BofA offered to refinance if we pay 13,000 closing cost

[cantsleep]

Here's my story in 2008 my husbands income was 186,000 this year he has made 66,000. Our home loan is BofA backed by fannie mae the total payment with tax and insurance is 3145.00 we have a balance of 374,000 the house is worth 500,000. We are not behind on payments due to selling everything we could and borrowing from family. We are now out of option and called BofA on 11/25/09 they transfered us to 4 different departments all asking income and expense questions then told us they would send out a fedex package in 45 days. Then they transfered us to a loan officer who said we could refinance saving only 300.00 a month and raising the loan balance to 388,000. We declined then he told us we won't quailfy for hamp because we can refinance. Our monthly income before taxes is 6000.00 and expense is 5400.00. So do you think we could Qualify for hamp?

[Garry]

It sounds like maybe you quaify for HARP, not HAMP. Not sure, it been a while since I've read up on HARP.

[dan m]

your not late and you have equity in the house. you can see it they will give you an in house mod but refinancing for a fee is all they will be willing to most likely do

[cjbory]

Originally Posted by cantsleep

Here's my story in 2008 my husbands income was 186,000 this year he has made 66,000. Our home loan is BofA backed by fannie mae the total payment with tax and insurance is 3145.00 we have a balance of 374,000 the house is worth 500,000. We are not behind on payments due to selling everything we could and borrowing from family. We are now out of option and called BofA on 11/25/09 they transfered us to 4 different departments all asking income and expense questions then told us they would send out a fedex package in 45 days. Then they transfered us to a loan officer who said we could refinance saving only 300.00 a month and raising the loan balance to 388,000. We declined then he told us we won't quailfy for hamp because we can refinance. Our monthly income before taxes is 6000.00 and expense is 5400.00. So do you think we could Qualify for hamp?

You have a lot of equity on your home so the only chance you have is to refi your loan. Shop some place else for a better rate.

[lisasxr]

HARP is the most likely as you do have equity. BUT, the good thing is that with a FANNIE loan, you can take your REFI business to any place you like, you are not obligated to REFI through BoA at their ridiculous costs. ($13,000 in closing costs is very high)

Contact a broker or another bank (credit union too!) - ask for a DU REFI PLUS refinance. Today's rates should be about 4.875 with no points.

[santbry]

Originally Posted by lisasxr

HARP is the most likely as you do have equity. BUT, the good thing is that with a FANNIE loan, you can take your REFI business to any place you like, you are not obligated to REFI through BoA at their ridiculous costs. ($13,000 in closing costs is very high)

Contact a broker or another bank (credit union too!) - ask for a DU REFI PLUS refinance. Today's rates should be about 4.875 with no points.

Lisasxr,
Are you saying that any bank can do a refi? even if you don't have equity? I have been told by BOA, that thru the HARP (105%) that I can't refinance with any other lender? Please explain.

[lisasxr]

If your loan is Fannie Mae backed, the DU REFI PLUS (HARP FANNIE MAE PRODUCT)can be handled by any bank/broker. If your loan if Freddie Mac backed, only the current servicer can refi.

Unfortunately, the retail loan shops for most direct lenders (WF, Chase, etc) charge huge origination fees and points to get you ok rates. I'd also suggest calling brokers or getting referrals from friends and family. After review of the GFE, also confirm with the broker his YSP from the lender (Yield Spread Premium) Really, how much should a broker be getting paid per deal. If they won't disclose, move on. (Current rules require this to be disclosed on the GFE but not everyone is following the rules still)