It's definitely my mortgage company.it's usually a different mort company
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It's definitely my mortgage company.it's usually a different mort company
It's definitely my mortgage company.
That makes sense. I wonder if I refinance if there will be some new hidden clauses that aren't in my current mortgage.Could be that if you refi the new mortgage will be sold to another company. Your current mortgage is probably owned by the bank and it's probably one that they can't sell. Lots of banks are doing this now.
That makes sense. I wonder if I refinance if there will be some new hidden clauses that aren't in my current mortgage.
Hoping someone in the know has some information to share...
I've been getting inundated with advertisements to refinance my mortgage due to some new rules regarding pmi (mortgage insurance rates). Their claim is that if I refinance my mortgage, I will save money because I will not pay as much into the mortgage insurance. This sounds good since paying PMI sucks.
Another advertisement I have been hearing on the radio is that Quicken Loans is offering a loan where they will pay the "PMI." Sounds gimmicky, I haven't called them yet to find out what the deal is with that.
Anybody have any insight to any of this...
Thanks
I've been wondering about this too. Why would my mortgage company hound me to pay them less interest ?
That makes sense. I wonder if I refinance if there will be some new hidden clauses that aren't in my current mortgage.
FHA recently reduced the monthly MIP (FHA calls it MIP , conventional loans call it PMI) from 1.35% to .85% or 50 basis points. This is what you are currently hearing about on the radio. Quicken's Lender Paid PMI is a program that's been around for 15+ years. PMI can be paid in a lump sum so you either finance this lump sum into the loan or you receive a slightly higher rate and the lender pays your PMI, just like a lender can pay your closing costs if you accept a higher rate than market. Ther eis no such thing as a loan withthe loan amount greater than 80% without PMI. Even back in the early 2000's FNMA's No PMI loans had a higher rate, you will pay for the risk associated with your loan one way or another, no free lunches.
They are not hounding you about paying less interest as much as they are wanting you to refinance and stay with them. A loan with a lower interest rate is worth more to a lender than a loan with a higher rate. The loan with the lower rate is less likely to payoff early, lenders want you to make payments for a long time.
I've been in the mortgage business for 29 years. When you refinance it's a very different transaction that when you purchase the house. It's not simply a matter of the lowest rate wins. You have to look at several things and run comparisons over a timeline to determine what's the best financial move for you.
If you guys have general questions post them up and I'll do my best to provide a "lender" neutral answer. If you have specific questions about your mortgage, shoot me a PM, I'd be happy to help guide you regardless of where you are getting a mortgage.
You sound very knowledgeable. Please explain any new purchase mortgage options that exist if any, and thanks.