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CatchrNdRy posted:No that's someone else. I have the mortgage with Bank of America. The current page is for old Harp? There's nothing really on that BoA page that points to HARP 1 vs 2, but I doubt most banks are going to break down the difference in the information that gets published to their prospective borrowers. The vast majority of borrowers have no idea what HARP is so "and now we've got new HARP!" would probably just confuse the issue for them even further. I would expect applying as just a general refinance with a note that you're underwater should be sufficient. Assuming you apply on the phone or in person you can discuss the particulars with your LO and they can get you more info as to your options. If you're trying to apply online there should still be a place to make comments, or just call the bank and talk to someone directly about it. I don't know much about rate aggregators, but after briefly glancing at this LendingTree thing it looks like you do have the option at least to set your balance higher than the value. I have no idea if this would trigger HARP rates or whatever though. For Fannie Mae at least the new HARP 2.0 changes the pricing structure which would throw everything out of whack though. Lt Moose posted:Another question: any way to track down the last sale price of a house? I've checked the tax records, and sale price isn't listed, just current assessment value. Would I have to contact the county directly? Is there any rough conversions from assessed value to what it could be sold for value? Prior listings/sales should be listed in the MLS, your realtor should be able to look it up. There may be time constraints on how far back the records go. As mentioned by Jim some deed types will reference it as well. Captain Windex fucked around with this message at 02:57 on Mar 20, 2012 |
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Mar 20, 2012 02:54
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All I know is that the guys who were doing HARP loans for us today, literally could not get a thing done because the system could not keep from crashing because of overflow. If it was me, I would probably generally apply for a refinance, with the understanding that it is probably a little bit easier to get a property inspection waiver if you have a freddie mac back loan than it was on friday.
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Mar 20, 2012 03:17
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gtkor posted:All I know is that the guys who were doing HARP loans for us today, literally could not get a thing done because the system could not keep from crashing because of overflow. Just wouldn't be a day in the mortgage industry without some major system making GBS threads itself  PIWs are Fannie Mae actually, but yeah they have expanded the types of properties that are eligible as well as apparently adjusting DU's logic so that you are more likely to receive the property inspection waiver. For you prospective refi-ers: a PIW is when the automated underwriting system indicates that it accepts the stated value as the value of the property and so no appraisal is required. There's a fee charged to the lender of $75 which will probably be passed through to you, but still a helluva lot cheaper than a full appraisal.
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Mar 20, 2012 03:29
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Captain Windex posted:Just wouldn't be a day in the mortgage industry without some major system making GBS threads itself Yeah I mistyped, it should be HVE. And probably more importantly, you wouldnt be looking at your prospective refi being nerfed by a bad appraisal.
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Mar 20, 2012 03:31
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skipdogg posted:It's pretty straightforward. Any specific questions? Mostly just process order. Our realtor is working up a suggested listing price on our house now, we know what we can afford monthly it's just a matter of the amount of down payment based on what our house sells for. So how does the bank (credit union) work up what they think is a good loan amount for us (so that we can see if the houses we're after fall within that range...). Will they need to do their own appraisal (again) of our existing house before figuring out how much they're willing to toss at us? Is now actually the time to get the bank paperwork started, or should we wait at least until we have the realtor suggested listing price... I just need like a linear process chart or something, every step is easy it's just a matter of order. Probably overthinking, which is typical. mcsuede fucked around with this message at 22:38 on Mar 20, 2012 |
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Mar 20, 2012 22:35
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Captain Windex posted:There's nothing really on that BoA page that points to HARP 1 vs 2, but I doubt most banks are going to break down the difference in the information that gets published to their prospective borrowers. The vast majority of borrowers have no idea what HARP is so "and now we've got new HARP!" would probably just confuse the issue for them even further. Understood, I for some reason for looking for a special HARP gateway, but I see your point about confusing people further. Also, lending tree site would not let me put my mortgage balance at higher than my estimated worth. I found a local credit union and applied and the automated system offered 4% on a 30 year 1% origination and .75 discount rate. Effective APR of 4.218% I live in Arizona and currently pay 6% plus PMI. Do these rates sound reasonable? CatchrNdRy fucked around with this message at 00:08 on Mar 21, 2012 |
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Mar 21, 2012 00:05
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Quick question about my situation: Age 25 (soon to be 26). I'll be spending the next 5 years in Madison, WI, earning 52k the first year, going up 2k/year, after which my income should go up by a decent amount. It looks like I could get a house for around 160k or rent for about 700/month or so. I don't plan on staying in Madison long term. The NYT calculator has the break-even point at right around 4 years or so. Still DO NEVER BUY right?
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Mar 21, 2012 00:08
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One year difference, no...I wouldn't buy. Unless your job is secure and they'll pay to move you if you'e definitely leaving after 5 years, or think you might be there for a while, I wouldn't really consider it, especially if you've never lived there. I personally think its a good idea to rent for at least year and really discover which parts of town you do or don't want to live in.
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Mar 21, 2012 00:38
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Dead Pressed posted:One year difference, no...I wouldn't buy. Unless your job is secure and they'll pay to move you if you'e definitely leaving after 5 years, or think you might be there for a while, I wouldn't really consider it, especially if you've never lived there. I personally think its a good idea to rent for at least year and really discover which parts of town you do or don't want to live in. The job is extremely secure and my next employer is likely to pay for moving costs, if that changes things. The part of living there for a year before buying does make sense however.
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Mar 21, 2012 00:44
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CatchrNdRy posted:Understood, I for some reason for looking for a special HARP gateway, but I see your point about confusing people further. Also, lending tree site would not let me put my mortgage balance at higher than my estimated worth. Origination is probably going to be flat at 1 percent in a lot of different scenarios. .75 as a discount rate really could vary based on the time that you look into it and depending on if you are looking at a conventional or government program. It may be something to consider as to how long you have currently been in your mortgage and whether or not you are adding a significant amount to your loan balance.
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Mar 21, 2012 01:01
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CatchrNdRy posted:I found a local credit union and applied and the automated system offered 4% on a 30 year 1% origination and .75 discount rate. Effective APR of 4.218% I live in Arizona and currently pay 6% plus PMI. Do these rates sound reasonable? If our rate sheets are anything to go off of, 4% looks alright. Keep in mind that there are a lot of factors that impact your rate and rates change very frequently - some banks update multiple times per day. Depending on your exact loan scenario that rate could be a little high or low, but it doesn't look like you're getting completely gouged or anything. Also, FYI since you mention PMI - with how HARP works, your MI will still be enforced at the same coverage requirements on your new loan, unless your new loan happens to be below 80% loan to value, but if that was the case you wouldn't be asking about HARP anyway. Basically you'll still be paying for the MI on the new loan as well. Also, since your current loan has PMI that will probably reduce the options you have available to you as far as lenders. Transferring the MI certs between servicers is apparently a pain in the rear end, to the point that we won't do HARPs where the existing loan has MI unless we're the current servicer. Something to keep in mind when discussing your scenario with the bank.
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Mar 21, 2012 01:43
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gvibes posted:That is my assumption as well, though I thought the gift limit was a little higher. Note that it's on an individual basis, so if you are married, or they are married, you can gift twice (or four times) that amount tax free. Is that true if you file a combined return? In that case, isn't the couple one entity for tax purposes? Also, to the person who asked the question, you may just want to dock your estate eligibility unless you think you're going to leave $ 5 mm and change behind. Remember that you need to include the gift as taxable income on your return no matter what you do.
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Mar 21, 2012 18:04
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Residency Evil posted:The job is extremely secure and my next employer is likely to pay for moving costs, if that changes things. The part of living there for a year before buying does make sense however. Just because someone offers relocation does not mean that they will provide you a means to escape your mortgage. Five years is too short, and I guarantee the calculator probably did not factor in everything necessary to pinpoint the breakeven point (most of these are sponsored by realty companies who have a vested interest in getting you to buy). I would always recommend someone rent for a year in a new location no matter what, just to become familiar with the area. Buying a house under a time crunch to have some place to live can easily result in compromises you would otherwise not make.
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Mar 21, 2012 18:11
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Yeah, if the furnace dies in year 3 of your 5 year stay, you just shot the break-even point out to about year 10, which is just in time for the carpet and roof replacements to bump it to year 15 or 20. Even if everything went perfect and you saved a tiny bit of money over renting, is it worth the risk?
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Mar 21, 2012 20:08
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You know what's awesome? Escrow accounts. My lender sent me a letter last year saying that my payment was going up 70 dollars because they estimated that more money needed to go into my escrow account. Yesterday I got a refund check and a notice that my payment was going down 70 dollars this year because they estimated that less money will need to go into my escrow account. Yay.
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Mar 21, 2012 21:01
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I've known of two cases where an employer would pay for the total costs of relocation including closing costs on your current home and your new home (with restrictions on how expensive it could be and all). * Federal jobs with certain budgets (probably gonna be defense or energy or FBI, let's face it) * Healthcare, particularly for higher-paid healthcare professionals like PAs and doctors LloydDobler posted:Even if everything went perfect and you saved a tiny bit of money over renting, is it worth the risk?
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Mar 21, 2012 21:45
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TheWevel posted:You know what's awesome? Escrow accounts. My lender sent me a letter last year saying that my payment was going up 70 dollars because they estimated that more money needed to go into my escrow account. We waived escrow during a refinance, I don't trust a megabank to do anything other than take my money.
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Mar 21, 2012 21:49
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sanchez posted:We waived escrow during a refinance, I don't trust a megabank to do anything other than take my money. I didn't even know you COULD do this until I started reading this thread. Is there any way I can get the escrow on my mortgage to go away so I can save the money myself instead?
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Mar 21, 2012 22:09
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daggerdragon posted:I didn't even know you COULD do this until I started reading this thread. Is there any way I can get the escrow on my mortgage to go away so I can save the money myself instead? I don't think you can change it during the same mortgage. You would have to refinance. Escrow isn't that bad, my escrow is about 5200 a year and not many people have the discipline to sock that kind of cash away every month.
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Mar 21, 2012 22:33
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skipdogg posted:I don't think you can change it during the same mortgage. You would have to refinance. Bugger. Okay, I'll keep that in mind if rates drop to like 1% or something ridiculous.
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Mar 21, 2012 22:39
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archangelwar posted:Just because someone offers relocation does not mean that they will provide you a means to escape your mortgage. Five years is too short, and I guarantee the calculator probably did not factor in everything necessary to pinpoint the breakeven point (most of these are sponsored by realty companies who have a vested interest in getting you to buy). I would always recommend someone rent for a year in a new location no matter what, just to become familiar with the area. Buying a house under a time crunch to have some place to live can easily result in compromises you would otherwise not make. It's just the NYTimes calculator, not one sponsored by a broker. Either way, you guys have convinced me that 5 years isn't enough time to take the risk of home ownership when the break-even point is 4 years. I'll say whenever I hear young doctors complaining about how poor they are they're inevitably still paying off their first mortgage on the house they bought during residency. Thanks dudes
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Mar 21, 2012 23:11
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skipdogg posted:I don't think you can change it during the same mortgage. You would have to refinance. On the contrary. At least for my loan, escrow was a requirement from the mortgager for the first year only. This is an FHA loan so I don't know if it's uncommon for standard loans. Many people (including me) prefer to use escrow on an ongoing basis because it is free (they even pay you whatever interest the money in the account earns), someone else does the mathematics of figuring out how much you need to pay in every month, and they pay your property taxes etc. automatically so you don't have to worry about it. Convenient! The rules might vary state-to-state though, too. Check your loan documents' escrow papers to see what is there. Or just call your mortgage bank and ask them what the policy is and if there's a fee.
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Mar 22, 2012 00:16
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if you refi an FHA though you are going to be expected to re-escrow if you found a way out of it. Standard practice for FHA's is to have them escrowed. I would actually ask you lender if you are looking into a mortgage if there is a pricing adjustment based on an escrow waiver. Chances are you are paying .25 somewhere in order to have the flexibility to pay your own taxes and insurance.
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Mar 22, 2012 02:54
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Omerta posted:Is that true if you file a combined return? In that case, isn't the couple one entity for tax purposes? In general, you may gift the maximum amount ($13,000) per person per year regardless of filing status. Theoretically, if you are married your parents could each gift you and your spouse 13 grand for a total of 52 grand of non-taxable gifts per year without even touching the gift tax lifetime exemption. And to the best of my knowledge, gifts are never taxed to the recipient as income. It is only taxed via the person giving the gift if it exceeds the maximum amount.
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Mar 22, 2012 03:50
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Who the hell pays .25 for an tax and insurance escrow? That is insanity. Edit: we pay nothing for an escrow, and they pay money market rates to us for it. That makes it worth the deal to us, since we would have that in a cash account anyways. Their rates are a tiny bit lower than our cash rates, but so low that it is irrelevant. We've ended up some years with refunds and some with $1k bills because they do an average for the region, without factoring in replacement value, state rate changes, etc, but they have aligned perfectly with my local taxes and insurance quotes every time I have questioned it, so.... let it mellow fucked around with this message at 03:59 on Mar 22, 2012 |
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Mar 22, 2012 03:55
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You might not have ever knew you paid to to be honest. It would have been adjusted the pricing of the loan upfront, not in the yearly amount. It would probably be illegal in most states to do so.
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Mar 22, 2012 04:01
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jackyl posted:Who the hell pays .25 for an tax and insurance escrow? That is insanity. I think gtkor is saying you'd be charged .25 to not use escrow. I remember signing documents during my refi accepting a new escrow account, and checking a box indicating that I wanted to continue to use escrow after the first year (which I assume I could have declined without penalty). But my memory might be faulty. Check with your lender.
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Mar 22, 2012 04:10
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gtkor posted:You might not have ever knew you paid to to be honest. It would have been adjusted the pricing of the loan upfront, not in the yearly amount. It would probably be illegal in most states to do so. Was this meant for me? I'm not sure what this means. Are you saying people don't understand their closing docs?
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Mar 22, 2012 04:18
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jackyl posted:Was this meant for me? I'm not sure what this means. Are you saying people don't understand their closing docs? Anyone really. If you are not escrowing, it is very likely when you originally signed the loan you were charged a fee for not doing so. It is by no means universal, but it is a fairly common practice.
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Mar 22, 2012 04:26
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gtkor posted:Anyone really. If you are not escrowing, it is very likely when you originally signed the loan you were charged a fee for not doing so. It is by no means universal, but it is a fairly common practice. We certainly were, it was a few hundred dollars from memory.
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Mar 22, 2012 13:16
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jackyl posted:Edit: we pay nothing for an escrow, and they pay money market rates to us for it. Again: you are confused. You are not paying extra for using an escrow service. Gtkor is saying that had you opted out of escrow, you'd have been charged a fee for doing so. Assuming the bank was willing to even give you that option, which is often not the case.
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Mar 22, 2012 21:17
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Residency Evil posted:It's just the NYTimes calculator, not one sponsored by a broker. The break even point for the NYT calc is based on home appreciation, which can't be predicted. If the market for homes heats up in your area, the break even point could be as short as 2-3 years. If homes in the area depreciate, you will NEVER break even. It's a big guessing game. I'd stick with renting for the reasons previously mentioned plus your income/mortgage interest likely won't be high enough to go beyond the standard deduction anyway (one of the nicer perks of ownership).
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Mar 22, 2012 23:01
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Captain Windex posted:If our rate sheets are anything to go off of, 4% looks alright. Keep in mind that there are a lot of factors that impact your rate and rates change very frequently - some banks update multiple times per day. Depending on your exact loan scenario that rate could be a little high or low, but it doesn't look like you're getting completely gouged or anything. Thanks for your input, the rate looked good, I was just curious if that points and origination were about that level. This credit union knows of the PMI situation and still wants to lend, so I consider myself fortunate.
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Mar 23, 2012 00:18
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Next-Gen posted:And to the best of my knowledge, gifts are never taxed to the recipient as income. It is only taxed via the person giving the gift if it exceeds the maximum amount. That's correct; I phrased my answer like that because the OP was going to be the donor -- though I should have been a little more precise so it didn't confuse other people.
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Mar 23, 2012 02:32
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Captain Windex posted:If our rate sheets are anything to go off of, 4% looks alright. Keep in mind that there are a lot of factors that impact your rate and rates change very frequently - some banks update multiple times per day. Depending on your exact loan scenario that rate could be a little high or low, but it doesn't look like you're getting completely gouged or anything. Ugh the 4.0% rate I had locked down with the local credit union was a no-go due to the fact my PMI servicing (loving MGIC) would not allow a refinance to a company that wasn't my loan originator. I had to crawl back to BofA, and they gave me a 4.6% rate that I still had to buy down. I told them the CU gave me 4.0% and he said that they probably didn't take into account that my property is over 125% underwater. Is that BS? This sounds really stupid, but would calling MGIC to ask them to allow me to refinance with credit union a good idea? CatchrNdRy fucked around with this message at 19:14 on Mar 23, 2012 |
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Mar 23, 2012 18:54
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CatchrNdRy posted:Ugh the 4.0% rate I had locked down with the local credit union was a no-go due to the fact my PMI servicing (loving MGIC) would not allow a refinance to a company that wasn't my loan originator. That is true. If you are that underwater on your house, no one is going to want to refinance you for anything approaching market rates. I would be surprised if the credit union would have offered you 4% after they did an appraisal. It pains me to say it, but in this case Bank of America gave good advice and you are fortunate to get 4.6% because they didn’t even have to do that.
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Mar 23, 2012 19:06
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CatchrNdRy posted:Ugh the 4.0% rate I had locked down with the local credit union was a no-go due to the fact my PMI servicing (loving MGIC) would not allow a refinance to a company that wasn't my loan originator. Ugh, I don't like the sound of that regarding MGIC. My loan has PMI through them but my current servicer (Provident) is not doing HARP at all.
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Mar 23, 2012 19:11
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Zeta Buttforce posted:That is true. If you are that underwater on your house, no one is going to want to refinance you for anything approaching market rates. I would be surprised if the credit union would have offered you 4% after they did an appraisal. It pains me to say it, but in this case Bank of America gave good advice and you are fortunate to get 4.6% because they didn’t even have to do that. Hmm good advice, I'd probably appreciate the rate more if I wasn't teased so early on, and BofAs customer service wasn't so gruff sounding. If I didn't have a PMI transfer issue and I locked the 4% with my deposit, I wonder if the loan officer would have gotten in trouble after the appraisal was done. IOwnCalculus posted:Ugh, I don't like the sound of that regarding MGIC. My loan has PMI through them but my current servicer (Provident) is not doing HARP at all. So I ended up just directly calling MGIC (really easy to get a hold of) and the lady was confused and said she didn't know of any issues regarding disallowing transferring of PMI. I don't think everyone's ducks are in a row regarding HARP just yet. CatchrNdRy fucked around with this message at 19:20 on Mar 23, 2012 |
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Mar 23, 2012 19:15
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Why would a mortgage insurance company discourage a borrower from lowering their interest expense? I don't see how this would increase the risk and it probably prolongs the amount of time PMI will be carried.
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Mar 23, 2012 21:11
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I'm not sure if I should post this here or in one of the DIY threads so if it's out of place just let me know. My wife and I are considering putting an offer on a 100 year old house. It's just been totally renovated - it was torn down to the studs then built back up. The only things original are the frame/foundation and hardwood floors. Is there anything in particular we should be looking at on a house with this type of renovation. The owner was there when we looked at it and he seemed like he genuinely cared about his work, but I guess I'm just a little bit nervous of the whole buying a house to renovate deal.
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Mar 23, 2012 21:16
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