If you are one of the few homeowners that can actually refinance either thru the heavenly touch of the real estate godz or somehow you did not take a bite out of the apple that has been constantly pounded advertised for the past few years. You're in luck... so far for your patience and willpower you get a mortgage treat. As I have been saying to many who ask the rates have fallen to a new low due to our so called recession. I say that lightly seeing that the recent last holiday spending increased from the prior year, yet the employment and average wage has not gone up enough to warrant this monetary increase to splurge. But that is another post I'll deal with another time.
Back to the thought at hand. The average numbers were showing 30 year mortgage are about 4.05% at the end of last year, as well as the jumbo mortgages (loans larger than $417k). Lenders are locking rates at 60-days for free, instead of the average 45-days. But seeing first hand why they did this was a smart move. The multiple people that I have encountered obtaining a refinance from the big three US banks have taking a long time to close.
FICO credit scores still needs to be about 740 for the best rates and the lenders are asking a lot of information and documentation as well. Even if you posses a personal and/or business account with them or even have the previous loan with them.
With a good FICO and 15% equity you looking good, however if you are dwindling on the amount of equity then expect to pay private mortgage insurance (PMI). Again, this is all dependent on the appraised value of your home. But at least US Home Affordable Refinance Program has relaxed on some of their home equity requirements. Though the down side is that your current loan needs to be owned or guaranteed by Freddy Mac or Fannie Mae. And it is not a loan modification so be current on our mortgage.
Well, I heard that Union Bank can roll their costs into the loan and if the original loan is with them, then you do not have to provide as much paper work. Many of the banks need to jump forward and follow these soften guidelines, seeing that the borrowers who are paying and have excellent credit scores should not be burdened, while the borrowers that are in default get similar rates and do a lot less in terms of actual payment and paperwork. Again, my recent unpaid loan modification for my client received a better rate than my personal friend. Moreover, both parties are suffering greatly in terms of income.