rate lock

I have begun a new refi and they won;t lock the rate until the appraisal comes in? Is this normal???


That seems a little odd. Are you dealing with a local bank or a broker?

No this is not normal at all. You should be able to get a 30 day lock at market rate as soon as you choose.
If you are dealing with a lender that does not want to lock your rate then you may want to shop around a bit.
Call and ask questions about rates and closing costs and can you lock your loan as soon as you choose your program…IE 30 yr fixed, 15 yr fixed etc.
A word of caution…do not let them pull your credit to answer those questions. You probably already know your credit score and if you don’t then get them to give you an est of the rate based on a 700 fico…680fico…and maybe 620 and above.
Good Luck…
Remember you are the one that gets to choose the lender. Find one that is sharp and can work for you…

Dealing with Trojan Home Loan/Dana Capital…any insight? I think I should shop this around for better ? 6.39% fixed 30 year 168K

The rate that they quoted is really not that bad. I am not sure what your full scenario is. (full doc, stated, niv, etc.)

That still does not answer why they will not lock you. I know that with the customer’s approval I will sometimes “float” the rate to see if we can get better, but, to just not lock it makes no sense.

How far are you into the process?

Appraisal was done on Tuesday and it must have come real close to what I thought 220-225K cause mortgage broker was spekaing to appraisor a few times and he said things looked “good” so far.

I trying refi/cash out, payoff existing 115K 30 year fixed 10% and get 50 cash.

So that is roughly a 75% Loan to Value and I am assuming that you are going full documentation and that your credit score is 630+.

If this is true, you could probably get a little better rate.

Stated income, fico about 653 at onset of this

How’s this sound! Rather than nit pick the broker for their rate lock policy, why not just get the apparaisal done and submit it to the loan rep!What’s the hurry? Rates went down 9 basis points just today (Aug 19, 2005) anyway. By the way, where IS the appraiser? If you’re in such a hurry, get your own same or next day appraisal for a little extra money is all, right?
I, for one, know first hand that correspondent lenders get angst with repeat rate lock cancellations, being that they operate based on projected futures. I have heard of this policy before. In fact, one of the largest regional lenders in New England maintains that policy. Too often do appraisals come back just a wee bit “under”, killing the rate that was pitched and locked upon application. Too many rate lock cancellations damage a broker’s correspondent relationship and the correspondent will stop offering them bulk lines of credit at discounts and remove the pricing bonuses. Or was that supposed to be a secret? If so, sorry! Just trying to answer the question!
Boston Mortgage Consultant

I need advice as to what would be the best way to pull equity out in a few investment homes. I have owned them for a year. I have renters there at the moment.
The homes are in Arizona.

I will go stated, no docs, my credit score is about 740
One house has a 146,000 mortgage and the MV is about 275,000 as of 2 weeks ago.
The other house has a 148,000 1st and MV is about 279,000.
Should I do a 2nd equity line or a refi? I am confused as to how it all works.
Should I have appraisals done first and then how long would those appraisals be good for? What can I expect to pay for an appraisal?

Countrywide is the lender and I have 2 other home loans with them with an excellent payment history if that helps.
What is the difference in doing an equity 2nd or a refi? What costs should I expect to pay and to whom?

What rate would be considered to be a good at this time?
I was thinking of pulling out 100,000 on each house to invest in a few notes. Can I just call Countrywide directly to set up the 2nds or do I need a loan officer to do that?

If I do need a broker, how should I go about shopping for one that is good?
Any advice is much appreciated. Thank you.

If you check in your local yellow pages there may be a Countrywide office near you.

If not you can call a few brokers in your area and get some info from them. Make sure that you shop around and do not give your S.S. # to everyone that you speak with.

Regarding doing the equity or the refinance. In my opinion, if you can lock a good rate in for a few years I would do so. With prime rate climbing so quickly it is no longer the best bet when looking for funds.

I have even had some scenarios where it is better for the client to pay PMI than mess around with a separate 2nd.

Thanks for the advice Mark.
If I did a refinance now, does that mean I definitely would have to hang on to the property for a few years?

What if a buyer or a renter came to me in a few months with an offer that I couldn’t refuse?

Sorry for all the questions, but I really do need to understand what all my options are.
What is a PMI?

You would not have to hold on to the property. Obviously, if you had a deal that would make good financial sense then you could sell it. Depending on where you get/have financing, there may be a prepayment penalty.

PMI is Private Mortgage Insurance. Conforming Lender’s charge this on loans that have a LTV (Loan to Value) over 80%. Any amount over the 80% is charged the PMI. The PMI will drop off after the financed amount drops below the 80% LTV figure.

Please be sure to ask if there’s a pre-payment penalty on any of the loans you are being offered. You should have no trouble avoiding this type of loan based on your credit score. If you were to take a loan with a pre-payment penalty, your interest rate might be slightly lower but will cost a percentage of the principle loan balance if you decide to sell it within the terms of your mortgage. Most pre-payement penalties are assessed if the loan is paid off in either 2 or 3 years. This information should be disclosed to you at application, but it is often “left out” until just prior to closing. You just need to ask. Good Luck, Sandra

Triplex in middle of renovation, attempting to refi but just hit snag with mortgage company, they say I can’t appraise the property in middle of renovation. Any suggestions???

You can do an appraisal, but it will be “subject to” repairs/completion, and they will have to re-inspect prior to closing. Unless you go for construction/re-hab financing, you won’t be able to close until it’s done. I’m not sure why you need to refi, but I’ll guess that you need the money to complete the project, in which case, you might be stuck. I’d try to avoid getting a loan that will fund the re-hab since they are so time consuming and expensive…pain in the butt too. Find a mortgage company to get the mortgage approved on the “subject to” appraisal and get everything ready to close. Do whatever you have to to get the job done…maybe an agreement with the contractor to be paid based on a closing within a week of completion…and as soon as it’s done, have the final inspection done, and close. A good mortgage company will be able to provide a commitment to the contractor that the loan is approved, and will close within X days of completion, and will get it done. Good luck! Sandra