All Forum Posts by: Joe Harper

I am dealing with a similar situation except I don't have 20% equity.

The answer to your question is if you can get an appraisal to show 20% equity then there would be no mortgage insurance required. "Waiver" would not be the term, exempt would be better way to say it.

I'm at 6.5% and can get 4 3/8 % with lender subsidized closing costs meaning the rate is higher to reflect 'reverse points'. The HSH calculator is an excellent tool for visualizing the nuances.

http://www.hsh.com/refinance-calculator (keep scrolling!)

If you have 20% equity then you have a straight conventional refi and no mortgage insurance is required. The lenders differentiate between PMI and MI. PMI is Private Mortgage Insurance and applies to Conventional loans only (Fannie and Freddie). MI applies to FHA and VA loans only.

It sounds like maybe the person you asked jumped to some conclusions about your situation, or that your existing and proposed rate with reverse points are too close together resulting in a negligible PITI and MI reduction.

Down here in Florida... Wells Fargo just took over Wachovia and they are twisting my arm, begging me to borrow money. Ally Bank told me that $50,000 was minimum loan amount whereas three different Wells Fargo loan specialists tell me 'no worries'.

I have been told 'no' repeatedly to an equity line on a rental house.

Yesterday, I asked a Wells employee if I could do three loans at once off of the same credit report and he said yes and that he had done deals like that before. One loan for an FHA streamline, one loan for the cash out refi, and one loan for a purchase using the cash out as the down payment. Just make sure you pull your own credit report and pay the $8 for your score so you can tell them your score to see if you meet the guidelines before THEY pull your credit which will start the 90 day clock. I have been told they don't have to pull credit again before 90 days. If they have to pull another credit report it could potentially knock a couple of points off, but not always. I've been hearing that minimum score of 740 will get you the best pricing (interest rate) but 720 was my assumption based on other banks I have asked.

Every bank I go into and every banker I meet make it crystal clear, in a greasy high pressure sales way, that they want to lend money so know your score and start asking around.

To determine if my credit union was lending on real estate I went to my county's clerk of court (aka county recorder) and did a search in the last 90 days for that lender. I was pleasantly surprised to see about 30 mortgages a month which backed up their stated willingness. In florida, all the deeds and mortgages are searchable online, can't speak for Alabama.

FNMA requires that the property be in your name for six months before you can cash out refi, hence the term 'seasoned title'. I'm dealing with identical situation to yours and I'm just counting down the days to the six month mark. Appraisal will cost me $375 and it's non refundable if the lender doesn't write the loan so be ready to hand the appraiser the comp's (Comparable Sales) you feel are best and help your cause. A good appraiser will welcome the research. Keep vigilant on any new comp's that have been recorded but maybe haven't shown up on the county/city assessor website (if applicable). Also be aware that some great comp's may not be in the MLS if an agent was not involved.

Joe