macnoke03 Posted May 17, 2009 Share Posted May 17, 2009 So my wife and I have decided that we are going to stay in our current home for awhile and we are ready to refinance our mortgage. I know nothing about the mortgage business so I would appreciate any advice we can get on the process. We bought our home 4 years ago for about $130k with basically no money down. We currently have an 80/20 mortgage so we our paying 2 different lenders. So where do I start? What problems should I be prepared for? Any advice would be appreciated. Others feel free to use this thread for help with your situation as well. Link to comment Share on other sites More sharing options...
chipwhich Posted May 17, 2009 Share Posted May 17, 2009 Will your house appraise for more than you paid for it? If not then you may have to pay a good chunk of cash out of pocket. There is no real secret behind the mortgage business. Go to any major bank or mortgage lender. They order an appraisal and then work from there. Until you know what your appraised value is and how much equity you have, you can't really get any details. Link to comment Share on other sites More sharing options...
Westbrook36 Posted May 17, 2009 Share Posted May 17, 2009 This is the perfect example for why America is in the trouble we are in regarding the housing industry. No money down. 80/20 mortgage. Link to comment Share on other sites More sharing options...
chipwhich Posted May 17, 2009 Share Posted May 17, 2009 This is the perfect example for why America is in the trouble we are in regarding the housing industry. No money down. 80/20 mortgage. The politics of that are better left for another thread. But if you purchased four years ago, with an 80/20 mortgage and nothing down odds are you have no equity so refi is not an option unless you buy down your mortgage some. Link to comment Share on other sites More sharing options...
Brad_Edwards_Fan Posted May 17, 2009 Share Posted May 17, 2009 This is the perfect example for why America is in the trouble we are in regarding the housing industry. No money down. 80/20 mortgage. Kinda broad strokes there... if he is considering a refi, my bet is that he is current on his mortgage. I dont think that the housing industry is an a jam due to people paying their mortgage as agreed. Link to comment Share on other sites More sharing options...
macnoke03 Posted May 17, 2009 Author Share Posted May 17, 2009 This is the perfect example for why America is in the trouble we are in regarding the housing industry. No money down. 80/20 mortgage. Why don't you take that mess somewhere else. Link to comment Share on other sites More sharing options...
chipwhich Posted May 17, 2009 Share Posted May 17, 2009 Kinda broad strokes there... if he is considering a refi, my bet is that he is current on his mortgage. I dont think that the housing industry is an a jam due to people paying their mortgage as agreed. No they are in a jam because they provided 100% financing to buyers and now housing prices have gone down and buyers owe more than their house is worth. Now these first time buyers arms are coming due and their payments are gonna jump. They can't refi because they have negative equity, and even if they have some equity they can't refi because nobody will refi them for 100% LTV ratio. So basically they are stuck. Link to comment Share on other sites More sharing options...
macnoke03 Posted May 17, 2009 Author Share Posted May 17, 2009 Will your house appraise for more than you paid for it? If not then you may have to pay a good chunk of cash out of pocket.There is no real secret behind the mortgage business. Go to any major bank or mortgage lender. They order an appraisal and then work from there. Until you know what your appraised value is and how much equity you have, you can't really get any details. How much can I expect to pay for an appraisal? Link to comment Share on other sites More sharing options...
chipwhich Posted May 17, 2009 Share Posted May 17, 2009 How much can I expect to pay for an appraisal? For an appraisal and credit report, about $400. It's gonna cost you $400 non refundable just to see if you can refi. If you think your house is worth less than you paid, no need to bother. If your house went up in value, give it a shot. Link to comment Share on other sites More sharing options...
macnoke03 Posted May 17, 2009 Author Share Posted May 17, 2009 For an appraisal and credit report, about $400. It's gonna cost you $400 non refundable just to see if you can refi. If you think your house is worth less than you paid, no need to bother. If your house went up in value, give it a shot. I know generally speaking housing values have declined significatnly, but I'm sure there are some exceptions. How would I know for sure without spending the $400? For what it's worth, I went to a site that somebody else posted in another thread (zullow.com or something like that) and it estimated my house at $144K but it also said our house has 2 baths when it only has 1.5. Link to comment Share on other sites More sharing options...
chipwhich Posted May 17, 2009 Share Posted May 17, 2009 I know generally speaking housing values have declined significatnly, but I'm sure there are some exceptions. How would I know for sure without spending the $400?For what it's worth, I went to a site that somebody else posted in another thread (zullow.com or something like that) and it estimated my house at $144K but it also said our house has 2 baths when it only has 1.5. There is no guarantee the appraisal comes in that high. Your best bet is to go to whatever bank you bank at. Ask to speak to the appropriate person about refi your house. Show them your 2 mortgage statements so they can get a rough idea what you owe on your house. They will tell you how much your house will need to appraise for in order for them to refi you. If they tell you it needs to appraise for 144K or less, then you might take a chance. If they tell you 144K or higher you might not waste your $400. Link to comment Share on other sites More sharing options...
isle-hawg Posted May 17, 2009 Share Posted May 17, 2009 Depending on your current lender you may not have to get another appraisal. I've owned my current house since 1991. I refinanced it through my same credit union 3 times the only appraisal I had to pay for was the first one since they already had all the info. If you are not currently financed through a credit union you may want to consider looking into it. Each time I refinanced I shopped around everywhere and no-one could beat the interest rate and low (or no) finance charge my credit union offered. Link to comment Share on other sites More sharing options...
stoshuaj Posted May 17, 2009 Share Posted May 17, 2009 I know generally speaking housing values have declined significatnly, but I'm sure there are some exceptions. How would I know for sure without spending the $400? you are not going to know for sure but you can also look at some comparables of homes that have sold in you general neighborhood within the last......3 months. or at the very least, look at how much some comparable homes are being listed. From the MLS listing, you can also determine how long they have been on the market to see if they have been sitting for a while. I've never put a lot of stock in the on-line home assessment sites, but that could just be me. Link to comment Share on other sites More sharing options...
btfoom Posted May 17, 2009 Share Posted May 17, 2009 This is the perfect example for why America is in the trouble we are in regarding the housing industry. No money down. 80/20 mortgage. The perfect example of a 100% worthless post that simply contributes to the overall lack of civility that we see on these boards too often. Nice job - proud day for you! I know generally speaking housing values have declined significatnly, but I'm sure there are some exceptions. How would I know for sure without spending the $400?For what it's worth, I went to a site that somebody else posted in another thread (zullow.com or something like that) and it estimated my house at $144K but it also said our house has 2 baths when it only has 1.5. You have a few options that will give you a pretty good estimate, though as Chip said, you never know exactly where the appraisal will fall. First, if you know a realtor, ask them to do a search of their database over the last 3-6 months to get an idea as to how much similar houses in your area have sold for. You should even be able to do a search of your county or state records - home sales are public records in most states. Second, you can take a look at your previous home tax assessment (if your state/county/municipality does that) and compare it to your latest one. This will again give you and idea of worth as well as direction of prices (up, down, flat). I would also suggest that you talk to someone at your bank about refinancing and the options open to you. They should give you advice and let you know what you would need to qualify for the refi. Good luck, hope it works out for you. Link to comment Share on other sites More sharing options...
Westbrook36 Posted May 17, 2009 Share Posted May 17, 2009 Why don't you take that mess somewhere else. Do a google search if you want the most rudementary basic refi questions answered. Something tells me you used the same level of diligence when you made the decision that it would be ok for you to get a home loan with no money down. Now look where you are at. This is a messageboard. You ask a question, people post responses they see fit. Link to comment Share on other sites More sharing options...
Kosher Ham Posted May 17, 2009 Share Posted May 17, 2009 I would also shoot a PM to PleaseBlitz. He worked in the industry for a little while and may be able to give you some advice. Link to comment Share on other sites More sharing options...
macnoke03 Posted May 17, 2009 Author Share Posted May 17, 2009 Do a google search if you want the most rudementary basic refi questions answered. Something tells me you used the same level of diligence when you made the decision that it would be ok for you to get a home loan with no money down. Now look where you are at. This is a messageboard. You ask a question, people post responses they see fit. We were first time home buyers when we bought our house, fully capable of paying the mortgage that we agreed to pay. Nothing has changed with that. We simply want to explore our options of getting a lower payment through refinancing. My origianl post was pretty clear that I was looking for advice on that subject, not some smart *** remark like you gave, not once but twice. Get lost. Link to comment Share on other sites More sharing options...
stoshuaj Posted May 17, 2009 Share Posted May 17, 2009 Do a google search if you want the most rudementary basic refi questions answered. Something tells me you used the same level of diligence when you made the decision that it would be ok for you to get a home loan with no money down. Now look where you are at. This is a messageboard. You ask a question, people post responses they see fit. The other problem with your broad brush statement is that you are in San Diego and he is in Roanoke. Two completely different housing markets. I recently (as in the final closing is this week) refied a home in Lynchburg. I have only owned that home for 3 yrs, and will be getting a significant cash out and the payment went down. My biggest problem was the amount of time it took for the entire process. My lender told me they are currently rcving 4500+ refi applications per week. It certainly doesn't hurt to explore the possibilities and as someone said, if his mortgage is current, he's not the problem. Link to comment Share on other sites More sharing options...
RonJeremy Posted May 17, 2009 Share Posted May 17, 2009 Read this thread...and possibly we should merge both of them. http://www.extremeskins.com/showthread.php?t=288065 To the Original Poster: You need to find out who owns your loan. If it is a Fannie Mae or Freddie Mac you may be able to refinance the 1st mortgage.....but only your first mortgage. Also, you may be able to refinance both loans into a FHA loan depending upon your value. There are some options but they are limited. :2cents: Link to comment Share on other sites More sharing options...
Destino Posted May 18, 2009 Share Posted May 18, 2009 Do a google search if you want the most rudementary basic refi questions answered. Something tells me you used the same level of diligence when you made the decision that it would be ok for you to get a home loan with no money down. Now look where you are at. This is a messageboard. You ask a question, people post responses they see fit. There is absolutely nothing wrong with buying a home for no money down from the borrowers perspective if it fits into your financial plan and done for the right reason. In fact I'd prefer it every single damn time if I had my way as there is no advantage in my shelling out 20% of my money that is currently busy making me more money. Next time you want to be a smart ass try starting with smart before adding the ass. Link to comment Share on other sites More sharing options...
macnoke03 Posted May 18, 2009 Author Share Posted May 18, 2009 Read this thread...and possibly we should merge both of them.http://www.extremeskins.com/showthread.php?t=288065 To the Original Poster: You need to find out who owns your loan. If it is a Fannie Mae or Freddie Mac you may be able to refinance the 1st mortgage.....but only your first mortgage. Also, you may be able to refinance both loans into a FHA loan depending upon your value. There are some options but they are limited. :2cents: My entire loan was originally with National City but then they sold the 2nd loan to Homecomings Financial. So the 80 is with National City, the 20 with Homecomings. Link to comment Share on other sites More sharing options...
Destino Posted May 18, 2009 Share Posted May 18, 2009 So my wife and I have decided that we are going to stay in our current home for awhile and we are ready to refinance our mortgage. I know nothing about the mortgage business so I would appreciate any advice we can get on the process. We bought our home 4 years ago for about $130k with basically no money down. We currently have an 80/20 mortgage so we our paying 2 different lenders.So where do I start? What problems should I be prepared for? Any advice would be appreciated. Others feel free to use this thread for help with your situation as well. First three questions I ask when talking about a refinance: 1- What is your goal. Specifically is it rate reduction, converting an ARM to a fixed, a lower payment, cash out, etc etc 2- How much do you still owe? 3- How much is your home worth? The answers to those questions will let your mortgage professional know which products you might qualify for and narrow the discussion. I'd encourage you to talk to a loan officer that you trust and have him pull your information and provide some numbers. Link to comment Share on other sites More sharing options...
boobiemiles Posted May 18, 2009 Share Posted May 18, 2009 I just got a client a refi. He now has a 4.5 interest rate no points at 15 years fixed. Link to comment Share on other sites More sharing options...
Ax Posted May 18, 2009 Share Posted May 18, 2009 As a public service announcement, I'd like to inform, and remind, everyone in this thread, that Westbrook36 is an Eagle fan. Which means that he's two slices of bread, the meat, and the mayo short of a ham sammich. How's that for a broad brush? Link to comment Share on other sites More sharing options...
RonJeremy Posted May 19, 2009 Share Posted May 19, 2009 My entire loan was originally with National City but then they sold the 2nd loan to Homecomings Financial. So the 80 is with National City, the 20 with Homecomings. National City services your loan. What you need to do is go here: http://makinghomeaffordable.gov/loan_lookup.html click on the Fannie Mae link and enter your property address. If it tells you that there is no match...go to the Freddie Mac link and enter your property address. Hopefully one of them is a match and you will be eligible to refinance your first, even if it is now above an 80% loan to value. Link to comment Share on other sites More sharing options...
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