Countrywide no closing cost refi

[tbl]

If you watch any TV at all, you've been bombarded by this commercial. The old adage "if it sounds too good to be true, it probably is" applies to this little scam they have going. When I saw the commercial, I thought there HAD to be a catch. My wife calls and we go over everything and it looks like we're going to lower our payment by around $280, keep a low rate of right around 6%, and only have to pay a $385 application fee. Considering all refi's usually have $4-6K closing costs, it was like a slam dunk. We call them back to finalize everything, then he throw out the cost of the loan (speaking very quickly). Now it's jumped up $5,000. Turns out the no closing cost loan is at 8.4%, and would only lower our note by around $100. Stinking jerks...

So the point is, don't waste your time looking for a no closing cost refi, b/c it doesn't exist. :mad:

[Mjcpr]

How much land comes with it?

[crawfish]

We'd done that before, just to find the catch. They must make a lot of money from people who don't back out before signing... :rolleyes:

[boomersooner28]

SOOOOO many mortgage scams out there nowadays. I like the company hitting up older people for the "reverse mortgage", telling them its a good idea to have extra cash to enjoy vacation while you refinance with them only to pay payments and have your principal balance never go down because it's a reverse mortgage. You are basically only paying interest.

[tbl]

There's no telling how many people get suckered into this, but I was surprised that Countrywide was pulling it. Those guys are huge. Like I said, when he went over everything on the phone to finalize it he talked REAL fast when he said the loan amount. Of course before we signed anything we would have seen it, but you know there are scores of people out there that are dumb enough to miss it.

[yermom]

that whole business is double talk

even when you aren't getting screwed, you are getting screwed

who decided it was cool to pay only interest at the beginning of a loan?

[tbl]

Thats not our deal. We did a 15 year note to take advantage of the better interest rate as well as start paying principal off sooner. I just hate paying interest, so I usually go with the 15 year. Anyway, shortly after we had another kid so it's stretching us just a little bit. We're doing fine, but it is tight. I just wanted to loosen to pressure a little bit so we could spend money on more important things like TV's and guitars. :D

[boomersooner28]

who decided it was cool to pay only interest at the beginning of a loan?



Thats how they get you to buy more than you can afford! "Hey look you can buy a $500,000 house for only $1,700 /a month!!!" :rolleyes:


Then after 2 years, you are in default. Thus, foreclosures in Oklahoma are up 45% in the last 2 years. Sad.

[yermom]

i mean how they front load the interest on the first payments where you aren't really paying into the principle at all at first

[yermom]

Thats how they get you to buy more than you can afford! "Hey look you can buy a $500,000 house for only $1,700 /a month!!!" :rolleyes:


Then after 2 years, you are in default. Thus, foreclosures in Oklahoma are up 45% in the last 2 years. Sad.

yeah, i'm not talking about the interest only loans, i mean the "legit" ones

[boomersooner28]

i mean how they front load the interest on the first payments where you aren't really paying into the principle at all at first


Thats just how simple interest works first off (not sure who came up with that brilliant plan!). Thats why on a 30-year mortgage, you are basically paying interest for the first 5 years of the note. Thats why 15-year mortgages save you a ton of money, go look up amortization schedules, a 15-year note vs a 30-year note...you will freak.

Note to all: You should only refinance if 1) 30-Year note to another 30-year note if you can reduce your rate by atleast 2 %. 2) From a 30-year to a 15-year note if you can reduce the rate by atleast 1%. Of course, you may not save much money if you are many years into your mortgage.

[yermom]

car loans aren't like that... i mean i just don't see how consumers allowed that to happen

now it's not like we have a choice...

[LilSooner]

I hate looking at our house payment every month. 168 buck to principal and over 1000 towards the damn interest. Of course we are only two months in to the loan. I'm looking forward to next years bonus that bitch is going towards the principal.

Geeze I need a nap. I'm a cranky mofo today.

[CUinNC]

If you watch any TV at all, you've been bombarded by this commercial. The old adage "if it sounds too good to be true, it probably is" applies to this little scam they have going. When I saw the commercial, I thought there HAD to be a catch. My wife calls and we go over everything and it looks like we're going to lower our payment by around $280, keep a low rate of right around 6%, and only have to pay a $385 application fee. Considering all refi's usually have $4-6K closing costs, it was like a slam dunk. We call them back to finalize everything, then he throw out the cost of the loan (speaking very quickly). Now it's jumped up $5,000. Turns out the no closing cost loan is at 8.4%, and would only lower our note by around $100. Stinking jerks...

So the point is, don't waste your time looking for a no closing cost refi, b/c it doesn't exist. :mad:

Remember these letters too - GMAC (mortgage) - they cannot S**k enuf - learned that thru some good friends painfull experiences;)

[boomersooner28]

car loans aren't like that... i mean i just don't see how consumers allowed that to happen

now it's not like we have a choice...



Most car loans are applied interest. Yes, they work differently.

[boomersooner28]

Remember these letters too - GMAC (mortgage) - they cannot S**k enuf - learned that thru some good friends painfull experiences;)


Actually, GMAC is one of the best mortgage companies out there, IMO. What were the painful experiences?

[CUinNC]

Actually, GMAC is one of the best mortgage companies out there, IMO. What were the painful experiences?


GMAC bought their Loan from a local bank - no big deal...right?

Then it starts later...they were sent a letter telling them they were way behind on the loan - 1-2 months worth....it was on now!!

So my buddy takes like a 1/2 day & rolls-up all history for the last 3 years in a spreadsheet capture...things got like 10-12 columns in it detailing vouchers against what GMAC documented as posted...

basically it boiled down that indeed they had made the pmts. just fine...

What GMAC had been doing was deducting $17.00 & $15.00 per month from the pmts -
One charge was for "house inspection fee" - 15.00
other was never described on their documentation

so they started raping the paymnents on charges that were never allocated from the original lender - go figure..

it did indeed cause the loan to default, and it took them 6 months & a lawyer to get it straight...
God knows how many people they first had to wade through & talk with to discuss the issues...let me add that they never gave my friend an e-mail address to send that nice little spreadsheet as a reference-point...why the hell was that - they scared?

Anyway - they forced GMAC to relent & get the loan current...

Mind you, here if it 'aint on your deed, you can't change the game like GMAC did...

Don't think I want to ever be in their shoes...reason I was clued in on this is that I used to be in Commercial Banking...

[NormanPride]

Good Lord this **** scares me. Badger and I are looking into houses now that we've gotten married. Nothing within the first year, but I want to start early so I know everything there is to know about the game before I get into it.

[boomersooner28]

Good Lord this **** scares me. Badger and I are looking into houses now that we've gotten married. Nothing within the first year, but I want to start early so I know everything there is to know about the game before I get into it.



Use BOK, you will be fine! Best mortgage lender going. I will even look at your Good Faith Estimate if ya want me too, when the time comes. (I was in the mortgage business).

[crawfish]

Get what you can afford with a 15-year loan. Be conservative, don't buy something too big. If you'll need space in a few years you'll be able to buy something else, and with a shorter-term loan you'll likely have more equity.

[NormanPride]

We bank with BOK right now, and I really like them.

We're also renting from a place that gives us equity towards building a house. By this time next year we'll have close to 7k in there, which is nice. The problem is that they only use one builder, and they don't build in the places I want to live. Their houses are also a bit pricey, and I don't think 7k is enough to sway me, really...

[Vaevictis]

Maybe you can sell the equity to someone who does want to buy from them? :)

[mxATVracer10]

Every time I head that old guy on the commercial say "Re-Fi" it ****ed me off... Now I know why.

[NormanPride]

Maybe you can sell the equity to someone who does want to buy from them? :)

heh. That'd be nice, but I don't think we get that money back if we don't use their building company. :mad:

[CUinNC]

Actually, GMAC is one of the best mortgage companies out there, IMO. What were the painful experiences?

AND??......tell me that isn't what you can maybe can consider as predatory practices, and also, not on the side of the Consumer?

Being from the Biz, I found it really strange of their lack of partnership...
:pop:

[boomersooner28]

To me, one mishap out of thousands of loans doesn't mean that a company is a bad company. I myself have had mortgages and know many people who have had mortgages with GMAC, also known as Homecomings. I have not one complaint, nor have I heard of any others.


Just sayin.

[soonerboomer93]

I beleive countrywide has some legal trouble going on. I know one of those big re-fi companies is being looked at/sued by the State of Colorado.