Seeking advice on mortgage refi.

[jryan1776]

After seeing a couple coleagues secure refi rates of 4.875 with $1600 closing and 5.0 with $0 closing, I decided it was time for me to make a move... I was all ready to go with a 5.0 rate with $1400 closing when the tide turned. Turns out I'm around 85% to 90% loan to value. This was going to force me into PMI. Doh! A friend in the industry recommended that I talked to my current lender (GMAC backed by Freddie) and see about the HASP program.

After weeks of waiting, I'm finally getting to an agent who is familiar with the program, and the rates they are quoting seem much higher than the going rate...

5.0% @ 2.125% (points) + $600 (closing) + $1050 (3rd party)
5.875% @ $600 (closing) + $1050 (3rd party)

Any advice on how to proceed, or am I just out of luck until I get back to 80% LTV?

Thanks!

[GJG1040]

You could try and challenge the appraisal. My BIL had the same problem and when he saw the comparables they were using he felt their were better properties to use. So he sent them some comps and they raised the appraisal by $20K to get him back to %80 LTV.

[jryan1776]

I didn't quite make it to the appraisal. My friend at 53 bank was the one looking into the refi, and he felt like we wouldn't be able to get the appraisal high enough. He is in the same boat being that he lives 2 houses down from me.

I'm trying to call local branches now, but I guess it's too close to lunch time.

[passedaway]

Not really helpful in your situation but i just signed up for a re-fi with Reliance mortgage for 4% rate with 1000 closing for a 5/1 ARM (30 yr fixed was 4.75%).

http://www.reliancemortgage.net/

(I have 80% LTV)

[General Ghoul]

After seeing a couple coleagues secure refi rates of 4.875 with $1600 closing and 5.0 with $0 closing, I decided it was time for me to make a move... I was all ready to go with a 5.0 rate with $1400 closing when the tide turned. Turns out I'm around 85% to 90% loan to value. This was going to force me into PMI. Doh! A friend in the industry recommended that I talked to my current lender (GMAC backed by Freddie) and see about the HASP program.

After weeks of waiting, I'm finally getting to an agent who is familiar with the program, and the rates they are quoting seem much higher than the going rate...

5.0% @ 2.125% (points) + $600 (closing) + $1050 (3rd party)
5.875% @ $600 (closing) + $1050 (3rd party)

Any advice on how to proceed, or am I just out of luck until I get back to 80% LTV?

Thanks!


OP, where are you located and who gave you this quote, it seems extremely high, especailly the buy down points. You should be able to buy out the PMI for .5 pts. Makes a lot of sense because the interest is deductible and the PMI is not. I'll comment further once I know where you are.

[stufine]

53 is a joke on appraisal and loans. my FNL tried for a 50k loan for 10yrs.. granted he was in his upper 70's. with a score in 800 and that much in cash in cds at the same bank he was told no. sure wish he would have went after them for the age thing.. he did get a call the following week saying they could do it for about 5k in fees.ive seen a couple appraisal come back an easy 30k off.. i'll wave by by when they go into a D- and everyone pulls their money out.

[Jason's Storm]

Not really helpful in your situation but i just signed up for a re-fi with Reliance mortgage for 4% rate with 1000 closing for a 5/1 ARM (30 yr fixed was 4.75%).

http://www.reliancemortgage.net/

(I have 80% LTV)

Stuff like ARM's is what got us in this crap hole, so don't do that. Maybe look up a cost comparison calculator, to see if it would make sense. Also look at your FICO scores, to see if you would even qualify for the lowest rate. Seeing how you are only 90% in, best to just stick with your current mortgage, unless its not a fixed one.

~JS