by Ramsey Su, Acting-Man.com:
My lender, Bank of America, called and offered to refinance my mortgage. My rate is now lowered by 1.5%. They told me that I will be saving approximately $1000 per month, not mentioning that the “savings” came from adding 5 years to my term. My true savings, that is if I amortize the new loan over the remaining term of my old loan, is $130 per month. As for the other minor details, my FICO is over 800, the loan to value is under 30%, my debt to income ratio is unknown, because they really did not even fill out a fully completed loan application. The loan was approved within days, after submitting only four sheets of paper via fax.
So much for all the cumbersome application processes and stringent underwriting standards that I was told about. My refinance required even less documentation than it would have back in the sub-prime days. Why is it so easy? Is it because I have such a pristine credit history? NO. It is because their “computer printout” said that my loan was sold to Freddie and the loan qualifies for a fast track MHA (Making Home Affordable) refinance.
What is Making Home Affordable?
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