15yr Mortgage... Where to begin?
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15yr Mortgage... Where to begin?
Posted by Zephyrius on 6/24 at 12:21 pm
I think I'm ready to do this...

I last refinanced in 2003. BoA recently sold my mortgage to Everhome Mortgage. I have no idea who they are accept they are a Fannie Mae servicer.

So... where do I begin to refinance to 15yr? Any info will help(credit score recently moved over 700 and pay balance of credit card each month. No car notes)



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Posted by lsu tigerdog on 6/24 at 12:30 pm to Zephyrius
what is the balance to your mtg and if home was appraised today what do you thinks the value would be. 740 is the true magic number on a bank refi but you can with 700 and above. whats your current rate, rates have shot thru the roof over the last 30 plus days.


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Posted by Ace Midnight on 6/24 at 12:32 pm to Zephyrius
quote:

So... where do I begin to refinance to 15yr? Any info will help(credit score recently moved over 700 and pay balance of credit card each month. No car notes)


I hate to suggest the unorthodox approach, but you can just adjust your amortization schedule yourself.

Figure out what the 15 year note would be - subtract your current PI&E note from that hypothetical 15 year amortization amount, and pay that difference to your mortgage holder - with the specification, both in writing and on the check that second check is to be applied directly to the principal.

It's just crazy enough to work, and it won't cost you a dime. If your company will do a streamline for you AND you get a point or so drop, it might be worth it to do the paperwork.

Good luck.



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Posted by Zephyrius on 6/24 at 12:49 pm to Ace Midnight
quote:

what is the balance to your mtg and if home was appraised today what do you thinks the value would be. 740 is the true magic number on a bank refi but you can with 700 and above. whats your current rate, rates have shot thru the roof over the last 30 plus days.

Balance is 156k... value I would guess is 270k - 290k(comparable house same neighborhood went 305k after Katrina). I'm at 7.5% currently(I know... high).



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Posted by hawkeye007 on 6/24 at 1:00 pm to Zephyrius
current rate this morning on a 15yr refinance is 3.25%. with your current rate being so high you will probally save money with 15yr refinance


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Posted by Ace Midnight on 6/24 at 1:02 pm to Zephyrius
quote:

Balance is 156k... value I would guess is 270k - 290k(comparable house same neighborhood went 305k after Katrina). I'm at 7.5% currently(I know... high).


Forget what I said - you should definitely refi - even a modest drop to 5% will pay back your closing costs in less then 30 months - DON'T take money out and you'll avoid PMI.

No reason for you not to be in a 15-year, and, if you get paid biweekly, I would pay bi-weekly - that has taken the drama out of payday for me.


This post was edited on 6/24 at 1:03 pm

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Posted by Zephyrius on 6/24 at 1:22 pm to Ace Midnight
quote:

current rate this morning on a 15yr refinance is 3.25%. with your current rate being so high you will probally save money with 15yr refinance

Yeah I would hope so...
quote:

No reason for you not to be in a 15-year, and, if you get paid biweekly, I would pay bi-weekly - that has taken the drama out of payday for me.

That's the biggest wrench for my refi... I'm 1099 independent contractor. I have a good income history(taxes) the last 3 or 4yrs but 2012 I'm negative but average is solid for the loan amount and comparable with what I've earned so far in 2013. Wifey has consistent income history though.

In any case... should I go to "my" bank first, local broker, online?



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Posted by BayouBengal on 6/24 at 1:43 pm to Zephyrius
quote:

(comparable house same neighborhood went 305k after Katrina)


A bit old for a comparable. Find a sale within the past 12 months.



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Posted by lsu tigerdog on 6/24 at 1:45 pm to Zephyrius
the number one thing that needs to be done is to review your tax returns for the last 2 yrs., it will be averaged out to see what your income will look like. i'm a broker here in baton rouge, if you want call me anytime, no need to pull credit -225.291.7901 x 224.
secondly rates are high even on the 15 yr term, I just priced all my lenders, just for scores above 740, you are maybe looking at 3.75 and above, below 740 score you may get a little bit harder but one thing you have going for you is the equity, no price adjustment.
rates are ugly, 30 yr they are at 5% and getting nastier



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Posted by hawkeye007 on 6/24 at 2:25 pm to Zephyrius
they will take a 2 yr average of your adjusted income being that you are a 1099 wage earner. my suggestion is to stay local at first you put your info online and you will get 10 calls a day for 2 weeks.


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Posted by hawkeye007 on 6/24 at 2:27 pm to Zephyrius
note the difference in a bank(me) and the other poster with a rate of 3.75%..banks will be a lender 90% of the time on a rate..sorry OP


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Posted by foshizzle on 6/24 at 10:17 pm to Zephyrius
Rates are climbing high enough now that doing the 15 may be worth looking at again.

Bear in mind though that just because a rate is lower doesn't mean it is better if you have to pay a higher note. The sweet spot is the rate of inflation. If you are paying a lower rate than that you are losing money.

If the rate on your loan is the rate of inflation you should never pay extra to reduce the rate.



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Posted by Sigma_ on 6/24 at 10:46 pm to Zephyrius
If you are at 7.5% right now that is pretty high. Just go with a 30-year and pay it each month like it is a 15-year. The difference in interest won't be that much, but you will have flexibility in case an issue with your income or expenses pops up any time in the next 15 years.


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Posted by lsu xman on 6/24 at 11:47 pm to Zephyrius
Also important is your income to debt ratio.


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Posted by ItNeverRains on 6/25 at 7:17 am to Sigma_
quote:

If you are at 7.5% right now that is pretty high. Just go with a 30-year and pay it each month like it is a 15-year. The difference in interest won't be that much, but you will have flexibility in case an issue with your income or expenses pops up any time in the next 15 years.


30 yr yesterday was 4.75%. On such a small refi, i'd lean more towards the 15yr at the moment.

I do think 30 year moves down closer to 4-4.25, but I believe sub 4 days for conventional may have gone way of the dinosaur.

With new lending laws the 1099'ers need to learn not to write everything off if they are considering home loan/refi


This post was edited on 6/25 at 7:27 am

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Posted by DawgCountry on 6/25 at 7:19 am to Ace Midnight
quote:

if you get paid biweekly, I would pay bi-weekly


same here



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Posted by Kingwood Tiger on 6/25 at 9:09 am to Zephyrius
We've been thinking of redoing ours. Only been in the house 2 years, and have good rate at 4.5 for 30 years.

We owe 240k, but house is valued at probably 350k.



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Posted by hawkeye007 on 6/25 at 11:00 am to Kingwood Tiger
you better do it sooner than later


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Posted by Ace Midnight on 6/25 at 11:06 am to lsu tigerdog
quote:

I just priced all my lenders, just for scores above 740, you are maybe looking at 3.75 and above, below 740 score you may get a little bit harder but one thing you have going for you is the equity, no price adjustment.
rates are ugly, 30 yr they are at 5% and getting nastier


I appreciate your input as a insider, too, man. Having said what you just said, is this the beginning of the end of the "American Dream"? What percentage of people can come in and pull a 740? About 20%? And, if they don't pull a 740, how many can even afford 10% down on a $185k house, much less the mortgage payments?

I know the housing crisis and tough new laws are driving this, versus a desire to loan money, but credit scores rise and fall with the economy, so we could be looking at a death spiral for home ownership.



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Posted by Cold Cous Cous on 6/25 at 11:08 am to Ace Midnight
5% is, historically, a good rate.


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