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Refi not working
Old 09-11-2012, 09:46 PM   #1
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Refi not working

I've been trying to do a cash out refi with no escrow. The rate given me was 3.5% with closing costs about $4k. I was planning on using the cash to pay of a second home. If it is approved I will save me $500 a month.
When I first talked to the mortgage company rep I told him that I had retired the first of 2012 but will be receiving voluntary termination pay for 2 years as well as my pension. He said that the vtp probably would not be counted as income but it should be ok since this refi will decrease my monthly debt by $500.
Last Friday he calls me to ask if I can make another car payment in order improve my debt to income ratio. I said that I can pay off the car if needed but he said no, one more payment is all that is needed. I made two payments Friday evening, just to make sure.
Today the asks if my wife has applied for ss yet. She is 62 and I had mentioned that she might apply for it. I told him that right now we didn't want her to draw ss. I said is there a problem with our debt to income ratio and he said yes. I reminded our first conversation about this refi decreasing our monthly debt and he admitted the he was incorrect. Tomorrow I'll remind him of our talk last Friday about the extra car payment. I'm sure he'll apologize for that also.
I've paid $450 for the appraisal that I might lose if I go to another mortgage company. Is this true or will another mortgage company accept this appraisal?
Will another mortgage company figure my debt to income ratio differently?
I asked him if I didn't do a cash out and used savings to pay off the mortgage of our second home would that help. He said that would be Plan B, after my wife drawing ss.
What do you think about my two questions?
Also, just had to vent, sorry.
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Old 09-11-2012, 10:02 PM   #2
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I'm trying to get our new refi done before DW retires to avoid these kinds of problems. I think the mortgage company is being too coy, and frankly sounds like they're leading you on. Don't let them screw with your SS timing at the very least. I think the mortgage companies like to have their own selected appraisers. Trying to find one that will accept yours might be tough. It seems likely that another company could be slightly different in looking at your debt to income ratio, but it is likely they are going by Fannie/Freddie standards and won't vary by a whole lot. Plus, if you go with someone else you now have one credit inquiry to explain.

Mainly, I'd like to see something much firmer from the mortgage company. If you do X you are for sure within the debt to income ratio. Don't let them keep taking baby steps that may or may not do the trick. It can't be that uncertain or difficult.
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Old 09-11-2012, 10:06 PM   #3
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I cant help, but I share your pain dealing with these people. I just recently refinanced with same company that I got loan from. I had to provide proof of my pension income. I said you got that the first time, I refinanced. So I then showed them a direct deposit that matched up with my w-2. Then they tell me I need to get a letter from my pension company verifying that I will receive this pension for at least 3 years. What? Since when is a pension only supposed to pay less than 3 years. So I had to be a smart butt and tell them there is no way they can guarantee that for three years because they cant guarantee I will live three years. I mean, has anyone ever heard of a pension paying less than 3 years?
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Old 09-12-2012, 04:57 AM   #4
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has anyone ever heard of a pension paying less than 3 years?
I too had to provide my pension letter but they didn't ask me or them to assure it would last > 3 years
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Old 09-12-2012, 10:58 AM   #5
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To answer your bold questions - I can answer what the situation is in California.

If you change mortgage companies they will definitely NOT accept the appraisal of the first company. In fact - the mortgage company has NO input into the appraiser. This is new as of 3 years ago - because too many appraisers were in bed with the lenders - and appraising to whatever was "needed" for the loan. Now there's a pool of appraisers and they mortgage company/bank/broker puts in a request and the appraiser is assigned from the pool.

The good side is that appraisals, in theory, are more honest.
The downside - there is no attention paid to whether that appraiser is familiar with the area/neighborhood. And in CA that can be a huge difference in market value of a home.

I'm not sure what the rules are in GA - but in CA you absolutely would not be able to carry the appraisal forward to your next lender.
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Old 09-12-2012, 11:09 AM   #6
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I'm not sure what the rules are in GA - but in CA you absolutely would not be able to carry the appraisal forward to your next lender.

Thanks for the reply. I just got off the phone with Penfed and they echoed your statement.
My credit score is relatively high so I believe this additional inquiry won't be too detrimental.
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Old 09-12-2012, 02:11 PM   #7
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So I had to be a smart butt and tell them there is no way they can guarantee that for three years because they cant guarantee I will live three years. I mean, has anyone ever heard of a pension paying less than 3 years?
I like your attitude, but the mortgage company slave apparently did not.

Ha
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Old 09-12-2012, 03:18 PM   #8
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I like your attitude, but the mortgage company slave apparently did not.

Ha
I try to have a little fun with it, as you said, they are not the rule makers. I always try to be mindful of that when dealing with front line workers in all areas. The suits get to make all the rules, and the poor underlings and phone operators catch all the grief.
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