Trouble refinancing? Keep calling

People don’t like mortgage lenders. It’s not hard to understand why.

I’ve been trying for the last two days to determine if I can refinance my existing mortgage loan. The problem is that I’m underwater, owing more on my home loan than what my residence is worth. To refinance, I’ll need to rely on the federal government’s Home Affordable Refinance Program, a program that allows homeowners to refinance even if they owe up to 125 percent of their home’s value.

I ended up speaking with three different loan officers at my mortgage-lending company. (You have to refinance with your current lender if you’re requesting a Home Affordable Refinance Program loan.) All three gave me wildly differing answers.

The first loan officer told me that, yes, my lender could refinance my home. This loan officer also told me that I’d have to bring $2,800 in cash at the closing table to make the loan happen. This seemed high to me.

The second loan officer I talked to was helpful, and was working with me through a variety of scenarios. That’s when our power went out for just a couple of seconds, enough time to disconnect my cordless phone.

The loan officer I spoke with when I called back was not helpful. She told me flat out that there was no way for a refinance to work with the current market value of my home. A bit down about this, I thanked her for her time and resolved to give up my refinancing quest.

That’s when loan officer 2, the helpful one, called back. He offered me a refinancing package that would provide me with a monthly payment some $230 less than my current one. I’d only have to spend $1,100 out of pocket — including the appraisal fee — to make this happen.

That offer sounded better, and I began the application process this evening.

There’s a lesson here: If you’re underwater and you’re not satisfied with what a loan officer at your lender tells you, don’t necessarily give up. That loan officer may not know what he or she is talking about.

It’s frustrating knowing that you can’t always rely on what a loan officer tells you. And it’s especially frustrating to continually call your lending company — especially when it never changes its hold music. Homeowners shouldn’t have to jump through so many hoops to get things done.

 

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    When having trouble refinancing it may be due to a change in your income or higher interest rates will mean you pay more on your loan meaning you will not qualify. But yes keep calling around. You need to make sure your home is in tip top shape everything is functional make sure your heater is repaired in porter ranch and habitable still.

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