How low can we go? 30 yr fixed at 3.75% with no fees...

NEW -> Contingent Buyer Assistance Program
Cares said:
Soylent Green Is People said:
Some news on No-Cash Out Agency (Freddie Mac - for now....) news:

For all no cash-out refinance mortgages:

A 30-day seasoning requirement is implemented when a new refinance loan proceeds are used to pay off the existing loan.
No cash-out refinance transactions that do not have a 30-day seasoning must be closed no later than 6/18/21


https://guide.freddiemac.com/app/guide/bulletin/2021-16

If you close Conforming Mortgage A with Company A and Company B wants to refinance you right away, That's a No-Can-Do deal through Freddie Mac. That said, I'd expect Fannie Mae will likely roll out something similar soon. Note that if you're currently refinancing and fit the listed terms above, you may need to rush the deal through or switch to a FNMA investor product.

This will impact only a very few borrowers relatively speaking, but expect this "seasoning" rule to expand to all lenders soon. The refinance flipping has impacted MBS investors and lenders along the production process.

My .02c

I'm surprised they don't extend the seasoning requirement to 6 months to avoid commissions clawbacks. I understand it isn't Fannie and Freddie's problem but it definitely is an industry problem.

I thought the clawback period for commissions is 3 months or is it 6 months?
 
USCTrojanCPA said:
Cares said:
Soylent Green Is People said:
Some news on No-Cash Out Agency (Freddie Mac - for now....) news:

For all no cash-out refinance mortgages:

A 30-day seasoning requirement is implemented when a new refinance loan proceeds are used to pay off the existing loan.
No cash-out refinance transactions that do not have a 30-day seasoning must be closed no later than 6/18/21


https://guide.freddiemac.com/app/guide/bulletin/2021-16

If you close Conforming Mortgage A with Company A and Company B wants to refinance you right away, That's a No-Can-Do deal through Freddie Mac. That said, I'd expect Fannie Mae will likely roll out something similar soon. Note that if you're currently refinancing and fit the listed terms above, you may need to rush the deal through or switch to a FNMA investor product.

This will impact only a very few borrowers relatively speaking, but expect this "seasoning" rule to expand to all lenders soon. The refinance flipping has impacted MBS investors and lenders along the production process.

My .02c

I'm surprised they don't extend the seasoning requirement to 6 months to avoid commissions clawbacks. I understand it isn't Fannie and Freddie's problem but it definitely is an industry problem.

I thought the clawback period for commissions is 3 months or is it 6 months?

6 months, at least for all the people I've spoken to.
 
Yes.

89.9% LTV purchase loans are for the most part capped at $1.5m ($1.66m PP), require 6-12 months cash reserves (50% of reserves must be savings, not IRA 401k or stocks) and a 720 FICO is about the lowest they will allow.

If a person is a medical professional, there are exceptions to the general information shown here.

PMI is built into the rate. Impounds are often, but not always required.
 
for conforming loan (< $548k) in HCOL areas, what is the LTV that appraisal can be waived? 40%?
Does it require the reserves to be in cash? can it be in stocks? thinking about doing a refi in one of our houses but we are a little cash strapped after the recent plunging.
 
The California Court Company said:
for conforming loan (< $548k) in HCOL areas, what is the LTV that appraisal can be waived? 40%?
Does it require the reserves to be in cash? can it be in stocks? thinking about doing a refi in one of our houses but we are a little cash strapped after the recent plunging.

There isn't an example formula to get appraisal waiver. I've gotten waivers in situations where I would never think it would happen and vice versa. Generally I would say, low LTV, good reserves, and value used is within Fannie/Freddie's tolerance level.
 
Just as Experian/Equifax/Transunion do not disclose FICO adjustment factors, the Agencies do not clearly spell out what rules grant or deny an appraisal waiver. Gaming the system would follow, causing value and other property related problems. What we do know about FICO's and Appraisal Waivers today is based on aggregated experience only. As noted, YMMV when trying to get a waiver.

Your LO needs to input a clean application. Provide the Year Acquired, Year Built, Original Cost, and any existing lien information. Property type is also key. Just because your home is detached doesn't mean it's an SFR - most Irvine area detached homes are Detached Condos. Just because the home is attached does not mean it's a Condo - some are PUD's and underwritten as SFR's. The application may say detached, but Agency info may have the property as a detached condo, so you'll need an appraisal given the property type mismatch.

I ran into a situation where a frustrated realtor was having a terrible appraisal problem. The only way around it was to get an appraisal waiver. The property was in Coto De Caza. I recommended changing the city from Coto De Caza to "Trabuco Canyon" and Zip! Appraisal Waiver granted. This applies as well to the Baker Ranch area. Baker Ranch may be listed as Foothill Ranch. Foothill Ranch may be listed as Lake Forest. Take a look at your last loan's Deed of Trust or Note. If your Baker Ranch home says the city is Lake Forest, your LO should input Lake Forest first and see if the Waiver is granted.

A 65% Loan To Value refinance with a 43% debt to income on a 30 year fixed rate loan with 3 months of cash reserves (not 401k....) and 2 years only of employment is not as likely to get a PIW (Property Inspection Waiver - AKA Appraisal Waiver) as an 80% Loan To Value refinance with debt to income at 33% on a 20 year loan with 3-5 years of cash reserves, 1-3 credit tradelines with balances, and 5-7 years of employment.

Hope this helps.
 
Agent Joe said:
What is generally the smallest loan amount that can be refinanced at no cost? TIA!

Smallest I?ve found is $300k from Interactive Mortgage.  Most of the other no-cost refi shops are minimum $400k.
 
aquabliss said:
Agent Joe said:
What is generally the smallest loan amount that can be refinanced at no cost? TIA!

Smallest I?ve found is $300k from Interactive Mortgage.  Most of the other no-cost refi shops are minimum $400k.

There is no mortgage size that you can refinance at no cost. If your loan is very small though, say $300k or less, it just means you will have to compensate with a higher rate to cover the fees.
 
akula1488 said:
How soon can you refi after purchase? Like before the first Mortgage payment?

You can get a new refinance started the day after your purchase loan or your refi loan closes (with another lender), no current requirement to wait to make your first payment.
 
USCTrojanCPA said:
akula1488 said:
How soon can you refi after purchase? Like before the first Mortgage payment?

You can get a new refinance started the day after your purchase loan or your refi loan closes (with another lender), no current requirement to wait to make your first payment.

Yea so there is no loan that you have to wait unless you specifically agree to a prepayment penalty which would be disclosed in your Closing Disclosure. But I personally would never take a loan for someone who just refinanced within 6 months because I wouldn't want it happening to me. I have them go back to their previous lender to check that it is okay. I think you should always give your previous lender a shot if rates drop significantly within a 6 month period rather than just going to another lender off the bat.

Unless of course you had a terrible experience with the previous lender don't feel obligated to do them any favors.
 
Ditto to @Cares post.

Some lenders will have a blanket policy on refinancing loans that are not seasoned (3-6 payments). FreddieMac also is not buying refinance loans that are not seasoned. Before moving forward with anyone, get in an e-mail a commitment that the lender does not have a seasoning requirement, nor do their investors (other than FreddieMac). The refinance market has stalled in some spaces and LO's are weaving some pretty tall tales today. Owning for example is trying to make the phones ring with a 15 year purchase loan at a very low rate. Because of this growing climate of nonsense you're better to get promises in writing than you are by phone.

If you close on a Monday with a non-bank, your loan will more than likely be parsed out to a servicer by the following Monday. Yes, you have your First Payment Notice with the original lender, but you need a payoff demand from the loan servicer. If you're going to flip from lender A to lender B, expect a 45 to 60 day process, delayed primarily because of the difficulty in getting a payoff demand from the servicer.

My .02c
 
Looks like that 1/2pt refi fee is going away so I noticed some brokers have dropped their rates a bit today. 

Not sure yet if I want to refi again or just keep it as-is.
 
I got a call the other day from owning to refi my existing 15 year to a new 15 year at 1.99 with no out pocket costs. Just have not had time to call them back to lock
 
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