refinancing headache, help?!

[aly]

By the way, Trek, I'm in the same situation with my house. I bought last year at 35% lower than peak. It felt like a great deal. Now, zillow says it has dropped almost another 15%. Who knows how accurate zillow is, but it still messes with you a little psychologically. I just keep reminding myself that I have an excellent house and bought when it was right for me. Also, I'm sure the value will eventually return.. it will, right?

I got those scam letters. It reads like such a great service. Luckily, I also work for the county and received a scam warning from them. It's so unsettling. I hate always having to worry about being taken for a ride.

[sundial]

Aly, your avatar--LOL!

[aly]

They're why I had to buy the silly house in the first place. They convinced me they each their own bedroom. Completely spoiled!

[Trek420]

By the way, Trek, I'm in the same situation with my house. I bought last year at 35% lower than peak. It felt like a great deal. Now, zillow says it has dropped almost another 15%. Who knows how accurate zillow is, but it still messes with you a little psychologically. I just keep reminding myself that I have an excellent house and bought when it was right for me. Also, I'm sure the value will eventually return.. it will, right?

Right, and meanwhile your home is a nice place to live and store your bikes.

Not to politicize this thread but I feel one small part of what got us in this mess is an attitude of homes being a quick rags to riches scheme. Buy the house, flip the house, repeat every two years till wealthy. What ever happened to buy the house, live in the house?

I got those scam letters. It reads like such a great service. Luckily, I also work for the county and received a scam warning from them. It's so unsettling. I hate always having to worry about being taken for a ride.

Luckily I'd read in the paper how negotiating a lower tax bill is an option for some and could lower your mortgage if included. The article specified how to do it, it's free, talk to your realtor because some will help you (mine did).

I feel badly that I'm sure many get taken for a ride on these scams. If it did not work the companies would not send out the mailers.

[Mr. Bloom]

aly, I'm in banking...but I'm not a residential mortgage person...and FHA is even a different animal within that world. But, here's my perspective as a consumer that has the banker's perspective:

+1 Tuckerville: The Good Faith Estimate is just that...what that means is they can't knowingly mislead you, but there are a lot of "unknowns" until all the information comes together...and that will be in the last hours before closing. My experience is that the Good Faith Estimate is usually accurate to within a few $ as long as there are no surprises like delinquent taxes, unknown credit problems, etc.

-1 Indysteel (although we count Indy as a dear friend) Althought Indy is 100% right, the fact is these are extraordinary times in the mortgage business right now. With all the refinancing happening, mortgage folks are really stretched thin (ours are working 15 hour days with no relief in sight)...and moving on to the next lender might cause delays that result in a higher rate as the market turns. Plus numerous credit inquiries affect your credit score and could affect your ability to qualify. Expect good service, don't expect perfection right now.

My advice as a consumer who's done this several times before:

• estimated transaction costs (appraisal, title, attorney, etc) should be close from lender to lender. Look at the points, and APR to explain differences. These factors typically define the best deal. For instance, I'm putting a mortgage on one of our homes at 4.25% right now, but the APR is 4.57%...because I chose to pay "points" to get a better rate.
• avoid mortgage brokers or small mortgage companies
• focus on a reputable bank or a mortgage company that has been in business for a long time (check the Better Business Bureau on mortgage companies...look at the local newspapers "Readers Choice" awards)
• deal with a mortgage originator (the person who takes your application)that's got years experience; newbies rarely can anticipate all the complex moving parts to deep insight
• look the mortgage originator in the eye and say "what could go wrong with this estimate...what are the moving parts that could swing it one way or the other"

IF you have specific questions, feel free to PM me. I can always ask questions of our mortgage originators if I don't know the answer.

[aly]

Once again, I really appreciate everyone's advice. I was mentioning the help I got here to a friend who was shocked that I "got that much mortgage help on a cycling forum." It really is amazing, the wonderful people and the diverse knowledge you find here. You are all really special.

Right now, I'm thinking I'll go with my gut and stick with Wells Fargo. They're paperwork looks good, and the APR is slightly lower. There were just too many mistakes in the other mortgage company's paperwork. When I brought up the mistakes, he just dismissed it and blamed it on the new computer system. I also hated the fact that he claimed he was going to "surprise" me with the rebate on the loan. It also doesn't help that I've received a couple of solicitations from the same company in the mail. I figure, things have been fine with Wells Fargo for the last year and the paperwork looks good.

Now, I just have to tell him that I'm not going to finish the refinancing with him. Has he lost money helping me? The loan is with the underwriter and would be closing at the end of the month. Is there a best way to go about telling him?

[Trek420]

Is there a best way to go about telling him?

Best to break it off right away vs. just not returning his calls.

I would go somewhere public like a cafe, over lunch. That way when you break up he might not make a scene. Just don't tell him over dinner, that's too much like another date and he could be saddened.

You could call him but let him down gently, say "It's not you, it's me"

Texting him that you don't want to see him again is just bad manners.

[aly]

I was just going to have a friend call and tell him
Or start walking past his office with my Wells Fargo guy

I guess I need to toughen up a little- I've got a few issues...

[Trek420]

I was just going to have a friend call and tell him
Or start walking past his office with my Wells Fargo guy

Or tell him "you're too good for me"