Refinancing [mortgageprotectiontips.blogspot.com]
Question by carinyosa99: Is it possible to change mortgage companies without refinancing? Our mortgage was sold to a really crappy company. We have thought of refinancing, but then we realized we have a really good rate for another 18 months (we have a 5 year ARM) and won't be able to find anything as low as we have now. It's completely unfair that we don't have a say in who gets our mortgage. I doubt we can have someone else buy it, but it was worth asking the question. See my question about filing a complaint against a mortgage company and you'll see why I hate them. Best answer for Is it possible to change mortgage companies without refinancing?:
Answer by kemperk
I understand your concern. Imagine you pay idiotic Qwest phone company for phone service and one day, you get a notice that they are having GE commercial handle their billing; would you care? NOTE buyers make up an entire industry. What makes company #2 crappy?
Answer by loanmasterone
Why would it make any difference who you pay your mortgage to? All they do is collect a monthly check from you each month. You send them a check as per your original contract and that is all the involvement you have with them. No you may not request a certain mortgage company to purchase your mortgage. Buying mortgages is an open business and anyone from single investors to multi-national companies purchase them. Even people and companies in China and other countries purchase them. Even if you refinance your current mortgage, what are you gonna do it the same mortgage company purchase your new mortgage? I hope this has been of some use to you, good luck. "FIGHT ON"
Answer by alterfemego
You should sit tight. Then refinance a year before your arm adjusts. But to answer your question, no not without refinancing.
Answer by Big daddy
I would still consider the refinance. Yes you have a good rate for 18 months. But you also need to understand the market. Has your property value increased? If not, you may not be able to refinace now or in the future since you have not paid any principle for the past 3.5 years. Are you 100% sure your not upside down? The other point here is stop thinking about rate. Term is just as important here, maybe more so, rate doesn't put food on the table, total monthly payments do. Your payments are going to double in 18 months. If you have equity, why not do it now while you can. Yeah, your rate may go up 1 or even 2%, but if you pay the loan off in 15 or 20 years, you'll save thousands in the end. Also, would you like a bigger check from uncle sam every year. If your rate goes up, you get to write off that interest on your taxes. For example, if you have a 100k mortgage, 5%, 30 yr fixed your total finance charges are 193,255.78. Now, 100k, 6%, 20yr fixed, total financed is 171,943.45. 20k in savings looks good, plus your writing off more interest. Last, don't get caught in the refi trap. Most people don't bring closing costs out of pocket to the table, it takes you 2-3 years to pay this off, you never get anywhere unless you change the term or double your payment a couple of times a year. Hope this helps
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If you have mortgage through the Federal Housing Administration that you ... do so (The bank is no longer taking refinancing applications from brokers on loans ... Refinancing Your FHA Mortgage at Lower Cost
With mortgage rates falling to record lows this summer and the housing market showing signs of a pulse, refinancing activity is perking up.
Its too bad that so many people are relying on oversimplified advice and bad numbers to decide when to pull the trigger.
The refinancing equation has never been more complicated. While some borrowers are desperate to reduce their monthly payments, others are looking to build equity. Some are even treating their mortgage as an investment vehicle, sinking excess cash into their homes in order to secure a lower rate and cut future payments.
Yet most personal-finance resources these days dont account for situations like these. Even essential factors like tax rates and inflation expectations are often ignored in favor of simplistic calculations.
Many popular Web resources, in fact, are financed by lenders, mortgage brokers or lead generators that connect borrowers with banks. At times, their advice can be downright harmful.
Thats because of the risk involved. Refinancing generally costs 3% to as much as 6% of the outstanding principal of the loan, with banks levying fees on everything from application fees and title searches to appraisal costs and legal expenses. (Mortgage points can add to the total, though they typically help reduce the interest rate and lower overall costs.)
Fees are often murky, too, making comparison shopping difficult. The best way to compare deals is to consult with a housing-counseling agency approved by the U.S. Department of Housing and Urban Development.
Given such costs, you dont want to refinance often. Yet the advice coming from the mortgage world suggests you should be doing it regularly.
One particularly dubious idea gaining prominence is the 1% rule, which used to be the 2% rule when rates were higher. The gist: Refinance when you can knock a full percentage point off your rate.
A lead-generation site called Supermortgages.com says the following in a piece called When to Refinance a Mortgage: Are the current mortgage interest rates at least 1 point less than your existing mortgage interest? If so, refinancing your home mortgage might make sense.
Wells Fargo & Co.s website goes further. In an advice article titled Deciding to Refinance, it writes: If interest rates are 1/2% to 5/8% lower than your current interest rate, it may be a good time to consider a refinance.
Yet people who followed the one-point rule could have refinanced five or six times in the last 15 years, paying so much in fees that the savings would likely be wiped out.
Supermortgage content largely comes from mortgage brokers, lenders and other industry sources, says Andy Shane, a spokesman for parent company SuperMedia Inc.
In this case, he says, the author is a freelance writer with a law degree and a background in real estate who used a mortgage calculator and determined that a one- to two-point cut in rates made a pretty significant difference in monthly payments compared with closing costs.
Wells Fargo spokesman Jason Menke says the banks website has a wide range of information available to help borrowers. The rate difference cited is just a point where a borrower may want to consider looking into a refinance, he says.
The 1% rule could translate into big business if it catches on. About 71% of outstanding fixed-rate mortgages guaranteed by Fannie Mae or other government-sponsored entities are at least a point above current rates, according to Walter Schmidt, senior vice president at FTN Financial Capital Markets in Chicago. Suggest Refinancing Articles
