Plain Old Petunia
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Post by Plain Old Petunia on Oct 17, 2013 16:05:27 GMT -5
She's saying consider the worst case scenario of what happens in year 6, just in case. What is the most the rate can go up each time it resets? How often does it reset? What is the most the rate can go up over the life of the loan?
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Deleted
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Post by Deleted on Oct 17, 2013 16:07:33 GMT -5
that's the direction I was leaning, putting it up against the 4.75% fixed from my current lender, it still comes out ahead. and I have zero intention of still being in this house 5 years from now when the rate resets. using a basic "calculate my payment" the other two rates don't make a marked enough difference in payment to make it worth the fees. as far as the rest of all that stuff in your comment, I am so completely lost with that. sails right over my head. should I give the accountant that does my taxes a call before I sign anything? I can't imagine it's going to make that much of a difference. I probably wouldn't bother with the CPA. You can calculate how much interest you are currently paying vs what you will be paying by using the mortgage calculators and amortization schedules at bankrate.com. Honestly even if you paid 20% tax on the incremental interest savings who cares? It's only 20% of the savings. You're still saving 80%. However, you really do need to understand what the ARM is based on, the margin and the caps. Your mortgage person should be able to send to send this info to you ASAP.
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chiver78
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Post by chiver78 on Oct 17, 2013 16:14:32 GMT -5
the ARM is based on LIBOR, and the caps are.....crap. written down on my notepad at home. I want to say 2/2/5. and I've been staring at the basic calculator from bankrate all day, with the different options I listed on the last page. my head was starting to spin. thanks for all the input!
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Deleted
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Post by Deleted on Oct 17, 2013 16:49:07 GMT -5
chiver78, I'm a non STEM (Poli Sci & Fr. Lit. Double Major). If I can do it you can too!
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chiver78
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Post by chiver78 on Oct 17, 2013 19:29:45 GMT -5
lmao.....I love numbers, until they come with a $.....then I am as lost as a grade school kid in a calculus class.
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Deleted
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Post by Deleted on Oct 17, 2013 19:36:05 GMT -5
lmao.....I love numbers, until they come with a $.....then I am as lost as a grade school kid in a calculus class. Well when they come with $, they're important and not just a useless row of mind numbing numbers, says the non-STEM Actually one of the funniest things while I was growing up was finding out that I aced the word problem section on the IQ test. I am a little dyslexic so math was always a challenge!
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chiver78
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Post by chiver78 on Oct 17, 2013 19:38:20 GMT -5
omg, word problems? I hated word problems! <eyes Bonny suspiciously>
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chiver78
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Post by chiver78 on Nov 6, 2013 13:08:50 GMT -5
my refi hit a snag today....wondering if anyone else has run into this before? the lender that my loan would be going to has a restriction on its 5/1 ARM programs that condominiums cannot be in complexes with any "affordable" (40B in MA) units. so the broker is looking at other options for me that won't require me to pay closing costs. I've never heard of this restriction before, and really wasn't expecting anything like it to derail my refi plans. wtf.
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raeoflyte
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Post by raeoflyte on Nov 6, 2013 13:15:05 GMT -5
I don't know about that specific issue, but condos can be quite a beast these days, and when you add an ARM product they do frequently have more restrictions.
Good luck! I hope your broker finds a good lender.
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Deleted
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Post by Deleted on Nov 6, 2013 15:42:53 GMT -5
my refi hit a snag today....wondering if anyone else has run into this before? the lender that my loan would be going to has a restriction on its 5/1 ARM programs that condominiums cannot be in complexes with any "affordable" (40B in MA) units. so the broker is looking at other options for me that won't require me to pay closing costs. I've never heard of this restriction before, and really wasn't expecting anything like it to derail my refi plans. wtf. Are there any designated "affordable' units in your complex? Perhaps it's really not a problem?
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chiver78
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Post by chiver78 on Nov 6, 2013 15:51:57 GMT -5
yep. I am aware of 1, I think there are actually 2.
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GRG a/k/a goldenrulegirl
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Post by GRG a/k/a goldenrulegirl on Nov 7, 2013 9:58:39 GMT -5
Well, considering it IS Massachusetts and we do have Chapter 40B affordability requirements that most developers have had to abide with over the years, I am thinking this particular lender simply doesn't want to do condo loans in the Bay State. I mean, seriously, you'd be hard pressed to find a condo development here that doesn't have some "affordable" units. Jeesh.
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chiver78
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Post by chiver78 on Nov 7, 2013 11:05:50 GMT -5
right? and the broker I'm working with is also in MA. I would think they'd expect a condo to have 40B units, especially one that isn't billed as a "luxury adult community" or whatever the Pinehills calls themselves. so basically the only remaining option for me, unless I want to pay to close - which I don't - is to go with a 4.625% on a 30-yr fixed. it works out to about $150/month in savings and I still get to skip the December payment. that will be going straight into savings. I know that it's probably not going to end up as an actual savings, just that I'm restarting my 30-yr clock, but if I do nothing I am out the appraisal fee. I may as well keep the $150/month for whatever time I'm still in this house. thoughts?
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chiver78
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Post by chiver78 on Nov 7, 2013 16:27:22 GMT -5
my spidey sense is going off now, can y'all help me out a little here? I am looking at an updated "Truth in Lending" disclosure statement with the new terms of the refi, and some of it doesn't make much sense to me. -the "amount financed" is not the $ amount that I will be refinancing, it's a little over $2k less than the actual amount. the broker is telling me that this number is not ever actually the loan amount, it's the loan amount minus the closing costs.....even though I'm not supposed to be paying any. is that how it's supposed to be? -the breakdown of the payment details doesn't add up to what's listed in the Good Faith Estimate. the non-P&I numbers in the GFE seem off to me too - tax # seems low. don't know what "Hazard Insurance" is, I don't have it now. unless they are referring to my homeowner's insurance? this GFE lists my HOA fees in the math too, which isn't part of the loan. -the GFE lists out the approximate closing fees as well as a line item for a lender credit for those fees. that's a wash. however, it outlines the prepaid items - interest, tax reserves, and a homeowner's insurance escrow (again, my homeowner's ins. isn't part of the loan...?) that add up to $1906.45, but the bottom line says total cash to close is only $1235.45 I have a headache now
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Deleted
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Post by Deleted on Nov 7, 2013 16:29:15 GMT -5
my spidey sense is going off now, can y'all help me out a little here? I am looking at an updated "Truth in Lending" disclosure statement with the new terms of the refi, and some of it doesn't make much sense to me. -the "amount financed" is not the $ amount that I will be refinancing, it's a little over $2k less than the actual amount. the broker is telling me that this number is not ever actually the loan amount, it's the loan amount minus the closing costs.....even though I'm not supposed to be paying any. is that how it's supposed to be? -the breakdown of the payment details doesn't add up to what's listed in the Good Faith Estimate. the non-P&I numbers in the GFE seem off to me too - tax # seems low. don't know what "Hazard Insurance" is, I don't have it now. unless they are referring to my homeowner's insurance? this GFE lists my HOA fees in the math too, which isn't part of the loan. -the GFE lists out the approximate closing fees as well as a line item for a lender credit for those fees. that's a wash. however, it outlines the prepaid items - interest, tax reserves, and a homeowner's insurance escrow (again, my homeowner's ins. isn't part of the loan...?) that add up to $1906.45, but the bottom line says total cash to close is only $1235.45 I have a headache now the swamp signal has been activated.
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swamp
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Post by swamp on Nov 7, 2013 19:45:12 GMT -5
Hazard insurance is homeowners.
Im confuzzled wit's your GFE too.
Are you paying closing costs out of refinance money. Or is it a no closing cost loan?
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Shooby
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Post by Shooby on Nov 7, 2013 20:43:22 GMT -5
I personally think people spend too much time focusing on constant refis and would be better off just getting a somewhat decent rate in the first place and spend more timefocusing on prepaying the mortgage and paying it down.
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chiver78
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Post by chiver78 on Nov 7, 2013 20:48:40 GMT -5
it's a no closing cost loan. I could have gotten a better rate if I wanted to pay to close, but knowing I'm relisting as soon as realistically possible, that didn't make any sense to me. that said, this was before the broker pulled the "the lender won't accept affordable units in the complex as part of your situation" card and totally changed what I signed up for. I know you're not licensed in MA, but I am curious if I could walk away from all this - really, to pursue something else with my eyes totally open. I had no idea that particular restriction existed, nevermind if it's even legal - and manage to get back my appraisal fee. it's a $500 charge I could totally absorb, but that's not the point. I entered into this process in good faith, after going back and forth with lots of options about how much I'd be willing to bring to the table vs. my goals in doing this refi in the first place. this broker's in MA like me, and absolutely knows the condominium market in this state. why is he using a lender that doesn't want to warranty a unit in a complex that has 40B housing? as GRG said, that's damn near impossible in MA. to say that I'm pissed at this point is an understatement. hazard is homeowners....okay, I will be asking about that in the AM when I call back. I already need to for the printed date on the "signed under seal" line that hasn't been updated since I signed the 5/1 ARM paperwork. and since I'm calling back about all that other stuff, I'll ask the questions about why shit doesn't match up in the math. I posed the question about whether that original lender did a lot of loans in MA, b/c there aren't likely many (any!) condo complexes that don't have any 40B housing, and the broker got a little pissy and clipped. I didn't bother asking anything else today, after that. but I don't intend to sign anything I'm not totally comfy with.....
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chiver78
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Post by chiver78 on Nov 7, 2013 20:50:46 GMT -5
I personally think people spend too much time focusing on constant refis and would be better off just getting a somewhat decent rate in the first place and spend more timefocusing on prepaying the mortgage and paying it down. thanks for your unsolicited opinion. when I refinanced in 2009 to get this rate, it was actually a pretty good rate for the time. in the time since refinancing, I've rounded up my monthly payment to add to paying down the principal amount. any other judgments you'd like to inflict while you're here? I sought financial advice with this thread, not judgment.
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Shooby
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Post by Shooby on Nov 7, 2013 21:02:05 GMT -5
Oh I thought the point was to solicit opinions. I gave mine. If you want to apply my advice fine if you don't then don't.
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swamp
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Post by swamp on Nov 7, 2013 21:05:09 GMT -5
it's a no closing cost loan. I could have gotten a better rate if I wanted to pay to close, but knowing I'm relisting as soon as realistically possible, that didn't make any sense to me. that said, this was before the broker pulled the "the lender won't accept affordable units in the complex as part of your situation" card and totally changed what I signed up for. I know you're not licensed in MA, but I am curious if I could walk away from all this - really, to pursue something else with my eyes totally open. I had no idea that particular restriction existed, nevermind if it's even legal - and manage to get back my appraisal fee. it's a $500 charge I could totally absorb, but that's not the point. I entered into this process in good faith, after going back and forth with lots of options about how much I'd be willing to bring to the table vs. my goals in doing this refi in the first place. this broker's in MA like me, and absolutely knows the condominium market in this state. why is he using a lender that doesn't want to warranty a unit in a complex that has 40B housing? as GRG said, that's damn near impossible in MA. to say that I'm pissed at this point is an understatement. hazard is homeowners....okay, I will be asking about that in the AM when I call back. I already need to for the printed date on the "signed under seal" line that hasn't been updated since I signed the 5/1 ARM paperwork. and since I'm calling back about all that other stuff, I'll ask the questions about why shit doesn't match up in the math. I posed the question about whether that original lender did a lot of loans in MA, b/c there aren't likely many (any!) condo complexes that don't have any 40B housing, and the broker got a little pissy and clipped. I didn't bother asking anything else today, after that. but I don't intend to sign anything I'm not totally comfy with..... Actually, I am licensed in MA, but I've never practiced there. When I do refinances, there is a 3 day wait provision before the papers are recorded and the money disbursed. I believe it is a federal requirement. And cancellation should not cost you other than the appraisal, application, credit report fees.
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chiver78
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Post by chiver78 on Nov 7, 2013 21:14:55 GMT -5
my bad, didn't realize you were licensed here. I just know you live in NY. as far as the rest, had I known that the lender the broker was planning to use had a restriction for affordable units...obviously knowing my place has at least one, I wouldn't have signed on for the appraisal and the rest. I can probably re-use that appraisal if I find another lender to refi, but I'd still be out the fee. I was totally okay with the payments I have had the whole time, even knowing my interest rate wasn't ideal. I'm pretty damn pissed that I signed on for a "no closing costs and a reimbursement of the appraisal fee" sort of loan that didn't turn out to be what I actually signed up for. I still haven't signed the updated TIL form, or the broker letter that explains the change in terms for the loan. I want to talk to the broker tomorrow before I sign anything. right now, I'm just wondering if there's anything I can recoup if I walk from this broker. I'm that pissed about this on principle.
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forwardwego
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Post by forwardwego on Nov 7, 2013 21:39:06 GMT -5
So the refi you're presently eligible for is 4.625 30 yr fixed, right? When was the last time you spoke to your current lender, and who is your current lender?
I empathize with your situation, we are in a good house in a not-so-good neighborhood, and struggled to get a refi for about 2 years. We were having no trouble making payments so couldn't get help, but upside down in equity so couldn't do a regular refi. (Just frustrating paying hundreds more than the next guy when you've tried to do things right). Also our mortgage company was going down for the count and got bought out by TD Bank, which left us on the fringes. I would make an effort to refi or modify, get frustrated, then in a few months try again. Finally one day I called TD bank and asked to speak with the "rate modification department" & to my happy amazement they had one. We paid a one-time fee of slightly over $800 and our rate was reduced, new payment based on the new rate and remaining time on the original note. So part of our monthly pay't reduction is because we had been paying a few extra hundred on the principal but mostly from the lower rate. And it is a little less painful living where I'd rather not, now that we are paying less and making better headway financially. Is there anyway your current lender could match the refi rate? This modification was so much less stressful than any refi we've ever done.
Good luck to you and I'm glad your neighbor has improved.
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Deleted
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Post by Deleted on Nov 7, 2013 21:54:29 GMT -5
my bad, didn't realize you were licensed here. I just know you live in NY. as far as the rest, had I known that the lender the broker was planning to use had a restriction for affordable units...obviously knowing my place has at least one, I wouldn't have signed on for the appraisal and the rest. I can probably re-use that appraisal if I find another lender to refi, but I'd still be out the fee. I was totally okay with the payments I have had the whole time, even knowing my interest rate wasn't ideal. I'm pretty damn pissed that I signed on for a "no closing costs and a reimbursement of the appraisal fee" sort of loan that didn't turn out to be what I actually signed up for. I still haven't signed the updated TIL form, or the broker letter that explains the change in terms for the loan. I want to talk to the broker tomorrow before I sign anything. right now, I'm just wondering if there's anything I can recoup if I walk from this broker. I'm that pissed about this on principle. It's POSSIBLE this no BMR is a new requirement (the underwriters do have changes all the time) but I'd be a little pissed if I were you. It's highly unlikely you can use your appraisal for another lender. I'd have a heart to heart with your lender and go up the chain of command to get your money refunded. You can always give them a bad review on Yelp. Good luck. I wouldn't refi just because you're out the appraisal fee.
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chiver78
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Post by chiver78 on Nov 7, 2013 22:14:08 GMT -5
I'm absolutely in the same spot, forwardwego. I couldn't refi when the rates bottomed out b/c I was still underwater. I didn't refi earlier in 2013 b/c I was actively on the market. since I've pulled my listing, it seemed prudent to check out rates......and here I am. thank you for the well wishes with my asshat neighbor, it seems like I'm going to be stuck here for awhile longer.
to answer the rest of your questions, my current lender is Ocwen, who took over from GMAC within the past year. Ocwen actually reached out to me after I submitted a Lending Tree inquiry, offering their best of a 4.75% for a 30-yr fixed w/o any other paperwork or fees. I declined that in favor of this 3.75% 5/1ARM w/no closing costs that is now suddenly unavailable w/my complex's status as having the dreaded affordable units.
for Bonny, what's a BMR? and I'm not sure I won't be able to reuse the appraisal, it is dated and has contact info. I'm just bent that I'm out the fee for it, when what I signed on for was a zero-closing cost thing that refunded the charge. I was worried that a couple new pre-foreclosure additions to MLS would screw my appraisal, but it all worked out. imagine my aggravation to find out that the intended lender didn't allow for 40B housing? and my broker is also in MA......yeah. NOT happy. if I can't make this work, I'm totally blowing up yelp and then some.
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Deleted
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Post by Deleted on Nov 7, 2013 22:19:57 GMT -5
BMR=Below Market Rate. It applies to both rental and for sale properties. Sorry for the real estate jargon. Give your lender a chance to do the right thing. Write the "I'm so disappointed with the transaction; I was promised X..." blah, blah. Be polite but firm that you expect a refund of the appraisal fee under the circumstances. Remind them that you will be buying in the future and would like to give them another opportunity to do business. See if that works. Give them 10 days to respond and if that doesn't work blast them on Yelp!
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chiver78
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Post by chiver78 on Nov 7, 2013 22:25:23 GMT -5
well, I found out this past weekend that a decently well-to-do friend of mine knows a couple someones pretty high up at this refi broker's office. I mentioned wanting to take advantage of his laptop and wifi on the ship to make sure my refi wasn't being held up b/c of my own inaccessibility, he asked what lender I was using and the rest is history. so I do have a couple names to drop if my convos tomorrow go south quickly. I hate having to go that route though...
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chiver78
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Post by chiver78 on Nov 8, 2013 13:28:09 GMT -5
I just sent off a note pointing out the incorrect date, and asking if I would be able to review a complete documentation package for the new terms as I had done for the ARM terms. I indicated that I was uncomfortable signing off on the terms change without having had the opportunity to review everything.
I also asked all the questions about the GFE and TIL numbers not matching up, and which ones were correct. I'll give the broker the opportunity to respond to that before I decide what I'm doing.
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justme
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Post by justme on Nov 8, 2013 13:52:00 GMT -5
Oh I thought the point was to solicit opinions. I gave mine. If you want to apply my advice fine if you don't then don't. You advice is only helpful if she had a time machine to go back to "get the best possible rate". Which she probably did at the time, but rates have been dropping and you can now get a rate several percentage points below what was the best rate 5 or 10 years ago. Kind of silly not to take advantage of that and pay a lot more in interest that you don't need to.
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