dallison

The wife and i have lived in our current residence for almost 4 years and took out a 30 yr fixed mort.

I have applied for the refi and credit isn't an issue with fico scores around 820-830. But the appraisal isn't close to what the houses are selling for. we owe 145k and it was appraised for 146k. The similar houses around us were selling for 155-160k. But b/c of the timing of our refi, they can't be considered since most were more than 6 months old. I can understand market prices and if the house was only 146k , but this is not the case.

I contested it and provided examples but the credit union looked at it and the outside appraisal co said they stand by their original price.

meh

gatrhumpy

iTrader: (1)

That stinks man. Sorry to hear that.

I inquired about refinancing with my current mortgage company, and they basically said no because we would need to walk to the table with $3K PLUS the difference in what we owe on the house and what the house is worth. I'm not paying $13K-$15K up front to reduce our monthly mortgage payment by $150. Eff that.

dallison

i was a little surprised that the estimate was so low. We were lookin to go from a 30 year fixed to a 15 year fixed. If we were to get a 15 year, we were going to stay a few more years to get more equity.
BUT, we are going to stick with our origianl plan and buy in 2 years. The mortgage would have been about 100 more a month......

I went thru the local credit union not suntrust whom i have the note through. The only reason i did that was the credit union would have wrapped up the appraisal into the closing costs and nothing out of pocket right away. Suntrust wanted 5-600 up front for the appraisal and we could have been in the same situation.
I think the best thing to do is to move in 2 years to pretty much come out even compared to refi and having new closing costs.

dallison

gotta love only being able to refi 95%

doopstr

Try this... Figure out what the increase in monthly payment would have been to goto a 15 year loan. Now take your current amortization table and drop it into a spreadsheet. Take the difference between what you pay now and what you would pay on a 15 year loan and put that in as additional principal. You may find that you can have your current loan paid off in nearly 15 years. That's what it looked like to me when I did mine. Saves the headache of getting a new loan and paying closing costs.

If you google there are some spreadsheets out there that can calculate this stuff. If you can't find it let me know and I'll send you the one I have.

NSXNEXT

iTrader: (2)

How big of an interest rate drop are we talking?

I agree with Doopstr, I can't imagine making out better by refinancing if you're only looking to stay in the house for 2 more years. Just load up on principal payments.

Or put the money in a low-risk investment.

dallison

i looked at teh amortization table and with the new loan i would actually be paying about 200 more a month than i am now. With my payment ~185 is going towards the principal. i always pay 80-100 more a month towards the balance.
The new loan about 550 would be going towardsteh principle.

I am @ 6.75 on the 80% and 9% on the other 20% that's where i am getting hosed. That was taken to avoid pmi. that's part of the problem.

MR1

I'm an appraiser. There are very few places in the country where values are really up. Most emphasis is now given to sales less than 90 days old by the lender. Six month old sales are ancient history. In addition lenders have also tightened up somewhat on how far we go to locate comparables. Area foreclosures also must be considered.

Finally, don't think we are getting that $5-600. Our fees have actually been forced down and a middle man or the lender is keeping the difference. At least it doesn't sound like your values are down like most of ours.

dallison

thankfully prices have been pretty stable here for the past few years.. I will either have to wait until a few houses sell for the 155-160k if we want to trefi or just pay more on the principal and get out in 2 years.

Dr. Colorado

dallison

instead of doing 100% plus pmi at the time this seemed like the better option
We bought the house 4 years ago and these were the going rates at the time.

this most def won't happen again.

Dr. Colorado

Wow, I'm lucky to have gotten 6% flat/30 years/0 points for my jumbo loan after 20% down (over 2 years ago). I looked into refinancing but it would only make fiscal sense if I got down to 5.5% which is damn near impossible with the banks tightening their belts on jumbo loans. Furthermore, refinancing would cost me a couple points ($15K or more)

dallison

we closed on the 1st on a 15 year 4% this will save us a ton of interest. The new payment is $80 more than the previous minimum.

Anachostic

I think you should stop paying your mortgage and walk away. I heard on AZine that it's a better thing to do.

doopstr

I'm waiting on a closing date for mine. Appraisal came in $100 less than I thought

dallison

I think i had a generous apraiser. Mrs. Dallison was home showing the guy around. Whatever she did worked :don'taskdon'ttell:

dallison

it's the new sliced bread

dallison

I am very glad i was able to refi when i did. The house prices dropped to about 135k, about 15-25k lower than mid year. At least our interest rate is low.