What’s the catch weight / lower rate to refinance a mortgage?

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Flagship Financial Group LLC wants to refinance our home. We have a VA loan and at the same time he wants. Our house, like most people, have fallen to the value of what we bought. Flagship no income requirement or employment, and there will be no out of pocket costs capture mulle.Mis? What can go wrong with the help of refinancing Flagship Financial Group?
OK, my husband and I are the property of virgins (love the show!) But we have a small house made of the contract. This house is a flood zone, which makes more than $ 1,000 per year of home insurance and more recently in the news keeps getting worse. Today we had a phone call saying we had to pay an additional $ 500 increase in the study (requirement for the mortgage lender) OK, so we can call our real estate agent, says the seller does not pay to get the siding patched to make it freeze immediately. OK, so we get another phone call to our bank saying we did not get a loan now, because it is produced at home? WTF, we work with our $ $ es off trying to get everything working paper for the last 2 weeks in order to be able to close 2 more weeks and you just told me now that we can not obtain a mortgage because of your manufactured home? Am I missing something? They put us in the RD loan, but we first wanted to VA loans. What can we do? Our baby was coming in 5 weeks, which we now live in an apartment with a bedroom, we must move to another town (the wife of Vice), and nothing is available for rent! O ratios, and other property to buy is the question .. Small towns, not much to buy .. Is the house worth? 2.5 bathroom, 3 bedrooms, fireplace, double garage, all appliances are covered, the scenery outside the underground sprinklers .. two major pay less than the appraised value .. I love it .. but it is worth the hassle? Any good advice please! Sometimes it just needs to be told the house is not worth it. or its not worth it .. go .. Drifting?

8 Comments
  1. Reply
    v b
    February 11, 2011 at 11:02 pm

    Flagship gets paid. That means there are closing costs to this refinance. If you have no out of pocket expenses, that means the costs are rolled into the mortgage. These costs can run $ 5000. if you move in a few years rather than stay in the house for another 15 years, you could pay more overall.

  2. Reply
    chatsplas
    February 11, 2011 at 11:59 pm

    Sounds very scary to me.
    There are normally costs to refinancing.
    Loan modifications are much cheaper and easier. Are you sure this is a refi, NOT a loan modification? It it’s a refi and there are no out of pocket costs to you, then they are probably rolling everything into the loan, which means you will end up owing MORE than you already do.

    WHY do you want to do a refi? If you can pay your mortgage, keep it. A loan modification, which lowers interest rates, is a good deal and cost-effective. Is your rate high and you want to lower it? Then a Loan Modification will do it for you. FEW lenders will reduce the principal you owe just because your home has declined in value–why should they?

    Go to HUD approved credit counselor with this deal and ask for their advice. Sounds quite fishy. You are wise to be cautious!

  3. Reply
    Great Scott
    February 12, 2011 at 12:01 am

    There could be huge costs and fees rolled into the loan, meaning you would owe more. There could be differences in late fees, adjustable rates, and more. SIgn nothing until a real estate lawyer checks it out.

  4. Reply
    Lord Callerton
    February 12, 2011 at 12:52 am

    So glad you asked. How odd that just this past week I considered refinancing my VA loan with the SAME COMPANY! I will answer your question in detail, so please stick with me. First, a little background.

    I currently have a $ 340K loan from USAA at a fixed rate of 5.625%. This was a great rate when the prime was a 6.2% about a year and a half ago. I actually had to buy off points to get it. So, like most people with VA loans, I immediately started getting junk mail encouraging me to refinance to low rate. Flagship Financial sent me one that said “Call immediately if your rate is higher than 4.5%!” So, I called and they encouraged me to refinance to a Hybrid VA loan at 4.25% fixed for 5 years that I could then refinance back to the fixed rate at the end of the five years. WOW, I thought. That’s a monthly savings of $ 250. What’s not to like? Here’s the catch….

    The only cost required by the VA to refinance is a funding fee of one-half of one percent of the total loan amount which may be paid in cash or included in the loan. Since my loan still has $ 338K, the fee required by VA would be a small $ 1,690 – no problem since it’s wrapped up in the loan and there’s “no out of pocket expenses.” Then I look at the fine print. The closing costs are $ 5,200 from Flagship, which makes their fee $ 3,510, over 52% higher than the cost that the VA requires. I know that they need to make a profit too, but let’s get real here. All there’s doing is pushing papers. Oh, but it gets worse. There is also a “discount fee,” which is the fee it costs to get the lowest rate. That fee is $ 7,000. This makes the lender fees over 83% higher than what the VA requires. If you do the math, this adds an additional $ 12,000 to my original $ 340K loan. With my $ 250 savings, this will take 48 months to pay off, otherwise known as four years! Moreover, since the hybrid loan will balloon to a super high rate at the end of the five years, I’ll have to refinance again to a fixed rate, which will cost me another $ 12,000.

    So, to make a very long story short, DON’T DO IT! If you’re going to refinance through anyone, make it USAA or your current lender. Also, always stick with the fixed rate and don’t refinance unless you can lower your rate by a full percentage point. I don’t know the exact details of your loan, but “truth in lending” requires that Flagship spell out these fees when they send you the paperwork. If you can do basic math, you’ll see what I’m taking about. Just my two cents.

  5. Reply
    Smilin'_Bob_The_Enzyte®_Guy
    February 12, 2011 at 1:05 am

    Harry… these guys are just brokers…

    They get paid when they get you to sign, then sell your mortgage to someone else, PLUS you pay huge fees to do so….

    Stay Put—or re-fi with your current lender….

  6. Reply
    kemperk
    February 12, 2011 at 1:47 am

    it “SEEMS” as though your ideal home is not the most ideal for financing. Why not
    hire [if yours is not] a BUYER”S agent, [never a dual agent] and ask them to find
    x sq ft and y price. RE the other front fees you spent, they are likely losses.

    Find 2nd best and start living in a warm house with SPACE.

    next spring, if you need something dif seek then. Manufactured homes are CULTURALLY
    hard to finance. IF your agent did not volunteer that, you have grounds against him/her

  7. Reply
    Lakia
    February 12, 2011 at 2:41 am

    I am so sorry about your situation. Manufactured homes are more difficult to finance than other homes. Please keep in mind that if they are difficult to finance then that means they will be difficult to sell down the road. If you are property virgins, please make sure that this home is a place where you will be living for a long time. Your new home is also an important investment. Also due to the current state of the economy, lenders are very strict with their guidelines right now, so it makes it harder for even extremely qualified homebuyers to get a loan. There are also a lot of great deals out there. You should be able to purchase a home with more equity than that right now. My suggestion would be to look into seeing if any private sellers would be interested in doing a land contract with you. This way you can move into the property and take a little more time to get your financing in order. You will also be able to take advantage of the first time homebuyers tax credit. Congratulations on your new addition and I hope this some help for you!

  8. Reply
    Big daddy
    February 12, 2011 at 2:52 am

    I understand the flood insurance, elevation survey and siding situations. When dealing with certain areas and property types, these situation can come into play. While you may love the show, do they mention things like manufactured homes, flood zones, mortgage insurance? There is much, much more to purchasing a home than cosmetic appearance, square footage, etc. Some lenders just will not touch a manufactured home, hands down, bottom line. I agree with the previous answer, the agent should have made you aware of this and this. What I am not sure of is if Va will actually finance a manufactured home. When I was a broker last year, there were only two lenders that would finance manufactured homes, we had access to some of the biggest lenders in the county, but they just would not touch the mfg homes. If you are able to find a lender, you will have to start the paperwork all over again due to the mfg status. I would research USDA, VA and FHA loans in your areas to see what will work best for you and your family

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