Question by poecilia.r.lvr: Mortgage/refinancing professionals: what are good refin. options?
Mortgage: from 7.11% fixed for 2 yrs. and just went to 8.63% adjustable this month.
My sister has a mortage for $ 79,000.00. and this month she will need to pay approx. 100.00/month more!. if it is a good idea to refinance, please explain what the pros and cons of refinancing are, and what she should be looking for. I believe the value of the property is supposed to be $ 110,000.00 now. So, the LTV=79K/110; cred score=560; income=2,700/mo (32K/yr). What would be a good deal for her? What should she look for in the professional that offers to assist her? What should she watch out for? Should she expect some sort of “hidden” fees or ” a catch”?
Thanks, in advance – She will need to make a decision within the next day or so – PLEASE HELP!!!!
Answer by fukinluckyfuker
She should make damn sure someone runs her through the Fannie Mae and Freddie Mac underwriting systems.
With that low of a loan to value, and if she doesn’t take any cash out with the refinance, unless she’s been late on her mortgage recently, she should be able to get a 30 year fixed rate conventional loan. She can wrap the closing costs into the deal, shouldn’t cost more than $ 3000-3500. If she doesn’t get an A rate, she should get an A minus rate, so she could get anywhere from 6.00 to maybe 7.25%, no prepayment penalty, no adjustable rate.
Problem is, most loan officers don’t think anyone with a 560 can get a normal approval, when sometimes they can.
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