the other banks may have caught up, but I would rather deal with a solid institution with readily-available customer service and an international presence.
To me, there's more to the bank than just the bottom-line lowest interest rate. I pay extra anyway, so I (Though I may be wrong and frequently AM ) think one or two tenths of a point will not make me go with the Joe Blow's Mortgage...
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Loan officers are in no position to effect political bailouts...
) think one or two tenths of a point will not make me go with the Joe Blow's Mortgage...
