Refinance...WWYD

[luvdzne]

DH and I are getting ready to refinance out of our adjustable. Our problem is we have an 80/20 loan along with the adjustable and the 20 loan is with another bank. So we can only refinance our 80 loan. Also at the moment with the housing market we are underwater for about $10,000.

We have 2 options...

refi with our current bank which we have had nothing but problems with since day 1. Closing costs would be around $2500 and the loan is pretty sure to go through.

Or we called Wells Fargo and they can't guarantee it will go through it depends on the appraisal, but going over numbers they think it will go through and we should be fine. If it doesn't we'll only be out $350 and can go back to bank 1. Their closing costs are around $1500.

Both banks have the same interest rate of 4.875 which is pretty good, we are currently at 6.375 adjustable.

We know we don't like our current bank, too many problems. We know nothing of Wells Fargo other than one of our neighbors use them and they are happy with them.

I'd like to hear opinons of others on which one they would do, and opinions on Wells Fargo.

I hope all this makes since.

TIA

 

[daisy2jae]

We just moved Nov 08. Last mortgage before moving we had Wells Fargo. I didn't like them. Customer Service was terrible on the phone. We went through Citi Mortgage.

 

[msmayor]

Are you sure even the 80 loan will go through if you're underwater on the value of the house?

 

[CarolA]

Wells Fargo bought my loan on my last house.

I never had a problem but... I Have to be honest. I don't recall ever contacting them or anything. I pay they send statements.... that's kind of my relationship with every mortgage company ever... I can't tell a difference between the loan I had with Wells Fargo and the loan I have with GMAC. (Both of them were sold from the original company)

Honestly there is always the risk you will get sold too so....

 

[Skatermom23]

Are you sure even the 80 loan will go through if you're underwater on the value of the house?

Exactly, how can you refi when your underwater?

 

[OctMtnWoods]

Another reason I prefer your local small town bank and not these large banks or mortgage brokers. Local small town banks don't sell off the mortgages most of the time either.

 

[luvdzne]

Exactly, how can you refi when your underwater?

Because of the new programs that were put through they make us eligible. http://www.makinghomeaffordable.gov/about.html We have excellent credit, not over our head on our mortgage, not asking to take more cash out, we just need out of the adjustable.

 

[luvdzne]

Are you sure even the 80 loan will go through if you're underwater on the value of the house?

Yes as long as the value of the house doesn't drop anymore between now and the time we close.

 

[CarolA]

Another reason I prefer your local small town bank and not these large banks or mortgage brokers. Local small town banks don't sell off the mortgages most of the time either.

A local small bank sold my last one.

 

[bonybroad]

IMO, Wells is hard to deal with. When I was in real estate, we had the hardest time closing with them, they always wanted more. A second appraisal, repairs they insisted on, no customer service, DAYS to call back, always closed late.
That is my perspective as a real estate agent.
Good luck with whatever you decide!

 

[andrews_dad]

I'm with National City Mortgage.... don't like them. CS is not great. Always pushing something to suck more $$ off of you. like charging you to pay every 2 weeks and such.

 

[LuckyMamaInDE]

We refi-d with Wells Fargo a few months ago and had no problems. It took long because of the backlong (we started in December) and the bank didn't believe the appraisor's report at first, so he had to send more info. We purchased a foreclosure in 2006 and did a TON of work, so the house's appraised value actually increased in that time

 

[luvmy3jewels]

My in-laws mortgage was bought by Wells Fargo and they have had nothing but trouble ever since. After hearing all the stuff they have had to deal with (terrible customer service), I would not recommend going with them for a mortgage.

 

[Momto3Girls&Max]

I have nothing but good things to say about Wells Fargo. We've refinanced with them 2x and have never had a problem. I do contact them periodically to adjust the extra $$ that we pay and have never had a problem with that either.

 

[PrincessDadx2]

Because of the new programs that were put through they make us eligible. http://www.makinghomeaffordable.gov/about.html We have excellent credit, not over our head on our mortgage, not asking to take more cash out, we just need out of the adjustable.

Are you sure that your second mortgage holder will subordinate their debt again if you refinance? They might not since you are underwater. I can't refinance because my 2nd holder requires at least 10% equity before they will subordinate their loan. I only have about 6% so I am stuck unless I pay their loan down to 10% equity.

I would not spend any money until you had an answer to that.

 

[friendofgusgus]

Are you sure that your second mortgage holder will subordinate their debt again if you refinance? They might not since you are underwater. I can't refinance because my 2nd holder requires at least 10% equity before they will subordinate their loan. I only have about 6% so I am stuck unless I pay their loan down to 10% equity.

I would not spend any money until you had an answer to that.

We have a small second and are about even on our house but this scenario is holding us off on refinancing right now. We are in a fixed 30yr, though, so we don't need to do it right away.

I would agree that you need a firm answer to this question before you go any further in your planning.

 

[CyndiLooWho]

Our previous and current homes were both mortgaged by Wells Fargo, and we have always been happy with them (much better than the two previous mortgages we had). We re-fi'd our last home from a WF to a WF loan and had no problems at all, but that was probably 8 yrs ago.

Our current mortgage with them was a breeze, but it was also an international company relo, so we got into their expedited program (in the midst of the mortgage meltdown, we did not provide one piece of paper to the bank b/c of their relationship with dh's company).

just a note, the "new" mortgage standards are much more like they were when we purchased our first home many years ago. They require a lot more explanation and paperwork now than they did 5 yrs ago, in the height of the mortgage debacle, and this is probably a good thing from a "will this borrower pay us back" standpoint, but not so much fun when you are the borrower. If the only experience you have is with the boom mortgage market, you may be in for a surprise on how long it takes and how much more you have to do.

 

[rynosmom]

Another reason I prefer your local small town bank and not these large banks or mortgage brokers. Local small town banks don't sell off the mortgages most of the time either.

We love our small town bank. Have had our mortgage with them for 5 years and just refinanced with minimal closing costs. Our previous mortgage was with Chase and they called all the time trying to see us addition services.

 

[HeyIt'sMe]

I'm with National City Mortgage.... don't like them. CS is not great. Always pushing something to suck more $$ off of you. like charging you to pay every 2 weeks and such.

I'm with National City Mortgage and I haven't had any problems with them. But, I've never had to call them (except once*) and just make my payments.

*When we first got our mortgage with them 6 years ago I do remember calling to ask if paying 1/2 the mortgage payment on the 15th and 1/2 on the last day of the month (for example 5/15 & 5/31 for the June 1st due date) would be OK and they told me no. They said if they got a partial payment they'd send it back. I don't know if that is still true ... or if it was correct to begin with.

In the last few years we've gotten mailings from them on their "Equity Accelerator" and saw they charge a fee to do it. We just pay extra principal with each mortgage payment so we are accelerating our equity for free.

 

[msmayor]

just a note, the "new" mortgage standards are much more like they were when we purchased our first home many years ago. They require a lot more explanation and paperwork now than they did 5 yrs ago, in the height of the mortgage debacle, and this is probably a good thing from a "will this borrower pay us back" standpoint, but not so much fun when you are the borrower. If the only experience you have is with the boom mortgage market, you may be in for a surprise on how long it takes and how much more you have to do.

Exactly correct.

My DH and I closed on our refinance at the end of March. Even with both of us having 750+ credit scores and 40% equity in the house, the mortgage company asked for reams of paperwork. The package I sent back to them was in excess of 75 pages.

They asked for copies of actual bank statements, and were very clear in telling us that internet printouts were NOT acceptable...so if you are one of those who doesn't get hard copy statements or tosses them, best start saving them before you go to refinance. We had to provide three consecutive months on all accounts.