Broker for Refinance?
We’re due for a refinance, as we were buying in the midst of the collapse and wound up with a bit of an odd mortgage situation – we got the major mortgage from Wells-Fargo, but then to get past the PMI levels of downpayment (nobody was offering PMI at the time, so it was either…
We’re due for a refinance, as we were buying in the midst of the collapse and wound up with a bit of an odd mortgage situation – we got the major mortgage from Wells-Fargo, but then to get past the PMI levels of downpayment (nobody was offering PMI at the time, so it was either buy without it or don’t buy at all) we also got a seller-held 2nd mortgage for a small part of the ‘down payment’ amount. That mortgage is good for 3 years and then we have a big payment to close it out, or else refinance it into a single mortgage.
Thus, the time has come to roll the two loans together (and hopefully get one of the current rates on it). Is this doable directly with the bank, or due to the complication of the seller-held 2nd mortgage would this best be handled by a broker? We used one for the purchase, and am glad we did because it got pretty dicey under the economic circumstances. How would a broker get paid on this kind of deal? Part of my concern is not paying extra fees for something that can be done ourselves, yet also getting it done reasonably painlessly.
Whateva you do ask for a no cost loan, that is..if your lookin to not payout any extra fees. The rate is a little higher, but you can compare the difference, also if you need to compare brokers go to http://www.mortgagetuneup.net
A no cost loan basicly allows the broker to barry the fees in the rate. I did these back in 2002 for family and friends. most of them refied a few years later and they were glad they did the nocost loan.
Hi,
Refinancing should not be an issue. We have rates as low as 4%. We can also offer a CEMA (only pay mortgage tax on new borrowrred monies)which will save you thousands in cost.
Ive been a wholesale mortgage broker for 10 yrs. I work with several banks and can def. help you.
Feel free to email me
vsarrica@equitysource.com
Good Luck
Different banks has different policies and their rates varies a lot from time to time that’s why it’s better to undergo some bank reviews to see which bank that fits you.
You gotta see what the banks will do, and run the numbers based on what the house will appraise for now. After 3 years (assuming a 30yr at about 6%) you paid off about 4% of the 1st loan (or about 3% of the purchase price). If it appraises for what you paid for it and they’ll only do 80% LTV they’ll loan you the same amount you borrowed 3 years ago and it won’t be enough to pay off the 2nd. If it appraises for more, or they’ll do a higher LTV you’ll get the loan amount you need.
You should do what you have to need to do to get it refinanced with rates so low now.
The 2nd mortgage was basically how we made our way up from 15 to 20%. It was recorded, I believe, because we settled it at the closing, with the bank rep present.
Was the second mortgage recorded, or just paper? Shouldn’t be an issue, you re-mortgage and take the cash out to pay it off. Tell the bank you’re taking the cash for a new kitchen or something.
Of course this all assumes you will have sufficient equity. Most banks want 20% at the very least these days…
Astral,
You might want to give my broker a call. He’s a straight shooter – long story short, our RE lawyer recommended him when our previous financing fell through two years ago, and am using him now for a refi. He pulled off the impossible 2 years ago, and got us a refi this month at 4.375 from Citi when Citi themselves quoted me at 4.875 when I called them (he gets wholesale rates or something). Either way, wouldn’t hurt to call, he’ll tell you whether he can help or not.
Eugene Lee @ Apple mortgage – 212 278 8253
Pls let him know Jesse recommended him if you do call.
Best of luck!
Jesse
I don’t think the seller-held 2nd mortgage is a big deal – a lender like any other getting paid off as part of the closing of the new loan. Brokers usually get paid an application fee from you and the rest they get from the lender. I’d contact Wells Fargo and ask for the details if you refi directly with them. Sometimes easier to do the CEMA (which avoids mortgage recording tax) with the same lender. From their website looks like you should be able to get a 30yr at 4.25% or 4.375% (of course depending on loan size, ltv, your credit, etc.) – couldn’t tell if that’s with points. If they’re not offering the current low market rates or the terms aren’t good, or they’re going to be difficult to deal with, talk to a mortgage broker.