Mortgage Rate Advice Needed (News with UWM )

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Submitted by pinkflamingo on May 13, 2020 - 12:12pm

We are in the process of refinancing our home. Currently at a 30/3.6% fixed rate. Found a lender that will do a 30/2.875 with 0.2 points buy down, 3K to close. However, to get that rate, we would need to decrease our balance by 50K because we are right at a cuttoff for high balance loan.

Last night I looked up news on interest rates and found that UWM is coming out with a new loan program called conquest and the rates can be as low as 2.5-3.0
https://www.housingwire.com/articles/uwm...

Decided to inquire further and talked to a lender with UWM. The gotcha there is that it requires a 22 day close. And after that it is .1 percent increase per day. Lender said they would not lock the rate until the appraisal to make sure it closes in time. But they think that they can refi our loan to 2.875 for 5k close, without having to pay the 50K balance.

I am worried about the risk of rates fluctuating waiting for an appraisal. Figured I turn to this forum to seek some advice. And maybe it will also help people who are in the process of refi.

Cheers

Submitted by pinkflamingo on June 5, 2020 - 11:46am.

Fyi, we decided to go with UWM. They were able to close in 22 days. They waive the appraisal if you are financially sound. They fund tomorrow. 3 week refi. Pretty neat.

Submitted by gzz on June 5, 2020 - 3:14pm.

Wow 2.5%? Last I looked the average rate was 3.3 so I figured the lower balance/good credit/online lender rates would be around 3.

Question: anyone ever do a "bulk refi" where they refi their primary and their rentals all at the same time? I don't mean one big loan, just not have to do all the rifi paperwork confirming income and assets and income tax returns all at once. One lender replaces 3 old loans with three new loans, no cash out. And also limiting hard inquiries to 1.

Submitted by HLS on June 7, 2020 - 2:37pm.

I am a mortgage broker who deals with UWM. Conquest program is good for those who qualify. 22 days is correct, without extension costs.

2.50% is available, it costs thousands of dollars.
3.00% is also available, but has a cost today, depending on loan amount.
There is no one rate that fits everyone.
Rate/pricing changes a bit everyday.

UWM is wholesale only and does not have a retail channel.
UWM does not waive appraisals for being "financially sound"
Fannie Mae/Freddie Mac determine whether there is an appraisal waiver on a file.

GZZ I have done multiple loans at one time, but each loan is a separate file. Paperwork is only required once. Only one credit report is required. they all must close at the same time.
It may not be in your best interest to have all loans go to the same lender.

FYI: Hard inquiries on a credit report are almost meaningless.
Unless someone is getting hard inquiries month after month, an occasional inquiry will not affect a credit score

Submitted by gzz on June 25, 2020 - 5:07pm.

I used to do CC bonus churning which caused my lowest score to go low as 770, near the danger zone to get the best mortgage rates.

Not a problem now, it has been two years since I did this and now have 848 with whatever score chase and amex provide on their website for free.

Golden age of churning and $750-$1000 per new CC bonus is now over.

Submitted by HLS on July 1, 2020 - 12:44am.

More myths & misinformation

Credit score of 770 is nowhere near the "danger zone" to get the best mortgage rates. The more equity one has the lower the credit score can be and you still get the best pricing.
In 20 years, I have never seen anyone with an 848 mortgage score.

I don't doubt that you are seeing that with the free score from Amex or Chase, but it's probably not your mortgage score.

Credit scores are pretty much meaningless except when you're apply for credit or a mortgage. Scores can vary with huge ranges
for various reasons

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