If they didn’t want me to refinance they should have given me a float down.
Exactly.
Even when I go to a new bank offering a lower rate I have to negotiate with 3/4 banks to find the best rate+terms/lenders_credit_etc(even when they are getting new business from me). So for me, it’s hard to expect/imagine my existing mortgage provider to be motivated then to reduce my rates if I ask them to.
Good question …I have 1.7M on my primary and need to refinance.
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For such range, big banks normally service as they get bigger underwriters behind the scenes.
Check with Local Bank of America, they take longer time, but have good rate - to my knowledge - esp for such higher amount. It all depends on LTV, DTI and credit scores.
The trick here is before home valuation goes down, by recession, it is better to lock the rate and refinance at lowest.
IMO, you may likely get between 2.875% (low 50% or 60% LTV) to 3.375% (high LTV 80%).
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We have the best rate for 510k and high balance mortgages. For Jumbo, we now start to offer decent 30 year fixed rate, but you can get lower ARM rate at big banks. I’ll update on jumbo rate when our Jumbo rate becomes lower.
Just because the loan is “sold” does not mean FNMA (or any other investor) won’t force a buyback on the originating lender.
Rates are going nowhere relatively speaking. If someone wants to cause a $10-$30k buyback expense for a .125 rate differential to a company that professionally handled a refi well once before, that’s up to them.
In full disclosure, I work at a Bank and do not suffer from EPO buybacks. Just adding some perspective on the overall impact of chasing rates downward.
80% LTV deals are not available unless your loan is presently serviced by BoA. They are rumored to open up their LTVs soon - as long as you have a half million net cash assets to rely upon as cash reserves. (IE an $800,000 401k is valued at 60% due to tax consequences if liquidated. At NET value of $480k one does not qualify…)
Thanks for reading
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How about if rates are down 0.375% in 60 days? Is it kosher then?
No.
If rates are .375 lower then contact your original lender (assuming the last loan was funded by a mortgage banker or broker. Does not apply if you funded through a Chase/Wells/BofA etc) to see if they can work out a friendly deal for all parties. Example - you might apply for the .375 rate reduction but not fund for 60 days or so until the EPO runs out.
It’s reasonable to at least ask your previous lender/loan officer what harm might come in an EPO
Thanks for reading
It is the lenders responsibility if they are so concerned to let the mortgage holder know that “before refinancing within 2 months please let us know to see if we can match”. Actually those banks should say “We will automatically match your rates to the lowest rates in the market in the first 60-90 days”.
I’ll let others on this forum chime in if any of their lenders said the above to them when they got their mortgage.
Finally this is a business and has the same risks as any other business. My dealings with these companies have been like any other business and they will only give you a “deal” when forced to by competitors.
A lot of fees is generated when a new loan is created. It helps those employed in this industry earn their living. Now the question is can some change terms and condition of an existing note, which most likely is sold to Fanne Mae/Fannie Mac. So the original loan originator is only servicing the loan. Therefore, for the industry, it might be just easy to pay off the old loan and refinance a new one.
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There is no disagreement with the concepts you’ve laid out.
In practice though which is best - to think “Grab what I can because I can” or pause and ask “Hey, will this be a problem for you if I do this or that.” ?
If your income and employment was on the line, which choice would you want made?
Sure … It can be “Oh, it’s not personal. Its just business…” Just remember who said it.
Thanks for reading.
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Will the banks NOT foreclose EXCEPT for a government diktat(of mortgage forbearance) EVEN in such pandemic circumstances such as Covid?
In other words, Why did the government have to issue a direction of “mortgage forbearance”, if the government was sure that the banks will not foreclose on their clients?
So, bottomline it’s a business for the banks but it’s personal for people who get a mortgage. Interesting.
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Roy321… you are passing over an important detail. Where i work, we don’t have EPO or buyback issues. Some reading these posts might have gotten their loan from a company that does have EPO or buyback issues if a loan is flipped quickly.
All I’m saying is that there can be real consequences to the provider that did the last refinance for a reader here. It’s within the scope of normal human decency to re-check with their previous lender and ask “Hey, I’m considering a refinance even though we closed last month. Could there be any issue if I do this?”
Sure. I get it. Banks are bad. OK. That’s another discussion elsewhere. In perspective then, this isn’t too burdensome of a question to ask before proceeding… unless I’m missing something here.
Thanks for reading.
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I’m not saying Banks are bad.
I’m saying mortgage consumers aren’t bad either and are not out to deliberately screw someone.
There are certain rules for getting a mortgage and consumers are just following those just like the banks are following rules for giving out mortgage.
If it’s in the Bank’s interest for customers to not refinance quickly, I wish banks would take initiative and highlight the points that you have highlighted earlier(not the background of why but that people should ask them for a matching rate) when they refinance from elsewhere. That should in my view help the banks in such situations.
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It’s not that banks are bad, it’s that they don’t have their customers best interests in mind any more than customers have their banks best interests in mind.
During the covid crisis, how many customers did your bank give a call to before sending the monthly bill? You know, to find out if there might be any issue sending that bill?
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Most conforming mortgages are not owned by banks. They are securitized and owned by various investors, some of them overseas. Mortgage servicers merely collect payment on behalf of investors, they are not the creditor.
Yeah well the bank also didn’t give me a call before securitizing and selling my mortgage to see if it could be inconvenient for me. They simply took action that they were legally permitted to take without any regard for how it might affect me. Same with my refi.
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All no point no cost no third party cost (LTV 60%, FICO 760):
Owner occupied 510k loan: 15 year fixed rate 2.375%. 30 year fixed rate 2.75%.
Owner occupied high balance loan: 30 year fixed rate 2.875%.
Investment 510k loan: 30 year fixed rate 3.375%
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Can you share the lender information. Looking to re-fin primary home with jumbo loan LTV 65%
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