Has any of you got any experience with mortgage loan modification? Has anyone done a loan modification? I've already been to the Making Home affordable site which is helpful. We're currently on a forebearance agreement with RBC but are considering to either try to modify our loan or to refinance. Do you still have to pay closing costs etc. even when you are doing the refi with your current mortgage holder?
Annette, we actually had our mortgage co. call us back in january offering to do a modification for a "small" fee. As it turned out, the appraisal came back with enough equity that I got a better deal and qualified for doing an entire refinance where I paid closing costs to lower my rate 2 percentage points. Be careful with modifications. A lot of times, the minimal rate reduction is not worth it. Our company was offering to "modify" our rate from 6.75% to a whopping 6% which only saved us about $45/month, yet they wanted to charge $1000 fee. I talked them down to $495 and then we found out we had enough equity to do a full refi down to 4.75%. The great thing about a modification is that it should be a fairly easy, no document process since they already know your history and info. You just have to weigh the cost of how long it will take to recoup the fees. All that being said, I have no idea what prompted them to offer a modification to us, and in the end it worked out great for us.
That's real interesting info,thanks for posting it! I wonder just how much percentage wise is considered enough equity?
It appears now that re-fi was best to do a month or so ago seeing how rates which are still low but are rising as of late.
If I hadn't dragged my feet I would be below 4.60 but still happy with my 4.75% I believe they are now above 5%
What I found is that most mortgage products being offered will not go above a 90% Loan to Value anymore, with the exception of FHA products which I think could go up to 95% Loan to Value. And to get out of paying PMI, you still need the 20% equity.
Actually as of April/May FHA will only do 85%. It is worth a phone call to your Mortgage company and another Mortgage broker just to see what your options are. Good Luck!
Absolutely, Steve Thorne with Meridian Residential #919-459-1313, he is very knowledgable, honest, and prompt! Tell him April sent you As a matter of fact, he is doing my personal refinance now.
