muck Posted June 27, 2008 Share Posted June 27, 2008 I'm considering a refi. The mortgage broker I use is telling me that rates are ____% for the type of loan I'm looking for...whereas, Citimortgage (a division of Citibank) is quoting me a rate of ____% - 1.5%. The questions is ... why is Citi that much less? Is it simply because they're able to offer something to existing mortgagees that no other bank is willing to offer in this current credit environment? If so, is this sort of behavior consistent with what other banks are doing with their existing mortgagees and their efforts to refinance? TIA. Quote Link to comment Share on other sites More sharing options...
Rebellab Posted June 28, 2008 Share Posted June 28, 2008 What I have been told it is watch fees and the other fine print in the lesser interest rate. The other thing is that Citi-Bank is about to go under, I know they are in trouble. Quote Link to comment Share on other sites More sharing options...
proninja Posted June 28, 2008 Share Posted June 28, 2008 I'm considering a refi. The mortgage broker I use is telling me that rates are ____% for the type of loan I'm looking for...whereas, Citimortgage (a division of Citibank) is quoting me a rate of ____% - 1.5%. The questions is ... why is Citi that much less? Is it simply because they're able to offer something to existing mortgagees that no other bank is willing to offer in this current credit environment? If so, is this sort of behavior consistent with what other banks are doing with their existing mortgagees and their efforts to refinance? TIA. extremely, extremely unlikely If this is a conforming loan amount (<$417k) there's no way. If it's between $417k and what the conforming jumbo (stimulus package) limit is in your area, there's a possibility. If it's over all that, there's also a possibility, because non-agency loans (fannie and freddie) can vary greatly right now, but at the end of the day the market is the same to sell these loans for everyone. Quote Link to comment Share on other sites More sharing options...
proninja Posted June 28, 2008 Share Posted June 28, 2008 Also, when citi tells you that your response should be "great - send me a good faith estimate and a truth in lending please" Quote Link to comment Share on other sites More sharing options...
The Irish Doggy Posted June 28, 2008 Share Posted June 28, 2008 Sounds like you need a third quote. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted June 28, 2008 Share Posted June 28, 2008 What I have been told it is watch fees and the other fine print in the lesser interest rate. The other thing is that Citi-Bank is about to go under, I know they are in trouble. CitiBank is about to go under? I would need to see something to confirm that. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted June 29, 2008 Share Posted June 29, 2008 my guess would be that they know you are in good financial standing and all banks these days need good paper. just a guess though. Quote Link to comment Share on other sites More sharing options...
alexgaddis Posted June 30, 2008 Share Posted June 30, 2008 (edited) extremely, extremely unlikely +1 ps - compare fees and APR's Edited June 30, 2008 by alexgaddis Quote Link to comment Share on other sites More sharing options...
Ramhock Posted June 30, 2008 Share Posted June 30, 2008 The questions is ... why is Citi that much less? Probably because you have a good amount of equity. They are buying your rate down and feel you are rate conscious, that being the angle of the sale. Your broker has access to anything Citi has. I would stay with your buddy. We all get our money from the same place. Quote Link to comment Share on other sites More sharing options...
Atlanta Cracker Posted June 30, 2008 Share Posted June 30, 2008 Good faith estimate from both is the only way to compare. Citi may by quoting you a rate that also happens to include a 2% origination fee. Quote Link to comment Share on other sites More sharing options...
muck Posted June 30, 2008 Author Share Posted June 30, 2008 I have a call into the guy who works for Citi to see what they can give me in writing... Quote Link to comment Share on other sites More sharing options...
muck Posted June 30, 2008 Author Share Posted June 30, 2008 Step 1: Prepay for a full mortgage application, including the cost of the appraisal. ...sounds a bit like Citibank is looking for help with cash flow... Quote Link to comment Share on other sites More sharing options...
muck Posted June 30, 2008 Author Share Posted June 30, 2008 Step 2: Make sure the moron at Citibank is looking at the correct loan type. :jackass: Quote Link to comment Share on other sites More sharing options...
muck Posted June 30, 2008 Author Share Posted June 30, 2008 Looks like I'll be: 1) Getting a new appraisal (from a Citibank approved appraiser). 2) Sending in a check of some amount. 3) Re-amortizing the existing loan and getting rid of PMI. Quote Link to comment Share on other sites More sharing options...
TheShiznit Posted June 30, 2008 Share Posted June 30, 2008 Looks like I'll be: 1) Getting a new appraisal (from a Citibank approved appraiser). 2) Sending in a check of some amount. 3) Re-amortizing the existing loan and getting rid of PMI. Those are all good things...right?...LOL Quote Link to comment Share on other sites More sharing options...
muck Posted June 30, 2008 Author Share Posted June 30, 2008 Cutting PMI = good thing Having to write a check to do so = not a good thing Getting an appraisal above the purchase price = good thing (because it makes the check I need to write that much smaller) Reamortizing the loan = good thing (smaller required monthly payment = a small amount of additional flexibility with the business, etc) Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted June 30, 2008 Share Posted June 30, 2008 Cutting PMI = good thingHaving to write a check to do so = not a good thing Getting an appraisal above the purchase price = good thing (because it makes the check I need to write that much smaller) Reamortizing the loan = good thing (smaller required monthly payment = a small amount of additional flexibility with the business, etc) Are you actually refinacing the loan? Quote Link to comment Share on other sites More sharing options...
Atlanta Cracker Posted June 30, 2008 Share Posted June 30, 2008 Cutting PMI = good thingHaving to write a check to do so = not a good thing Getting an appraisal above the purchase price = good thing (because it makes the check I need to write that much smaller) Reamortizing the loan = good thing (smaller required monthly payment = a small amount of additional flexibility with the business, etc) Unless you've been in your house more than 5 years I wouldn't count on that. Quote Link to comment Share on other sites More sharing options...
muck Posted June 30, 2008 Author Share Posted June 30, 2008 Unless you've been in your house more than 5 years I wouldn't count on that. Unless you know anything about (i) what I paid for my house a year ago, (ii) how much we've done to the place or (iii) the price of the new construction right around me, you should shut yer yap. Quote Link to comment Share on other sites More sharing options...
muck Posted June 30, 2008 Author Share Posted June 30, 2008 Are you actually refinacing the loan? No. New appraisal (hopefully, up a fair bit due to the work we've done to the place, the good price we got a year ago and the high-dollar new construction around us) + cash payment ($$ amount depends on the appraisal) = no PMI, lower principal balance and a chance for a one-time reamortization. Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted June 30, 2008 Share Posted June 30, 2008 No. New appraisal (hopefully, up a fair bit due to the work we've done to the place, the good price we got a year ago and the high-dollar new construction around us) + cash payment ($$ amount depends on the appraisal) = no PMI, lower principal balance and a chance for a one-time reamortization. You have done your homework. Smart move. Quote Link to comment Share on other sites More sharing options...
keggerz Posted June 30, 2008 Share Posted June 30, 2008 Unless you know anything about (i) what I paid for my house a year ago, (ii) how much we've done to the place or (iii) the price of the new construction right around me, you should shut yer yap. (i) You didn't give those examples initially (ii) AC was just trying to tell help (iii) IMO, your response to AC was uncalled for Quote Link to comment Share on other sites More sharing options...
Atlanta Cracker Posted June 30, 2008 Share Posted June 30, 2008 (edited) Unless you know anything about (i) what I paid for my house a year ago, (ii) how much we've done to the place or (iii) the price of the new construction right around me, you should shut yer yap. Dunnow any of that but do know from recent experience that appraisers (especially ones hired by banks) are in general assuming about 20% lower value than a year ago for just about every property in the Atlanta area. Fair or not that's what I've seen. Having done upgrades will help. New construction won't matter. The only thing that will is recent SALES of comperable homes in your area. In other words, if people near you are still getting "deals" you may be in trouble. However, if recent sales in your area for comperable homes are higher than what you paid you'll have a better shot at a good appraisal. I just wanted you to be prepared in advance for the real possibility of paying for an appraisal that doesn't end up helping your deal at all. ETA - the cash payment portion will help too but won't really affect the appraisal. Edited June 30, 2008 by Atlanta Cracker Quote Link to comment Share on other sites More sharing options...
muck Posted June 30, 2008 Author Share Posted June 30, 2008 (i) You didn't give those examples initially(ii) AC was just trying to tell help (iii) IMO, your response to AC was uncalled for I'm in a grumpy mood. You can kiss my ass, too. Quote Link to comment Share on other sites More sharing options...
H8tank Posted June 30, 2008 Share Posted June 30, 2008 If you really want to save money on your mortgage, fill up your car in the morning. Quote Link to comment Share on other sites More sharing options...
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