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Spygirl
Board Administrator
04-23-2001
| Monday, January 28, 2008 - 7:42 pm
I have a 5-1 adjustable rate mortgage (80%) set to "expire" in July '09 and am wanting to refinance it into something else since the rates are so low. So...I opened the phone book and stared at all of the mortgage companies for about an hour realizing I don't have a clue what I'm doing. Who do I call? What do I ask? How do I know I am getting a good deal??? HELP!!
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Juju2bigdog
Member
10-27-2000
| Tuesday, January 29, 2008 - 10:36 am
Where is Mware when we need him? Speaking of which, whatever happened to Mware? Spygirl, if you just want to get a start, you might try a standard savings and loan like Washington Mutual. The business section of our newspaper back home has a weekly comparison chart of which institutions are offering what rate.
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Prisonerno6
Member
08-31-2002
| Tuesday, January 29, 2008 - 12:17 pm
I just refi-ed. I took the easiest route for me, which was to go to Capital One (who has my car loan and credit card). Although I was in the same siutation as you, my loan had been sold to Ocwen, and I wanted out fast (their customer service is in India, and they wouldn't do anything unless I gave them my SSN over the phone, which I refused to do. I had to request information in writing twice before I got anything). I may not have gotten the best deal, but I was happy, and the process was painless. I would try going to your personal bank first, if you aren't in a rush like I was.
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Dipo
Member
04-23-2002
| Tuesday, January 29, 2008 - 12:56 pm
You should try to get a quote from Bank of America if you want you loan to stay in one place. There is no guarantee but they to hold a bunch of their loans. You could do some research with the online companies if you are unsure what type of loan you want to move to. The ARM is not a bad loan if you understand how it works and are prepared for and know when the adjustments will occur. If you are planning to get a Fixed-Rate loan, you may get a better rate at the banks. Also, ask for good faith estimate so you can compare costs. I bought in 2007 and got a no points loan from BofA that worked great for me. The last thing you need to be concerned with is the declining/distressed markets policy for most lenders. If you are in certain MSA/MSADs the majority of the lenders have limited the maximum financing that you can get. Plus you have to determine what the value of your home is, it may be less than you paid for it, depending when you bought and where you are. If you have built up some equity you probably won't have a problem, but some places don't appreciate much and refinances are generally limited to 90-95% of the home value. Hope this helps. ETA: I checked your profile and your state is not in a declining market according to our information. And I see you are at 80% now, so you just have to decide what kind of loan you want and the rate you want, then you should have no problem, assuming you have been making your mortgage payments on time. You should check with the current loan holder and see if they have any special refinance programs so they don't lose you as a customer.
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Serate
Member
08-21-2001
| Tuesday, January 29, 2008 - 1:53 pm
We have had great service with Wells Fargo. Hubby showed up to the closing to find out that the interest rate went down another 1/2% since he had talked to them last. And we have had nothing but good results with customer service. Most of our calls being that we have never bought a house before and didn't understand this or that, or didn't understand the statement. Not because it was hard to read or anything, just because we're dummies and didn't get Mortgage for Dummies.
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Mocha
Member
08-12-2001
| Tuesday, January 29, 2008 - 2:57 pm
I actually found my refinancing company when I was getting new siding for my house and wanted it financed. Had no problems at all, no out of pocket costs and they came to my house to sign the papers.
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Pamy
Member
01-02-2002
| Tuesday, January 29, 2008 - 7:57 pm
go to Etrade they have low fee refis and are pretty trust worthy. or go to Lendingtree.com....it asks you some questions and then gives you a list of 5 companies to contact with best deals for your situation
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Spygirl
Board Administrator
04-23-2001
| Tuesday, January 29, 2008 - 8:59 pm
Very helpful information! Dipo, yeah, we have made all our payments on time and have 80% of the original loan to refinance. And the value of the home is well above that amount. We've contemplated selling and building again, but I've decided I value my sanity more I am currently with Wells Fargo, so I will start with them and also call BofA and my own bank (hubby banks with BofA and I used to work for them). Pamy, I am going to look at Lendingtree right now and Juju, I will look at tomorrow's paper. That is what I was wondering - how can I know what rates are offered where! Thank you guys. I hope others can offer their experiences, too. This stuff has always been somewhat intimidating to me.
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Beachcomber
Member
08-26-2003
| Wednesday, January 30, 2008 - 6:26 pm
Spy, I work in the financial services industry and would recommend that you check out local credit unions - they seem to have the best deals on rates and origination fees and your loan will not be sold to another company.
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Dipo
Member
04-23-2002
| Thursday, January 31, 2008 - 10:00 pm
Spy, I go on eloan.com to check out rates and points all the time. It will give you a sense of what rates are out there.
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Jagger
Member
08-07-2002
| Friday, February 01, 2008 - 7:16 am
Bankrate.com also has an area where you can compare rates for your area. I look at them quite often to see if rates have dropped in my area. One thing to watch for when comparing rates is the APR versus the rate. The APR will include all closing costs if you include them in with the loan. Other things to consider are how long do you want the loan, a 30 year loan will probably be a higher interest rate than a 15 or 20 year loan. I've found that my local bank (wells fargo) was over a full percentage point higher than mortgage companies, meaning payments were considerally higher than other places.
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