Bank of America Refinance Mortgage Rates – Lock In Low Interest Rates Today Subprime Blogger (blog)
16.12.09
Bank of America has spent a great deal of money on the marketing of their home loan division. WIth the purchase of Countrywide Bank of America currently has the most mortgages on their books. Sadly, many of these mortgages are subprime mortgages because of the fact that Countrywide dove headfirst in the the subprime market hoping to turn around a quick profit.
As we all know, that quick profit did not happen and they ended up selling to Bank of America for an extremely low price. Even though the price was low Bank of America is still trying to figure out how to get many of these mortgages modified or refinanced to fixed rates. The majority of these subprime mortgages that go unpaid are currently exotic mortgages that are causing borrowers to default and face foreclosure.
With this being the case Bank of America is trying extremely hard to be your one stop shop for banking. If you use them for your home loan then there is no reason to not use them for personal banking, card loans and credit cards right? Well, this is the thinking of the executives at Bank of America is this is exactly what they are hoping to do. They want to provide all services to all customers.
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how can i take advantage of the low mortgage rates ?Bought ahouse last year and have a fixed rate?
Mar 13, 2008 by sunshinecee | Posted in Renting & Real Estate
I bought my house last year and ahve a fixed rate but now want to take advantage of the low rates prevailing today.My credit is not that good and refinancing could be a problem because of that
You either refinance or you don't. Consider the costs.
src50 | Mar 13, 2008
refi. But that can create more of a problem if your credit is not that good. You'll wind up with a higher rate anyway.
Work on your credit, bring the score up and then try again.
jane d | Mar 13, 2008
You only get a low rate IF you have good credit.
That’s the way the whole system works: prove that you can pay all of your bills on time and you’ll be rewarded because you’re a low risk of default. If you can’t pay your bills on time (no matter the circumstances), you are higher risk in the eyes of the lender and therefore have to pay more in interest as an incentive for that lender to work with you.
Dizzy_Lizzy | Mar 13, 2008
So you have a fixed rate now, and crummy credit, but would like to get a better rate. Do I have that right?
Well, you can apply to refinance, but your rate will be based on your current credit. Plus you'll have to pay all the closing costs again, which could be a few thousand dollars.
In addition, many lenders will not lend as high a loan-to-value amount on a refi. If you borrowed 90% of the purchase price or more, you may not find a loan at all.
It would be better to work on your credit, and build your equity for a couple years. You don't know what the rates will be in the future, but it will probably not be to your benefit to refinance now.
Call around and see what they have to offer. Many lenders will refund application fees if they can't make the loan you want. What I mean is, they don't know the rate until your credit is pulled. If the standard rate is 6% and once they pull the credit the best they can offer you is 7% and you don't want it, you'll get a refund. Anything other than the standard rate is a counteroffer. Be sure you know in advance how they deal with app fees and refunds.
daeve930 | Mar 13, 2008
You might can still refi with a questionable credit score, but now the issue is, will your property appraise for what you need?
L J | Mar 13, 2008
What is your fixed rate now? If your credit score isn't 680 or better, you aren't going to receive a great rate. And refinancing costs thousands of dollars. You are probably better off staying right where you are.
godged | Mar 13, 2008
Good finance question! I know of an organization that gives up to $1500 to people to help them with their rent or mortgage. It's available in most US cities, I highly suggest you check it out.
http://www.assist-with-your-mortgage-rent.org
Best of Luck.
Terrance H | Mar 13, 2008
How do I get the lowest mortgage rate?
Oct 12, 2008 by marlasobbing | Posted in Renting & Real Estate
I'm trying to get a mortgage in Florida. I have a credit score of over 800. Is there a seach engine where I can find what bank has the lowest rate?
using search engines open you up to a lot of marketing and sales calls. Those companies "sell" your info to mortgage brokers ( stay away from brokers ) If you have a 800 credit score you should be abe to go to your local bank and discuss your short and long term plans. Sometimes a lower rate may not give you any savings. you need to determine the cost of refinancing, how long you think you will stay in the home, what your monthly savings will be and cant you invest the the money you spend on closing cost on something else for a greater return.....but i promise, if you use the internet search you will regret it...
scott d | Oct 12, 2008
Bankrate.com
atotalsecretmailbox | Oct 12, 2008
Scott D's advise about using the Internet is good. Meantime, before going to a bank you should check how much you can put down against the loan.
You'll need at least 25% to help the bank feel comfortable under present circumstances. In return, you should achieve a reasonable rate but, for the very best rates, be prepared to place 40% on the table and push hard against whatever rate they offer. If needs be, shop around.
Do not be fobbed off. With an 800 Credit Rating and either of the above percentages you shouldn't have too much difficulty even in today's market.
Very best of good fortune to you and don't forget to find yourself a good Realtor to negotiate a low, low price on the properties you view. Check his or her testimonials and work clsoely with them to ensure you get the very best deal on the home too...
PI | Oct 12, 2008
Qaulifying for a low mortgage rate?
Mar 08, 2008 by Amy | Posted in Renting & Real Estate
I'm in a home with an option to buy. I am a single mother of two and make about $17 an hour, first time buyer. Do I have any options on qaulifying at a low rate?
Thank you everyone! :)
Your income is about half of what is considered for a mortgage loan. Your credit history is the other half. The better your credit rating, the lower the interest rate you'll be offered.
artistagent116 | Mar 08, 2008
You are not ready to buy a home and it will not be a blessing, but a burden, if you have any other debt and can not put p 20% down payment. Credit is very tight right now (not a lot of money to loan, and hard to get good rates). If your FICO is good you could get a good loan, but you can only afford a mortgage of about $70,000. Any more than that is a disaster in the making. Don't get in a hurry to buy a home.
financialpeas | Mar 08, 2008
Matters on what you consider a "low rate".
If you have 20% down and good credit, yes; however you need to be sure you are not getting in over your head. Look up the Fannie Mae Foundation for more information.
If you don't have both, I would rent until you do.
texanweazel | Mar 08, 2008
Contact a mortgage broker and see it they know of any first time home owner programs.
The State of Georgia loaned me a down payment at zero % interest for the life on the loan. It helped me buy my first house. The broker might know of a plan to help you. Also contact the state office of comsumer affairs in your state, see what they recommend.
D J | Mar 08, 2008
renting with option to buy is a lead into a contract for sale. Try to use a title transfer sale with a mortgage .
words_that_live_on | Mar 08, 2008
Your rate is going to be based on a couple of factors. Primarily your current credit score, then your income to debt ratio, and then you rmonthly gross income.
A general rule of thumb for getting an idea of your max price range is to triple your annual salary. In your case, $17/hr is roughly $34K a year times 3 is $102K. This is not an exact science, but at least gives you a good reference point starting out.
good luck.
Koenig | Mar 08, 2008
Check out the website that connects BUYERS to BROKERS!
This is an exclusive site that specializes in getting things done for home buyers, and those looking to refinance.
JBallar1 | Mar 08, 2008
Good finance question! I know of an organization that gives up to $1500 to people to help them with their rent or mortgage. It's available in most US cities, I highly suggest you check it out.
http://www.rent-assistance.org
Best of Luck.
Bob P | Mar 08, 2008
Is it possible to get a LOW rate mortgage for 4 years NO DOC with large cash assets?
Mar 31, 2007 by kjf2007 | Posted in Personal Finance
I have a 750 credit score, owe 264000 on my mortgage - no other debt, house is worth 330000. I have 500000 cash in the bank in CDs and IRAS. I plan to pay off the mortgage in 4 years when the CDs mature, but in the meanwhile I am paying 6.8% on my mortgage and only earning 5% on my cash. I have no job and cannot qualify for full doc. But I can manage my mortgage payments as I make money in unusual (and legal) ways. HOWEVER I would like to find a rate of 3 or 4% that will be good for 4 years with no prepay penalty , after that it can adjust
to 20% for all I care. I would be willing to sign the CDs as collateral to pay off the debt in 2010. Anyone know where I can get a better rate in this situation WITHOUT PAYING ANY CLOSING COSTS? thanks
Sorry can't be done. Currently we have a flat yield curve in the market so even short term arm loans 1,2,3, 5 etc are all running around 5.875-6.00% ish for full documentation loans.
Given that you have to go No Documentation due to your job situation you'll be looking at about .5- 1.00 higher rate. Also since you have to go no doc you'll have to get a mortgage broker involved in the process and they'll charge you pretty fat origination fee.
You can't show assets on a no doc loan so the lender will never know about them. There aren't any no employment verifcation, but verified asset programs out there either. Your home serves as collateral on the loan so pledging other assets doesn't make sense.
Best bet is to just ride it out for now, and don't fall for option arm with a low teaser rate that swells up to 8-8.5% one or three months later.
Nicholas M | Mar 31, 2007
Does anyone know of a Bank or someone that give really low mortgage rates for first time home buyers?
Jan 18, 2007 by Johnny | Posted in Renting & Real Estate
Looking to buy a house in Virgina and am shopping around for low mortgage rates. Anyone know of any low rates?
All banks just about offer the same products and loan programs with the different qualifications in each of their programs.
No one can tell you the best rate for anyone individual. If all you are interested in is the best rate possible you can go to your local paper, they are publiched each day by participating banks.
Your interest rate is based on your credit score and how well you have paid your consumer debt over time.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, preferrably with a mortgage broker, which you can find one in your local telephone book.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will then run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K plan from your place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need he will be able to tell you the loan programs you are qualified for, the approximate interest rate and monthly payments
He can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
I this has been of some use to you, good luck
"FIGHT ON"
Skip | Jan 18, 2007
Fannie Mae has a program for first time buyers, check with them. We used it here in OK but I couldn't tell you the rates.
http://www.fanniemae.com/index.jhtml
Amy J | Jan 18, 2007
Check with the Federal Housing Administration (FHA) of your state first. They can help first-time buyers or those with less than perfect credit get a house at the lowest rates they can. Don't go to a bank first, there are a lot of predatory lenders out there that will screw you. FHA does have loan limits, but they are adjusted to where you live.
Visit http://www.fha.gov/, and poke around.
For Virginia specific info, http://www.hud.gov/local/index.cfm?state=va
Please check this out first!
kizzle_11 | Jan 18, 2007
You need to speak with a loan consultant. It doesn't matter if you're a first-time buyer or not...rates depend on the loan amount compared to the purchase price (LTV,) your credit score and the loan amount.
FYI: If you have low credit, you will probably have to document a 12 month rental history with on-time payments...
KL | Jan 18, 2007
First time home buyer loans are not designed to offer borrowers the lowest interest rate. FTHB loans are more designed to give some flexibility in the underwriting guidelines and assistance with closing costs, ie lender paid closing costs. FYI - the more you take in lender paid closing costs the higher your rate will be.
HomesByDamon.com | Jan 18, 2007
The following site has a free comprehensive mortgage quote feature that is awesome. You can see the different rates for the different types of mortgages and it is very easy to use. Good luck
pokerplayer528 | Jan 18, 2007
Where can I find the lowest mortgage rate?
Jan 27, 2009 by Michael W | Posted in Renting & Real Estate
I'm trying to refinance and I'm looking for a low mortgage rate from a legitimate organization. Any suggestions?
I'm looking for 4.5% from a legitimate organiztion
I know of a wholesale lender that gets pretty close to that on conventional loans as long as you have excellent credit and 90% or less on the loan to value.
Noneya | Jan 27, 2009
Bank of America is a good suggestion.
Ashley | Jan 27, 2009
I think your best bet is your local bank, that is as long as you have decent credit. If your credit isn't the best then I'd try a mortgage broker. I would check with a couple of different places to, theres nothing wrong with shopping around. OHHH and if you use a mortgage broker, use a local one. Obvioulsy laws are different from state to state and you want a broker that is from the state you are buying in so they know the ropes. I had a deal once where a couple found a mortage broker in cal. and we are in iowa...I knew the whole time things weren't adding up but my Buyers insisted they wanted this broker because he gave them a rate of 5% (this was about 5 yrs ago when it happened) and his closing cost were only around $1,500. Sounds great huh? Till the day of closing when the attorney got the paperwork, the rate was 13% and they needed $3,600 down. Lucky for my Buyer the were able to walk and get a loan from a local bank a block down. The broker tried blaming the rate increase and down on all kinds of bullsh*t reasons that didn't make sense at all.
Kathy S | Jan 27, 2009
What is the deal with those low mortgage rates? I have perfect credit and the lowest rate I could get was 5.5
Jun 02, 2007 by Jim M | Posted in Renting & Real Estate
if that is a fixed rate, you have done good
skcs11 | Jun 02, 2007
I deal with mortgages everyday and the 5.5 is great! The ones you see online are the intreset only loans! They are 4.5 for 2 years and then when the loans mature the rates go through the roof. It should be illegel, because this is one of the many forms of predatory lending. Please don' get yourself involved in this.
chad y | Jun 02, 2007
last i noticed, the Federal government was paying 4.9% so I think a 5.5% rate, if fixed, is a pretty good deal.
now if it is a one year adjustable ARM with escalating rate because of a 'teaser' intro rate .... that's another matter altogether.
Spock (rhp) | Jun 02, 2007
That's fannie mae and freddie mac. I am a mortgage broker. You can get lower if you get a rate that's adjustable, has negative amortization, or isn't fixed. 5.5 is great for fixed right now.
lesliebriskman | Jun 02, 2007
If you pick who you will get a loan with strictly by what interest rate they promise you, then you will probably be suckered into a scam.
Even if you don't pay money up front you will feel trapped into proceeding if at the last minute when you and the seller have packed and loaded a van, you find your lender has added fees or upped the interest rate.
Pick a loan officer that two or three people you personally know has used them and been happy with them. If that can't be done then get a recommendation from someone you know.
I have seen even CPA's and bankers scammed because they found some "lender" over the internet and then at the last minute it became a choice of backing out and getting sued by the innocent seller or going forward with a stinky deal.
glenn | Jun 02, 2007
Fixed rate mortgage - am I paying more off at the moment due to interst rates being low?
Nov 19, 2008 by lfcvicki | Posted in Personal Finance
I'm a bit confused. I'm on a fixed rate repayment mortgage and with rates being so low at the moment is it just tough on me for paying more or am I actually paying off more off my mortgage each month?
Since you are on a fixed rate mortgage, you are locked into whatever interest rate you signed up for when you originally got your mortgage. In this economy, as rates get lower than what you originally locked into, you would not benefit from the rates going lower unless you refinance and get a new loan with a new lower interest rate.
What you probably should do is look at your monthly mortgage statement which breaks down your payment and lets you see how much of the payment is going towards principal, interest and escrow account. This way you can easily see how much is really being paid off each month.
ifly00ny | Nov 19, 2008
Refinancing a mortgage with an already low interest rate.?
Aug 29, 2007 by Leo G | Posted in Personal Finance
I have a 30yr fixed 4.93% interest on my 140k home, I currently owe 130k. My monthly mortgage is $1.116. If I refinance, according to several sources, I can lower my monthly bill to the 700-800 range. How is this possible if I would be refinancing at a higher interest rate, around 6%? With my fixed low rate, is there any reason besides a catastrophic event to refinance?
The $1116 monthly payment includes all insurances and taxes. We did 100% financing, and had to come up with about 2k for closing costs. We've had this mortgage for 3 1/2 years.
Where can I get a low mortgage rate? 911 Loan needed for new home purchase!!!?
Apr 26, 2006 by Chubbymom | Posted in Credit
Do not go to your local bank, they are closing loans in 30 days or so. Talk to a mortgage broker as they generally have relationships with lenders where they can get you closed in less than 10 days depending on how tough your situation is. You generally pay more for them but you will get better customer service and you have heard the saying "you get what you pay for!!"!!!!
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