Wow I feel for you. As a bank and a broker there are a few ';outs for you';. You could find a broker that underwrites for many companies, one that will allow a AVM - a AVM is where you do not need the appriasal, where they go online and get the value - with compairable comps. That sounds like what the other company did. There are companies that do this. I underwrite for 150 companies, and have done AVM's - I do that if my client can not afford the appraisal.
You could get your own appraisal done, have a realitor come in and do a walk thru, and get their idea. I do not know who this last company used - was the person that came and did the appraisal a local person? One that knows the area?
The other thing is you could go with a 125 loan ( I do not like them, but have done them as per my clients request). In that case your loan amount would be 231,250 based on the lower appraised value. A 125 LTV loan is a 2 loan - so you would not be saving alot of money (if any). The first is a fixed and the 2nd is normally at a adjustable. You can get a fixed rate - so talk to a Mortgage Broker. One that is knowledgeable...(ok). But I would look at your mortage note, and your rider's that is attached to it, to see how much your rate will rise. I do agree that your rate jumped up too high.... If I can answer any more of your ?'s let me know. Good luck to you and Happy Thanksgiving to you and your family.Question about mortgages please advise?
I am seeing much more of this these days and it is due to the pullback in values. Many borrowers refinanced to 100% last round and took the short term loan solution...an adjustable mortgage. It can seem like the perfect solution because the payment is so low but when that adjustment period hits it is a real eye popper.
Countrywide is not at fault, it is your loan broker in actuality. If for no other reason than simple disclosure of the risk associated with an adjustable....especially at 100% finance.
Here is some additional info. Hope this helps.
This is mortgage and financial question. I would get a second opinion. This is big money we are messing with and your life. And the most important part of being a professional is making sure your client understands. It could be a great deal, but because you don't understand, you want to back out and not just go for it.
You might want to see if you can get a free consultation from an attorney.
Home values do change, but that's a pretty big drop for a year from 220 to 185. At the same time, interest adjusting from 5.7 to 9.22 is more than the maximum allowed under any note for any loan I've closed.
I smell an unethical practice here on the part of the 220 lender. I think they duped you into a loan too large to refinance any time soon with a low introductory rate and an adjustment to way above what the market would give you. I'll bet you weren't represented by an attorney, and they probably didn't inform you of that right.
I'd want to examine the whole transaction, the Note, the Mortgage, all the ancillary documentation. There may or may not be anything that can be done, but it's worth talking to some knowledgeable lawyers about.
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