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View Full Version : Money KC Mortgage Companies - Remomendations?


Dayze
03-26-2009, 05:56 PM
Wife and I are going to try to re-fi our mortgage; any suggestions for a local (or non-local, for all I care) mortgage co?

Primarily doing it for the better rates, but also because of the fairly large pay cut I took when I accepted the new job after being laid off. I know it might be difficult to re-fi since I'm at a new job, but figured I'd give it a shot nonetheless.


As always, the knowledge of CP is appreciated.

:D

Bill Lundberg
03-26-2009, 05:58 PM
There's a guy at Integrity First Mortgage in Kansas City named Neal that I hear offers Planet discounts. They also say he is one handsome devil.

Mr. Flopnuts
03-26-2009, 06:04 PM
Wife and I are going to try to re-fi our mortgage; any suggestions for a local (or non-local, for all I care) mortgage co?

Primarily doing it for the better rates, but also because of the fairly large pay cut I took when I accepted the new job after being laid off. I know it might be difficult to re-fi since I'm at a new job, but figured I'd give it a shot nonetheless.


As always, the knowledge of CP is appreciated.

:D

Find someone that can get a referral bonus, and then demand half of it. My guy gives me $1000 for every deal I refer to him that gets done.

Dayze
03-26-2009, 06:06 PM
There's a guy at Integrity First Mortgage in Kansas City named Neal that I hear offers Planet discounts. They also say he is one handsome devil.



well, you 'see' Neal, put in a good word for me.:D

I may contact the aforementional "Neal" before it's all said and done; the wife is ready to move forward.

nstygma
03-26-2009, 06:23 PM
hey bill, can he buy a few discount points and get the rate down to 2%?

NCarlsCorner2
03-26-2009, 07:45 PM
I got 4.37% for 30 years through Countrywide.

SenselessChiefsFan
03-26-2009, 09:51 PM
Wife and I are going to try to re-fi our mortgage; any suggestions for a local (or non-local, for all I care) mortgage co?

Primarily doing it for the better rates, but also because of the fairly large pay cut I took when I accepted the new job after being laid off. I know it might be difficult to re-fi since I'm at a new job, but figured I'd give it a shot nonetheless.


As always, the knowledge of CP is appreciated.

:D

The job change isn't that big of a deal, especially if you are in the same industry.

I haven't done loans in the KC area. But, I would be happy to do it for you.

I would be happy to give you some advice even if you want to use someone local. There are a ton of snakes in the mortgage industry, as with just about any sales industry.

Here are a few pointers:

#1) When calling around for quotes, don't ever say that there will be a delay. Act as if you are ready to move that day. Many originators will quote you a lower rate than what they are willing to do because they know that if you think they are the lowest, you will call them when you are ready. And, then, they can just say the rates have went up. And, if any time has passed since you got the quotes, check around again on the day of.

#2) There is not a set 'rate'. Loan originators make a comission on the yield spread. Basically, the higher the interest rate, the more money they make. To get a lower rate, you may have to pay origination. Ask your loan officer for a breakdown as to how much more you will save and what the break even point is for any closing costs.

#3) Don't call around for quotes late in the day. Loan officers will quote low then too, knowing that you won't be trying to lock that day, and knowing that they can tell you they can't get you locked. Then, when you call back the next day... rates will be higher.

#4) Some loan officers will quote lower when they know that you are shopping around. They may not even be able to do the deal, but merely hoping that rates go down enough to do it while the loan is in process. When you sign the application, ask for proof that the loan is locked. From their perspective, the worst that can happen is that they don't get the loan.... and they know that they wouldn't get the loan otherwise, anyways. Meanwhile, you are paying for an appraisal, and the rates could actually be going up. The lender is out nothing for this gamble... but you are.

You can elect to let the loan float, but you better trust the Loan Officer. Rates may be the same, but he may say they have went up a little in order to charge you more.

Oh, and never trust someone you are referred to. In ANY sales environment, the salesman typically looks at someone referred to them as an easy mark. They know that you probably won't shop around. One car salesman I know, said the most he ever made on a car was the one he sold to his mom. Think about that.

Loans are based on four criteria. Income, assets, credit score and value of the home. When you call and get a quote, ask exactly what they are quoting. Another trick is to tell you a low rate, and then raise it later saying that your credit score or home valued didn't meet the requirements for that rate.

That could be the truth, but find out going into it what it is based on. If he says it is based on a 740 credit score, and you know you have one in the mid sixes... then, ask for a quote based on your realistic scenario.

I have been in real estate for 10 years, I have seen mortgage brokers and loan officers screw over a lot of borrowers. Remember, they will take you for as much as you let them.

Not everyone is a snake.... but there are a ton of them out there. So, just wear tall leather boots and good luck.

SenselessChiefsFan
03-26-2009, 09:52 PM
I got 4.37% for 30 years through Countrywide.

That was a little while ago when that was locked, or I assume you paid origination.

acesn8s
03-27-2009, 03:15 AM
Wife and I are going to try to re-fi our mortgage; any suggestions for a local (or non-local, for all I care) mortgage co?

Primarily doing it for the better rates, but also because of the fairly large pay cut I took when I accepted the new job after being laid off. I know it might be difficult to re-fi since I'm at a new job, but figured I'd give it a shot nonetheless.


As always, the knowledge of CP is appreciated.

:DI might be able to point you in a direction worth traveling if you are on the verge of getting in over your head. There are limitations but keeping you're home is top priority. PM me if you're interested.

P.S. I get no money for my help. (unless you want to pay me :D)

KC Jones
03-27-2009, 07:36 AM
You might look at this:

http://www.upfrontmortgagebrokers.org/

It's a nascent professional organization for mortgage brokers. The idea is that these guys are completely up front about their fees and don't jack up the wholesale rate in exchange for a bonus or kick back from the wholesale lender. It looks like there are none in Missouri or Kansas, so you'd have to work with one out of state.

Regardless this website has a lot of great info on it as well as mortgage calculators so you can see what you're savings will be and breakeven date, etc. Oh, and it's s horrific looking site that looks like it was designed in 1995.

http://www.mtgprofessor.com/

KC Jones
03-27-2009, 07:48 AM
I would be happy to give you some advice even if you want to use someone local.

rep!

I'm in the refinancing mode too, I'll send you a PM.

Comanche
03-27-2009, 08:33 AM
I am also wanting to refinance (I guess many people are). I DO know the interest rate is only part of the equation. Points, closing costs, term, and other fees can make a seemingly low rate expensive.

For me, the difficult part is knowing when to pull the trigger. Supposedly, interested rates will drop when the "TARP" bail out money buys up the bad loans. On the other hand, as the "Stimulous" package money hits the economy and as the U.S. starts cranking up the money printing presses, the threat of inflation will eventually cause the Fed to increase interest rates. Rates are low now but WILL THEY GET LOWER? It would be a bitches to refi now as a cost of $2,000 in fees/costs only to have the rate drop another 1/2 percent later! :(





Wife and I are going to try to re-fi our mortgage; any suggestions for a local (or non-local, for all I care) mortgage co?

Primarily doing it for the better rates, but also because of the fairly large pay cut I took when I accepted the new job after being laid off. I know it might be difficult to re-fi since I'm at a new job, but figured I'd give it a shot nonetheless.


As always, the knowledge of CP is appreciated.

:D

SenselessChiefsFan
03-27-2009, 08:49 AM
I am also wanting to refinance (I guess many people are). I DO know the interest rate is only part of the equation. Points, closing costs, term, and other fees can make a seemingly low rate expensive.

For me, the difficult part is knowing when to pull the trigger. Supposedly, interested rates will drop when the "TARP" bail out money buys up the bad loans. On the other hand, as the "Stimulous" package money hits the economy and as the U.S. starts cranking up the money printing presses, the threat of inflation will eventually cause the Fed to increase interest rates. Rates are low now but WILL THEY GET LOWER? It would be a bitches to refi now as a cost of $2,000 in fees/costs only to have the rate drop another 1/2 percent later! :(

Honestly, nobody knows what rates 'will' do. Sure, we can argue either way.

Rates were lower a month or so ago than they are now.

Rates could push lower, rates could go up. I would look at the rate you can get now versus what you currently have. Trying to time the market is nearly impossible. The rates are very near historic lows.

What is left out of the discussion is that lenders also price their rates according to their volume. If a bank is sitting there with more applications than they can process, then they will price a little higher to slow down their applications.

Other times, lenders will discount their rates trying to buy market share.

I don't see the rates getting too much lower anytime soon because of the amount of applications that are being taken.

Every month that you put this off, you are costing yourself money. Now, it will depend on your loan size and current interest rate as to how much you are costing yourself.

Finally, your homes appraised value could be dropping. And, a loan you can get today, you may not be able to get in a few months. Now, I think that lower interest rates as well as going into the spring and summer real estate markets could actually help values, but it is something to consider.

Nixhex
03-27-2009, 09:52 AM
Bank Midwest :D

Bill Lundberg
03-27-2009, 09:57 AM
Honestly, nobody knows what rates 'will' do. Sure, we can argue either way.

Rates were lower a month or so ago than they are now.

Rates could push lower, rates could go up. I would look at the rate you can get now versus what you currently have. Trying to time the market is nearly impossible. The rates are very near historic lows.

What is left out of the discussion is that lenders also price their rates according to their volume. If a bank is sitting there with more applications than they can process, then they will price a little higher to slow down their applications.

Other times, lenders will discount their rates trying to buy market share.

I don't see the rates getting too much lower anytime soon because of the amount of applications that are being taken.

Every month that you put this off, you are costing yourself money. Now, it will depend on your loan size and current interest rate as to how much you are costing yourself.

Finally, your homes appraised value could be dropping. And, a loan you can get today, you may not be able to get in a few months. Now, I think that lower interest rates as well as going into the spring and summer real estate markets could actually help values, but it is something to consider.

SensibleChiefsfan nailed it. This post is spot on.

:clap:

kepp
03-27-2009, 11:22 AM
I know there are a lot of factors besides interest rates, but assuming I get average numbers on everything, would it be wise to refi a 30 year fixed that is currently at 6% if I could get around 4% ?

Fat Elvis
03-27-2009, 11:25 AM
I know there are a lot of factors besides interest rates, but assuming I get average numbers on everything, would it be wise to refi a 30 year fixed that is currently at 6% if I could get around 4% ?

Not knowing any of the other numbers (especially how much you currently owe), quick answer, yes.

Assuming a 150K mortgage, a drop from 6% to 4% will lower payments from $899.33/month to $716.12/month--and that isn't figuring in PMI if you need it. In other words, instead of paying $173,757 in interest over the life of your loan, youwould only pay $107,804.

You need to ask yourself if saving $66K over 30 years is wise....

kepp
03-27-2009, 11:27 AM
Not knowing any of the other numbers (especially how much you currently owe), quick answer, yes.

Okay. So does refinancing often "look bad" on a credit report? Kind of like when it lowers your credit score when there are too many inquiries?

KC Jones
03-27-2009, 11:33 AM
What's normal for closing costs?

I'm seeing relatively fixed costs of ~$2,000 for the fees and closing costs (i.e. appraisal, underwriting, title insurance, etc). However I see a wide variance in origination fee. Some have offered me the wholesale rate in exchange for paying a flat $2K in origination. Others want 1% of the loan. One crazy jackass I found through the internet wanted something like $16K in origination fees.

In my mind I'd rather pay an origination fee to the broker and get the wholesale rate rather than have them make an undisclosed amount on the yield spread premium.

KC Jones
03-27-2009, 11:36 AM
I know there are a lot of factors besides interest rates, but assuming I get average numbers on everything, would it be wise to refi a 30 year fixed that is currently at 6% if I could get around 4% ?

My understanding is that a common sense rule is 1pt lower is worth it.

Here are some calculators that can help break down for you when the refi pays for itself and how much you save over a certain period (let's say you plan to stay for 15 years - it'll tell you what you save over those 15 years).

http://www.mtgprofessor.com/calculatorsOriginalMenu.htm

Bill Lundberg
03-27-2009, 11:40 AM
What's normal for closing costs?

I'm seeing relatively fixed costs of ~$2,000 for the fees and closing costs (i.e. appraisal, underwriting, title insurance, etc). However I see a wide variance in origination fee. Some have offered me the wholesale rate in exchange for paying a flat $2K in origination. Others want 1% of the loan. One crazy jackass I found through the internet wanted something like $16K in origination fees.

In my mind I'd rather pay an origination fee to the broker and get the wholesale rate rather than have them make an undisclosed amount on the yield spread premium.

Depends on your loan size. As a general rule if your loan is over $100K you should really never have to pay more than 1% in origination to get a wholesale rate. If anyone quotes you higher than that just politely tell them you'll take your business elsewhere.

On a side note, the Yield Spread Premium is not undisclosed. You have the right to ask for a copy of the lock and that discloses how much the originator is making in YSP. It is also on your settlement statement at closing.

Dayze
03-27-2009, 11:41 AM
awesome info guys; i'm going to review the posts in more detail when I get home tonight.

CP-ers coming through inthe clutch.

Fat Elvis
03-27-2009, 11:42 AM
Okay. So does refinancing often "look bad" on a credit report? Kind of like when it lowers your credit score when there are too many inquiries?


Not that I know of....

And who cares, really at that point? Your house is probably going to be the biggest purchase in your life. As long as you make timely payments on your bills your credit will be fine.

epitome1170
03-27-2009, 11:48 AM
How long should you wait before you can/should refinance? Also, are FHA loans able to be refinanced as well?

bdeg
03-27-2009, 11:51 AM
If anyone is looking for a loan from an Iowa bank, let me know. I've got a decent connection to a very reputable local bank.

Bill Lundberg
03-27-2009, 12:03 PM
How long should you wait before you can/should refinance? Also, are FHA loans able to be refinanced as well?

There is no time frame, you refinance when the numbers make sense for you to do so. A friend of mine bought a house just before the rates dropped, at 6%, he made one payment and we refinanced him at 5%.

FHA loans are absolutely able to be refinanced and are very easy to do. FHA offers a streamline refinance that only looks at your mortgage payment history, nothing else. No Appraisal, no income, no assets, not even a credit report!

epitome1170
03-27-2009, 12:05 PM
There is no time frame, you refinance when the numbers make sense for you to do so. A friend of mine bought a house just before the rates dropped, at 6%, he made one payment and we refinanced him at 5%.

FHA loans are absolutely able to be refinanced and are very easy to do. FHA offers a streamline refinance that only looks at your mortgage payment history, nothing else. No Appraisal, no income, no assets, not even a credit report!

See your PM's

rageeumr
03-27-2009, 12:54 PM
I actually locked in at 4.75% today on a 30 year. I'm currently at 6%. It will take me 15 months in saved interest to pay for the closing costs, so i think it was well worth it.

SenselessChiefsFan
03-27-2009, 03:10 PM
What's normal for closing costs?

I'm seeing relatively fixed costs of ~$2,000 for the fees and closing costs (i.e. appraisal, underwriting, title insurance, etc). However I see a wide variance in origination fee. Some have offered me the wholesale rate in exchange for paying a flat $2K in origination. Others want 1% of the loan. One crazy jackass I found through the internet wanted something like $16K in origination fees.

In my mind I'd rather pay an origination fee to the broker and get the wholesale rate rather than have them make an undisclosed amount on the yield spread premium.

No matter how much you pay, they can still make an 'undisclosed' amount on the yield spread. Most make money on the front and back.

gblowfish
03-27-2009, 03:55 PM
One of my best buds from high school works for James B Nutter. Good company, 816-531-2345.

kepp
03-31-2009, 11:01 AM
Okay, so I opened a dialog with the place/person who did our first refinance a couple of years ago and this was the reply:

Based on your estimate for the current value I would be concerned that you don't have enough equity to do a refinance that would benefit you.
However we do have a modification program that would reduce your rate to our current 30 year rate of 5% for the remaining term of your current mortgage. The fee is $1100 and can be added to your principal balance. The process is done by mail.

This is the first I've heard of this type of program. Is this legit and what kind of pitfalls/strings could be attached to it? To me, it actually sounds *better* than a refi...especially if they allow me to pay the fee out of pocket.

whatsmynameagain
03-31-2009, 11:48 AM
Okay, so I opened a dialog with the place/person who did our first refinance a couple of years ago and this was the reply:



This is the first I've heard of this type of program. Is this legit and what kind of pitfalls/strings could be attached to it? To me, it actually sounds *better* than a refi...especially if they allow me to pay the fee out of pocket.

i wanna know more
Posted via Mobile Device

nstygma
03-31-2009, 11:56 AM
This is the first I've heard of this type of program. Is this legit and what kind of pitfalls/strings could be attached to it? To me, it actually sounds *better* than a refi...especially if they allow me to pay the fee out of pocket.its legit, its called a loan modification. usually its for people who are behind on payments but if they're offering it to you that's great

kepp
03-31-2009, 12:05 PM
its legit, its called a loan modification. usually its for people who are behind on payments but if they're offering it to you that's great

We're definitely not behind on payments so I wonder what strings are attached. I emailed them back with more questions. I'll let you guys know what I learn.

kepp
04-03-2009, 12:20 PM
So I just started the ball rolling on this and it seems to be a pretty darn good deal. No strings or pitfalls that I can see. They just change the rate from 6% to 5% for the remainder of the loan for a flat fee. Given my mortgage amount, I'll recoup the fee in less than a year.