How low can the rate go???
UPDATE: If you are looking to refinance, be sure to keep an eye on the National Foreclosure Settlement. It should be rolling out soon and you might be able to get a good deal. The qualifications are different than HARP 2.0 so you need to see which one will better for you.
I refinanced with Quicken Loans and got 4.25% on a 30 years fixed rate mortgage. My LTV was around 100% and I didn’t have PMI. If your bank won’t work with you, check with Quicken Loans to see what they can do for you.
It’s amazing, but mortgage interest rates keep dropping. If you are stuck with a higher rate, now is the time to refinance. The Home Affordable Refinance Program has been revamped to include more home owners and many more people should qualify for refinancing. I called around and see if we could refinance under this program and while we could, the numbers are not working out.
First let’s go over HARP 2.0
- The mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac. You can check if they own your loan by following the links.
- The current mortgage must be closed before June 1st, 2009.
- No underwater limit. Under the previous program, the home loan to value (LTV) ratio must be under 125%.
- The loan must be current with good payment history over the past 12 months.
- Eliminating appraisal and underwriting so home owners do not have to pay those fees. I will have to check on this with the bank.
- If you don’t pay PMI (mortgage insurance) now, then you won’t have to pay PMI after refinancing.
I verified that our loan is owned or guaranteed by Fannie Mae so we qualified for HARP. Both of our credit ratings are excellent and we don’t have any consumer debt. Our home’s value is about the same as the loan amount right now since the price dropped so much. We are not paying PMI at this time and won’t have to pay PMI if we refinance under HARP. Our mortgage is currently a 30 year fixed rate mortgage @4.75%.
I called CHASE and after 30 minutes I got the bad news. The best they can offer us is a 30 year fixed rate mortgage @4.625%. The only thing we have to pay out of pocket is the $400 application fee. However, the refinance will cost $3,000, but they will roll that into the principle so we won’t have to pay out of pocket. I was a speechless after I heard this offer. Seriously? A 0.125% saving? That is pathetic. I see most 30 year mortgages are now at less than 4% interest rate.
I checked online and most lenders are not participating in the HARP because it is voluntary. With LTV of around 100%, the lenders do not want to take the risk. The banks who are willing to take the risk charge more points and fees and makes the loans not worth refinancing. I’ll call a few more places and see if I can get a better deal, but I am not optimistic. All the loan officers are inundated with people trying to refinance so they don’t even call back. I’ll probably have to drop by and make an appointment.
If we can refinance at around 4% with minimum out-of-pocket fee, then it would be worth it. Otherwise, we’ll just have to keep our 4.75% mortgage. Alternatively, I can put our $50,000 reserve fund into the loan and get it under 80%. This should make it easy to get the best rate and points. That is our emergency fund and I really think it is a bad idea to throw this into the mortgage. We don’t even know if the home price will start to recover in 2012.
Have you refinanced under HARP? Were you able to get a good rate? Which bank should I talk to?
{ 140 comments… read them below or add one }
My family is in the mortgage business and you are exactly right that banks aren’t participating. Honestly I don’t think many people are going through with the HARP program because the push down fees from Fannie are too high for banks to justify the business. I would just go after a traditional refinance if you have some value and forget about the HARP program all together.
Our LTV is about 100%. We don’t have any equity because the price came down so much. If I can get a regular mortgage, I would have to pay PMI and that would make the payment go up again. If you have any recommendation on a particular mortgage broker, please share.
I’ll continue to search for a good option. Thanks for your comment.
I qualify for the Harp 2.0 program and I have found that shopping for a refinanace rate that Quicken loans are charging a 1/4 point for a 4.25% 30 year conventional total costs $2,600 and they don’t do an appraisal but rather a PIW (property inspection waiver). They were pushy and wanted me to lock in a rate that day. I talked to Guaranteed Rate Inc. and they offer the same rate for free. They said it’s a rebate kickback. I could pay points to get an even lower rate if I wanted to. I’m currently at 6.25% so a 2% reduction which is a $250 a month savings for nothing is a no brainer.
Am I missing something? What is the point of this program if the banks aren’t choosing to cooperate?
I think the big banks are offering the programs, but they added on points and fees so it’s not worth it if your rate is not too bad. I don’t think the smaller lenders are taking chances.
It would be a lot better if the government makes the bank offer a better rate. We did bailed them out!
Even the big banks aren’t doing it with a lot of things, like if you have PMI or if your LTV is over 125% based on what I have been running into this week…… I don’t get the point of it if no one will offer it.
I know a couple in your position whose loan is serviced by Chase. Chase sent them an unsolicited letter, offering to refinance at a similarly above market rate with lower fees. Although the loans are owned by Fannie, the servicers apparently being allowed to charge whatever they want in fees and rates. In my friends’ case, they were at 6 percent, so they decided to do it.
For reference, I am looking to refinance my primary residence with 50 percent equity. I use a broker I have used for 10 years and he shops the loan to all the major lenders. The best 30 year fixed rate on Friday was 3.875 percent with no points. There was no upcharge to lock the rate for 30 days. However, because that 0.5 percent upcharge on Fannie loans is about to kick in (the upcharge that is supposedly financing the payroll tax holiday), the 45 day lock is an additional 0.5 percent.
Mortgages should always be comparison shopped. My broker is routinely lower than the retail rate you get when you walk through the door of your local bank in both rate and fees. There are good brokers and bad brokers out there. Ask around among your real estate-savvy friends for referrals.
I need to find a good mortgage broker. I’ll ask around and see if I can get any recommendation. The problem with our mortgage is the falling price. We have 0 equity right now so can’t get any regular loans. I don’t want to refinance if we have to pay PMI either.
Thanks for your input. 3.875 is pretty good. I’ll have to read up on the .5% upcharge from Fannie Mae.
From the timing (2007) and your numbers, it looks like you bought your house for around $325,000 with an 80 percent mortgage of around $260,000. If that’s the case, your principal and interest payment is around $1,344. If you threw the $50,000 in and got a rate of 3.875 percent, your payment would drop to around $940.
In your shoes, I might consider doing that IF I had some reserves left and I could rebuild the $50,000 fairly quickly. I would have to be comfortable taking a risk on repairs and maintenance on the rentals until I had replaced my reserves. Then I would throw everything at the cash reserves until I had $100,000.
I don’t think that’s a good use of the $50,000. Anyway, I know the Mrs. will disagree with this.
The 0.5% upcharge has taken place but what that means is that it costs 0.50 points to get the same rate today that you would have gotten yesterday without the fee. If you translate it into the interest rate it typically equals about a 0.125% increase to the interest rate in order to avoid the points. Hope that makes sense.
I’m sorry to hear that you didn’t qualify for a lower rate. What they offered is certainly discouraging given what is being advertised. Additionally, it sucks that you had to pay $400 just to find out the refinanced rate is not much lower and will cost you $3000 to do the deal. Ironically, it is kind of cool that I’m complaining about a mortgage rate that is less than 5%. What I am saying is that overall, these artificially low mortgage rates are awesome relative to what they have been in the past.
Anyway, I feel you pain and would not want to eliminate my EF either.
We didn’t pay the application fee yet. At least they gave us the rate before we applied. Many places just want to pull our credit even before giving a rate. I say no those guys. Heh heh, that’s true about the 5%. Our rate of 4.75% is already better than what we have ever seen. I guess I am a complainer at heart.
We are on the same boat as you are. Our current mortgage rate is 4.75 as well. I haven’t started shopping for a refinance rate , but soon will.
That’s too bad they didn’t play ball, but you aren’t in too bad a shape at 4.75%. What’s the break-even with $3,000 rolled into the loan @ 4.625%?
I haven’t calculated it out, but I’m sure it will take at least 3 years.
4.75% is still pretty awesome! Even if you can’t get much lower, that’s still nothing to be depressed about!
I don’t know the details of your house but putting a portion of your emergency fund might not be a bad idea if the payback period was reasonable. Given that your fund is 50k or so, you could take a portion of it and see how long it would take to recoup that portion out of the lower payments you would be making. Having lower expenses when you go into retirement will make it a LOT easier to STAY in retirement if something does happen.
I just hate leaving anything on the table.
If I put 50k in and lower the payment… It will probably take almost 10 years to recoup that with the smaller payments. It’s not a good use of that fund.
RB40, you would get a better rate even without HARP. Try other lenders as well.
Since the LTV is around 100%. I can’t get a regular mortgage.
RB40, MoneyCone is right. I am in the same boat as you where my LTV is around 100%. However, I was offered a refinance with 4.2% by a reputable, small mortgage business in the area. I too had no luck with the big boys like Chase, etc. Maybe try calling a few of the smaller outfits. I start my refinance process this Friday. Fingers crossed on that official appraisal!
I’ll try to find some smaller outfits. It seems most of the smaller places are not willing to lend. Do you have to pay PMI with this refinance? That’s one of the sticking point for us.
Thats a shame that this program is basically useless for the people it was designed for. I feel like i’m in for a sharp learning curve when I buy a house
“this program is basically useless for the people it was designed for.” Often the case! I’m still a firm believer we are in for another correction up in the great white north. To me the housing market is too much of a crap shoot right now.
I tried refinancing, but my mortgage is so small it did not make sense. I was even willing to take a 5 year ARM at 2.99% because I could pay off my mortgage in less time than that. I am glad I do not need the refinance.
Yeah, you can just pay it off if you want.
I had the feeling that people jump in to get you refinance. Don’t know what’s LTV though. Hope to learn all in time.
LTV is loan to value. How much you owe on the place divide by the value of the home. Since the value came down so much, many people LTV are way above 80%. I think 80% is the level that will get you the best rates, but I’m not exactly sure.
It’s a shame they wouldn’t lower your rate more than .165%, however, 4.75 is nothing to sneeze at. Still a good rate.
I’ll check around with other banks. I think I can get it down to 4.25%, but that is still border line.
I called Navy Federal Credit Union. They wanted 5.25% refi with my 160 %underwater ratio. Harp 2 is supposed to allow underwater mortgagees to take advantage of todays low rates (3.88%). Told Navy Federal “no thanks”. Understand President Obama is going to announce some changes to HARP 2 before the end of January. Will wait to see what he does.
That rate sucks! OK, thanks for the heads up. I’ll keep an eye out for President Obama’s announcement. Maybe that will help all of us.
Paul, I had the same experience with NFCU. They wanted to charge $8,000 in closing costs and an appraisal, for another $450, was required. Our local credit union approved us for HARP 2 with a 4.1% rate and $1600 in closing costs BUT as it turns out our loan, although it is a Fannie Mae, is not eligible. NFCU touts that they never charge mortgage insurance but, to our susprise, our loan does indeed have what is called “lender paid mortgage insurance” on it which makes ours — and probably all such NFCU loans — in eligible for HARP 2. Ironically, if there was mortgage insurance on our loan that we paid each month then we could refinance. I am so done with Navy Federal (I mean I wish I could be!!).
I didn’t know the specifics of the program. Thanks for the update. I like the fact that underwater limits are gone. Stinks that more banks don’t participate, but I totally understand why. Would you participate if you owned a bank?
Of course I would participate. I would be grateful to the tax payers for bailing me out and by refinancing the bank gets refinance fee AND a better chance of getting paid. Home owner with underwater loans does not really want to pay mortgage and are looking for any excuse to skip out.
I am surprised you didn’t get a better rate in this environment. It is disappointing that banks do not participate in this program as much as they actually should! I guess banks are being well… banks.
Hi, I’m a mortgage lender and I think you may still have a chance. My understanding is that the big banks (Chase, BofA, Wells, etc.) have access to the new HARP guidelines already. For most of the other lenders and brokers out there we will not be able to offer the program until March. Fannie Mae and Freddie Mac are updating their automated underwriting systems to accommodate the new changes. I have spoken to a couple of Bank of America loan officers and there is a chance that they are simply taking applications at this point also and that the terms you were offered were under the old HARP guidelines. My advice would be to check in March with a broker or direct lender to see what they can do. Typically you will be able to find a better deal and a more knowledgeable mortgage professional. The guys at the bank don’t process any of their own loans and they don’t have much incentive to get your loan done unlike a commission only mortgage professional.
There is a chance that the rates for this program will come in a little bit higher than a conventional refinance on a property that does have equity. I will not know for sure until we actually have access to the program in March but it is not uncommon for interest rates to be pushed up for higher risk loans and there is certainly a higher risk on a property with no equity. As for the fees, $3,000 is pretty typical to cover closing costs on any loan. Sometimes a lender will do a no cost loan but that just means that you are getting a higher interest rate than you would be getting if you chose to pay the fees. A good lender should give you a couple of different rate/fee options.
What I’m trying to say is don’t get discouraged yet, there may be some help for you in a couple of months. I’d be happy to answer any other questions you may have too. Good Luck on your quest to retire early, I’m going to have to check out more of your blog, I just caught this post on Twitter. Also, I have a blog that I’ve started recently that talks about different topics related to mortgage and real estate, please check it out at OpenMortgageLA.com
Thanks for your comment. I’ll keep my eyes open for the upcoming changes. If we can lower the monthly payment by $200, we’ll pull the trigger.
I don’t qualify for HARP simply because my mortgage is not with Freddie or Fannie. And I can;t refi into one of their loans because in the development I live in, the condo association is not FHA approved. I’m stuck with an interest rate over 6% and can do nothing about it because my LTV is 100% because of the drop in prices.
From my understanding after talking with a handful of lenders, is that outside of HARP, no lender will refi you unless you have at least 5% equity in your house. Added to that, the rates you see advertised, 30 yr fixed for 3.XX% assumes excellent credit, and at least 20% equity. That is why you are offered rates in the mid 4′s. You are a higher risk and as a result, the interest rate is higher. I was told even though my credit is excellent, if I had 5% equity, my rate would be 4.5%. The point of all of this: always read the fine print in advertisements.
Sorry to hear that. The Freddie/Fannie requirement is tough on many people. Hopefully they can change that somehow.
The government is in control of Fannie and Freddie but not the mortgage backed securities that hold so many of the loans out there that were closed prior to the meltdown. In all of this political discourse going on right now Fannie Mae and Freddie Mac are made out to be the bad guys but in reality, they always held a higher standard for borrowers than the Sub-prime and Alt-A market that was funded by the mortgage backed securities. Fannie and Freddie did relax their guidelines during the mortgage boom in order to be competitive with the private money loan providers but the true culprit is the politicians who deregulated the mortgage industry opening the door for the mortgage backed securities. If Fannie and Freddie are shut down it will cause another housing crisis without question.
After today’s news, it looks like mortgage rates should be low for awhile. No raise in the fed rate until 2014! There is a big middle finger to savers everywhere eh? Gotta love free money.
Not quite free, but still pretty nice.
You can buy more properties to take advantage of the low rates.
Ok. Read your article. call Quicken Loans. I called all thses banks of America but not sure you understand this, they dont care!!! My lender was Chase but I didn’t even call them but instead called Quicken under old HARP (did 125%max) and reduced my drate from 6.3 to 4.3.
You can call any lender to get HARP 2.0 done but for 2.0 you need to waits until March 2012.
I called Quicken loans and they wouldn’t give any quotes unless I give them my SSC. I’ll keep them as a last resort. I have a few more contacts to try.
i would call quicken, ranked #1 by JD Power and has an a+ rating with the BBB. Every company needs your SSN to pull credit to see what you qualify for, this should not push you away. Call Quicken, they just refinanced my parents and closed in 12 days under HARP
I am working with Quicken. They are very fast, I am impressed.
Even with Harp 2.0 Quicken told me they won’t refinance unless the LTV is 125% or less…
I am an Illinois loan officer and can personally tell you this program has helped a lot of clients. Typical closing cost are about $1350 being fair and basing this off of my averages and yes big banks do charge more their a retail bank and have tons of overhead, I am a broker and have been since 2003 and do very well. You have to keep in mind the rates you see advertised on the TV, Internet, or even the radio are the best rates that are out there, most likely paying costs as well. Those loans advertised are typically loans with 30% or more in equity, and 740 and higher on FICO score – it is out there but not for the majority. Streamline programs are not getting these rates, the higher the “risk” the higher the rate. low credit+ low equity =higher rate, its been this way since Fannie and Freddie Mac imposed “risk based” pricing years ago. I have done several HARP refinance loans, so banks are doing them – yes since the beginning. Also this new 2012 HARP is supposed to release the loan to value limit but also please keep in mind banks are the ones lending money not the Gov. I don’t charge an application fee either – and by the way most of the places that charge an “application” fee – ask them what that actually is, Ill almost bet its used for appraisal. if your in Illinois and want to know if you can do anything, ill let you know for free. email me jon@smartmtgs.net Good luck, Jon
Thanks for your input! I’ll ask around more.
I’ve received several ‘urgent’ unsolicited refi offers from Citi – my current loan servicer. First one was in January – offer good until 01/13/2012 – rate was somewhere around 4.375 I think (30 year fixed.)
Received another one from them today – offer good until 02/02/2012 – 3 days away. No hassle refi – just send in the paperwork.
Rate is 4.875 (30 year fixed)
My current rate is 5.75 – been paying about 7 years.
I think these big banks are trying to get people locked in to a HARP 2.0 refi before the smaller banks are able to get involved and start competing at the lower rates. The smaller banks can’t get involved until the auto-processing aspect is available in March, from what I read. And you can’t refi twice via HARP 2.0.
So, if I were to get my auto-refi through Citi right now for 4.875, I’m then stuck and can’t refi again through it once the smaller banks start to get involved in March.
So I’m holding off looking until March, when more lenders can start competing.
I was also under the impression, but fact-check this if important, that banks aren’t taking on a higher risk by a HARP 2.0 loan – they’re backed by the govt. right – so where’s the additional risk, to them?
I have a feeling the risk to the big banks is that people will start to have more options in March, and will then refi with the smaller banks with lower rates. And that’s a risk they don’t want, so better to offer a little bit lower rate than they have now, and make it easy. But if I can get a 4.0 in March/April, from a smaller lender, makes sense for me to not take this quick/easy offer from Citi at 4.875. I think they’re just looking for the people that don’t look into the details. But isn’t that what got them into the trouble in the first place by taking advantage of people that don’t look into the deails and understand what they’re getting?
You have the right idea. 4.875% is well above market right now (I’m a mortgage lender). If the program has similar pricing to the initial version of the HARP program you should be able to get a rate in the low 4% range. March 17th is the date that this will be available to the smaller institutions.
I got the same offer from citi 4.875% no cost refi for our underwater mortgage. I decided to talk to their regular sales/broker and got it down to 4.5% with closing cost rolled to the principal–still under harp guidelines. We are coming from 6.5% 3 1/2 years ago. So 2 points down is good for us. My cousin in Berkeley has equity and refi for 4% so I figured that .5% is not bad for underwater no equity loan. Anyways, we just got approved by the underwriters and will be closing within a week or so. I am not sure if 4% is realistic for underwater mortgage like us. Maybe 4.2 or 4.3 is doable but .2 or .3 of a point may disappear if you go to a different bank that may charge higher closing cost. Check the reissue/revamp rate discount from your title company.
I just put in an application with my current lender (GMAC/ ALLY). They are offering me under HARP 2.0 a 4.625% 30 year fixed on my $290,000 mortgage in NJ with net closing costs of $1,570. Since I’m currently 6 years in on a 5.75 % 30 year fixed, I think I’m just gonna take it. Should be easier and cheaper to go through my current anyway. I think?
Did you try Quicken Loans? They gave me 4.25% 30 years fixed. That’s much better than Chase.
As a lender myself I’d advise against the loan at 4.625%. That rate is way too high. You should be seeing rates in the 4.25% range like retirebyforty received.
Just wanted to caution all about what all the big guys are doing right now. My neighbor was also sucked into a refi by GMAC for 4.99%. I think all big guys want people to refi before HARP 2.0 really starts and lenders start competeing your refi. I my self will wait. 4.625% is not for the smart guy!
Talk to your bank again. The National Foreclosure settlement just came down the pipe. I got a mail from CHASE about a no cost refinance @ 4.38%. I would have taken this if I heard about it 2 weeks ago.
Just got quote from Quicken Loans for 4.50% on a 30 yr. with closing costs not including escrows of about 3K. Told me I have excellent credit and am easily within 125% on my current loan. The problem I am told is that because my loan is with Freddie Mac I can’t get a lower rate. If it was Fannie Mae I would do much better. First I’m hearing of this one. This is a little lower than 4.625% I’m offered from my current lender ( GMAC) but double the closing costs. Makes one want to hold off until some facts can be found somewhere.
In my opinion, maybe you can hold off until you find out what GMAC has to offer with the National Foreclosure Settlement deal.
Chase quoted me 4.625% about 3 weeks ago, but now they are offering 4.38% with no fee. That’s pretty good.
Maybe GMAC will roll out something similar. Good luck!
Thanks. Good luck to you as well.
On Feb 16, I received a Good Faith Estimate from CitiMortgage for 30 yr @ 4.375%. My loan is with Fannie Mae. My credit is only 660. My LTV is roughly 110% at 140K. There is a $400 fee and closing costs are quoted at about $2,800 from what I can understand. My current rate over the last 4 year is 5.625%, so this isn’t great but better than what I have and it’s acceptable if there are no surprises. Heavy customer services challenges with Citimortgage. It has not been pleasant. On Wednesday, I was on hold for exactly 3 hours and 16 minutes to get to agent able to process my request for a HARP-2 refi…a new life record for me! It was interesting that they denied me within 2 minutes of running my credit until they learned I had a 401K that was higher than the value of the loan, whereby I was then magically accepted within 10 seconds. hmmm. My sister in law is a broker and feels this rate is high and felt I should be getting 3.875% as one of her customers got this rate this week. She was the one who told me about the HARP-2. Comments/advice?
3+ hours of waiting on hold is ridiculous. That’s why everyone hate the big banks.
I think 3.375% is not bad. Is it a no fee refinance? That would probably make it worth it.
In my opinion, you should wait to see what they can offer you with the National Foreclosure Settlement. I heard it will take 3-6 months to roll out so keep a close eye on it.
I couldn’t get 3.875% from any big banks and went with 4.25%. I think the big banks won’t give people with high LTV the best rates. Good Luck!
Hi RB40,
Did you try aimloan or amerisave before going with quicken? Both seem to offer great rate (4% or less) for 30 year mortgage if ltv 125%. Wells Fargo is offering 4.5% (harp 2.0) for 30 years with no points and about 3k in closing cost. FICO > 800. Wondering if it would be worth waiting for March 17.
That’s pretty good. I didn’t try aimloan. I should have made sure.
I think waiting a bit to see how the national foreclosure settlement works out is a good idea.
Wow, I am so happy I stumbled upon this blog post. I have been trying to find out how to get refinanced under HARP 2.0 and thought I was doing something wrong because I am having so much trouble. First called Wells Fargo and they were waiting for guidelines and said they would get back to me (was in Dec), then heard that they had gotten guidelines and would let me know soon and I could apply for it (this was in late Jan), and now the latest is that they are servicing loans already serviced by Wells Fargo for HARP 2.0, but not others like mine until March…. tried calling Citi today and never got through and my phone died before my hold time was over. I guess I will keep looking around and checking other banks to hopefully make this work. Thank you all for all your updates! I feel better that I am not alone in the troubles….
Glad you can join the party!
Did you hear back from Wells Fargo? They should have a better deal now with the National Foreclosure settlement.
Keep working at it and you should be able to get something in the low 4% at least.
Last I heard from them (about 2 weeks ago) they said I would have to wait until March to be able to apply for the HARP 2.0…. What is the National Foreclosure Settlement?
Take a look at this follow up post for more info. Wells Fargo is one of the 5 banks that settled.
http://retireby40.org/2012/02/national-foreclosure-settlement/
My loan is with WF and Freddie Mac. It started out at $560K (80% LTV but with 10% on a HELOC so really 90%) at 5.625 five yrs ago now pd down to $519K. They are offering me 4.25% for 30 yr fixed and 3.25% for 15 yrs fixed but with about $5K in closing costs so loan would now be for $525K. House now maybe worth $600-650K down from $700.
but even though I had been considering large prepaid principal pmts towards the HELOC just to get rid of it, I ran the numbers and better to get the 15 yr at 3.25% and pay just some extra towards HELOC – total pmts stay the same but home is then free in clear in 15 yrs
They are charging me for an appraisal and asking to run credit report which makes me think they are not really doing it as HARP 2.0. 15 yr pmts slightly higher than current pmt. They would not wrap in the HELOC which is about 85K at 8.375% (!!!) for 25 more yrs
I am debating if it is worthwhile to shop around. My credit score is probably pretty good but very nice lady at US Bank who I called before WF said probably better deals with current mortgage holder since decline in value of property and original lender can do higher LTV.
Also wondering if I should just sit tight and wait for mid March. If I went with the 30 yr, I would save about $600/mo so it is a little hard to sit tight and not just pull the trigger. $5000 to redo a mortgage that they already have a < 5 yr old title on with a payer who has never been late. I guess it is the LTV?
Some people reported that you can get better rate with Fannie than Freddie Mac loans. I’m not sure why the difference.
If they are charging you an appraisal fee, then you’re probably not in the HARP 2.0 program. You might want to wait until WF rolls it out. They seems to be a bit behind Chase.
I think credit check is still a normal part of refinance.
IMO, I would wait at least until mid March to see if WF comes up with a better deal for you. Chase finally gave me a no fee refi, but it was too late since I already signed up with another loan. You shouldn’t have to pay more than $3,000 to refinance, but maybe it’s because your loan is jumbo. Good luck!
House is in Hawaii so not jumbo but still conforming
. WF told me that if the loan is Freddie Mac, you can’t do the HARP 2.0 with any other bank than the originating one (?!?) I had called Quicken Loans and the kid (sounded like one) I talked to did not seem to know what he was talking about so I just said thanks but no thanks. WF said 20 yr loan is 3.875 – I might end up doing that one. They keep swearing to me the fees are estimated on the high side to avoid bad surprises and $1900 is budgeted for title insurance – I was hoping to use original title company so it would be a reissue and could be discounted some – this seems awfully high. Have to wait til we go back so I can look at old purchase paperwork and see what original title insurance cost. It’s helpful to see the real world quotes other people are getting
I don’t know if things are different in Hawaii for some reason but here in California your title insurance for a refinance would be closer to $900. Keep in mind that title insurance is cheaper on a refinance than it is for a purchase. It is also something that you should be allowed to shop for if you choose, just let the loan officer know that you would like to do that. The $7,000 in closing cost does not sound too bad for the rate you are getting at that higher loan amount. People can be very against paying points but if you plan on keeping the loan for the long term it usually makes sense as points lower your rate. Good luck.
Bill Clifford
Loan Officer
Open Mortgage
Getting cranky with WF now.
I locked into a 3.375% 15 year a few weeks ago agreeing to the stupid $7000 in closing costs (somehow going to go from $518K current payoff amt to $526 on the loan so I guess there are probably even more garbage fees). They said with Freddie Mac HARP 2.0, you can only go with current servicer and the rate seemed good esp in light of the fact that my credit rating has plunged since having a dispute with a merchant and refusing to pay the credit card the disputed amt unless I win the suit against the merchant (interestingly enough, WF told me lower credit rating just increases interest rate on 30 yr loan, not if you decrease rate term to 15 yr). (yes I know, not a smart move but I tend to be a who cares about credit rating, I’m right and will just pay cash if I have to though I guess I do need credit when it comes to these sums)
Now that the the loan has gone thru underwriting, the loan processor sends some boilerplate form that says how happy they are to do business with me and loan amt with 4% interest and no term specified (plus asking for some details incl re: dispute with cc/merchant). I have left 2 messages on phone for loan processor asking for clarification on term, rate and fees and all they have done is resent the same boilerplate form. In retrospect, I wish I had contacted my previous mortgage broker in HI to work with rather than calling the 800 number despite the time difference as she was great 6 yrs ago when I bought the place – I just never thought about it. They can’t change the rate once I have a 90 day lock, can they? I mean if the 4% is for a 30 year, I’ll take it but not for a 15 yr.
Plus it is getting hairier b/c although the place is what I would call a single family home, because the land was not subdivided but CPR-d, it is considered a condo for finance purposes and has changed from my primary residence to a 2nd home 2 yrs ago.
Anyway, not really looking for any actual answers though if anyone has input, I would appreciate it. I have definitely found that hearing details on other people’s experiences is very helpful in gauging if you are getting screwed or its just biz as usual when dealing with the big banks. Knowledge is power!
Thanks all
And was back in HI and found old title policy which only cost $1100 for both lender and me for original issue as opposed to the $1900 they are quoting for lender only on the refi. Gave the lender the old title co. info so hope that helps on closing costs.
My wife and I were finally able to use the HARP 2.0.
We went through Wells Fargo. Our original loan was through B of A.
The rate we got is 3.875%. WOW!!!!! Very excited about it. Our original loan was at 6.125%. This will save over 660.00 a month. The total fees were close to 7,000.00 which I beilieve we will be able to roll into the loan. It seems like a very high fee to me, but we make it up in less than one year.
I tried calling numerous banks back in October 2011 when HARP 2.0 was supposed to magically come available. Like eveyone else, I kept getting told to check back later. Something to do with the Fannie May And Freddie Mac computer system. I was begining to think it was just a stall tactic to wait for rates to rise. Looks like I was just being paranoid.
We have the loan documents to sign right now, with the rate I talked about above. The fee does seem high though. Perhaps shopping around some more could have prevented that, but we trust Wells Fargo, and we know the loan officer.
Looks like they charge you for points to bring it down that low. Or are you border line to the jumbo loan cut off?
Congratulation! The fees is pretty high, but it’s worth the saving.
3.875% is really nice. They probably purchased some points to bring it down.
Gary – Is it a 15 year term? or 20? 0r 30? How many points are you paying? And what’s your Loan-to-value? My understanding is rate depends on LTV. If LTV is close to or less than the value of the house – rate is better. if LTV is >125% rate is higher (4.5 % for me for 30-year term).
How about the homeowners that the loan was sold to “Seterus”??? we have been
knocking the doors of all banks, and even having Fannie Mae on our side, no bank
want to refinance. We have banks before but they sold the mortgage to all this collection agencies, Who is behind this…. so we keep holding the cement slab so all the
people that are going on forclousures, or perhaps taking advantage of the bad economy
go through it and we keep paying but there is not hope for us. Stock with 7.25 interest and an upside down home in Florida (:……… is HARP 2.0 good for me????
We have Seterus too (due to our loan being sold to them), and are having such a hard time finding a refinance through harp 2.0, or anything…… still working on it…
I have Seterus and am about to refi under HARP 2.0 (when the program starts) with Quicken Loans. I’ve already got my loan number and everything, just waiting for the program to get started to get a final rate & fee quote and go from there. I cant start early because my LTV is above 125% so I have to wait for the software Fannie Mae uses (called Desktop Underwriter) to be updated which is supposed to happen this weekend upcoming weekend (March 17-18).
I’m also trying to get quote from other banks but its difficult because they all want me to call back after the software is updated, but they’re going to have tremendous hold wait times then.
Thanks for the info, I will have to look into Quicken!
I was told by Quicken yesterday that I wasn’t eligible because my LTV was over 125%, have you heard diffrently.
No, they called me back today saying they cant do > 125% LTV (which was different than what I had heard back in Feb when I started the process).
They also said that they’re slowly rolling it out, you might want to call back every two months to check if anything has changed.
I was told that I could refi with Quicken on my loan with Seterus and then they denied me because my LTV is above 125%. I can’t get refinanced anywhere else because of the PMI issue. I am so frustrated. Any advice?
I am in the exact same situation. It is so frustrating. My next step is calling the housing counselors at the Hope line and going to see if they have any advice to share….
Keep looking! I was able to find two regional mortgage companies (both based out of California, but are licensed in many states) that would do my HARP 2.0 refi with LTV > 125%.
I need advice. I spoke of BofA about HARP 2.0 this week. We have a home in FL & owe 145,000 30 yr fixed at 5.625%, the house was originally appraised around 197K. FL rates are horrid so I am unsure of the current appraised value. The BofA fast talking loan officer offered me 3 options (my hubby & I are both in the 800s as far as credit ): 30 yr fixed @ 4.125%, 30 yr fixed @ 4.5% wih less closing cost or a 20 yr fixed at 4.0 %. All sound good but I keep asking for the 3 estimates in good faith & am getting the run around by him. He said this would be in the welcome package. I get a call today from a closer stating she needed paperwork to close the loan. She stated it was the 30 yr option at 4.125%. I stated that I had not even chosen the option I wanted. She stated she would e-mail the loan officer and cc’d me. He then rudely sent back that the loan processor had contacted him and said that I refused to send in required docs. I sent back that I hadn’t agreed to the loan, that I wanted the 3 options in writing, etc… He responded back that he didn’t know what the “diss-connect” was (his spelling) but that I was locked into all 3 rates for 90 days & was to negotiate the rate through him and that the lady who called me processes the loan. If she said the loan was 30 yr for 4.125% then who the heck am I supposed to believe? I called my local BofA guy and have asked him to mediate, he is supposed to contact me tomorrow. Unsure of what else to do? This loan officer is full of himself and has been rude via e-mail to me more than once. I first contacted him on Wed 3/06/2012 so that’s rather bad for 2 days. Any advice would greatly be appreciated.
Did you already paid the application fee? Perhaps you can ask to change to a different loan officer.
The big banks have pretty bad customer service in general, but your guy seems way out of line.
It shouldn’t be a huge deal to give you 3 GFEs.
Sorry, I’m not more help. Good luck!
There should not be any fees at this point. I would work with someone else if I were you. All lenders will have access to this program in the next ten days. The rates have been steady for months so there is not much risk of them going up. Hold off for the next week and a half then call a couple of local lenders and you should be able to get better service and a similar if not better rate.
Just an update. We closed Monday and got the 4.5% 20 year fix with citimortgage. Total expense of refi rolled to the current balance was 3080. With a LTV of 112-116% –whereever they want to drop the appraised value. Coming from 6.5% 30 year fix in the past 3 1/2 years its a big savings for us. Current balance was 168118.60 to New loan balance of 171408.00 with 217.74 cash back. So as I calculated the savings in interest its about 134k. If I was to gamble it and waited for the feds to open the doors to all banks, and say I get 4% 20 year fix. All I’m saving is about 11k if my closing cost stays the same. I think I can live with that. I also calculated the tax shelter loss since our interest now will be lower than the standard deduction. I still save more in doing the 20 year vs. the 30 year fix. Good luck to all.
Great job! 2% drop in interest rate is a big saving. I jumped on the 4.25% 30 years fix when I had the chance. We could have waited, but like you I’d rather get the lower rate now than waiting with uncertainties.
I’m waiting for a call from the BOA market manager. The quack BOA loan officer still never sent my 3 options in writing & sent my loan application package with a major mistake throughout all the paperwork. My monthly escrow amt should be like $224.00 but he had $1,196.00 per month instead throughout then was asking me to fax it all to him even after I told him of the mistake. I would assume that this would make all the paperwork invalid. My case is going to be handed over to a manager. Hopefully they can help us…
My husband and I closed on a Wells Fargo HARP refi yesterday. We locked in at 3.75% less than than 3 weeks ago. NO closing costs…not one penny!! WELLS FARGO was great. It was simple and quick. We did our closing online and it took 40 minutes. I can’t say enough good things about this whole process. Thank you WELLS FARGO and President Obama!!!!
Wow, that’s awesome! We are talking to Wells Fargo Monday and hopefully can get the ball rolling on our Harp 2.0 refinance.
What was your term? And were closing costs rolled into loan or true “no cost”? Inquiring minds want to know!
We got a 30 year fixed and NO cost at all. I was quite skeptical at first…delighted to find it to be true.
Would love to her about how you were able to get that!! Congrats!
Applied to Harp 2.0 today and I am a bit confused. My current rate is 6.375% and I have excellent credit score, after spending close to two hours on the phone Wells Fargo, this is what I got…. 4.75% 30 year fixed.
AND $3200 in closing costs.
-$1400 title work
-$1000 transfer tax
-$400 County recording
-$400-Appraisal Fee
And extra $500 to get escrow up to the required $2500 threshold. Has anyone experience the same situation?Does this seem reasonable?
I have not received the paperwork yet to review but in working with Quicken Loans to refinance under HARP 2.0 they want $5400 in closing costs. This seems incredibly high to me for a $120,000 loan at 4.6%. For a 23 year loan.
It sounds like they are charging you points to get to 4.6%. Closing cost on 120k refi should be no more than 3k–zero points. Look for no points as much as possible. I too called quicken loans before and they gave me a higher quote than citi and definitely higher closing cost. They also want 4 bills before anything else. Called 2 different guys and still higher quotes. Declined and settled with my original mortgage co–citi. Good luck.
The whole thing is a joke. Nothing is mandatory except that for we the taxpayers it was mandatory for us to give the banks money. I applied with Bank of America for a HARP loan back in August. I offered $40K to split what was under water and should have qualified under the HARP program. The loan officer said that I didn’t qualify for the loan because the HARP program wasn’t mandatory and that BAC didn’t participate in HARP. I was told that I needed to have a LTV of 105% so I would need $75K plus another $5K or so in loan processing fees to qualify for a lower interest rate loan. I was repeatedly told that I had 3 choices. 1. Continue paying the mortgage. 2. Go behind on my mortgage and I might and he repeated might qualify for a lower interest rate loan. 3. Rent an apartment or house and go through foreclosure.
He said this over and over with a cocky attitude with every question I asked and said you only have 2 choices unless you want to rent an apartment or house repeatedly. At this point I was furious. I told him you forgot about option 4 and 5. He just laughed and asked what those were. 4. To get a loan from another lender which he laughed again. 5. To buy a home outright and never pay you another dime. His response to this was “Are you familiar with Bail and Buy Law?” I not only responded but explained the whole law to him. From there I let him know that Bail and Buy doesn’t apply to a cash purchase but only to a loan secured by a mortgage. He laughed again and said if you can come up with 6 digits then why don’t you apply it to your loan? I then laughed and said for just $20 to $30K more than what you want for me to refinance I can own my home and leave you with the one I’m at now and have a lifetime of security and emphasized to him that only an idiot would do that with the other option that I had. He laughed again and said he heard that all the time but people don’t have that kind of cash and that everyone needs credit sometime. I then responded back that I offered you $40K from my broker account, don’t you think I just might also have a 401K to take a loan from? The laughter stopped. I let him know that I would either have a loan by October 1 or the bank would have their home back. He then repeated that if there was something that he could do that he would.
It’s now almost April and I haven’t paid a dime and I’m in a 3,000+ sq ft home compared to my old 2,300 sq ft home. I used the Fair Debt and Collection Act so they can’t have any bill collectors call me. I’ve received tons of mail from them asking me to call them on the HAMP program. I don’t qualify for HAMP. My mortgage was only 12% of my gross income. If you live in a non recourse anti-deficiency state like I do, you don’t have any second mortgages and you have some cash, you really don’t have to deal with the bank. Become your own bank and call all the shots from that point on. The bank only wants to keep you paying your entire paycheck to the bank with the mortgage, car loans, credit cards and whatever other financial instruments they can sell you. I don’t have any car loans and before this never had any credit card debt. Oh my, I need to pay back $5K in credit cards, what will I do? Lol. Hmmm, $1,440 a month mortgage payment gone, I think I’ll manage.
There was a law passed way back in 2007 called the Home Mortgage Relief Act which states you don’t have to pay income taxes on the debt forgiven by the bank for your primary residence. It was suppose to expire in 2010 but was extended until the end of 2012. Many attorneys think it will be extended throughout 2013 but it’s not certain. There was also a very interesting paper written by a professor at the University of Arizona on why sometimes it’s beneficial to just walk away explaining that even banks have walked out on loans. It’s a pure business decision to a bank which it should also be for an individual. Here’s the link: http://www.scribd.com/thecynicaleconomist/d/23786148-Arizona-Legal-Studies It’s an article much worth reading, especially if you are from a non recourse anti-deficiency state. You really don’t have to take any crap from the bank if your finances are in order. Just tell them what you want and if they can’t deliver buy a house cash outright. It works far better than any Occupy movement. Imagine a life with no mortgage, no car payment and no debt. It’s the best thing that could ever happen to anyone. Life can be simple if you want it to be.
I am so frustrated right now…. hopefully someone can offer some words of wisdom. My husband and I bought a house in 2006 with a 30 year 6.0% loan with 10 years of interest only (I know, not very smart – but we were young and didn’t know any better…) Our homes value has dropped from around $260k when we bought it to 178K as of right now. We are trying to refinance to get a conventional loan with a lower interest rate under HARP 2.0. We have been told by Quicken that we are not eligible because the LTV is over 125%, was just told by Wells Fargo that we are not eligible because our loan has PMI on it, was never able to get through to Citi after being on hold for an hour. Does anyone know if we have any options to refinance. We have never had a late payment and are current on all of our bills with excellent credit scores.
Who is your lender? See if they are part of the national foreclosure settlement program.
http://retireby40.org/2012/02/national-foreclosure-settlement/
I thought HARP 2.0 removed the 125% cap. I guess the lender participation is still voluntary.
Keep trying and don’t give up.
Our loan is serviced by Seterus as it was sold off from our original lender years ago…. they have told us they don’t do any refinancing they just service the loan. And it was also mu understanding that the new Harp removed the cap, and according to wells fargo we were eligible, but because we have PMI we are not (thought my understanding of the new harp also says you are eligible with pmi). And according to Quicken we are not eligible if over 125% even with the new Harp because they still make there own decision even though the harp guidelines have changed…… And I have talked to both of them this week about it.
It is my understanding that mid-march the LTV ratio was unlimited. I watched a info clip on this just last night that one of the top dogs did from Quicken. Try going on YouTube & searching for Quicken/HARP 2.0. I have looked at so much stuff during the past two weeks that I feel like I dream about it at night… BOA is pressuring me to send stuff before Friday but I want to see what Quicken can offer. They gave my sister a great deal recently… I won’t hold my breath.
It seems like banks are setting there own limits regardless of the Harp guidelines, based on what I have been told this week.
The YouTube video is under Quicken Loans Chief Loan Officer Bob Walkers talks about the new HARP 2.0 Roll Out. I am on my I-pad so am unsure how to copy the link? I am Apple-challenged.
Nothing surprises me with any of these lenders. The BOA butthole loan officer’s manager was just as rude as the loan officer. He chastised me when I said I planned to look at other lenders & was really pissed that I demanded the 2 other rates they quoted in writing. He told me BOA doesn’t do this. I spoke with a competent loan officer with BOA in June who emailed 3 closing cost worksheets before we were even off the phone. Lies, lies, lies….
Just as a helpful tip to those reading thios post from a loang time loan officer. If you are paying PMI regarldless of harp 1 or HARP 2 pretty much the only lender that will refinace your loan is the current servicer servicer of the loan because they need to get the PMI company to reissue the existing mortgage insurance policy. The PMI companies are very limited in who they will reissue to. It is less about the banks and more about the PMI companies. So if you are paying PMI start with the current loan servicer.
Virtualy any lender can offer your a HARP refinance if you are not currently paying PMI. In those situatuion you can shop that around wito get the best deals. Quicken loans typically has rates at the upper end of the market so while I am happy people were able to use them to drop their rate you can typically do better with a smaller mortgage banker or even mortgage broker.
If you have PMI and have extra funds avialable I would highly reccomend calling your current servicer to see how much you would need to pay your principle balance down to to get out of PMI. Remeber typically you can get out of PMI if you pay the loan down to 80% of the initial appraised value, not current appraised value. So it might be less than you think. ( Not always, btu again worth a call and making the customer servce rep look it up for you) Then you can do a HARP loan without PMI even if your loan exceeds 80% of the current market value.
Good luck.
Not sure if this comment is true. I thought with HARP 2.0, you CAN use any lender even if you have PMI . Can someone confirm. I thought that was a big deal and a major reason why 2.0 is better than old HARP.
All that I know is that I currently have PMI on my mortgage (serviced by Seterus) and Seterus does not refinance under the HARP program. And the banks I have called so far have turned me down both because my LTV is over 125% or because I have PMI, even though the new HARP guidelines are supposed to make it still possible, but apparently the banks can still set their own guidelines. It is very frustrating to me so far. I am still trying and hope to get some help somehow.
It’s true that banks can still set their own rules. That said, I had to call about 10 mortgage companies before I found two that would refinance my loan which has a LTV above 125%. I don’t have PMI either, so I’d expect you might have to contact even more lenders (forget the big banks they won’t help) than I had to. I’d suggest local or regional mortgage companies.
Another question for you all – does anyone know of any programs that help to reduce the principal owed if your home is wayyy under water??
My mortgage is with Seterus (unfortunately) and they referred me to use Quicken Loans for the HARP 2.0. Everything was good until they advised me that my LTV is too high therefore I’m not qualified (Bank discretion). Why roll out this program if the banks are not going to abide by the program guidelines/criteria?? I’ve called the other big lenders but they will only assist those that already have loans with them. So now, after waiting many months for this program to roll out, I still can’t get anywhere.
I am also with Seterus and they referred me to Quicken. I was told my LTV was too high, and therefore do not qualify (LTV is only around 115%, well under new HARP guidelines). It looks like lenders are adding in their own discretionary rules.
Anyone from Seterus have luck with another lender?
Seterus is my loan servicer as well. I was contacted by Quicken Loans about refinancing my home. I currently have a 6.375% loan with LPMI and 26 years left to pay on it. Quicken Loans offered me a 2o year loan at 4.5% with $2800 closing costs rolled into the loan. I have tried a couple other lenders, but because of the LPMI or that I am not a current customer, I wasn’t even considered. I decided to go with Quicken Loans. Everything has been approved and I am just waiting for a closing date. I know it is frustrating because of the situation with Seterus but hang in there. Good Luck!!
Check with your local credit unions. My situation is very similar and Quicken wanted me to pay $5400 in closing costs. I have found a 4.12% on a 15 yr fixed with $1039 in closing costs and that includes $400 for an appraisal. The key is to look at your local banks and credit unions.
Is your LTV over 125%? I was told my Quicken I wasn’t eligible through them for this reason…..
My LTV is around 113%. Even though we had initially a 30 year mortgage, because of our age (>50) we knew we had to have our house paid off before we could retire so we have been paying $200-$300 more on our principal each month. With the new interest rate we are on track to have it paid in 10 years….I hope!!
Also I am hearing that if this is not your primary residence, the LTV ratio will probably be well under 125%. I have been denied HARP by quicken for my ‘investment’ property (condo i was living in before married). I am now working with BOA to see what they have available since my wifes mortgage is with them.
I was one of the people referred others to Quicken, but I must admit they seem also have become like the rest of the big ones. What I see hear about them do not impress me. I will rather go with a smaller lender.
I have an single family investment proprety-rental. Mortgage with GMAC. Has PMI. About 160% underwater. Seems others-Quicken including -wont/cant do. Had to go with my lender. Advise try with your lender first.
24 Apr 2012. I feel the big banks are taking advantage of HARP 2.0 to extract excessive fees and higher than average interest rates. My current loan with GMAC is ~87% LTV and 6.375%. My credit scores are above 800. GMAC will refinance at 4.519 APR 0 pts or 4.218 APR with 2 pts. Time to close ~45-60 days. I called my local mortgage broker and he can provide 3.889APR 0 pts with closing ~mid May. Does the bank really need the 0.63 % or the 2 percentage points as a fee?
I just learned about the HARP 2.0 program. We currently have a LTV of 103%, 1st mtg of 6.5% with $241k balance, 2nd mtg 9.875% with $42k balance and money combined payments of $2300. I would LOVE LOVE LOVE to lower interest and payments.
My question is, we have a few negative hits on our credit reports from 2006 and they will drop off in 2013. Is it best to wait until our credit report is clean next year and pursue the HARP or is there no minimum credit score required for HARP?
I got 4.675 for a rental with FICO 650 with HARP 2.0. Note that I have aPMI and rate for investment property is normally higher.
You should check around and see what rate you can get. With 103%, you won’t be able to get the best rate.
It seems to me that you can definitely do better than 6.5% and 9.875% though. Who is your loan with? Call your bank and see what they can do.
If they won’t give you a good rate, try Quicken loans.
We did a harp refi in March, 2012. Got our interest reduced to 3.37 % on a 30 year loan (which we should have paid off in 5 years or so) and there were NO costs involved – no points, no appraisal, nothing. We signed some paperwork, they sent us a “book” of documents to sign, did that, sent it in and a couple of weeks later the old mortgage was paid off and the new one began. The entire process took about 5 weeks. This was through Wells Fargo, who held our prior mortgage. At first, we were very wary ’cause it sounded too good to be true – but it actually worked out.
I had a no cost offer from Chase, but their rate was 4.37%. I think the problem was the home was underwater…
It’s great to hear about your experience. It means at least some people are getting good service from the big banks.
Wait, so you have 5 years or so left to go on your orginal loan and decided to refi it for another 30 years? That does not sound like a deal to me even without any closing cost and lower int rate. Please clarify.
Like Josew, I am suprised too. At the tail end of your mortgage when you pay the least interest, you decided to refi??? What am I missing?
I’m super confused by one thing – if you qualify for the HARP refi, how is the rate set? Here’s my story. My Fannie Mae loan is serviced by Seterus. We owe about 210k on a house worth around 180-190k. I’ve been getting mailings from Quicken Loans, who apparently is working with Seterus for HARP. I called Quicken last night and they offered me a 20 year loan at 4.75%. The broker was super pushy. He said he needed a commitment today, less than 24 hours. I told him I needed to do more research and couldn’t commit in that timeframe and he pulled the loan offer and claimed I am “exempt from the program moving forward”. I’m a bit stunned by all of this. Is this some sort of sales tatic, or can I really be blacklisted like this for needing more time to decide? He told me there is no way I will do better than 4.75 because the rate is set by Fannie Mae. Is this true as well? I’m really confused… And now a bit scared as well…
Sorry to hear that. I’m sure they can’t black list you. You can just call Quicken loan again and talk to another loan guy. There are other loan outfits so I’m sure you can find something. Call around a few places and see what rate you can get.
Well, that’s a bit of a relief then. Sorry to hear others are getting the same experience, but I feel a little better to know I am not alone. I get it that this guy thought he was getting a sale, but I don’t think it’s unreasonable to ask for a little time to consider something that literally involves hundreds of thousands of dollars and 20 years of my life…
I would rather take my business elsewhere, but I am super green at this. How do I know what other places I should even call? Cold call local credit unions?
Yes, call your local banks and CU, but they probably will not refinance you because the property is underwater. It is worth a try anyway. Someone else above recommended Guaranteed rate.com. Try that and see if they can give you a loan. Did you try calling Seterus? From what I’ve heard, they don’t refi, but still worth calling.
I had the same experience tonight when I called QL about my Seterus loan. Very pushy, and I asked the guy about what my interest rate would be and he said 4.5% (for a loan > 150% LTV which isn’t the best). My problem is that I’m EA-III in FannieMae’s system, so I don’t know what use it was to try and move forward.
I’d stay away from QL – I’ve gotten quotes from other companies at 4% or 4.125% (but I got canned after my EA-III rating came in, despite my >750 credit rating).
I work for a broker. We have banks that will work with an EA-III, especially with a 750 credit rating. Rates are more than competetive and usually no lender or broker fees
This is a little off-topic, but salespeople like that really irk me.
A few years back I wanted a very bare-bones new little pickup – reliable, but no extras – we’re talking no extras whatsoever. Walked across the street and the salesman was similar to what you are saying – you’ll never get anything better, lets get this done right now, or the price may go up (i.e. urgent), etc…
I lived across the street.
Walked home, and did one of the Internet-based quotes for new car quotes.
Within an hour I had a few. Drove about 20 minutes, and drove home with a new barebones truck about an hour later.
$3000 less than the guy across the street, and better trade-in amount, and no negotiating needed.
I got a postcard a few days later from the guy across the street – again telling me I’d never find one at the price I wanted, so let him know when I was ready.
I sent him back my own card, and let him know I bought the same thing for $3000 less about an hour after I talked to him, and a trade-in that was about $1000 more.
It felt good
Whenever a salesperson makes it seem urgent that it gets done right now, usually it seems like a bad deal, at least to me. And that’s when I go elsewhere.
That’s awesome! That is so true too. That and when they act like they are your best friend and like they have known you all your life.
I think I had the same guy and he tried that same crap with me. He also wanted to charge me $5100 in closing cost and wanted a same day decision. He shouldn’t have a job acting the way he did. He got very defensive and told me that he was worth that money and with my 800 credit score that I was a high risk and that no one else would help me. I am working through a local credit union where it is going to cost me $600 in closing cost and give me a 4.12 rate compares to his 3.99 and $5100 closing cost. That guy needs to be fired.