Refinance vs Loan Modification

[kalifornia10]

Good Morning!

Which would be to my benefit, financially?

My credit is great, 800+ FICO score, no missed payments, not upside-down in equity, current loan 30year fixed, APR 5.625% and a 2nd at 7.9% APR.

Due to the economy my salary/hours have been reduced 20%, my loan is Freddie Mac and Citi is my mortgage company. All of which qualifies me for a loan modification.

I need to act quickly... Your advise will be greatly appreciated.

 

[Scott E]

You qualify for a loan mod even though you are current?

 

[Lavey29]

I agree, your only option looks like refi if you are current. Don't think the lenders will modify your current loan but it never hurts to call them and ask.

 

[Tamalewagon]

Good Morning!

Which would be to my benefit, financially?

My credit is great, 800+ FICO score, no missed payments, not upside-down in equity, current loan 30year fixed, APR 5.625% and a 2nd at 7.9% APR.

Due to the economy my salary/hours have been reduced 20%, my loan is Freddie Mac and Citi is my mortgage company. All of which qualifies me for a loan modification.

I need to act quickly... Your advise will be greatly appreciated.

Hi. You do not qualify for a modification. There is a new program out called DU Refi Plus. It is for loans up to 100% LTV. The great news is that even though your loan will be 80%+ LTV you will NOT incur PMI! That's huge! If you're in Ca. Give me a shout. I'll hook you up.

 

[Lavey5150]

If your equity is stable 80% or below, and you can qualify full doc, FICO is good, just do a refi. Call your existing lender and bend their ear a bit.

 

[kalifornia10]

You qualify for a loan mod even though you are current?

That is what my mortgage company CitiMortgage told me.

I called them up as soon as my income/hours were reduced to see what my options were, after answering their questions I was told (twice), by Citi that I qualified for a loan modification. They are running 3 weeks behind and will call me back then.

Thing is... I'm not patient and I don't want to wait. I want to take advantage of the 4.375% rates if that is the right thing to do.

I also called Covenant Mortgage for a Refi which they can do.

My problem is i don't know what the best route to take is.

 

[Tamalewagon]

That is what my mortgage company CitiMortgage told me.

I called them up as soon as my income/hours were reduced to see what my options were, after answering their questions I was told (twice), by Citi that I qualified for a loan modification. They are running 3 weeks behind and will call me back then.

Thing is... I'm not patient and I don't want to wait. I want to take advantage of the 4.375% rates if that is the right thing to do.

I also called Covenant Mortgage for a Refi which they can do.

My problem is i don't know what the best route to take is.

Just to hear back from your bank about a modification can take up to 3 months. Just be cautious and please don't pass great rates on a "possibility" of the loan mod. Just my .02

 

[Outnumbered]

I'll go with the unpopular opinion here. If you have 20% equity and cannot afford your house you NEED TO SELL THE HOUSE AND BUY SOMETHING YOU CAN AFFORD or REFI. Why should you get bailed out? Loan mods should be for people who bought in 2005-2006, lost income or job, lost all equity, CANNOT sell or refi, have no other way out.

Flame on but I say it is taking advantage of the system if you do a mod in your situation.

 

[SBjet]

Just to hear back from your bank about a modification can take up to 3 months. Just be cautious and please don't pass great rates on a "possibility" of the loan mod. Just my .02

I agree. "mod" has come to mean 1. You are upside down, and the bank is going to eat a loss, and 2. the bank tries to slot you into some program from Obama which may or may not be forthcoming.
Feel free to call your own lender and ask for a refi instead of a mod, and them compete.

 

[Universal Elements]

If your equity is stable 80% or below, and you can qualify full doc, FICO is good, just do a refi. Call your existing lender and bend their ear a bit.

Because he lost 20% of his earning capabilities, they will look very hard at job stability & debt to earning ratio.

 

[Universal Elements]

I'll go with the unpopular opinion here. If you have 20% equity and cannot afford your house you NEED TO SELL THE HOUSE AND BUY SOMETHING YOU CAN AFFORD or REFI. Why should you get bailed out? Loan mods should be for people who bought in 2005-2006, lost income or job, lost all equity, CANNOT sell or refi, have no other way out.

Flame on but I say it is taking advantage of the system if you do a mod in your situation.

He did loose 20% in work hours (reduction).

 

[Tamalewagon]

He did loose 20% in work hours (reduction).

I'm sorry, but after dealing with modifications personally, it does not matter. If in fact you still qualify with your income and your loan to value is still positive, 9 times out of 10 you will have to do the refinance. You can still get qualified on a refinance with a high debt to income ratio. I simply suggest not wasting your time and get into some of these rates.

His original rate should get shattered by today's standards. Even on the DU refi plus program, we are seeing rates in the mid 4% range up to 95-100% loan to value with NO PMI. It's a kick ass program.

 

[Outnumbered]

He did loose 20% in work hours (reduction).

My issue is the equity. He has a luxury that many do not. He can sell and buy a cheaper home. He is not in a true bind. It is not a good sitch, but far from a bind.

Sell the home, buy another cheaper home, go FHA with little money down and be golden. Many of my neighbors bought in 2005-2006, paid about $550k, put 20% down, took no HELOC, and now their house is worth $250k. If these people lost 20% income than these are the people that should do a loan mod.

I guess that is just me though, I try to always do the right thing. Taking a bail out instead of taking your lumps goes against my morals.

Flame on:champagne:

 

[Cole Trickle]

My issue is the equity. He has a luxury that many do not. He can sell and buy a cheaper home. He is not in a true bind. It is not a good sitch, but far from a bind.

Sell the home, buy another cheaper home, go FHA with little money down and be golden. Many of my neighbors bought in 2005-2006, paid about $550k, put 20% down, took no HELOC, and now their house is worth $250k. If these people lost 20% income than these are the people that should do a loan mod.
I guess that is just me though, I try to always do the right thing. Taking a bail out instead of taking your lumps goes against my morals.

Flame on:champagne:

Sounds familiar...lol:swear:skull

I'm hoping to go after the obama plan once the whole BofA Countrywide thing is a wrap. Im also waiting for the knowledge factor of the plan to be better understood by the company.

 

[C-2]

Im also waiting for the knowledge factor of the plan to be better understood by the company.

http://www.time.com/time/business/article/0,8599,1894513,00.html?xid=rss-business

 

[Cole Trickle]

http://www.time.com/time/business/article/0,8599,1894513,00.html?xid=rss-business

Got that

Not sure it helps me due to my 2nd being with a different bank?

Maybe the HELOC/2nd companies will start working with the homeowner seperate

 

[C-2]

Got that

Not sure it helps me due to my 2nd being with a different bank?

Maybe the HELOC/2nd companies will start working with the homeowner seperate

I just re-read that article, it doesn't make sense. Maybe the article was written wrong on that portion of it, I'm sure other info on the new plan is out there.

 

[Tamalewagon]

Got that

Not sure it helps me due to my 2nd being with a different bank?

Maybe the HELOC/2nd companies will start working with the homeowner seperate

If you currently have a neg-am loan from Countrywide, you should look into the attorney generals website about it. Good news.

 

[Cole Trickle]

If you currently have a neg-am loan from Countrywide, you should look into the attorney generals website about it. Good news.

I don't have a neg am as I tried to do the smart thing. I also put 19% down and haven't refinnanced or taken any $$$ out.

I have what they call a 30year Conv Jumbo Arm. (10 years intrest only with a 6.75% intrest rate)

My property is currently worth about 275K less than what I paid and my mortgage accounts for about 64% of my income. (I was a stated guy and have taken a pay cut)

 

[little rowe boat]

Whenever I have A question about loans, I call Debbie Oster @ River Valley Mortgage. She always steers us in the right direction.
(928) 854-5363
She is doing the refi on our Havi house now. 4.75% fixed.

 

[John McGuinness]

My issue is the equity. He has a luxury that many do not. He can sell and buy a cheaper home. He is not in a true bind. It is not a good sitch, but far from a bind.

Sell the home, buy another cheaper home, go FHA with little money down and be golden. Many of my neighbors bought in 2005-2006, paid about $550k, put 20% down, took no HELOC, and now their house is worth $250k. If these people lost 20% income than these are the people that should do a loan mod.

I guess that is just me though, I try to always do the right thing. Taking a bail out instead of taking your lumps goes against my morals.

Flame on:champagne:

No flame from me. Thanks for pointing out the truth. Way too many free loaders out there.

 

[Tamalewagon]

Whenever I have A question about loans, I call Debbie Oster @ River Valley Mortgage. She always steers us in the right direction.
(928) 854-5363
She is doing the refi on our Havi house now. 4.75% fixed.

Recheck that...4.5% is available at 1 point right now.

 

[Scott E]

Sounds familiar...lol:swear:skull

I'm hoping to go after the obama plan once the whole BofA Countrywide thing is a wrap. Im also waiting for the knowledge factor of the plan to be better understood by the company.

X2

 

[Cole Trickle]

X2

I'm buying a Howard deck as soon as it goes through...lol

 

[Scott E]

I'm buying a Howard deck as soon as it goes through...lol

SWEET! lmao :champagne:

 

[River Lynchmob]

I'm buying a Howard deck as soon as it goes through...lol

Why not a Magic I hear they are giving those away with each new Loan Mod while supplies last

 

[Sun burners]

Recheck that...4.5% is available at 1 point right now.

What it went up?
lucky me!

 

[Tamalewagon]

What it went up?
lucky me!

Yes indeed! At C.O.B. today yes 4.5% was at 1 point. Yesterday that would have been 4.375%. Rates come in waves.

 

[kalifornia10]

I'll go with the unpopular opinion here. If you have 20% equity and cannot afford your house you NEED TO SELL THE HOUSE AND BUY SOMETHING YOU CAN AFFORD or REFI. Why should you get bailed out? Loan mods should be for people who bought in 2005-2006, lost income or job, lost all equity, CANNOT sell or refi, have no other way out.

Flame on but I say it is taking advantage of the system if you do a mod in your situation.

Excuse me... If you go back a read what I posted before flapping your BIG mouth you'd see that I said my hours and salary were cut 20% which... = "Lost Income"... pfft imagine that!

AND how Dare you IMPLY that I am taking advantage of the system. Taking advantage of the system is for LOSERS!

I am a single woman with ONE income, MY income, I completely support my Father on ONE income, MY income. I bought my house in 2003 with ONE income, MY income, put 20% down. I have a 30 years fixed mortgage with a 5.625% APR, my FICO is 818 and I DONT have 20% equity in my home, I simply stated that I wasn't upside down.

FAG!

 

[BarryMac]

Excuse me... If you go back a read what I posted before flapping your BIG mouth you'd see that I said my hours and salary were cut 20% which... = "Lost Income"... pfft imagine that!

AND how Dare you IMPLY that I am taking advantage of the system. Taking advantage of the system is for LOSERS!

I am a single woman with ONE income, MY income, I completely support my Father on ONE income, MY income. I bought my house in 2003 with ONE income, MY income, put 20% down. I have a 30 years fixed mortgage with a 5.625% APR, my FICO is 818 and I DONT have 20% equity in my home, I simply stated that I wasn't upside down.

FAG!

:beer Where is that clapping smilee damnit... Well put Kali...

 

[kalifornia10]

FWIW... I would NEVER take advantage of anything or anyone... The thing I have is PRIDE, which seems to be lacking greatly in society today!

 

[kalifornia10]

:beer Where is that clapping smilee damnit... Well put Kali...

Thank You Barry... Here's a Boobie-Flash for you :boobeyes:

 

[Outnumbered]

Excuse me... If you go back a read what I posted before flapping your BIG mouth you'd see that I said my hours and salary were cut 20% which... = "Lost Income"... pfft imagine that!

AND how Dare you IMPLY that I am taking advantage of the system. Taking advantage of the system is for LOSERS!

I am a single woman with ONE income, MY income, I completely support my Father on ONE income, MY income. I bought my house in 2003 with ONE income, MY income, put 20% down. I have a 30 years fixed mortgage with a 5.625% APR, my FICO is 818 and I DONT have 20% equity in my home, I simply stated that I wasn't upside down.

FAG!

Nice name calling. That is real mature. Anyway, if you are considering doing a refi you have 10-20% equity or more--enough equity to sell your house. Sell it and buy a cheaper house or just refi. Loan mods are for people with no way out. You have TWO ways out. A loan mod in your situation is taking advantage of the system no matter how much whine poor me. Justify it any way you want. Have a wonderful day:thumbsup

 

[OGShocker]

Excuse me... If you go back a read what I posted before flapping your BIG mouth you'd see that I said my hours and salary were cut 20% which... = "Lost Income"... pfft imagine that!

AND how Dare you IMPLY that I am taking advantage of the system. Taking advantage of the system is for LOSERS!

I am a single woman with ONE income, MY income, I completely support my Father on ONE income, MY income. I bought my house in 2003 with ONE income, MY income, put 20% down. I have a 30 years fixed mortgage with a 5.625% APR, my FICO is 818 and I DONT have 20% equity in my home, I simply stated that I wasn't upside down.

FAG!

Way to go girl!! Now could you please go back to ironing those shirts!?!

 

[Cole Trickle]

Why not a Magic I hear they are giving those away with each new Loan Mod while supplies last

You forget? I already have a 05 Sleek with another 198 payments due...lol:swear:skull

Thank goodness that hull warranty will still be there for me when "I make my last payment in 2029

 

[Outnumbered]

For all you peeps that think this is OK you are part of the problem. Everyone wants something for nothing these days. No responsibility for their actions.

Kali, like I said before, if you were upside down in your home than I would agree that you SHOULD do the loan mod. You posted on a public board asking for opinions, I offer one, and you call me a FAG. If you have that thin of skin don't post personal shit up on the boards.

Sorry for your bad luck but there are many more far worse off than you. Don't think you are special. Do the right thing...screw the man and screw the taxpayers

 

[SBjet]

Kali, like I said before, if you were upside down in your home than I would agree that you SHOULD do the loan mod.

Your point is valid,
but so is hers,
Why should people who didn't put money down get a better deal than she does?
The reality is she cannot make payments now, so is it better for her, and the country, for her to get a new deal? Or is it better for the bank to take ownership of a house it can't sell?

 

[Outnumbered]

Your point is valid,
but so is hers,
Why should people who didn't put money down get a better deal than she does?
The reality is she cannot make payments now, so is it better for her, and the country, for her to get a new deal? Or is it better for the bank to take ownership of a house it can't sell?

If she has equity to refi, she has equity to sell. People seem to forget that part

You really think anyone with equity that is not a moron would let their house go back to the bank?

 

[SBjet]

If she has equity to refi, she has equity to sell. People seem to forget that part

You really think anyone with equity that is not a moron would let their house go back to the bank?

Good point.

 

[Outnumbered]

Good point.

Thank you

 

[djunkie]

I've heard of lots of people that are trying to gets their hands on this bailout by not making their house payments and hoping for a modification on their loans. I'm just curious. Lets say you stop making your payments, yet you are still making the same money to date that you did a year ago. Or maybe 5-10% less at most. Are these people gonna get f-ed? I'm screwed either way being as I've been told having a second home is gonna eliminate me from everything. I'd just be happy with a refi at a lower rate. I guess I'll just keep paying. :grumble:
________
Gong Bongs

 

[Cole Trickle]

I've heard of lots of people that are trying to gets their hands on this bailout by not making their house payments and hoping for a modification on their loans. I'm just curious. Lets say you stop making your payments, yet you are still making the same money to date that you did a year ago. Or maybe 5-10% less at most. Are these people gonna get f-ed? I'm screwed either way being as I've been told having a second home is gonna eliminate me from everything. I'd just be happy with a refi at a lower rate. I guess I'll just keep paying. :grumble:

I don't want to go that route (yet) and ding my credit. Under the Obama Plan I believe they are OK with helping people that are current on there homes.

I think you would have to be a little more aggressive (late pay) if your going for a standard loan mod.

I thought you were pretty close to even? Have Dan pull your comps and see where you sit.

 

[djunkie]

I don't want to go that route (yet) and ding my credit. Under the Obama Plan I believe they are OK with helping people that are current on there homes.

I think you would have to be a little more aggressive (late pay) if your going for a standard loan mod.

I thought you were pretty close to even? Have Dan pull your comps and see where you sit.

I just had comps pulled. Problem is there isn't many properties similar to mine. Most homes in my area that are my size are on tiny lots. So its hard to get a comparison. I know its down though. Probably $50-$75k. The 4 bedroom dump down the street from me thats up for a shortsale is gonna kill the comps around here. 1300 sq ft 4 bed 2 bath on a 4000 sq ft lot for $450k.
________
Suzuki Sixteen Specifications

 

[Bobby V]

I've heard of lots of people that are trying to gets their hands on this bailout by not making their house payments and hoping for a modification on their loans. I'm just curious. Lets say you stop making your payments, yet you are still making the same money to date that you did a year ago. Or maybe 5-10% less at most. Are these people gonna get f-ed? I'm screwed either way being as I've been told having a second home is gonna eliminate me from everything. I'd just be happy with a refi at a lower rate. I guess I'll just keep paying. :grumble:

Quick Claim the Havasu house to your brother and change it back later.

 

[Cole Trickle]

I just had comps pulled. Problem is there isn't many properties similar to mine. Most homes in my area that are my size are on tiny lots. So its hard to get a comparison. I know its down though. Probably $50-$75k. The 4 bedroom dump down the street from me thats up for a shortsale is gonna kill the comps around here. 1300 sq ft 4 bed 2 bath on a 4000 sq ft lot for $450k.

Your area has deffinatly done ok.

redfin.com is a good place to see values....... Were pretty much wrecked out this way:blah:

 

[BarryMac]

If she has equity to refi, she has equity to sell. People seem to forget that part

You really think anyone with equity that is not a moron would let their house go back to the bank?

IMO, she should be the one that is backed by this plan, she put her 20% down and has not missed a payment, why should she not benefit from a program that was created to help people that have done the exact opposite. She isn't in the wrong, she is in the right, to bad you can't see that because you're so busy patting yourself on the back in every thread that comes up about our Government bailing people out or whatever the subject may be... Just my opinion, I believe I am allowed to have one too... :grumble:

No I am not kissing her ass because she's hot, I just think that she asked a legitemet question and you land blasted her with your opinion...

 

[SBjet]

1300 sq ft 4 bed 2 bath on a 4000 sq ft lot for $450k.

How do you fit a 4/2 into 1300 ft,?

I don't want to go that route (yet) and ding my credit. Under the Obama Plan I believe they are OK with helping people that are current on there homes.

Nobody really knows at this point.

 

[Cole Trickle]

How do you fit a 4/2 into 1300 ft,?



Nobody really knows at this point.

I agree....I am waiting it out a bit longer

 

[djunkie]

How do you fit a 4/2 into 1300 ft,?

All the bedrooms are like 10x10. The house is a total afterthought. It started out like mine and it looks like they added each additional room on at different times. No garage either. Not even room for one.
________
California Medical Marijuana

 

[kalifornia10]

For all you peeps that think this is OK you are part of the problem. Everyone wants something for nothing these days. No responsibility for their actions.

Kali, like I said before, if you were upside down in your home than I would agree that you SHOULD do the loan mod. You posted on a public board asking for opinions, I offer one, and you call me a FAG. If you have that thin of skin don't post personal shit up on the boards.

Sorry for your bad luck but there are many more far worse off than you. Don't think you are special. Do the right thing...screw the man and screw the taxpayers

Let us not be mistaken...You, my friend, started in with the eff'ed up attitude.