Closed on a home recently thru a major bank. Got a rate around 6.5 or so. Closed less than a month ago. Three credit scores came in at 788, 805 and 822. Median, obviously, was 805. First mortgate of $196k and second of $35k. Should I have received a higher discount on my rate? Went with a no-doc loan, didn't have to show anything. Second loan rate is over 8% and was done to avoid PMI. House was appraised on a drive-by appraisal at $25k more than what I paid. If I messed up, can I re-fi my second at a lower rate with my higher score? Also....crazy thought here...since the house appraised so high, can I get a home equity loan at a rate lower than my original second loan and utilize that cash to pay off the second?? Follow my train of thought? Any help is appreciated.
2006-06-12 17:15:49 · 7 answers · asked by SuperCredit 1 in Business & Finance ➔ Credit
Thanks for all the quick responses.
Bruce, I am in Palm Harbor, Fl...Pinellas County and we're watching Alberto piss on us tonite. So, needless to say, my insurance is outrageous and thru Citizens.
Quantum..I like your theories.
Plus, I am thinking about doing a re-fi on
the second only to rid myself of the 8% +. Hoping that I can utilize my home equity for that purpose just to get a better rate. I made damn sure that I would have no pre-payment penalties, on either loan.
Boston, for personal reasons I had to utilize my credit score for the no-doc. Not trying to hide anything, but that's the only way I could stop paying rent and start paying interest and, to a smaller extent,
equity.
How in the world can I write you guys
directly? I'm new at this. I am at, and I'll space it out so it's not filtered, madattack2(at) yahoo (dot) (com)
Thanks again for all the help.
2006-06-12 18:01:04 · update #1
I believe you could have gotten a much better rate. Although I am not a mortgage broker I have looked into it for our situation. I found that there are so many online sites that are willing to compete. Lending Tree is one of the sites that comes to mind. They have several lenders that compete for you, so they are apt to offer lower rates. You may want to look into it.
2006-06-12 17:21:00 · answer #1 · answered by Cathy P 2 · 0⤊ 0⤋
Depending on your loan amt. you may be able to refinance the entire loan again and stay under the 80 percent loan to value and not have to pay the pmi. The rate you got sounds pretty good since you did a no-doc loan which makes the rate increase. You may want to make sure you don't have a pre-payment penalty on the first loan before refinancing. This is normally 6 months of interest, and can be very costly. Also, home equity loan rates have a much higher monthly payment compared to a 2nd mtg. Second mortgage rates are normally higher than the first, much higher. Normally over 8%. Hope this will help. Send me a message if you have anymore questions.
2006-06-12 17:31:36 · answer #2 · answered by quantum.field 2 · 0⤊ 0⤋
With a primary lender you can borrow up to the appraised value of your home, and that equity can be cash at closing. There might be a small penalty for re fi so close to a new loan, but it would worth lining your pockets with cash, rather than wait until you sell the house. Your home will only increase in value, unless you are in a bad area.With your score, you should be slightly above prime. You can borrow anywhere with that score. Pay for a full appraisal yourself, you might be suprised how much money you are leaving on the table.
2006-06-12 17:25:53 · answer #3 · answered by bruce d 1 · 0⤊ 0⤋
You probably should have shopped the rates better. Any score over 750 is prime paper. Those are pretty good numbers, but probably could have been beat, especially with a score over 800. The no-doc loan probably hurt a bit.
However, a re-fi will probably cost more in fees than the minimal rate reduction will get you unless you're planning on staying there for a LONG time.
2006-06-12 17:32:53 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
For a no-doc 1st, I think 6.5% is pretty good (for a conventional). The bank I work at would have probably done about 8-8.5% on your second, but you may have been able to find a better deal somewhere (with a little shopping around). Like the last guy said, I don't think it would be beneficial in the long run to refi so soon.
2006-06-13 03:09:48 · answer #5 · answered by inaccord18 3 · 0⤊ 0⤋
i think 6.5 no doc loan is reasonable but it depends what part of country u at. you can try to get lower rate just make sure not to end up paying closing cost.
2nd mortgage is usually higher rate and it make sense if u can payoff 2nd mortgage. make sure there is no prepayment penalty.
2006-06-12 17:23:24 · answer #6 · answered by Ted 4 · 0⤊ 0⤋
you got a great rate for today
2006-06-12 17:20:07 · answer #7 · answered by miraclerun123 2 · 0⤊ 0⤋