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notherhalo

Home Re-fi Pro's

4 posts in this topic

Can someone give a recommendation of a guy or company?

Folks own a place which is a rental, owe like 550k and its worth just a bit North of that, but not too much (maybe 575).  The pool needs to be redone and probably a few other things would need tinkering if they did a re-fi.  Current payments are $2800 month from some interest only loan a while ago, now its going to balloon to ~$4000 month in July and Id rather get them out from this one.

My credit sets off alarms in the banks, theirs is like low 7's and high 6's.  One dude said we can throw 20k into closing costs and get payments to like $3000 a month, but I have no idea how much of that actually goes into principal.  Help please

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was going to write something different, but i'll cut to the chase. you're going to have to issues refinancing at any bank.

you have a couple things working against you. investment property and a loan amount of 550k (anything over 417k in considered a jumbo.......depending on what county the property is in, the conforming jumbo limit is 625k) are rough guidelines. however, the main problem you have is on a loan of 550k and a value of 575k, your ltv (loan-to-value) is 95.6%, you're not eligible for any conforming products as the ltv needs to be 80%. fha products can go up to 85% and if anyone is a veteran with eligibility, you might be able to do something.

one possible option, and it's actually a straight shot easy refinance is if you're harp (home affordable refinance program) eligible. basically, if you have been in the loan since june 1, 2009, have no mortgage lates in the past 12 months, and your loan is currently backed by fannie mae or freddie mac then you're eligible. the problem is those ballon arm (adjustable rate mortgage) products during the subprime era weren't conforming products that were backed by fannie mae or freddie mac which may be your killer for that program.

without knowing anything about your situation or what that one dude said, he doesn't know what he's talking about. you don't have enough equity to refinance, so what initial thought process is he wanted you to bring in 20k to lower your ltv, but when i punch up the math it's still over the limit at 92%. if someone doesn't qualify, there is no reason to tell someone to buy their rate down, which is what he's talking about doing.....nothing would go to principal, your situation dictates the rate (if you meet the guidelines) won't be ideal, but you can buy the rate down to something solid and as you can tell by his number, it's a big chunk of change. 

i'm not a loan officer anymore (i'm a processor now whom the loan officers send loans to and we do everything through the process of the refinance) with ~17 years experience and can direct you or help out like i've helped many people here over the years. i'd need to get some more specifics to try and help which you may want to private message.

hope i didn't go overboard with the mortgage jargon. i usually make things simple for customers, but am dead tired after a long day. more than happy to help though.

ultimately, you may have equity issues with qualifying under almost all programs and i have yet to come across a balloon arm that is a fannie or freddie backed loan. when i was a loan officer and was setting up loans i would use free sites like zillow, redfin, trulia, and chase home estimator to check comps in the area to try and get an idea of what the appraisal would come in at. if no one is a veteran, going fha is the next option and you would need the home to appraise at 650k to get down to 85% ltv. the other option is bringing in a shitload of money to lower your principal balance which would give you enough equity.

i know plenty of people and plenty of companies (mainly which ones to avoid) if you wanted to speak to someone directly. 

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I appreciate the post a ton, thank you very much for writing that out.  It wasnt too complicated at all.  I'll write you a PM in the forthcoming days for any further tips or info. 

 

Thanks dude

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4 hours ago, notherhalo said:

I appreciate the post a ton, thank you very much for writing that out.  It wasnt too complicated at all.  I'll write you a PM in the forthcoming days for any further tips or info. 

 

Thanks dude

actually, i was off a bit. i saw you mentioned needing repairs and was focusing on cash-out products. fha products can go up to 97% for rate and term (simple rate reduction). it includes pmi (private mortgage insurance), but beats the hell out of paying on a balloon payment. plus, most investors i work with want cash flow, so they kick it out to 30 years and keep the payment as low as possible.

i wouldn't use my company as their fha rates suck, but my buddy in town works for a company that their specialty is fha and he's tried to hire me and i've seen their rate sheet in comparison to ours and they kill just about everyone out there with fha products.

i guess i was really out of it when i posted after work. you have something to work with, going to be appraisal dependent (so check those sites i listed), but you have an option. anything is worth getting out of a balloon adjustment.

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