Forum
« free marble available before 1PM Picture Framing »
February 11, 2009
Refinaning your mortgage.
My husband and I bought multi family townhouse last year. Our bank agent called us for refinaning with rate 5% from current rate 6%. Questions here
1, Anyone are qualified?
2, How refinancing fee is determined? Higher fee for house than condo or for higher mortgage amount?
3, How often refinaning can be done? negative side?
Please share info of refinance with me!
Thanks
Comments
The qualifications and process for refinancing is essentially the same as securing the original mortgage.
Your bank should be able to provide you with an estimate of the cost before you really start the process. And Bankrate.com and other sites have online calculators that will estimate your new rate and how long it will take you to recoup the cost of the process. To decide if it is worth it, just compare that figure (10, 20, 30 months etc) to how long you expect to own the property.
Posted by: fawn at February 11, 2009 5:04 PM
to answer
1. no not everyone is qualified. If you qualifed for the loan last year you are not necessarily qualified this year. You may very well be but i won't say yes unless I know your income. Better to promise nothing and deliver the world than to promise the world and deliver nothing.
2. Fees should be the same if it's a condo/1-4 family house. Cheaper if it's a coop. It's the rate that is different depending on if it's a condo, 1 family, 2 family, or 3-4 family.
3. Unless you have a prepayment penalty you can refiance as much as you like. I would advise against it as you will rack up fees for multiple closings.
The main factors you need to know when shopping for a loan are the following.
CREDIT SCORE!!!!
Value of your home. Just because you paid 800k last year doesn't mean that it will appraise for 800k this year. I know its sucks but that is the reality that we are living in. The LTV is a big factor in determing the rate, especially if your credit is not top notch.
Your debt to income ratios. 45% for agency jumbo. Upwards of 50% for conforming loan limits.
Send me and email if you want to discuss further.
FYI; Vanilla conforming rates are back under 5%. Locked a couple of 4.875% today without any points.
Posted by: Adam Dahill at February 11, 2009 8:52 PM
Hi Adam Dahill - If you return to this post and read this, can you share how to email you? I would love to discuss my refi options with you... Thanks!
Posted by: Brownstonerlogin at February 12, 2009 9:45 AM
adahill@approvedfunding.com
I can also be found on google. Just type my name in there should be multiple places to find my contact info and references.
Posted by: Adam Dahill at February 12, 2009 11:32 AM
Thank you for your thoughts!
So Adam Dahill, we better go ahead while chase bank offer refinance? I feel interest rate will be cheaper in this year, around 4.5% or less. You mean that we might not get offered later even we are offered now. We spoke to our agent and total cost is $9000 to refinance. It's lots of money for me. One of my friend is in the process of refi with chase bank. She bought condo in manhattan, and her refi fee estimate is $4000. Huge difference! My friend and I and my husband are all same credit history (excellent) and amount of mortgage is similar. So many questions for me. Adam, could you email me if you have chance?
characo70@hotmail.com
Thanks
Posted by: momo at February 12, 2009 11:36 AM
Double check all your costs!
The 'fee' you've been quoted might only be the bank's administrative fees. Look up the closing costs from your original purchase last year. You will pay most of these again.
Make sure you have included Title Insurance and Mansion Tax if your loan is big, as well as any origination fees (sometimes 1% of the loan) payable to the lender, and any points (pre-payment) required to get the rate you want.
Posted by: vicki_vale at February 12, 2009 1:21 PM
Post a comment
Please be patient while your comment is published. It may take a moment.