Posted: Sat Nov 08, 2008 3:03 am Post subject: Ridiculous
We have had a mortage with WaMu for seven years. It was our first home and we were unaware of interest rates, mortgages etc. To the point we got an awful interest rate. We just purchased a new home and recieved a very good rate, but wanted to refinance the old home to reduce the monthly payment until it sells. It is a modular home. The mortgage amount is $79k, the appraisal is for $110k. WaMu will not refinance the loan because they do not lend on modulars in my state. This is completely ridiculous. It has been good enough for collatoral for the past seven years. Why not know?
Have you shifted your modular home to any other state? If WaMu is not refinancing the loan, you can check with other lenders. It is not necessary to take the loan from the same lender.
You might want to weigh your options though refinancing.
Some Lenders charge a little more for lower loan amounts. Also, you will have to pay the cost of the refinance. It might end up costing you more to refinance in the long run.
calculate your payment and compare it to the cost to refinance.
If you want help comparing respond back with the state you are in and the rate you currently have & payment you make. i can try to calculate the difference for you based on an estimated rate.
This isn't a solicitation b/c my company doesn't do modulars, but as a lender, I might be able to provide a close estimate. _________________ Elnora Little
First Home Mortgage
First in Customer Service!
301-437-5605
Taylor, Bean and Whitaker mortgage will treat modular homes as regular SFR. Your problem may be now that you have moved your loan on the old house will be non-owner occupied which will have higher rates. Also, if you want to avoid closing costs, your interest rate will be higher as a result. It may not be worth paying the closing costs if you are actively trying to sell the home. You might get a bigger benefit by lowering the price on your home by that much. _________________ Carl Pruitt
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I agree with Carl here. You won't need to refinance because the home appraised value is good enough to help you pay off the mortgage. And if you get a potential buyer, I hope the sale proceeds will be appreciable enough to help you repay the mortgage.
I believe it's no use paying a good amount of closing costs for the refinance when you'll ultimately sell the property. Having said this, I don't mean that you go for a no-cost refinance as because it'll charge you more in interest rates. What I shall suggest is that you take the help of a realtor and look out for a potential buyer.
basically, i agree with much of what has been posted.
a refinance need not be done with the original lender; just shop around and you'll find plenty of sources for a loan.
as for why now...things have changed dramatically in the mortgage arena - for wamu to cease lending on modular homes isn't all that big a deal. some lenders tend to move faster than others in changing - whether it's to add or to subtract. _________________ George M. Akerley
Loan Consultant
860-221-5044
jerry
