Mortgage Refi Question

[ArgentCy]

I should be hearing back from the bank today on an initial application. If only I could find a decent house that I want to buy... but that's a whole different problem.

 

[superman_101680]

I've been quoted a 3.75 for a refi (currently at a 4.20) but I'll need a new appraisal and closing costs of 2500. I've had the mortgage for about a year and a half so I'm thinking of waiting. Given it's the same credit union, I was surprised we had to do another appraisal.

 

[cyfan92]

I've been quoted a 3.75 for a refi (currently at a 4.20) but I'll need a new appraisal and closing costs of 2500. I've had the mortgage for about a year and a half so I'm thinking of waiting. Given it's the same credit union, I was surprised we had to do another appraisal.

From what other posters have said, I'd push to have them drop the new appraisal. Also, I'd shop that rate. Assuming you are talking a 30yr. note. I was quoted last week 3.25% from a credit union in central iowa

 

[2forISU]

I've been quoted a 3.75 for a refi (currently at a 4.20) but I'll need a new appraisal and closing costs of 2500. I've had the mortgage for about a year and a half so I'm thinking of waiting. Given it's the same credit union, I was surprised we had to do another appraisal.

Negotiate and roll the closing cost into the loan. Saving roughly .75% is a nice saving each month(depends on the loan amount).

 

[VeloClone]

We are 4 years into our last refi (15 year) at 3.125%. Our broker says he could get us maybe 2.875% but he agrees that that wouldn't be cost effective when you factor in refinancing costs.

 

[2forISU]

And it arrived and it was a doozy.

Performance:

 

[ArgentCy]

Performance:

View attachment 65692


View attachment 65691

And? I'm not sure what cherry picked stock performance data is supposed to show. There was a recession every time. It does appear that the time to the start of the recession has been taking longer each time.

 

[2forISU]

And? I'm not sure what cherry picked stock performance data is supposed to show. There was a recession every time. It does appear that the time to the start of the recession has been taking longer each time.

That's showing the S&P, not cherry-picked stocks. If we follow history there will be a bounce-back in the stock market.

 

[ArgentCy]

That's showing the S&P, not cherry-picked stocks. If we follow history there will be a bounce-back in the stock market.

It's the time frame that is cherry-picked. Not the index. The stock market freaked out because this indicator has always been followed by a recession. I do think we could see a sharp if not incredible bounce in US stocks. This will be a blow-off top like Japan circa 1980's

 

[2forISU]

It's the time frame that is cherry-picked. Not the index. The stock market freaked out because this indicator has always been followed by a recession. I do think we could see a sharp if not incredible bounce in US stocks. This will be a blow-off top like Japan circa 1980's

That why the bottom graph shows a 3-year period, not dates. I do agree, we should see a nice bounce-back.

 

[Gossamer]

Yes, most banks still get appraisals because they are required but there are numerous and growing exceptions. Fannie Mae hasn't required appraisals under the de minimus ($250,000) I believe it was and they've been trying to raise that level to $400,000. Of course we see the requirements decline significantly just as we hit a peak in the market.

Collateral is not the only thing of value in the transactions. The borrower has always been as much or a bigger piece of the value. It's not like they are going to just let the borrower off the hook if the home declines in value.

And yes, many appraisers faced lawsuits after the 2008 decline. There were some that were awful and some outright fraud but most were minor errors. Nobody paid any attention or cared until the market declined.

If we are solely discussing GSE's, appraisals are still required for the overwhelming majority of the transactions that take place. Will that change? Yes...once they feel they have compiled enough data to do so. But that is some time off.

appraisers got sued because they were allowing themselves to be influenced to meet inflated values...thus, appraisal independence was born.

My statement about collateral was tongue in cheek...people are wildly unpredictable. An 800 credit score today can be 520 next week...so in many ways, yes, it's the primary concern in the event the borrower ***** the bed.

 

[Gossamer]

From what other posters have said, I'd push to have them drop the new appraisal. Also, I'd shop that rate. Assuming you are talking a 30yr. note. I was quoted last week 3.25% from a credit union in central iowa

an appraisal is only good for so long...so all these people posting that you get to use your same appraisal or that you don't need one do not work in the secondary market. You'll more than likely be required to obtain a new appraisal.

that rate is on the high side though, especially with those costs. I'd shop a bit if I were you.

 

[Gossamer]

It takes times to do real work. Does anyone ever complain how long it takes lawyers to get anything done? And you are paying a heck of a lot more for that job. There are lots of terrible appraisers because they don't make any money. The good ones are stopping doing any lending work and transitioning to private work.

lolz

 

[1100011CS]

Negotiate and roll the closing cost into the loan. Saving roughly .75% is a nice saving each month(depends on the loan amount).

Do people do this? Pay ~3% interest for 30 years on money you should have available? I mean if you can't come up with $2500 maybe you should rethink your financial strategy.

 

[Gossamer]

Do people do this? Pay ~3% interest for 30 years on money you should have available? I mean if you can't come up with $2500 maybe you should rethink your financial strategy.

all. the. time.

the system is set up to put people in homes, not necessarily put people in homes who SHOULD be in homes.

You want to be surprised, look at some of the government guaranteed loans that allow people to buy a home and start off with 105% loan to value...rolling in all kinds of costs.

 

[ArgentCy]

all. the. time.

the system is set up to put people in homes, not necessarily put people in homes who SHOULD be in homes.

You want to be surprised, look at some of the government guaranteed loans that allow people to buy a home and start off with 105% loan to value...rolling in all kinds of costs.

Definitely agree. The system has been developed by large banks and the NAR. Just always keep that in mind. Their goals are clearly the same and that is to get lots of transactions and at ever increasing prices.

Speaking of which the government has consented to raising the minimum. Nothing like doing this as the market is already falling. Here is a good article from the appraisers point of view. Got to love the government.

http://www.workingre.com/de-minimus-raised/

But bizarrely those most qualified to do them, licensed appraisers, are barred from completing evaluations in most states: they are only allowed in Tennessee, North Carolina, Virginia, and a handful of other states where appraisers have recently banded together to pass legislation that specifically exempts appraisals from USPAP when performing evaluations.

 

[UNI1ISU2]

Locked in at 2.875 and cannot imagine it getting that low again.

Bank of America is at 2.75 now. So I guess it can get that low and even lower again

 

[Dandy]

Refinancing from 30 year at 4.875% to a 15 year at 3.125% and should close sometime next week.

 

[cyphoon]

one thing I'm hung up on is the equity I have. I think I'm at about 20%, but I'm not totally sure

Make sure you verify that 20% would get you out of PMI on a refi. Sometimes a refi has a higher requirement (like 25%)

 

[cyphoon]

are there calculators we can play around with to see when this may be worth looking at?

I built a google sheet for analyzing a refi. Includes time to break even on the refi and overall savings.

https://tinyurl.com/yxgqx3l3