Refinancing Again!

[jmarty10]

Re: Refinancing Again!

?????????? I thought my mortgage was with a bank. It is one of the largest (bailout)banks in America and it is the same bank that is trying to get me to re-finance. I cannot believe they are that generous so I feel there has to be a hook in it??????

Your current mortgage/mortgage note is with a bank. Is a bank or a mortgage broker (which is not a bank) trying to get you to refi? You originally said your mortage company, so I assumed a mortgage brokerage house is trying to get you to refi

 

[bruceb58]

Re: Refinancing Again!

My mortgage company keeps bugging me to re-finance from 7% to a 4% loan. Sounds good but something is fishy, banks are in business to make money so why would they shoot themselves in the foot?

Because your bank likely doesn't own the loan anymore. You may send your payent to the bank as they may service it but likely it is owned by fannie mae

 

[bruceb58]

Re: Refinancing Again!

Keep in mind folks that the only reason you should ever re-fi is to ease your cash flow.

The only time I would agree with your statement is if you are refinancing your original loan. The advantage of an original loan is that it is a non recourse loan where all refis are recourse loans.

The reason we have so many problems is that people were buying houses they couldn't afford and mortgage brokers and banks were getting people in that shouldn't have qualified. Add in the fact that people were getting loans that started at a low interest rate and then popped up after a few years caused people to not afford their payments. I am talking about fixed interest loans here with a refi.

 

[bigdee]

Re: Refinancing Again!

Because your bank likely doesn't own the loan anymore. You may send your payent to the bank as they may service it but likely it is owned by fannie mae

What the? EXPLAIN my correspondence and online contacts are with THIS bank. When they tried to get me to re-finance they said it was with them. I read the terms but I am not a lawyer. I know that mortgage loans are a commodity that can be bought or sold on the open market but I thought they had to tell you who they are being sold to. In the past my mortgage has transferred 2 times but so did the name of the bank and the contacts.

 

[QC]

Re: Refinancing Again!

I have a question that bugs the heck out of me . . . Forget brokers and fees and commissions for a minute. Ultimately someone is only getting 3 - 4% on the cash right? Someone has coughed up say $200K right? and it will be tied up for 15 - 30 years (at least that's the idea). Why does ANYONE do that if inflation is around 3%? What am I missing?

 

[HT32BSX115]

Re: Refinancing Again!

What the? EXPLAIN my correspondence and online contacts are with THIS bank. When they tried to get me to re-finance they said it was with them. I read the terms but I am not a lawyer. I know that mortgage loans are a commodity that can be bought or sold on the open market but I thought they had to tell you who they are being sold to. In the past my mortgage has transferred 2 times but so did the name of the bank and the contacts.

The bank that originally financed your loan is likely not the same bank that's trying to get you to refinance....The one trying to get you to refinance is probably the current holder of the load that you have been making (regular) payments to.....


In my case, my original construction loan was financed by the same bank that still holds my loan today. (13 years later)

It was called a "Portfolio Loan" It was never, and WILL never be sold. (unless the bank goes out of business.....but since they don't deal in a lot of (or any) loans to people that cannot pay, They probably won't be going out of business.


I also have a loan on a Condo and the original mortgager did sell the loan and DID tell me. (I think they have to)

 

[jkust]

Re: Refinancing Again!

I have a question that bugs the heck out of me . . . Forget brokers and fees and commissions for a minute. Ultimately someone is only getting 3 - 4% on the cash right? Someone has coughed up say $200K right? and it will be tied up for 15 - 30 years (at least that's the idea). Why does ANYONE do that if inflation is around 3%? What am I missing?

You hit the problem with the Federal Reserve and their Twist strategy. Of course this makes no sense. It is historic.

 

[bruceb58]

Re: Refinancing Again!

What the? EXPLAIN my correspondence and online contacts are with THIS bank.

When I refinanced last year, my loan was sold to Fannie Mae within a week. I still do all correspondence including logging into the original bank's website to monitor my loan. When I refi, the payoff info is also coming from the original bank. The original bank services the loan but does not own it anymore.

 

[bigdee]

Re: Refinancing Again!

The bank that originally financed your loan is likely not the same bank that's trying to get you to refinance....The one trying to get you to refinance is probably the current holder of the load that you have been making (regular) payments to.....


I guess I'm dumb but they both have the same letterhead and the terms list them as theirs.

 

[ezmobee]

Re: Refinancing Again!

Ultimately someone is only getting 3 - 4% on the cash right? Someone has coughed up say $200K right? and it will be tied up for 15 - 30 years (at least that's the idea). Why does ANYONE do that if inflation is around 3%? What am I missing?

Can someone also explain to me how I just got a car loan for 1.8% from PNC BANK!!??? Now from Ford I'd understand cuz at least they sold me a car, but a bank?? They can probably barely service a loan for that kinda rate.

 

[QC]

Re: Refinancing Again!

Federal Reserve and their Twist strategy

Uh oh . . . I think I just got this thread closed :redface: :facepalm:

 

[bruceb58]

Re: Refinancing Again!

Can someone also explain to me how I just got a car loan for 1.8% from PNC BANK!!??? Now from Ford I'd understand cuz at least they sold me a car, but a bank?? They can probably barely service a loan for that kinda rate.

Likely, Ford is paying the difference.

 

[jkust]

Re: Refinancing Again!

Uh oh . . . I think I just got this thread closed :redface: :facepalm:

The Fed isn't political. Discussion of the fed is divorced from political discussion.

 

[ezmobee]

Re: Refinancing Again!

Likely, Ford is paying the difference.

Unlikely. This was all through the dealer. Because I didn't take the Ford 1.9% financing I was able to get a large rebate on the car. The dealer told me PNC has these monthy specials for a weekend with ridiculously low rates.

 

[bruceb58]

Re: Refinancing Again!

Unlikely. This was all through the dealer. Because I didn't take the Ford 1.9% financing I was able to get a large rebate on the car. The dealer told me PNC has these monthy specials for a weekend with ridiculously low rates.

Maybe they make their money other ways like huge penalties for late payments.

 

[sschefer]

Re: Refinancing Again!

I have a question that bugs the heck out of me . . . Forget brokers and fees and commissions for a minute. Ultimately someone is only getting 3 - 4% on the cash right? Someone has coughed up say $200K right? and it will be tied up for 15 - 30 years (at least that's the idea). Why does ANYONE do that if inflation is around 3%? What am I missing?

Bingo ! You're right on track. Six months ago if you'd have borrowed against your equity and bought gold you'd have made a lot more money. If you sold the gold yesterday you would have been able to pay off the second and pay down the principal on the first with the profits. The resultant easing of your cash flow because of the reduction in debt service would have been much better than any re-fi being offered in today's market.

Just wanted to show ya'll that there's more than one way to skin a cat, so don't take the leap until you consider all your options. Contrary to popular belief the home owner in good standing has the upper hand in this economy.

 

[bruceb58]

Re: Refinancing Again!

Bingo ! You're right on track. Six months ago if you'd have borrowed against your equity and bought gold you'd have made a lot more money.

Anybody that borrows against their equity in their house to buy gold is a fool and deserves to lose their money. May have worked this time and in the short term gold may seem to be a good investment but gold historically has not been a good investment. Just ask all the people that did what you are suggesting in the early 80s.

 

[jasoutside]

Re: Refinancing Again!

I've been checking and double checking the numbers. Looks purdy good. I think I may pull the trigger too.

 

[dingbat]

Re: Refinancing Again!

We closed in 30 days when nobody was closing their loans for months if at all. My credit score is over 800 which made it simple plus we didn't need to utilize my wife's income on the mortgate. All it took by way of documentation was two pay stubs, some personal verification stuff/ misc docs and to prove that I had the amount of closing costs in a bank as I did not finance them.

You either got very lucky or they changed the review process considerably since you refinanced your home.

We closed on our new house yesterday. This is after it was rescheduled four times in the past 3 days due to the 2nd and 3rd party reviews now required on all conventional loans taking longer than expected. They did three appraisals, four credit checks at various times throughout the process and I had to write two different letters explaining how I could be employed by a company in MA yet lived in MD. All this for someone who has worked for the same company for 34 years, has an 800+ credit rating and put 75% down on the property.

 

[JB]

Re: Refinancing Again!

Sorry guys. The last post (now deleted) turned this into a political topic from an interesting financial topic. Nevertheless, I think I need to close it to prevent further political posts.

EDIT: After further review I have agreed to reopen. Please avoid political commentary.