Anyone have getting bank to lower Mortgage Rate

[MossflowerWoods]

No help, this is what I got...

Thank you for inquiring about Farm Credit financing. On rural part-time farm properties involving a primary residence the following financing options are available:
1. Financing up to 80% of the lesser of the purchase price or appraised value for a 12 year fixed rate and term.
2. Financing up to 80% of the lesser of the purchase price or appraised value for a 10 year balloon with a 20 year amortization.
Please note the above are general guidelines and I will be happy to speak with you in more detail specific to your situation.

I really am just looking to loower my rate & payments and keep a 30 year mortgage, but nobody wants to touch my primary residence on 51 acres because the house does not have enough value as compared to the land...

So I will just keep on keeping on...
David

 

[dmccarty]

No help, this is what I got...

I really am just looking to loower my rate & payments and keep a 30 year mortgage, but nobody wants to touch my primary residence on 51 acres because the house does not have enough value as compared to the land...

So I will just keep on keeping on...
David

Is the house sitting on the 51 acres and not subdivided out on say a 5 acre lot?

If that is the case you might want to ask the bank if they would make the loan if the house was on a smaller parcel. I know that is how it is often done here. Seems like when we were looking at large parcels we knew we would have to subdivide so that the house sat on a smaller 1-5 acre parcel. Our Credit Union does not handle land loans over something like 10-15 acres. Their assumption was that the land loan would eventually change into a house loan. We do not have any loans with the CU anymore due to their lack of service regarding land loans and higher interest rates.

We have gotten MUCH better service and rates from a big bad bank compared to the CU.

Later,
Dan

 

[MossflowerWoods]

Is the house sitting on the 51 acres and not subdivided out on say a 5 acre lot?

Later,
Dan

Dan,

No sir. It is all one parcel and that is how we bought it. Not sure how to split the mortgage, but I do intend to split the current home of into a small sub parcel so I can build up on the ridge.

But that is not until I can sell one of my other houses that are curently rented.

David

 

[dmccarty]

Dan,

No sir. It is all one parcel and that is how we bought it. Not sure how to split the mortgage, but I do intend to split the current home of into a small sub parcel so I can build up on the ridge....

It will take two parcels and two loans unless you can pay off one or the other. Our house sits on a 4.5 acre parcel and has a house loan. The rest of our land is on a second loan. We had to get a commercial loan to buy the acreage since the banks really wanted little parcels with a house. The parcel with our house was already surveyed so it was easy to get a loan for the house.

When we bought the land we just had the one loan. Then when we built the house, we had to re do the land loan since the house parcel was removed from the first loan. The house and it's land ended up on a mortgage. The CU simply would not work with us while the bank was great.

We went through a couple of loan officers over the years, and the second one we had, who worked on our construction loan, was a ding bat. We had a major FUBAR with her but the bank was excellent in fixing things.

Later,
Dan

 

[beppington]

I've seen it done around here where the homeowner splits off 1 acre around the house (plus access to it as needed) & leaves the rest as 1 piece.

If you could get an appraiser to appraise that as a what-if scenario, maybe you could determine whether you could pay off the split-off vacant land part, & re-finance the house+1-acre part.

 

[lj04]

No help, this is what I got...



I really am just looking to loower my rate & payments and keep a 30 year mortgage, but nobody wants to touch my primary residence on 51 acres because the house does not have enough value as compared to the land...

So I will just keep on keeping on...
David

Did you end up calling them? This was two years ago but at that time I was offered a 20% down 20 year mortgage on vacant land. I ended up doing a 15% down 15 year mortgage. Maybe they are getting more restrictive?

 

[ultrarunner]

Same issue... would only do the home and 5 acres... the extra 12 acres couldn't be part of it...

Went through the whole process and two days before close they call the title company and say they will not be making the loan...

Seems real strange that no one said a word till the eleventh hour...

Appraisal came in great... so that was not the problem and it was their appraiser.

On a side note... I closed my credit union account yesterday... found it was more trouble than it was worth... have to use the debit card 10 times each cycle... card wouldn't scan... called in and said I had to come in for replacement... only had 9 debits that month and they said... sorry, no interest per the terms of the agreement.

 

[riptides]

Same issue... would only do the home and 5 acres... the extra 12 acres couldn't be part of it...

I dealt with this issue about six years ago on a property. I had it sub-divided accordingly.

Unfortunate, both the lender and the appraisal went with a value of the house plus one or two acres around it. WTH.

I gave up, too many hoops to jump through.

Seems to me, large lots are handled differently depending where you are and who the lender is.

 

[ultrarunner]

I dealt with this issue about six years ago on a property. I had it sub-divided accordingly.

Unfortunate, both the lender and the appraisal went with a value of the house plus one or two acres around it. WTH.

I gave up, too many hoops to jump through.

Seems to me, large lots are handled differently depending where you are and who the lender is.

I've almost never had a good conventional lending experience... and mortgage brokers were a disaster...

That changed 7 years ago were m RE Broker brother had a mortgage broker he sends lots of business call... I was skeptical, but pleased to say the process went without a hitch exactly as described.

The deal with the home and acreage left a bad feeling and I suspect it had to do with the rate I had locked in as rates started to go up... how can anyone with a brain not know the property has land...

I better stopped, feel a rant coming on...

As to the original question... I did have American Savings volunteer to lower my rate from 13.5 to 12% at no cost back in the late 80's... I think it is more of a problem today with so many loans being sold and resold... American never sold my loan.

Recently, I know a Oakland school teacher that was able to get a lower rate... she had bought through some educator program for teachers and when she applied to get a lower rate it eventually happened... took about 4 months.

 

[riptides]

I think our service members get no-hassle re-fi's when the rates drop.

I think anyone backed by FHA should be able to do a no-haggle re-fi.

It's a crock, in any case. This last mortgage we jumped through many hoops between banks, lenders and brokers. I told the story here on TBN.

Bottom Line, I told the bank I was prepared to give them lots of money, re-fi, if they could consolidate two loans for me. They said I was unqualified. In the end, I got exactly what I wanted, through another bank, backed up by FHA and gave them lots of money.

In the process, one bank said I should just "default" to make it easier on everyone. Unflipping real. I learned all about bad activity and unscrupulous people the hard way.