Refinancing......HELP (PMI, loan officer, interest rate, credit score)

[QKIBO83]

Hi all,

i am stuck, i am currenlty finaced 30 yrs with a rate of 6.55%, and i just had an offer to refinance at a rate of 4.5% with 0 points (30yrs). The problem is when i first bought the house i did 100% financing and now a year later i have not paid off 5% of my house yet. Actually according to the county i live in my house market value is 10K under what i paid for a year ago . What do i do i really want this rate? Currentrly i paid off 3% of my house (thats taking into consideration that my haouse value is same as a year ago) Oh and my credit score is around 785

[Minneapolis1936]

If my friend Michael's experience is any indication, QKIBO83, it would seem you're out of luck.

Back in late December, about the time shareholders were approving Wells Fargo's $11.8 billion purchase of Wachovia, presumbly using a big chunk of the $25 billion it got from TARP (read: U.S. taxpayers) in October, a WF loan officer called Michael, offering to reduce the interest rate on a 30-year fixed home mortgage loan he'd taken out in December 2007, paying 20% down. WF would change the terms of the loan from 5.5% to 5.25%, said the officer, and charge absolutely nothing for doing so. No fees, no points, no new appraisal, no nada.

"I can see what you're doing for me," said Michael, "but what am I doing for you?"

"A lot of our customers are considering refinancing, and we don't want them to jump ship," was the response.

Today the bank changed its mind. Although Michael has a FICO score just under 800, no debt, considerable savings and a good income/secure job, Wells Fargo declined to do the re-fi because the house has depreciated by $30,000 and Michael does not have 20% equity in it.

[HappyTexan]

They will order an appraisal on the property as part of the refi. They will not refinance more than the house is worth. You would have to come up with some cash in order to refinance from what you are telling us.

[cdelena]

Same problem here... I bought two years ago with 20% down getting 5.75 for 30 years. I would like to take advantage of the low rates today but it looks like my home has depreciated 13% so I no longer qualify for the lowest rates and may even need to pay PMI. No savings!