April 14th, 2012 12:13 AM by Eric Fang
My client has a loan of 380k with the value 370kand another 2nd 60k.
The good news is that he has Fannie Mae loanand qualifies with HARPII refi, even though LTV around 105% and CLTV around 120%.
When we first started to work together on the file,I quoted the rate 3.875%, and Thursday the ratewent up to 3.925%. And he asked me whether to lock the rate or not?
I just let him think about the following:If he refinanced to the rate of 3.925%, he saved $629.44. And if he got 3.875%,he could save another $14.
I just asked him whether it's worth it towait one or two months for extra $10 or $20and wasted the $629.44 or $629.44X2 he could save.
And he immediately asked me to lock the rate.
And he could get better rate if I did not lock for 60 days.
And he is already very happy about the savings he can have.