7.75% for a Refi??? Why?

picture121 · Joined: 21 Sep 2008 Posts: 5 4.87 Dollars($)

Lucky me. My adj. rate mtg on my investment property matures in 2010. So, I'm looking to refi. Plus I need 40k cash out I need the cash to pay off debt (int rates on credit cards are very high). Only thing is, I'm getting killed in the process. I have 2mtgs on this home. The second is a HELOC- rate is at 5.5% and so I'm not rolling that one into the refi. The first mtg is a 5/1ARM rate is currently 5.125%. I've been quoted 7.75% for a 30yr fixed and 7.5% for a 7/1 int only ARM. My housing payment is going from $2400 /mo. to about $3350/mo. The rent will cover this mtg., but no longer will I have cash-flow from the property. However, I would be debt-free. Does this rate sound right? Should I do it? BTW middle score is 686.

smithsussane · Posted: Tue Sep 30, 2008 8:49 pm Post subject:

Hi picture!

Your credit score is quite good for getting loans. But let me ask you something-has your bank/lender told you about the options that you have written here? If yes, then I think you can go with them. If the rent is covering this mortgage, then it is quite a good idea to go for the deal.

Feel free to ask if you have further queries.

Sussane

0.10 Dollars($)

I think 7.5% for a 7/1 int only ARM will be a better option for you. 30 years is a long time and you do not know how things will turn out. so better go for the one which is of a shorter period of time.

Guest 0.10 Dollars($)

Those rates are way too high. Email me, and let's do better!

martytheloanofficer@gmx.us

Marty

I am on line now!

gmakerley · Posted: Wed Oct 01, 2008 7:04 am Post subject:

do everyone a favor, please, and do not respond to marty. his uncooperative attitude on this forum undoubtedly will spill over on how he treats clients.

rewarding someone who blatantly ignores the entire precept of this forum (to be a forum!) by advertising over and over again, is to encourage him. please don't.

elnoralittle · Posted: Wed Oct 01, 2008 8:54 am Post subject: It depends

You have a decent credit score, but there are so many factors to consider when quoting a rate.
a 7/1 arm in this market at that rate is okay, however, you might want to consider all your options. Make sure that you have recieved a Good Faith from the lender quoting it to you.
Re-consider the fixed rate as well, rolling in the second. Your second may be a low rate now, if it is a fixed rate.
Currently the libor on loans is 6%. So when your current rate adjusts, you might have a problem.
It is a good thing that you are considering your options now.

Call me and I can see if I can help quote you a better rate. You also have to consider closing costs. Beware of brokers.

Elnora Little
Sunshine Mortgage
800-430-2678

gmakerley · Posted: Wed Oct 01, 2008 9:51 am Post subject:

once again, elnora - please try to comply with the guidelines.

elnoralittle · Posted: Wed Oct 01, 2008 10:00 am Post subject: Re George

I am not sure what you mean comply George.
I gave my honest opinion to the person inquiring. Just because I gave my contact info I don't think that is spam or abusive advertising.

I would be willing to share my mortgage advise on this forum only as well.

There are a ton of sneaky brokers out there that try to get borrowers that are in a pinch.
I don't believe that I have an uncooperative attitude such as this Marty person either.

gmakerley · Posted: Wed Oct 01, 2008 10:12 am Post subject:

based on your last sentence, elnora, i have to agree with that.

and i quote from the guidelines: "spam post, promotional posts and commercial advertisements are not entertained and shall be deleted by moderators/admin." it goes on to say: "promotional posts are those in which: you solicit members/guests visiting our forums...make remarks like "call me at...i can offer you..."

you are welcome, as i noted earlier, to add your contact information in your signature. as you can see, mine appears, as does the information for several others of our posters.

your honest opinion is precisely what matters, but all you have to say may be deleted and therefore not productive unless you discontinue giving out your contact information in that fashion.

i reiterate...your opinions and advice are welcomed here.

elnoralittle · Posted: Wed Oct 01, 2008 10:16 am Post subject: george

For some reason it isn't allowing me to edit my info. I will try from home. It could be an administrator priveledge through my company computer.

brian1 · Posted: Thu Oct 02, 2008 1:21 pm Post subject:

Elnora welcome to the boards. I am not a moderator rather a broker/banker that gives his time freely. You were in fact out of line for suggesting that someone contact you for a quote. There are many on here that break the rule but that does not justify someone else doing the same thing. Also I do not know why you have an issue with brokers. There is nothing a abanker can offer that a broker cannot. We are all professionals and it looks very bad and confuses the consumer when you say things like "beware of brokers" Please try to refrain from blanket statements that attack a whole industry. For every bad broker there is a bad banker. For every dollar made in YSP a dollar is made in SRP.

elnoralittle · Posted: Thu Oct 02, 2008 1:29 pm Post subject:

Brian, since I have spoken with George, I have not suggested someone contact me in the forum. I think saying that I am out of line is a bit of a stretch for someone new to the site. But I have been careful since then.

I am not going to going to go into the difference between lenders and brokers b/c you and I see differently on the subject, but I will choose my words more wisely next time.

I too am here only to help and felt that that borrower we are speaking of was getting a poor deal.

In Maryland, we have a different experience with brokers, I suppose, not all as honest such as yourself.

gmakerley · Posted: Thu Oct 02, 2008 1:46 pm Post subject:

i agree with brian (go figure) in that there are brokers and bankers of all stripes - some above board, some below. there is fraud in every area of our lives, but we still have to wake up and get moving.

i will also agree with elnora that since she and i had our back-and-forth, she's demonstrated that she'll be a valuable asset to this community. i'm glad we got the issue of advertising, etc. out of the way and we can move on.

elnora, you are welcome here. brian, you know i value your opinions.

now you two kiss and make up and let's move on. Very Happy

0.10 Dollars($)

SMOOCHES!
I had time to think about it on the drive home, and Brian I apologize for generalizing.
My experience with a select few shouldn't determine my opinion of a whole. Also, the point of the site is to help.
I made the mistake of interjecting an opinion, that now I feel was wrong, instead of purely giving advise.

One thing from one GFE to the next, comparing lenders only, if one rate is extremely higher than the next for the same program, you can better believe a loan officer is taking an overage.

I have had the experience of working with a loan officer that would charge a higher rate, just to refi the person later. He was a Hispanic LO and would take advantage of his own community. Especially those just moved to the US. Once we caught wind, we let him go immediately.

But there are ways for a consumer to sniff out lenders like that. I always tell someone to get it in writing. Compare rate to closing costs, compare closing costs to rates (they are different though it sounds the same)

Do the research about the company, it's not hard to do these days with the world wide web, & read everything you sign. Ask questions if you have them. This isn't buying a car that is finaced over 5 years, it's a home over 30 and is probably the single biggest purchase you will ever make.

elnoralittle · Posted: Thu Oct 02, 2008 4:38 pm Post subject:

the above was from me

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