Need cheapest method / place to do refinance of mortgage. Purchased house ONLY 3 MONTHS AGO.?
by Mortgage Rates on Wednesday, October 27th, 2010 | 4 Comments
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The middle of the collapse happened over a year ago, not 3 months.
No, no one will give you a conventional loan and your present loan likely has a prepayment penalty for 2 years.
You have more than one problem here. Your appraisal will no longer be valid for any lender. The market changes so fast that many are now refusing to accept any appraisal more than 60 days in age.
As well, if you are at close to 100% financing, your property’s value may well have dropped, which would require you to come up with considerable cash to make up the difference.
Most of the major nationwide lenders DO require a year of ownership before a refinance will be considered. Your best bet (it won’t be the cheapest, but will work) is to head for a LOCAL bank where you can explain the situation to a live mortgage lender person to person. Your rate will be somewhat higher but you will get a refinance. Don’t waste your time with the ‘biggies’. They are sticking to rules fast and tight because of the severe burning they have taken.
How long have you owned the place? Is it 3 months or 2-3 years?
Either way I have a couple of wholesale lenders that will refi with little or no seasoning at the new appraised value instead of the traditional refi using the purchase price if under 1 year. Email me for more info or help.
The banks and lenders do not require 1 year ownership. They only require you to refinance for NO MORE THAN the purchase price for 1 year. That stops all the people who buy and then refinance to pull equity from the house. You are not trying to do that. You can refinance..