[HLS]

There is absolutely no difficulty in getting a loan if you qualify, and it only takes a couple of weeks if your situation is clean

There is no single mortgage rate that applies to everyone.
There’s a difference between a refinance with no cash out and taking cash out.
Having a HELOC or other 2nd can mean that you wont get the best pricing, even if you have a zero balance.
There is a lien against the property for the full amount of the line.
Paying off a HELOC balance when you refinance is cash out pricing unless the HELOC was used to purchase the property.

No cost loans for rental properties are not low, but if you understand that you are going to pay one way or the other, you can buy the rate down and save a lot in the long run.

Loan underwriting guidelines are idiotic. There are people with 800 credit scores who cannot qualify for a 50% loan yet others with a 680 score and 3% down payment will qualify.

Covid19 has created some temporary guidelines that can make qualifying extremely difficult for self employed borrowers.
Anyone who has had their income cut or on furlough may have difficulty.
Unemployed without other income don’t qualify at all, regardless of equity, credit score, net worth or size of their ego.

For those who do qualify, rates have never been better.
No cost loans are available, but you’ll never get the lowest rate.
Many people are fooled thinking they have no cost, but they really are paying fees.
For salaried W2 wage earners with good credit and stable income, loans can be closed & funded in 2-3 weeks.
HELOCS & Solar liens can complicate refinancing.
Having rental property can complicate refinancing.

30yr rates are available at 3.00% or less. The higher your loan amount the easier it is to get a true no cost loan.
Saving just .25% can mean a savings of $30,000-$40,000 over the life of a loan. Depending on your balance.
Most people are paying way too much in interest. Many don’t qualify to refinance but those that do qualify will waste a ridiculous amount of money over the life of their loan, without realizing what they are doing.
The key is not starting over at 30 years with the lowest payment. The amazing savings is making the same payment that you are making now at a lower interest rate. Possibly at zero cost.

The difference between 4.00% and 3.00% on a $400,000 loan is $120,000 of wasted interest
On a $500,000 loan the difference between 3.50% and 3.00% is $76,000 of wasted interest.
If you want a free analysis and explanation, just send me a message.
Some people are refinancing their primary residence and paying off much higher rate rental properties. There are various strategies to save a lot in interest.
I’m still seeing lots of people still at 4.00% or higher

If you currently have a VA loan, refinancing is very easy and rates are AMAZING. Free advice.
Have helped lots of Piggington posters & lurkers 🙂 HLS

[HLS]

More myths & misinformation

Credit score of 770 is nowhere near the “danger zone” to get the best mortgage rates. The more equity one has the lower the credit score can be and you still get the best pricing.
In 20 years, I have never seen anyone with an 848 mortgage score.

I don’t doubt that you are seeing that with the free score from Amex or Chase, but it’s probably not your mortgage score.

Credit scores are pretty much meaningless except when you’re apply for credit or a mortgage. Scores can vary with huge ranges
for various reasons

[HLS]

I am a mortgage broker who deals with UWM. Conquest program is good for those who qualify. 22 days is correct, without extension costs.

2.50% is available, it costs thousands of dollars.
3.00% is also available, but has a cost today, depending on loan amount.
There is no one rate that fits everyone.
Rate/pricing changes a bit everyday.

UWM is wholesale only and does not have a retail channel.
UWM does not waive appraisals for being “financially sound”
Fannie Mae/Freddie Mac determine whether there is an appraisal waiver on a file.

GZZ I have done multiple loans at one time, but each loan is a separate file. Paperwork is only required once. Only one credit report is required. they all must close at the same time.
It may not be in your best interest to have all loans go to the same lender.

FYI: Hard inquiries on a credit report are almost meaningless.
Unless someone is getting hard inquiries month after month, an occasional inquiry will not affect a credit score

[HLS]

I’m a mortgage broker with plenty of Piggington’s references.

Guidelines are guidelines. I’m not sure what you are trying to avoid
providing, but for salaried employees 2 recent pay stubs and W2 is all that is generally required for income.
Bank statements can often be avoided and no appraisal is needed in many cases.
Covid has caused a bit of disruption to underwriting but rates are the lowest they’ve ever been. 15yr-20yr-30yr

Having an 800 credit score and 80% equity doesn’t make it any easier to qualify for a loan. Some guidelines are just dumb. There are people who have $1 million or more in the bank with millions in assets who don’t qualify for a loan.

No cost/no point loans are usually available.
30 year rates are around 3.00% today, but may come with a small cost, well worth it for most people if they are at 3.25% or higher now.
There is no one rate that fits everyone and not everyone can qualify but I’ll be happy to see if I can help you if you wish to contact me.
Sheldon

PS: It’s very possible to close clean loans in 2-3 weeks.
some banks are taking 2-3 months and their rates are terrible

[HLS]

I’m not wrong. I wasn’t referring to you Data.
I clearly said OP, which was completely flawed.
You can choose whatever you want.
In your case, don’t confuse conserving cash with saving money.

[HLS]

If you’d like an explanation and quote for a no cost loan (or with cost)
I’ll be happy to provide you with this.
EJ’s loan (above) funded in 2 weeks. I’ve helped many dozens of Pigg’s get into a better mortgage situation over the years.
Unfortunately you have already wasted a whole bunch of money holding on to a 5%+ rate.
There is absolutely no reason to not refi to a lower rate, esp at zero cost. (Nothing gets added to your loan amount)
You will get an even lower rate with a cost.
You will understand your options after a conversation.
There are some strange movements in the mortgage market recently.
There is not one rate that applies to everyone. Loan pricing is based on credit score, % of equity and several other factors.
Not everyone qualifies to refinance. Pricing changes daily and often intra-day, there no pressure or obligation,
Just send a private message with a number to reach you. Sheldon
Saving money is about the interest rate, not the payment amount. The OP is confusing the two.

[HLS]

OP.. you got some really bad advice if you were told not to refi out of 5,25%
I don’t know why you think it made no sense to refi 6 months ago,’
Assuming that you qualify, when you can get a no cost loan and can save just .25%, depending on your loan amount, it can save you $25,000-50,000 or more over the life of your loan.
Had you refinanced 6 months ago into the 4’s, you could possibly refinance again into the high 3’s now at no cost.
It’s sad that so many people do not understand the benefits of refinancing and as a result are wasting tens of thousands of dollars by paying too much in interest.
No cost loan means you get a rate that costs you nothing in fees & closing costs. Zero, Zip. Nada,
There is no one rate that fits everyone as it depends on credit score, equity & property type, but if you want a free analysis of what your options are I can provide that,
As a mortgage broker, I’ve worked with dozens of Piggington’s readers over the years.
Wondering if rates will go lower is a good question,
Anyone who can predict interest rates accurately can make a fortune trading bonds on Wall Street.
You’ve already wasted thousands of dollars @ 5.25%
Some people get lucky and hit the bottom but others miss out by waiting and waiting and waiting and then rates go up and they never do anything and end up wasting $100,000 or more because of their greed. It happens over and over again.
My advice is honest & free and I offer special pricing to Piggington’s readers

[HLS]

Take a look at buying In The Money (ITM) puts.
Your risk is limited to what you pay for the puts, and can be at a tiny premium to shorting (borrowing)shares to short.

When you short a stock you have huge unlimited risk on the (even if small) chance that someone comes along and takes the company private at a premium to the market price.
Crazier things have happened!

[HLS]

There’s also a huge difference in affordability today.
Lots of people have higher incomes than 10 years ago and
interest rates in the 4% range have much lower payments than 6%-7% rates 10 years ago.

Many people don’t care what they pay for a house, they only care about their monthly payment.
This drives the market

[HLS]

So am I 🙂

[HLS]

For conventional loans
You can buy with 20% down but it’s MUCH better pricing to buy with 25% down. 1-4 unit properties

There is NEVER one rate that applies to everyone for ANY loan program.
It depends on credit score, down payment & loan amount AND whether you want a no cost loan OR to pay something and get a lower rate.
Also, pricing changes a bit every trading day that the bond market is open.

[HLS]

So your servicer has made TWO property tax payments in the last few weeks for you and you are only $115 dollars short ?

Please confirm that so you get the 2017 deduction that you want.
Unusual that they paid it for you that fast (you called yesterday)
but not impossible.

No limit to number of times you can refi. 😉

You probably know that you can adjust your payment and pay off in any term that you want; you don’t need to start over at 30 years each time. They key is your interest rate.

You have a great rate and no PMI = Excellent~ HLS

PS: Private message sent

[HLS]

[quote=bewildering][quote=HLS]
I don’t think you are going to get your loan servicer to adjust your impound account payments. Eventually you will get the overage refunded to you.
(You may even get a decent rate of interest on the excess funds in your account) Audits are usually done once a year, on their schedule.

Your loan servicer has a specific amount that they expect every month to keep your account current.
You really don’t want to mess with that.

You might be able to ask them to remove your impound account if you are willing to pay taxes & Insurance on your own going forward.

Please report back if they tell you that will adjust your payment manually.[/quote]

Thanks for the input.

I chatted with a representative. They confirmed what you had stated. They have no problem with me paying the property taxes, and will simply send a refund after the annual Escrow accounting in May 2018. I have already paid the mortgage payment due on January 1st. I read online that as long as you pay early enough then that month will count towards 2017 on your 1098.

I also notice the idea has gone mainstream:

https://www.cnbc.com/2017/12/04/homeowners-use-these-year-end-tax-moves-to-save-ahead-of-tax-reform.html

ps I am stuck with an impound account AFAIK. Even though my LTV is about 60%. I should have asked for no impound account at my last refi.[/quote]

There is no reason to make the January payment this early.
Servicers have automated systems. December interest isn’t due until Jan 1st.

Depending on when your servicer sends out your next statement, you run the risk of having your payment credited ALL to principal as a reduction, and not to your January payment.
Make sure that your payment posts the way you intend it to.

Always safer to wait until statement is printed. Payment made the last week of December counts the same as payment made today.

What’s your loan balance & current interest rate ?
You may benefit by refinancing to a lower rate at no cost AND get rid of impound acct. Saving just a 1/8th of a point (.125%) can save a lot of money over time.

[HLS]

[quote=bewildering]
I can prepay my January 1st 2018 mortgage payment. And I think that makes sense.

I have an Escrow account with my loan servicer. If I pay the April property tax this month myself then I assume the servicer will adjust my Escrow payments. I’ll try to call them on Monday to check.[/quote]

I don’t think you are going to get your loan servicer to adjust your impound account payments. Eventually you will get the overage refunded to you.
(You may even get a decent rate of interest on the excess funds in your account) Audits are usually done once a year, on their schedule.

Your loan servicer has a specific amount that they expect every month to keep your account current.
You really don’t want to mess with that.

You might be able to ask them to remove your impound account if you are willing to pay taxes & Insurance on your own going forward.

Please report back if they tell you that will adjust your payment manually.

[HLS]

[quote=bewildering]
Does anyone know if I can prepay my property taxes due to San Diego in April 2018? I have an escrow account with my loan servicer.[/quote]

You definitely can pay it in December.
Send your 2nd half property tax payment directly to the county (not to your loan servicer)

(In March/April your loan servicer will send the same payment to the county, it will get returned to them and you will have an overage in your impound acct.
At a future point there will be an overage in your impound acct and it will get refunded to you)

As far as prepaying interest, it is tricky because the accounting systems are all automated,
Just because you make your January payment in December,
it isn’t due until January 1st.
The 1099 that loan servicer issues for 2017 interest paid may not reflect your early January payment.

SK can confirm, but paying your 2nd half property tax bill is an acceptable deduction for 2017.

[Author]

Posts