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April 2, 2009
1% penalty on 2 family?
I'm looking into refinancing my loan on a two family brownstone and my mortgage broker told me that there was a 1% two family add on from Fannie/Freddie which bumps the beast available rate up to a little over 5.6%. Has anyone else run into this? We're looking at a 30 year fixed regular conforming loan but that added 1% is putting the kybosh on any real savings since our current loan is at 6%. Any way around this to get a better rate?
Comments
We have a similar situation. Our mortgage is through Wells Fargo and our rate is 6% on a 30 year. Fannie is killing the multi-family owners (we wouldn't have these problems if we had a single family). Rates aren't moving on them and Fannie is trying to get the money up front; forcing homeowners to buy points in order to lower the rate. I have found that the rate is generally 5.375% but we have an option to go down to 4.875% if we pay two points. I wouldn't do this but if I stick with Wells we don't have to pay the city's 1.8% mortgage recording tax again. I can use the savings to buy the points.
Keep watching the rates - I can't believe you have to go to 5.6% on your multi, but I'm not sure %5.375 is worth it.
The other thing is, Wells is requiring a 75/25 LTV on our Brooklyn 2 fam. It's a difference maker depending on your equity.
Posted by: BrianR at April 2, 2009 10:46 AM
Here is my guy...Doug Porter - Wells Fargo -
(877) 790-1606 x5602 Toll-free
I have a 2 family also. I locked in at 4.75 about 10 days ago(?) and just need to pay a point which will be built into mortgage.
K
Posted by: HurricaneKate at April 2, 2009 10:52 AM
Here is my guy...Doug Porter - Wells Fargo -
(877) 790-1606 x5602 Toll-free
I have a 2 family also. I locked in at 4.75 about 10 days ago(?) and just need to pay a point which will be built into mortgage.
K
Posted by: HurricaneKate at April 2, 2009 10:52 AM
I had called AStoria Federal(My mortage lender) a week ago just to test the waters and they quoted me 4.87 on my 2 family with 1 point for closing costs
I guess it also depends on other factors like credit score and how much of a mortage you have....
but over 5.6% seems high to me
Posted by: gemini10 at April 2, 2009 11:58 AM
Yes, Fannie has a 1pt adjustment to the price of the loan for 2-4 units among other price adjustments such as .75% to the price for condos over 75% LTV
Send me an email and I will give you a reliable quote. 5.6% sounds a little rich.
adahill@approvedfunding.com
check out this link for a list of all the price adjustments for Fannie Loans.
KNOWLEDGE IS POWER. Study this guide before you go speak to a lender/broker
https://www.efanniemae.com/sf/refmaterials/llpa/pdf/llpamatrix.pdf
Posted by: Adam Dahill at April 2, 2009 12:07 PM
I am in process of refi now with Sovereign Bank, 4.375% and .25 pt. on 3 family with an LTV now of about 75 or so.
Posted by: bmfesq at April 2, 2009 1:48 PM
Thanks for all the info. Crazy that Fannie/Freddie are penalizing multi family owner when the government is doing all it can to bring rates down to encourage lending. Sounds like it might be worth shopping around a little. I'll post again if I find any great deals.
Posted by: ralph gardens at April 2, 2009 1:58 PM
Assuming all these quotes are for conforming loans ? i.e. non jumbo
Posted by: 10thStreetReno at April 2, 2009 6:12 PM
does anyone know if these rates apply to jumbo mortgages? or: is there *anyone* who offers jumbos with rates below six percent?
thank you.
Posted by: chelseagirl at April 2, 2009 8:58 PM
There is no way that the quotes are for Jumbo. If you need a Jumbo you will pay the price and Obama does not care about rates for people who are Jumbo.
Posted by: brickoven at April 3, 2009 11:06 AM
You are all getting 75% LTV????
The best I can get is 55%....Maybe I need to call your people!
Posted by: tomgee at April 3, 2009 3:44 PM
Hey bmfesq, who did you speak to at sovereign? Thx
Posted by: wjcohen at April 13, 2009 3:52 PM
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