FHA loan question

[mrsklamc]

So countrywide called and offered us a refi. It would cost us $430 but they would tack an additional $6400 on the loan. They said that this money is required by the government to go into escrow. Does anyone know if that's correct? And doesn't escrow come back to you if you don't default?

 

[Mom of three]

So countrywide called and offered us a refi. It would cost us $430 but they would tack an additional $6400 on the loan. They said that this money is required by the government to go into escrow. Does anyone know if that's correct? And doesn't escrow come back to you if you don't default?

Are they referring to your taxes and insurance? That could be possible. You do have to pre-pay a certain amount of taxes and insurance (depending on when your taxes are due and when you close the loan). Sometimes its only a couple months, other times it could be several more.

The thing with Countrywide is, they will promise you the world and say anything to keep you with them. Especially if you are a good customer. Whether or not they can deliver what they promise is another story.

Ive had several people wanting to refinance for the sole reason of getting away from Countrywide, no joke. Let's just say they are not my most favorite lender to work with and Ive heard a ton of horror stories.

Good luck.

 

[a1tinkfans]

So countrywide called and offered us a refi. It would cost us $430 but they would tack an additional $6400 on the loan. They said that this money is required by the government to go into escrow. Does anyone know if that's correct? And doesn't escrow come back to you if you don't default?

???Escrow for what, taxes and HO insurance?
Is the escrow to be held till end of loan maturity? or until you have more than 20% equity?????
Or are they requiring you to get PMI, meaning they do not think you have enough equity. I would call and ask very specifically what the escrow is for.

Something to consider is what is current % and what is the re-fi rate and WHAT year are you into your mortgage, usually you have paid mostly interest those first few years and now that you're into the principal (lets say you have 10 left on a 20 or 30) you are not getting a real bang for your money by ADDING money or extending your loan even more years to get a lower rate, fiscally not to your advantage.

SO confusing with so many people thinking they are gonna be able to refi and the politico's saying it will help millions, actually based on many stats MANY people will be sorely disappointed.
Good Luck, I hope that you DO get a good rate to better your situation!!!

 

[mrsklamc]

We don't have enough equity. DH bought the house before we were married and the mortgage broker was either crooked or crazy, had him in an interest only adjustable rate, and he didn't know it was interest only...

The Countrywide guy said it wasn't PMI but something different for FHA loans.

 

[jedijohn82]

If they called just out of the blue then there is probably more benefit for them than there is for you. Do you think one of the worst mortgage companies in america would just call out of the kindness of their own heart?

http://consumerist.com/5030150/coun...consumerists-worst-company-in-america-contest

I'd be EXTREMELY leery of any "deal" they offer you.

 

[mrsklamc]

They are already our current lender so it doesn't make much sense to me either.
I'll admit to being leery.

They also offered a 15 year for a little less than $100 more a month than we are paying now. We're considering that as well.

Adding to the confusion, we don't know how long we'll be in this house.

 

[a1tinkfans]

They are already our current lender so it doesn't make much sense to me either.
I'll admit to being leery.

They also offered a 15 year for a little less than $100 more a month than we are paying now. We're considering that as well.

Adding to the confusion, we don't know how long we'll be in this house.

I would go into them and sit for a consult (which is FREE) and have them show you numbers so you guys can make an informed decision.

What is left on mtg (years) from original loan? Sounds like you are re-fi'ing for $$ rather than to shorten rate, is that right? If so, would a 30 year to get a much lower payment be better for you, especially if you do not think you'll be in the house in another 5 years. Why pay all that interest again??
Are they charging you to refi and then adding THAT to the loan too???

 

[EthansMom]

Is it possible that you weren't really talking to someone from Countrywide?

A few years ago, I got a call from someone who claimed they were with our previous mortgage company and interested in giving us a no-cost refi at a lower rate. It was a good deal so DH and I went with it. Turns out the person was really with a loan brokerage (and had lied) and the brokerage tried to charge us some fees not included on the HUD statement at closing. We balked (remember, it was supposed to be "no-cost") and they ended up giving us a true no-cost refi.

My point being, you may have gotten a cold-call from some other entity trying to get either your personal information or trying to get you to refi (and pay fees, even if they were rolled into your new loan) with them.

The best way to KNOW you're talking to Countrywide would be to call Countrywide. It can't hurt to ask what your current lender can do for you.

 

[MrsPete]

If they called just out of the blue then there is probably more benefit for them than there is for you. Do you think one of the worst mortgage companies in america would just call out of the kindness of their own heart?

http://consumerist.com/5030150/coun...consumerists-worst-company-in-america-contest

I'd be EXTREMELY leery of any "deal" they offer you.

I agree completely. This isn't a company you want to get into bed with -- especially if they're contacting you with the suggestion.

However, there's no danger in sitting down and hearing what they have to say -- just make sure you get exactly what you want, and don't do anything risky with this company. I remember my algebra teacher a hundred years ago making us all repeat out loud, "I want a conventional simple-interest loan with no pre-payment penalty." It was good advice.

 

[LovinPooh]

We tried CW a while back for refi. And we went in for the sit down and the woman was the rudest woman ever. I complained to CW but never heard back.
We are currently looking into a FHA with Wells Fargo. We were told that taxes and HO would be set aside for escrow. They actually added a little more onto becuase of our taxes being due in June.

We were told that with the FHA loans now, that there is a huge waiting list and we might not close for 60-90 days. Is that the same for you?

 

[MMluvsWDW]

Beware! Be sure to ask exactly what all those fees are. We are looking at refi and found out with the "streamlined" FHA there are way more fees than we ever expected. Some of that 6000 might be PMI insurance, points, and then insurance and taxes. Be sure you get a breakdown. We got sloppy and twisted information from our guy and now we might be out 750. Good Luck!