Doing something we've never done and hope many of you out there will give me suggestions! TIA

Bought 3 years ago with 20% down using an ARM
@ 4.50. Property has appreciated, our credit score is excellent, and we've never missed a payment so no financial concerns re qualifying for re-financing. (BTW, not a jumbo)

We are only re-financing to get a fixed rate before adjustment on July 1 when I know they will raise the maximum allowed (2%) as we are in the "desirable" group for lenders who are facing so many foreclosures and/or short sales.

Countrywide currently holds the paper, we have had no problems with them, they will do the re-fi on "fast-track" ie. no new appraisal, income verifications, ect. at rates in effect at date of lock-in. (Gone from 6.40 to 5.919 to 5.665 in the last ten days for a 30 year fixed).

My real question is this: although I know Countrywide will do the re-fi; I wanted to make sure we would be getting the best deal (rate). So I went on-line to inquire about rates and am now being over-whelmed by other finance corps who want to send us competitive offers.

BUT to do that, they need to run our credit score meaning we would have to disclose our SSN's. Somewhere I have heard that, if there are a number of credit score inquiries at one time, it can affect your credit score...

Anybody knowledgable or know how this works? Right now, I am simply not responding to the e-mails/telephone calls as I don't want to mess up our current position/ credit score but I also would like to see what other alternative financing/rates might be available.... Help!

Direct from the Source, Fair Isaac.

quote:

What to know about "rate shopping."
Looking for a mortgage or an auto loan may cause multiple lenders to request your credit report, even though youre only looking for one loan. To compensate for this, the score ignores all mortgage and auto inquiries made in the 30 days prior to scoring. So if you find a loan within 30 days, the inquiries won't affect your score while you're rate shopping. In addition, the score looks on your credit report for auto or mortgage inquiries older than 30 days. If it finds some, it counts all those inquiries that fall in a typical shopping period as just one inquiry when determining your score. For FICO scores calculated from older versions of the scoring formula, this shopping period is any 14 day span. For FICO scores calculated from the newest versions of the scoring formula, this shopping period is any 45 day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO score.

I'd talk to one trusted mortgage broker, one credit union, and one large retail bank (BofA has a pretty great loan program right now) as well as your existing lender. This way you are covering the widest swath of the available mortgage loans available. Best of luck.

I'd shop it to several big lenders (BoA, Wachovia, WF, MU etc.) and one or two credit unions. CW is doing you no favors.

5.6 fixed is a great rate for "now". I would refi with them and lock in immediately--this minute. Only two days ago --best I could find here was 6.1 fixed...for a client.

Also remember you have to time this perfectly with the pre-pay penalty. Remember we talked about this. My re-fi was done at a title company and closing on the new loan was pre-planned for signing 1 day into the higher rate to avoid penalty. Plus remember the re-fi bank doesn't disperse until three days later. (3 day right of recission clause)(in case you change your mind).. so you would have to pay 4 pro rata days of the old mortgage after the rate change.
the higher rate.



Forget about giving your info out to a bunch of lenders- some will cite redic. rates only for you to find out you have to pay "points", a loan closing closing. 1 % x L.A. or 2 or 3 so on.

If you want to shop ---shop local at your bank or a local bank.

This message has been edited. Last edited by: real estate lady,

Idaho R., one thing to consider is whether Countrywide is charging you a LOT less in closing costs than the other lenders would--do you have to get new title insurance, for example -- and in your state do you have to pay any recording fees if you go with a new lender vs. refi with the current one? If there is a big difference in closing costs etc., these could offset a small difference in interest rate, especially if you are going with a shorter term loan.

I had Countrywide in my last house (my loan was sold to them). When I bought my current house last year I shopped around but ended up with Countrywide since they had the best deal. And I'm about to refinance with them. I have never had any problems with them; they are very easy to work with.

If you are stellar credit and already have a perfect history with Countrywide, they may be willing to write you a lower term loan, as I believe each broker has some ability to negotiate, especially with a non-risk loan.

Wachovia has had some good rates, as have all our local credit unions. Some credit unions and banks who hold the original mortgage may be willing to re-write the original loan terms with low/no fees for title search, legal, etc.

Thanks all for taking the time to respond. I'm sitting on the fence right now (know that's not a good place to be as one can topple off either side)!

But, think I'm going to push "the envelope" and see what FedResBd does at it's next meeting. I think they will drop at least 1/4 and then I'll be happy with the rate and do the refi with Countrywide to avoid the additional closing costs with other lenders starting from scratch.

If I am mistaken, then I guess I'll have to take responsibilty for not getting a better rate 2-3 weeks ago during that 48 hour window when the 3/4 cut was announced. Wish me luck everyone; will post back the results. TIA