Financing in 94089>Question Details

David, Other/Just Looking in Bay Street Viaduct A...

Hi, I have a question about refinance.

Asked by David, Bay Street Viaduct Area, Savannah, GA Wed Mar 4, 2009

I bought my townhouse at 2005 at San Francisco Bay Area (zip 94089). Rencently I started looking for refinance opportunities. My wife and I have perfect credit scores, and house hold annual income is more than 200K. Now my mortgage balance is about 510K.

I am wondering if I do a refinance, currently what are the best rate available for 30 year fix, 5 year arm? for both jumbo loan with 510K or confirming loan 417K, with no point, no fee?

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$510,000 5.875% No Discount Points
5.25% 1 Discount Point

$417,000 5.25% No Discount Points
4.875% 1 Discount Point

These are all 30-year fixed rates. Lately, 30-year rates have been even better than ARM rates so I didn't even price out an ARM - not even worth it.

Also, as for the APR. The APR is your interest rate that factors into it the cost for credit. The closer the APR to the Note Rate of the loan, the less you are paying for the loan. If you are comparing 2 loans, the one with the lower APR would ultimately cost less over the life of the loan. However, you have to factor into it how long you plan on keeping the loan because paying higher closing costs for a loan you do not plan on keeping for some time is not a good financial decision.

I would be happy to speak with you if you have any questions.
Luke Allison
Flagstar Bank

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0 votes Thank Flag Link Wed Mar 4, 2009

Because of the loan to value, the jumbo gets very expensive.

At $417,000, I have a 5/1 at 4.75% with no points, $835 lender fee plus title, escrows, appraisal.

There are higher rates where I can pay some or all of the closing costs for you.

If you would like to proceed, please call me at 877-282-5789 or email

Thanks, Fred

BTW, don't do a loan modification, it will impact your credit!
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0 votes Thank Flag Link Wed Mar 4, 2009
It would not come to most people's mind at first, but you might want to see if you qualify for a loan modification.These days the banks are very flexible with loan modifications. A professional 100% money back gaurantee lawyer based loan modification company is the way to go. I have seen many loan modifications get modified through Home Loan Preservation company that most people would not expect.

If there is no modification there is no cost to the home owner. If there is a modification the cost of a professional lawyer based modification is much less than a refinance.

Can you see how so many people are choosing the loan modification route?
0 votes Thank Flag Link Wed Mar 4, 2009
My answer to your question would be to contact the loan officer you orginally used and see which plan best fits your needs. If they are not still with your current mortgage company With all of the things in the mortgage industry changing on a daily basis it is a hard question to answer. I would however suggest the 30 year fixed no arms but I am not a mortgage rep and do not know your situation. ok
0 votes Thank Flag Link Wed Mar 4, 2009
good point. The reason I asked about 5 year arm is because most likely I will not stay in this home for very long because the school is not good enough. 5 year may be a good period to refinance. Plus I figure I could get better rate by going 5 year term -- seems not true any more?
0 votes Thank Flag Link Wed Mar 4, 2009

Loan conditions are changing almost daily. I suggest you call a local mortgage broker with whom you'll need to share some personal information before you can get a specific question relative to your area.

The APR is used for comparison purposes only. The actual rate you pay monthly is the mortgage rate you are quoted. The APR is arrived at using a complicated formula– a good intention that many don't understand.
0 votes Thank Flag Link Wed Mar 4, 2009
Great question. Rates for loans below $417 are hovering around 5% (up and down) while the jumbo rates move in the 5.25% area - both around a point. Banks have changed their approach to clients wishing to go no points/no fees increasing the difference substantially between zero points and 1. In most cases a minimum of a 1/2 point difference can be had, just by paying down the rate by investing in points. Remember, the larger the difference, the shorter the payback which is very good for you. Banks learned that people investing in zero point/zero fee loans rarely kept these loans for very long. Just as buyers realized that they could move loans anytime they wanted to as long as they didn't have to come up wtih anything out of pocket. In either case, the rate was always higher, just not as high (in difference) than now. When deciding what rate or buydown to choose from, throw everything into that decision. How long you will stay in the home, the schools (for resale or for your family), future job plans, etc.
0 votes Thank Flag Link Wed Mar 4, 2009
I would like to know an estimated rate based on the information I provided before I move on.

Also, can somebody explain what is the difference of "mortgate rate" and "APR"? I see these two numbers often off a little bit. Which one is the rate I will be paying my interest?

0 votes Thank Flag Link Wed Mar 4, 2009
I believe my home worth about 650K according to most recent appraisal. So my loan to value ratio is about 0.785 (for 510K jumbo loan) or 0.64 (for 417K confirming loan).
0 votes Thank Flag Link Wed Mar 4, 2009
Hi David,

In order to price the loan, I need to know what the value will come in at now! That's the way rates are priced.

You can email me it to me
Web Reference:
0 votes Thank Flag Link Wed Mar 4, 2009
Hi David, since you bought your home in 2005 when the housing market was more valuable than it is now, do you have a loan to value ratio that will be required for a re-fi? Loan to value=The $510k you still owe divided by your property's current appraised value. Just in case that may be an issue there are several loan modification programs available through recent stimulus packages. My recommendation would be to start with your existing lender for a re-fi or modi, especially if you currently have an adjustable rate mortgage. Most consumers now want a 30 year fixed that is not adjustable. You can view Freddie Mac mortgage market survey rates here:
0 votes Thank Flag Link Wed Mar 4, 2009

First, check out my blog titled "Rules of Refinancing." I think you'll find this useful.

If you'd like to discuss your options further with me at any point in time in the future, please feel free to get in touch. I am local and would be happy to assist --- no cost or obligation.

Thank you!

Rob Spinosa
0 votes Thank Flag Link Wed Mar 4, 2009
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