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Ah...I was told freddie “bought” my note...5/3rd bank was only the “service provider”

Basiclly freddie assigned a value about 50% lower than my previous appraisal that was just a few years ago...

This placed me severely under water on paper...and thus I wouldnt qualify for the refi...

I expected that I had lost value...everyone has.....but 50%?...no frickin way...

I had to get an independent appraisal in order to prove that my actual market value was nearly double the value that freddie had assigned...

Since I owe much less than 80% of the “current” market value....the loan was then just a matter of a few phone calls and a closing...

But then I started wondering...where the hell did that 43k of previous value go?

Well...Under TARP...freddie and fanny where allowed to re assign value to their “troubled assets”...aka ...subprimes...aka...bad worthless notes..

To do so.....they calculated the previous value of all assets vs the current value....then re assign all notes a new “current value based on how much money the pile of notes lost...

This gave value to the worthless notes....while degrading good notes....most times...without the home owners knowledge....

I would have never known had I not tried to refi...

In my case...my intrest dropped from 7.5 to 4.8....I knocked two years of payments off by going to a 20 year note...and my house payment dropped about 120 bucks a month...

For me it was a win...

I would definatly go with a credit union over a bank....you can get much better service and sometimes a credit union will help you out in personal ways no bank ever can or will...

( I once had a bad check passed to me....and my credit union covered my account until the matter was settled rather than bounce all the checks I had written)

The note on my rental is through Chase...

I have never had a problem with the service from either bank concerning the house accounts...and all my checking and consumer loans (credit cards ,auto, etc ) go through my credit union... I'm not a mortgage expert by any means...just an Electrician...so exercise due diligence.... My understanding is that with a good payment history and a decent credit score most places are still loaning money....and it's worth it if you can drop your payment AND the shorten term of the note at the same time... I figure I saved about 60k in intrest over the life of the current note vs the previous note... Hope this helps...