Back in 2008, we purchased our (first) home utilizing Countrywide for financing (as my wife had a family member that was a broker). However, the mortgage broker provided no warning that we were really choosing a risky path (ARM at 6.125%, Lender Paid Mortgage Insurance, and really not enough down, we should have waited). Jump forward 4 years to the present, only one year away from our first ARM interest adjustment. Interest rates are really good now, but that doesn't stop the worrying, and I worry a lot.
Having recently become aware of the HARP program ( http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx, making Homes Affordable Refiance Program), I verified that we met all of the listed eligibility requirements. Next, I spoke with my current home loan servicer, Bank of America. After spending 15 minutes to finally speak to one of their mortgage folks, he immediately said that due to the loan using lender paid mortgage insurance and a lesser used MI provided, two things: 1) they would not be able to work with me on the refinance, and 2) I would not be able to refiance anywhere (realllllllllyy....). Not willing to simply give up, I googled a bunch, read a ton, and kept on. I tried 2 other well known online lending institutions. One of which was quicken loans, but their online guy said again, can't help you, and he suggested I google (sigh). I forget the other one I tried, same response.
Finally, after reading through a forum post of people in my situation, I found several recommendations for a man named Justin Sheftell (courtesy Morgage), and then found this url:
http://www.zillow.com/profile/Courtesy-Mortgage/
Feeling pretty beaten down and frustrated, I contacted Justin through that page, not thinking that it would lead to anything. Justin responded very promptly, and we were on the phone soon thereafter. I explained the situation, that we seemed to qualify, but that my current loan servicer was not willing to cooperate. He explained that he dealt with folks in my situation frequently, and that he was confident based on what I was telling him that he'd be able to get us refinanced. Lets review:
Loan to Value (LTV): 111% (Underwater, 335k value after appraisal, and 372k loan)
Mortgage Insurance: Lender Paid, and not paid up front, paind monthly, more complicated
We had been current since the inception of the countrywide loan, one of those folks that kept true to financial obligations, but just couldnt' refinance due to being underwater).
Now, the good news - Justin and Courtesy Mortgage
-Put together an upfront good Faith Estimate that was nearly spot on from the get go
-filtered out all of the lenders that wouldn't be able to help us, and focussed on one that would
-Put a rate lock in place for 45 days.
-From Rate Lock to Close in 28 days (fantastic!)
-Answered all of my questions along the way (first refiance) in a professional and timely manner (and there were a lot of them!)
-Provided online document signing as much as possible.
-Never once gave me an attitude even though it was my first refinace (I wanted upates all the time)
So, the result:
Old: 5-year ARM (30 year loan) at 6.125%, lender paid mortgage Insurance, $2855
new: 30-year FRM (30 year loan) at 3.875%, buyer paid mortgage Insurance, $2394
Monthly Savings: $461/month
Impact: ....life changing, so greatful.
Justin/Courtesy Mortgage, you have changed our lives, ...thank you from the bottom of our heart
-Ben and Anna Hirsch read more