My loan to value ratio is 70% or slightly less. The reason is I took out a home equity loan a little over a year ago. Does this affect refinancing?
That’s what I found, the rate of my CU was similar to better but the origination fee of about 1% made the loan much more expensive
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Many of the banks are waiving appraisals right now. That was an unexpected savings of $425 
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Then guess I was the unlucky one lol
This was more month ago and I believe the first time the AMEX offer came out. Most CU were quoting me at 3.375-3.5% but the one I used quoted 3.0% on a 30yr investment. Effectively Better.com “matched” the rate with overall $1k-ish less in closing cost although it’s not really a true match, since it counted the $2,500 AMEX credit to buy points.
It should not unless you have anything balance outstanding on HELOC.
Absent what I’m describing below (and absent other liens on the property), when your current mortgage gets paid off by your new mortgage lender, your HELOC would move to first lien position by operation of law, unless your new lender gets the bank that holds your HELOC to sign a subordination agreement.
https://www.nolo.com/legal-encyclopedia/what-subordination-agreement.html
Few if any new lenders on first mortgages will close a loan that puts them in second lien position behind a HELOC. The subordination agreement allows your new first mortgage to replace the first lien position of your old mortgage.
This is common and generally nothing to worry about. There may be some out of pocket costs, but they’re generally not monumental.
Process-wise, this is done in parallel with all of the other activities that go into the loan manufacturing process, but sometimes you’ll encounter delays due to the sluggish responsiveness of your HELOC provider.
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Six weeks into my refi with US Bank - apparently we’re getting close. 10/1 ARM @ 3.0% rate, with only couple hundred $ out of pocket. Surprisingly, they did the appraisal (which sucked), but we’re still at ~80% LTV including HELOC (also with US Bank).
Although I’m not in the industry, I can second what Trism mentioned.
Other things to consider.
Some lenders will exclude your HELOC towards DTI if it has a zero balance while some will run the DTI ratios with a worst case 100% draw of the HELOC against your DTI. Depending on which you run into, the next steps might vary.
If the new lender is unwilling to reconsider after the HELOC is in the 2nd position, you’ll be forced to close the HELOC to qualify which can mean additional fees if it hasn’t been open for a certain amount of time (varies by lender; anywhere from $37 for just recording fees to $500 in my experience for not having it open for the minimum period). If you wish to re-apply for a HELOC after a refi, there may be seasoning requirements (~90 days). Depending on how urgently that extra LOC is needed, the 90 days is something to consider with some additional time on top of the seasoning period to close the HELOC.
I’m sure Trism can get into more details but it’s never been a one size fits all process over the last 20 years. Lenders all vary especially non-conforming products.
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Just locked in at 3.25% 30 yr fixed for 60 days. Only about $500 due at closing (first month’s interest) Will also get an AMEX credit of $2,500!
Super happy.
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Did you lock in with better.com?
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Yes sir. 20202020
Wow that’s great I was helping my parents run a refi in NYS and the rate is 3.125 but they want 6k I closing costs. I’ve requested some lender credits but got crickets.
You can def structure that in exchange for a higher rate in exchange for lower closing costs.
Go to better.com and ask them for a price match…they’ll beat it by $1000!
Sorry…that was through better.com I havent heard anything back since I ran the numbers. Calling a local CU for them whose advertising crazy rates.
Oh. So I saw better.com rates and they were garbage…so I went to some other lenders and asked for their loan estimates. I sent the best one to my better.com rep and he beat it by $1000 (lender credit).
Yea i am doing the same. Going to hit up a few places tomorrow and asks for worksheets.
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Pm each other a compare wallets lol