Home › Forums › Financial Markets/Economics › Mortgage Forbearance
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sdrealtor.
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May 21, 2020 at 11:37 AM #817474May 21, 2020 at 12:02 PM #817476
CoronitaParticipant[quote=scaredyclassic]contemplating one last refi.
current 3.375, 30 years, bal less than 200k
looking at about 2.7, 15 years, no cost.
maybe wait a little bit? i feel like it should be a little lower…
got a low rate from sofi.com, cheaper than aimloan and amerisave.
anyone have any internet lender they like nowadays?
planning hopefully to pay it off in 5-8 years, so not looking at a huge savings. but still, a few thousand[/quote]
2.75% on the 15 year was what I got a few years ago before I paid it off. I think maybe it can go lower.
May 22, 2020 at 7:10 AM #817515scaredyclassic
Participantfrom mortgage news daily
Ongoing Reminder on Forbearance
Coronavirus has created unprecedented challenges for people and industries. For homeowners facing a big reduction in income due to coronavirus-related hardship, a forbearance can make excellent sense. But for those who have the capacity to continue making mortgage payments, there are downsides to consider. Forbearance itself does not hurt your credit score, but it does show up on your credit report. This will affect your ability to qualify for a loan in the present and near future. It can also result in your other creditors decreasing your available credit balances. This has the unintended effect of increasing your ratio of debt to available credit which is a key component of credit scoring models. Thus, even though forbearance itself is not hurting your credit, it can indirectly lower your credit score and it will absolutely impact your mortgage creditworthiness in the short term.
May 22, 2020 at 7:44 AM #817516
svelteParticipant[quote=Coronita][quote=scaredyclassic]contemplating one last refi.
current 3.375, 30 years, bal less than 200k
looking at about 2.7, 15 years, no cost.
maybe wait a little bit? i feel like it should be a little lower…
got a low rate from sofi.com, cheaper than aimloan and amerisave.
anyone have any internet lender they like nowadays?
planning hopefully to pay it off in 5-8 years, so not looking at a huge savings. but still, a few thousand[/quote]
2.75% on the 15 year was what I got a few years ago before I paid it off. I think maybe it can go lower.[/quote]
I’m at 2.75 15 year also.
If I were you I’d take it scaredy. Maybe it will go lower, maybe it won’t. If it goes lower it won’t be by much. A bird in the hand…
May 26, 2020 at 9:21 AM #817559CoronitaParticipantMay 26, 2020 at 10:35 AM #817560evolusd
ParticipantSometimes I wonder if I’m too conservative. Save for retirement, keep liquidity for shocks like these, live within my means, etc.
My old neighbor told me they’re putting in a pool because they got a mortgage forbearance and the wife is actually making more on unemployment than she did working. All this after they drained their retirement to buy the home and were on a payment plan with the IRS for the big tax hit they weren’t expecting.
A POOL!
May 26, 2020 at 10:57 AM #817561CoronitaParticipant[quote=evolusd]Sometimes I wonder if I’m too conservative. Save for retirement, keep liquidity for shocks like these, live within my means, etc.
My old neighbor told me they’re putting in a pool because they got a mortgage forbearance and the wife is actually making more on unemployment than she did working. All this after they drained their retirement to buy the home and were on a payment plan with the IRS for the big tax hit they weren’t expecting.
A POOL![/quote]
Hey, I’m making more for being furlowed 1 day than if I work that day. But I’m generally being responsible. They’ll get what’s coming to them.
Look at it this way. Instead of putting money towards a pool, if you stuck it into the markets during the downturn, you will be coming out well ahead.
May 27, 2020 at 12:13 AM #817565FlyerInHi
Guest[quote=evolusd]Sometimes I wonder if I’m too conservative. Save for retirement, keep liquidity for shocks like these, live within my means, etc.
My old neighbor told me they’re putting in a pool because they got a mortgage forbearance and the wife is actually making more on unemployment than she did working. All this after they drained their retirement to buy the home and were on a payment plan with the IRS for the big tax hit they weren’t expecting.
A POOL![/quote]
That’s the American way. It helps the economy for those who invest.
May 28, 2020 at 9:10 AM #817590CoronitaParticipantMortgage forbearance… coming soon to refinance denial near you… Like hell there’s no consequences to getting one.
One facet of forbearance that Santa-Donato says is little known is the potential temporary inability to refinance a home loan afterwards. While suspending mortgage payments avoids “delinquency in the eyes of credit reporting agencies,” it does count as a “gap in payment from an underwriting standpoint,” he says.
If a borrower misses two consecutive payments on a government-backed mortgage in the span of 12 months, he or she would be ineligible for a loan refinance for a year, says Santa-Donato.
“I had to clarify this with some of the underwriting experts on our side,” he says. “That’s something that I haven’t heard spoken about at all as a particular downside to forbearance.””
May 28, 2020 at 9:18 AM #817591ltsddd
ParticipantShouldn’t be much of an issue since most people should already be at the low rate of 3.5% or lower.
December 11, 2020 at 1:36 PM #820303Escoguy
ParticipantOk, so does anyone have good data on forbearance volumes in SD county?
I looked on Calculated risk and they had 2.7M nationwide.
On balance I’ve read that 95%+ of renters in SD are making payment on time.
I did talk to a lender who mentioned this as a reason for rates being higher than should be in addition to lending backlog.
One realtor also mentioned there could be more supply in the spring once the forbearance period ends, but for now I almost think that is wishful thinking.
Any real data would be helpful esp by zip.
This was good mortgage info on daily movements:
http://www.mortgagenewsdaily.com
I hope I’m not violating anything by putting a link, just seems like good info.
Cheers,
December 11, 2020 at 5:34 PM #820304sdrealtor
ParticipantAnecdotally I know someone who took a 3 month forebearance. She went back to paying in full and they just tacked the missed interest onto the balance. After 3 on time payments she became eligible to refi and will be lowering her rate by 0.75%. It was a small blip on her radar though very scary at the time but i guided her through what to do. I think a lot of people will be in that boat and anyone who is still unemployed will be sitting on even more equity than they had. It may give us some more of the inventory our market is starved for but over all a non event here
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