I met with the mortgage broker....I do have to pay 370 dollars for an appraisal fee :(.
Because I told him I think my house is more then 125% underwater my interest rate will be a whooping 5.0%. He says if my appraisal comes in better, and I am 125% or under then I will have a lower interest rate.
The only reason I am going through with the refinance is 5% is better then the 6.5% I am currently paying, So I still feel like its worth it even though it will take me like 2-3 years to break even on the refinance.
I am starting a clinical internship rotation soon, and I will need the lower mortgage payment so I can work less hours and focus on the very last part of my education.
Harp 2.0 was pretty disappointing because the Banks are not obeying the intent of the program, and are instituting overlays like appraisals when they are not required by Fannie or Freddie. I am a Ron Paul supporter and a Constitutional conservative but you can really understand the occupy wall street movement and their anger to the banks when they screw over people like this just to make a larger profit.
I did the right thing. I put 20% down on my condo, I kept paying my mortgage even though I am 170% underwater (even after the 20% down I am still 170% LTV). And I did not buy more house then I could afford.
Yet they still do everything they can to screw me with appraisal fee's and making me pay a higher risk interest rate because my home is underwater even though that is not the intent of the program, and goes against the federal guidelines. If I cared how underwater I was I would have walked away already...why punish me further when I have proven I am responsible.
Very disappointing but I guess a 1.5% savings is better then nothing.
Wednesday, March 21, 2012
Posted by Chris at 5:13 AM