Shopping for a mortgage

[dcpnz]

CO mags.
Couple of you mentioned having a good broker in CO.
Can you please PM me contact info.
Rocket/Quicken completely screwing the pooch on what should be an easy refi. I need to go a different direction.
Thanks

[Danno]

sent a pm

[Marshall Tucker]

so to ask the stupid obvious question, a refi closing after 08/31 defacto has an additional 1/2 point closing cost?

pretty brazen money grab by FHFA.

https://www.nationalmortgagenews.com...us-for-lenders

Glad i locked in 2.875%/30yr last month.

Liv2ski or other industry Mags, 1/2 point fee roughly traslates to how much higher interest rate if the fee is rolled in? 20bps?

[Name Redacted]

so to ask the stupid obvious question, a refi closing after 08/31 defacto has an additional 1/2 point closing cost?

I believe that got pushed back to December.

[Name Redacted]

Mortgage refi question. Considering doing a cash out refi on our primary residence and paying off our second home/rental property. It would net us a lower rate overall than we currently have and consolidate the payment at a lower monthly payment. Refi amount would still be far lower than appraised value on primary.
Any potential downsides to this? Tax repercussions or otherwise? Any other way to accomplish this?
As I’ve mentioned before, the rental property requires a portfolio loan that is at a higher rate and cannot be easily refinanced.

[liv2ski]

No tax repercussions I can think of. Cash out loans have a higher rate/fees structure, but if the quote works for you, go for it.

[jm2e]

Anyone do a refi on a rental recently? Wondering how it went.


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[CovertM]

Liv2Ski,

Quick question: Recently (over a year) switched to self-employment income and running my own LLC rather than W2 income. I know there is more scrutiny over self-employment income when trying to qualify for a loan. What is the general rule that you see? How many months of consistent SE income to have no bumps in the process?

Thanks for your time!

[liv2ski]

Liv2Ski,

Quick question: Recently (over a year) switched to self-employment income and running my own LLC rather than W2 income. I know there is more scrutiny over self-employment income when trying to qualify for a loan. What is the general rule that you see? How many months of consistent SE income to have no bumps in the process?

Thanks for your time!

Assuming you are applying for a loan amount the fits into FNMA guidelines for your hood, your favorite lender needs to run your loan application through Desktop Underwriter and hopefully the finding comes back "Verify 1 year self employment". You must be s/e for a year+, not 10 months to close.
For the income piece, they will look at the 2019 1040. It is best if you were s/e employed all of 2019, but you weren't, so they will use the s/e income divided by the months you were s/e. Lets say that is $7k a month. Your bank statements for the last 2-3 months will need to support at least that being deposited to your accounts (hopefully a business acct) or you have a problem because the deposits do not match the reported income in 2019.
I have had numerous s/e clients not refi, as their recent deposits did not support the income from the 2019 1040. PM me with any other questions.

[liv2ski]

so to ask the stupid obvious question, a refi closing after 08/31 defacto has an additional 1/2 point closing cost?

This just in from a wholesale lender I do business with. If you have been on the fence, get a move on:

Effective Monday September 28th, all new wholesale locks will be subject to the FHFA Refi Adjustment of -0.500. This will affect all conventional R&T and Cash-Out Refi’s with loan amounts > $125K.

[mattig]

The fee is already in place at many lenders. Most others will have it within the next two weeks. Some are applying it across the board to all lock time frames, others are staggering it so that it would hit a 45 day lock but not a 30 day (of course that will change in 15 days). Point is, if you're in the loan process and the lender hasn't reimplemented the fee yet, lock now. You'll never be clairvoyant enough to predict a rate change of 0.125% with much certainty, let alone an overnight change of 0.125% with 100% certainty (which is exactly what this fee amounts to in most cases).

http://www.mortgagenewsdaily.com/con...es/954484.aspx

[CovertM]

Assuming you are applying for a loan amount the fits into FNMA guidelines for your hood, your favorite lender needs to run your loan application through Desktop Underwriter and hopefully the finding comes back "Verify 1 year self employment". You must be s/e for a year+, not 10 months to close.
For the income piece, they will look at the 2019 1040. It is best if you were s/e employed all of 2019, but you weren't, so they will use the s/e income divided by the months you were s/e. Lets say that is $7k a month. Your bank statements for the last 2-3 months will need to support at least that being deposited to your accounts (hopefully a business acct) or you have a problem because the deposits do not match the reported income in 2019.
I have had numerous s/e clients not refi, as their recent deposits did not support the income from the 2019 1040. PM me with any other questions.

Awesome, thanks for the insight.

[Cruiser]

Rates are still silly low. Just locked 2.875 30y fixed with a ~$1k credit on a 2nd home purchase.

[Skidog]

I'm in "the system", boy that shits backed up. I'm hoping to close in november

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[alembical]

We are in the middle of a remodel expected to finish in December. Once completed, we want to refi from current 30 year 4% fixed and get some cash out to pay off our Line of Credit used for remodel, and possibly put some more in investment account, as we took a lot out for this project. Any suggestions about good time to start the refi process? I am assuming we will need an appraisal and the house is not ready for that yet. Any connections in the Portland, Oregon area? Both of our credit scores are over 780 (were both over 800 before this project), existing mortgage balance is around $280k. House will likely appraise around $850, possibly as high as $1m.

[Gerome]

We're just finishing up a refinance on our home dropping from 3.99% to 2.75% thanks to Liv2ki. Next month we hope to refinance our duplex to anything below 5.5% once my wife has a month of paychecks in as she's returned to being a flight attendant.

[liv2ski]

Most lenders will offer you a 45 to 60 day lock. Don't start the process until your remodel will be done/complete in a week or two, so the appraiser walks into a finished property. I locked a strong client in today at 2.625% 30 year fixed with a $1,900 credit towards her fees, BUT that was not cash out which could add .125% to .25% to the rate. Just shop around and compare quotes on the same day. Hopefully you can find solid on-line reviews for the company your leaning towards, as some people tell you anything on the phone but then don't deliver.

[jm2e]

Any chance it’s worth looking at investment property refi yet? What’s the equity cutoff that makes it worthwhile? (I’m at 20-23% ish)


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[liv2ski]

I think the last investment property I did was about 3.625% with a small lenders credit. Rates are not great for investment property loans.

[jm2e]

I figured. At 4% now, so probably just take a seat and be thankful for what I’ve got.
The crazy thing is, this fits so soundly in the “Ask TGR” column for me. Googling brings up next to nothing. And actually submitting my details to any online lender unleashed a shitstorm of calls/emails/texts within seconds.


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[St. Jerry]

2.125% non-conforming 15 year fixed from Wells Fargo

[liv2ski]

2.125% non-conforming 15 year fixed from Wells Fargo

Well good luck getting that closed anytime soon. Every client I have spoke to bitched about how fucked up dealing with WF was.

jm2e, I ran a N/O/O scenario for you and there is not pricing available that justifies you refinancing at this time. Maybe if you LTV was under 60%, but not at 75% to 80%.

[St. Jerry]

Well good luck getting that closed anytime soon. Every client I have spoke to bitched about how fucked up dealing with WF was.

jm2e, I ran a N/O/O scenario for you and there is not pricing available that justifies you refinancing at this time. Maybe if you LTV was under 60%, but not at 75% to 80%.

Closing in 10 days.

[liv2ski]

Closing in 10 days.

You've been in escrow 80 days? Congrats on finally closing. You know when they tell you you're closing in 10 days it is one of the 3 great lies right?

[Bobcat Sig]

Since this seems to be a good resource; I'll ask here. With rates where there are, I'm thinking of a refi. Come March, we will have been in our house for four years. We put enough down on purchase that we never had PMI. I think our rate is 4.5% on a 30 year fixed. As I type this, a new metal roof is going on and windows are going in at the end of the month. Should we start the refi process now or wait until after Jan 1?

Our goal isn't to cash any money out, just to reduce our rate and our monthly outlay so we can invest that money elsewhere.