Mr Kleanso
Redondo Beach,#2Author of original report
Sun, April 24, 2011
Yes. Good points. I haven't prepaid $550 per month for the entire term of the loan. I started much lower and worked my way up as my income grew. So, yes -- "$2,600 for most of the term" is a slight exaggeration. The spirit of the post is the same: I've been attempting to prepay on the principle. A big issue, which I neglected to mention is that I'm self-employed, a Schedule C filer. the last time I applied to refinance the loan, the pdf I prepared for the bank was more than 100 pages long of documentation. While the Federal Government may now be mandating the documentation that banks are requiring to qualify, I'm perplexed at how they approach the notion of risk. In my case, I'm already making the payments so, clearly, I can afford them. If I can lock in a 30-year mortgage involving a comparable monthly payment amount, the risk of default is lower than if the bank refuses to refinance the loan and I'm faced with an 8-percent rate and a $4,000 monthly payment in a few years, if interest rates do in fact begin to climb. Who at the bank/Federal government is in charge of assessing this risk: A homeowner who wants to lock in a payment amount he knows he can afford versus risking unknown, floating payment amounts in the future that could force him out of the property? But about the information in the earlier post: Is it really true that the government is dictating the terms by which banks can now qualify refi applicants? The banks have no leeway now? Banks are now mandated by laws or federal regulations that prevent them from deviating from government requirements regarding home loans? Prove that this level of government intervention in our banking system really does exist at this moment. If what you say is, indeed, true, I'll start writing my government representatives. Otherwise, I'll continue to complain about the bank(s).
mr rik
miami,#3Consumer Suggestion
Sun, April 24, 2011
Yields at least 1842 reports!
You shills better keep busy!
Jim
Anaheim,#4Consumer Comment
Sat, April 23, 2011
I mean the way in which you got your loan was due to the government telling the banks what documentation would be required in order for them to guarantee the loan. Your beef is with the US government, if there is any beef at all, but that's beside the point. Your numbers don't look right either; if you've been sending payments of $2600 each month for 6 years, you balance would be another $22K less than the $454K, but again...I digress slightly.... back to that later.
Chase is not the only game in town; I would try to go somewhere else and refinance...IF...your situation is as good as you say it is. However, if you want to avoid the mortgage insurance, you will have to probably chip in something to bring your mortgage down to $400K. You may also want to switch your banking relationship in order to facilitate the process. However, you are going to have to go through with a full documentation loan; nobody is doing loans the way they did in 2005 anymore, for obvious reasons.
I would also ask for a full accounting of the existing mortgage for the reasons stated in the first paragraph; something doesn't sound right if your story is what it is, and your mortgage is around $454K - as I said, it should be lower since you've been paying about $550/month to the mortgage principal for 72 months.