"Rick, You're welcome. Regarding #2 above, if you are trying to borrow more than what is necessary to pay off the first lien on the subject property this is, as you put it, "a prohibited cash out transaction." Questions 1, 3, & 4 are moot in that case. If indeed you are doing a rate/term refi (a "Limited Cash Out Refinance" LCOR) by just paying off the first lien used to purchase the property then the answers to the other questions are: 1. Current appraised value. 3. Funds..."    View Post

"Richard Ireland: financed 100% by my local bank by taking seconds on all my other properties and a first on this one. Rick, Apparently the $205,000 you want to pay-off is comprised of a first lien on the subject property and second liens on other properties. For this to be a "Limited Cash Out Refinance" (a rate/term refinance) the loan amount will be limited to the amount of the first lien used to purchase the property. Any money above that to finance improvements made subsequent to purchase..."    View Post

"Craig, FHA has already eliminated refunds of UFMIP except for refinances of FHA to FHA loans less than three years old. FHA can change the refund rules or even eliminate refunds of UFMIP at any time they choose based on the health of the MMIF. Here is the Mortgagee Letter eliminating UFMIP refunds except in the case of FHA to FHA refis: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/05-3ml.doc Harlan"    View Post

"dave martin: can a lender charge discount points to cancel out LLPAs and still make revenue off the buy price and origination fee? Dave, Part of your confusion lies in a missunderstanding of the difference in YSP or rebate paid to a broker at closing and the "buy price" that a lender sells the loan for in the secondary market after closing. Effectively brokers are not permitted to receive YSP and charge discount points in the same transaction. Under some regulations brokers may not charge..."    View Post

"This thread is a good example of how the new GFE confuses consumers and originators alike. It puts the emphasis on what the broker is paid instead of what the borrower is paying. What if the lender (not a broker) down the street had an origination charge of $5,000 with no credit and the same rate of 4.875%. The FTC did consumer testing that indicated that many consumers would think that the $5,000 Origination Charge would be a better deal than a $10,864 Origination Charge even with a $6,481.40 credit..."    View Post