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Anyone refinance in the last few months?

Home Forums General Columbus Discussion Anyone refinance in the last few months?

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  • #498620
    Walker Evans
    Walker Evans
    Keymaster

    chrisgillespie said:
    Let me know when you pay it off, and I’ll send you a bottle of bubbly :)

    Ha! Thanks! But it’s not like we’ll be totally scott-free then on our bills. When I turn 45, our oldest will be 18, so we’ll be trading the mortgage for college tuition. ;)

    #498621

    mrpoppinzs
    Member

    Yes, Huntington is great. I also recently got a free appraisal and a new 15 year mortgage from them.

    #498622
    Anne Evans
    Anne Evans
    Keymaster

    Yes, Walker and I did a refi with Huntington, cost of which they covered. Although I did spend a lot of time working frantically to fix a few issues with the house before the appraiser came! She was really nice though, and the house appraised for more money then we needed it to so that we didn’t end up having to pay more for what was essentially a ‘down payment.’

    Another point for Huntington was that if you opened a checking account (free option included) to automatically pay your loan, you got another .25% off your loan rate.

    Good luck!

    #498623

    L.I. to Buckeye
    Participant

    Currently doing a re-fi from a 30 year fixed to a 15 year fixed. Just like Walker and Anne, payments stay about the same, but I’ll own my house outright at least 9 years sooner.

    I’m staying with my current lender–Chase–and I’m using the HARP program. Closing costs are about $1,800 (rolled into the loan) plus $395 out of pocket.

    I, unfortunately, purchased our home in 2006, which was the height of the market. I’d been previously told that I didn’t owe enough on my home to qualify for a re-fi (basically, I wasn’t worth the bank’s time). But, I guess with the new government programs, it’s different now. The new interest rate is quite a bit lower, so I’m pretty excited.

    #498624
    derm
    derm
    Participant

    For the Huntington folks, did anyone use the Consumer First loan vs a regular refinance loan. Difference seems to be in rate is lower vs lower closing costs.

    #498625

    scorpcmh
    Participant

    As an appraiser, I can tell you your house is worth what someone will pay for it…I noticed some confusion above. The appraisers do not “low ball” values. The value comes from sales comparables in the neighborhood at the time of the appraisal. Columbus has stabilized in many markets over the past year. However, I see homes selling for their 2002 prices and less every day of the week in virtually every market area. It is just the reality of the situation, nothing I enjoy! Just wanted to clear up that appraisers do not “make” the value.

    #498626
    Snarf
    Snarf
    Participant

    Also worthwhile, an appraisal is the value of the home the day the appraisal is completed.

    #498627

    david161
    Participant

    My wife and I bought our house in the Worthington area in 1990. We got a variable rate loan that started at 10%. We have refinanced 3 times since and the last 2 were 15 year loans. We have also made a few extra payments. I did look into refinancing last fall, but my friend in the mortgage industry suggested not to, as I was so close to paying off my loan (only 4.5 years to go). Good thing for us, our home is still worth more than 90% of its 2008 value. If you are close to paying off your loan, refinancing may not be a good idea.

    #498628

    peter
    Participant

    A few points.

    1. Appraisers certainly do “low-ball” their appraisals, just as they “high-balled” them back in the mid to late 2000s. Back then, it was due to pressure from the banks. Now, it’s CYA (cover your ass) driving the price. If the appraiser reports a value that the bank uses to lend on, and the value then goes down, the bank can come back on the appraiser. They don’t want this, so they submit the lowest possible reasonable value (and in many cases unreasonable). In many cases, appraisers know nothing about the geographical area that the house is located in. This is due to new legislation that prevents the banks from directly hiring the appraisers – it goes through a 3rd party now. If the appraiser doesn’t know the area, that’s yet another reason for them to err on the low side. This causes big problems[/url] for buyers – many times the bank will deny their loan if the appraisal comes in too low.

    The value comes from sales comparables in the neighborhood at the time of the appraisal.

    Ahhh yes – but WHICH houses do you use for comps – that is the question! Do you use those 2 foreclosures across the street? Or do you use the 3 recent standard sales, up the road? Appraisers have incentives, and there is plenty of flexibility in their job to let the incentives influence the final estimated value. If it were truly objective, it would be done by a computer. Ask Zillow how that’s working out.

    2. I’m surprised to see so many folks taking a 15-year mortgage when they have the option of a 30. If you want to pay the house down faster, it makes more sense (IMO) to just make extra principal payments on a 30Y. The effect is the same, and if you ever run into financial trouble (unexpected bills, job loss) you have the option of resorting back to the 30Y amortization rate (just stop making extra payments). You do not have this option if you take the 15Y.

    In addition, with mortgage rates so low, you’d be better off taking the 30Y and investing the “extra” money. Average returns for a market index fund are historically in the 7-11% range – much higher than your mortgage interest rate.

    I realize this topic can get pretty heated, and everyone should do what they are most comfortable with. Just my thoughts.

    #498629
    Snarf
    Snarf
    Participant

    A few bad appraisers don’t spoil the bunch.

    #498630

    gramarye
    Participant

    On a couple of points from upthread:

    (1) Many banks will give you an interest rate discount if you have your deposit account with them as well. The downside for that is that they can very easily attach your account and offset the balance if you ever do get into financial difficulty. Of course, no one ever plans on running out of money or being unable to make a mortgage payment, but part of my job is warning people about how things can go wrong, even for people who do everything right.

    (2) I’m glad to see Huntington getting these kinds of high marks for customer service, but the financial condition of your lender itself matters for the kind of treatment you can expect if your loan ever becomes distressed. At least as of a year or so ago, Huntington was very aggressive about declaring defaults on commercial secured lending facilities. (Perhaps they were less so regarding consumer mortgages.) The reason was that their capital reserves were depleted by loan losses associated with their underestimation of the liabilities they were assuming when they acquired Sky Bank, so forced liquidations made sense for the bank even if the bank might have gotten a larger recovery (or even gotten the borrower back into good standing) with more patience.

    I hope that the above information isn’t relevant and never becomes relevant to any borrowers here, of course.

    **********

    Personally, for the moment, I’m still renting. I’ve been tempted by some attractive sale offers recently, though. It’s more an issue of personal mobility at this point than finances. I have a modest down payment saved (though getting married is a more expensive undertaking than I’d anticipated, sad to say), and my credit is pretty good, though I haven’t seen an actual score for it in a long time. (The free credit reports you can get 3x/year don’t actually give you a score.)

    #498631

    lifeliberty
    Participant

    Huntington is still offereing the same deal i got if anyone wants to look into it.

    #498632

    lifeliberty
    Participant

    derm said:
    For the Huntington folks, did anyone use the Consumer First loan vs a regular refinance loan. Difference seems to be in rate is lower vs lower closing costs.

    I don’t know the name of mine. I want to sell the house and GTFO of the hood sooner rather than later, so i didn’t want to add that much more to the principal and i wanted to lower my monthly payments until i sell.(plus it took 5 years off the loan for me)

    #498633

    peter
    Participant

    Snarf said:
    A few bad appraisers don’t spoil the bunch.

    I don’t think the appraisers are bad (though I’m sure there are a few). They’re just doing their job.

    #498634
    Walker Evans
    Walker Evans
    Keymaster

    peter said:
    A few points.
    2. I’m surprised to see so many folks taking a 15-year mortgage when they have the option of a 30. If you want to pay the house down faster, it makes more sense (IMO) to just make extra principal payments on a 30Y. The effect is the same, and if you ever run into financial trouble (unexpected bills, job loss) you have the option of resorting back to the 30Y amortization rate (just stop making extra payments). You do not have this option if you take the 15Y.

    While your reasoning certainly makes sense, it sounds like for many people refinancing, the difference in monthly payments between the 30Y pre-refinancing and 15Y post-refinancing is minimal, and sometimes works out to be lower, which helps to mitigate that risk of running into financial issues down the road.

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