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 sdrealtor on October 15, 2020 - 11:11am.

sdrealtor wrote:
After getting 3.125 in December 2013 for a no cost refi I figured it would be a cold day in hell before I refinanced again. Today I put on a down jacket in a heatwave. Locked in 2.625 on 30 year with no points and out of pocket costs around $1000. The 20 year was no lower and I didn't think the 15 was low enough to commit to shorter amortization schedule. I'll be making payments most months well above what my 15 year payment would've been but Also wanted to leave some borrowing powder dry for the ADU I hope to add. Also this is for a self employed borrower. Had I been w-2 guy I could've gotten a bit lower. Saving about $150/month in interest. I guess this is what they call found money

Just signed my closing disclosures. Should be closing next week. Process was easy and they asked for surprisingly little. Last years two years tax returns, a self reported P and L this year and last two months business checking account statements was pretty much it. Appraisal was waived. I really expected them to want more documentation for this year and they got pretty much nothing. I had it all but it wouldve been a pain to provide. I guess I'll have to chalk that up to a 30% LTV on the loan.

Submitted by BWell_SoCal on October 15, 2020 - 12:54pm.

Can you share what broker you used? I’m looking to refinance this month.

Submitted by sdrealtor on October 15, 2020 - 4:22pm.

I used Sebonic that some here have used. They do a ton of business through zillow. They took longer than most and there was a 3 week silent period while I waited to get to an underwriter as they have so much volume but it was smooth and easy. Id use them again for a refi buit not for purchase which is more time sensitive

Submitted by sdrealtor on November 6, 2020 - 2:17pm.

So the loan closed on Wednesday. Glad it was a refi. Communication not great but they closed on time and if they didnt it was on them. I still havent gotten a formal message from them that I closed but I verified on the phone.

Rate was 2.625% on 30 year fixed. I'll still make old payment plus a few hundred most months if not more - making payment what it wouldve been on a 15 year.

Wasnt worth an extra 0.125% to do 15 year. Required payment down almost $500/month so if I need to finance an invesmtnet property or two later my ratios will be better. When I did the last refi in late 2013 at 3.125% I thought that was my last one. This should be but I guess never say never

Submitted by gzz on November 6, 2020 - 3:37pm.

I used Sebonic via Zillow for my 2017 purchase and they were great.

A few days ago Zillow took me to Semper Mortgage as the lowest 30 year. Not good so far, I did the initial online application last week, no contact at all since, no response to my e-mail to the assigned agent.

Submitted by BWell_SoCal on November 6, 2020 - 9:22pm.

I passed on Sebonic. The broker that contacted me was convinced that ‘it was against the law’ to do loans above the conforming limit in San Diego county due to COVID. He told me his system wasn’t even able to price a loan above the conforming loan limit of $510,400! Plus, he was trying to wrap in $10,000 in fees in the loan estimate for a cash-out loan even though I explicitly asked for his best no points, no fee rate!

I ended up using my local broker buddy again and got a 2.75% 30-yr fixed, no points, no fees limited cash-out refi. I’ll try again in six months for a full cash-out refinance. No one I called was offering anything reasonable in rates for a cash-out refinance at this time.

Submitted by sdrealtor on November 7, 2020 - 9:14am.

gzz wrote:
I used Sebonic via Zillow for my 2017 purchase and they were great.

A few days ago Zillow took me to Semper Mortgage as the lowest 30 year. Not good so far, I did the initial online application last week, no contact at all since, no response to my e-mail to the assigned agent.

Sebonic was pleasant to deal with just slow and likely buried. They originally told me 60 days but we were supposed to close around day 40. Then they told me title found a lien from an old HELOC that was paid off 15 years ago. I had been through 5 refis of either 1st or 2nd mortgages in the last 15 years and never came up. It was a f/u on their end. Then a week before closing they call to say we cant close because FEMA has declared SD County a disaster area. Im like WTF? Loans are closing everyday here. I called escrow companies locally and lenders and none had this issue. They misinterpreted something on the FEMA website re fires out in East County in Sept impacting a few zip codes but nothing close to me. That delayed a week. Finally closed and Im happy with the rate but id never use them on a purchase loan.

Mine was no cash out though they added about 5K to cover prepaid taxes. I had those escrowed in my old loan and when I get my refund I'll just send it over to Sebonic so really no impact. Oh and my Loan to value is under 30%.

Submitted by sdrealtor on November 24, 2020 - 1:11pm.

Just wanted you to be aware, Fannie and Freddie have announced new loan limits for 2021.

National Conforming Loan Limit is now $548,250!

San Diego County Loan Limit is now $753,250!

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