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Refi Home loan questions -60%DTI?-Bank See my Assets?

tennis4789 890 383 June 9, 2016 at 10:18 PM in Home & Home Improvement (3)
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Last Edited by tennis4789 June 9, 2016 at 10:24 PM
I'm doing a Refi through PNC. They have told me since I'm doing it in Branch no fees, closing costs, appraisals. Just straight refi. Not quite sure loan officer said it was a HELOC but it will pay off my other loan 100% which is currently with a credit union. Will move to 3.11% for 144 months vs. current 4.5%. Not too large loan so pretty much any extra fees/charges, I won't do it.

Today I put in hopefully final paperwork they are asking me for so it can go to underwriting.

2 questions:
1. Loan officer said they would go up to 60% DTI. I was like huh? She's like yeah not too many people qualifying. I asked again cause I always thought it was around 30%-40% DTI. Is it 60% these days?
2. Paperwork I put in had nothing about my assets. (Retirement accounts, Cash in different bank accounts, Brokerage accounts, how many GCs I have(jk on GCs)) Can they see my assets somehow? I did sign paperwork for them to be able to do hard pull credit report. Would they look at my PNC bank account for how much money is in it & Monthly balances/activity?

TIA

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#2
I say no to other assets but yes to account.

They were pushing HELOC a lot couple years ago

check the terms. Is this interest payments only for xx years. jumping to 3.11 isn't bad, but I remember hearing about a few that went higher almost doubling payments
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#3
HELOC is probably a variable rate loan. I don't understand why you would refinance. What is your reasoning and why on earth move it to a HELOC?

This is explained at bankrate [bankrate.com].

I'm still baffled on what the original thought process was here and how on earth it continued as a good idea? Maybe I'm missing something but I don't see any good reason to go with this train of thought. If you are adamant about reducing your interest rate you should be getting a conventional first mortgage and not a HELOC. It seems to me that you are willing to sacrifice long-term benefits for short term "no fees" hype. Re-think your needs and move appropriately in line with those.

Good luck.
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#4
Quote from eekthecat View Post :
HELOC is probably a variable rate loan. I don't understand why you would refinance. What is your reasoning and why on earth move it to a HELOC?
FIXED rate. AGAIN fixed.

3.11% is less than 4.5% so saves me money.

Longer time frame gives me option to pay off early but doesn't stick me with mandatory extra amount.

I'm not seeing any downside.
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#5
Quote from tennis4789 View Post :
FIXED rate. AGAIN fixed.

3.11% is less than 4.5% so saves me money.

Longer time frame gives me option to pay off early but doesn't stick me with mandatory extra amount.

I'm not seeing any downside.
Don't ask a question if you won't listen to any responses. There are certainly some downsides with swapping a first mortgage to a first position HELOC. One rule to always live by is never believe a borrower who wants more time built into a loan and is trying to convince you they will pay at least on the same time-frame as the last note or earlier. I've seen this too often, I see plenty of downside. You are going to string out your loan.

This is all your choice, you could continue to think I'm against you. I'm the only person speaking up FOR you at this point. I don't see the advantage. If you want to avoid interest you would just pay down more earlier.

Make sure you actually understand the HELOC terms. It can easily confuse borrowers. There is a draw term and a payback term, likely interest-only payments.

HELOCs typically don't serve borrowers nearly as well as they think up front.

I still advise not to go for the HELOC option. Refinance with a conventional mortgage to lower your interest rate. You will have a break-even time-frame and that should look very much better as a long-term option.

At the end of the day it sounds like you will do want you want to do anyway. You asked, and I advised. Best of luck to you.
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#6
Quote from eekthecat View Post :
Don't ask a question if you won't listen to any responses. There are certainly some downsides with swapping a first mortgage to a first position HELOC. One rule to always live by is never believe a borrower who wants more time built into a loan and is trying to convince you they will pay at least on the same time-frame as the last note or earlier. I've seen this too often, I see plenty of downside. You are going to string out your loan.

This is all your choice, you could continue to think I'm against you. I'm the only person speaking up FOR you at this point. I don't see the advantage. If you want to avoid interest you would just pay down more earlier.

Make sure you actually understand the HELOC terms. It can easily confuse borrowers. There is a draw term and a payback term, likely interest-only payments.

HELOCs typically don't serve borrowers nearly as well as they think up front.

I still advise not to go for the HELOC option. Refinance with a conventional mortgage to lower your interest rate. You will have a break-even time-frame and that should look very much better as a long-term option.

At the end of the day it sounds like you will do want you want to do anyway. You asked, and I advised. Best of luck to you.
Thank you. apologies for being short earlier. you have made me nervous about HELOC.and I will be more diligent when I go to review paperwork. Initially I thought No closing costs after reading more closely no closing costs as long as I keep loan for 3 YEARS with them pro rated. I'm ok with that.

Again Very low value loan. So $2000 closing costs would be way too much to do loan.

Another thing, I have current loan thru credit union as a business loan. So it's not reporting like a personal mortgage so hoping changing my loan mix bumps my credit score. But really not too concerned about credit score cause I really don't need credit if I always pay cash. One more thing (jeeze complicated!) I have business account that I don't think I can close until house loan is paid off. Business account has $2500 minimum to avoid $5/month fee. So I want this money unlocked to invest it elsewhere. Although not sure about closing business account because I have had it so long. I think it's considered "seasoned" on my list to call credit union about advantages to not closing putting it dormant.

I consider myself very frugal. So having extra money will be saved. I am considering moving to Florida. I have two dogs. Renting will be hard with 2 dogs. Qualifying for another house loan could be very tough When I move because I may not be employed. so I'm hoping to have enough cash saved to pay cash for a house.

How complicated this is sounding like I'm gonna need some luck!
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#7
I don't think renting in Florida will be tough with the dogs.

You will need to pay first,last and security deposit. most likely a dog deposit and extra rent for the dogs.
(unless that's what you mean by hard)

consider looking to purchase Florida house now?

Recent sale fell through based on your fear of no employment. Bank wont close until they get their first paycheck
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#8
Quote from stufine View Post :
I don't think renting in Florida will be tough with the dogs.

You will need to pay first,last and security deposit. most likely a dog deposit and extra rent for the dogs.
(unless that's what you mean by hard)

consider looking to purchase Florida house now?

Recent sale fell through based on your fear of no employment. Bank wont close until they get their first paycheck
Could be good idea to buy before moving. While I have pay check buy my vacation home. Although next home loan most likely using VA loan.

Currently own and rent out rooms. have had great roommates who have watched doggies when I travel. And renting rooms really helps with costs.
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Last edited by tennis4789 June 19, 2016 at 03:00 PM

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#9
First time on this site. I'm looking for some good advice. I had my first mortgage with a local credit union in Salem Oregon. They sold it to Citi Bank. I lost my job for a few months and when I did took out a forbearance agreement with the credit union that held my 2nd for 55,000 and a forbearance for my first mortgage of 155,000. Now Citi has a processing company named Setarus. Setarus now is who I deal with on my first. Apparently when I did the forbearance on both I got a variable. Went from the original loan of 155,000 at a conventional loan of 3% fixed.
Now I'm at 5.25 on both my first with Setarus and 5.25 with the credit union.

Now the corporation I have worked for since 08 eliminated my position and have been unemployed for 6 months. This mortgage game is really confusing to me. Does anybody know of a lender or bank that can help me. My credit score is not perfect as I've been fighting with cash collections since 2012. It will fall off in 2 years. 6000.00. Credit score is around 673/676. I live in Salem Oregon. Any ideas?
Thanks for reading.
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#10
Quote from laniegirlgo View Post :
First time on this site. I'm looking for some good advice. I had my first mortgage with a local credit union in Salem Oregon. They sold it to Citi Bank. I lost my job for a few months and when I did took out a forbearance agreement with the credit union that held my 2nd for 55,000 and a forbearance for my first mortgage of 155,000. Now Citi has a processing company named Setarus. Setarus now is who I deal with on my first. Apparently when I did the forbearance on both I got a variable. Went from the original loan of 155,000 at a conventional loan of 3% fixed.
Now I'm at 5.25 on both my first with Setarus and 5.25 with the credit union.

Now the corporation I have worked for since 08 eliminated my position and have been unemployed for 6 months. This mortgage game is really confusing to me. Does anybody know of a lender or bank that can help me. My credit score is not perfect as I've been fighting with cash collections since 2012. It will fall off in 2 years. 6000.00. Credit score is around 673/676. I live in Salem Oregon. Any ideas?
Thanks for reading.
Seterus means you have a Fannie Mae loan. I know this because I was fighting them in foreclosure court recently.

With the loan being in forbearance and/or you having collections the chance of you refinancing is basically nil. What's the value of your house and do you want to keep it or dump it and move on?
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