You can go anywhere else to refinance. Being that you bought it a year ago, will the home appraise for enough to refinance?
you can take it anywhere you want. your local credit union probably will offer the lowest rate.
I just got of the phone with a lender. My current rate is lower than yours so it wasn't worth it but for you it might be. If have good credit, you have under a 80% loan to value ratio and depending on fees you might be able to make it worth while.
the upfront refinance costs (can be VERY high)
Reverse-amortization mortgages (or interest-only)
I'm sure there are others I'm not thinking of
For the most part, home loan loan refinance offer lower interest payments. Most people think this also translates to lower monthly payments. Unfortunately, that's not the case. You should be wary of additional and hidden charges. Source: http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html
The most important thing is that you understand fully the terms of the refinance. Make sure to read the documents carefully and to ask questions about anything that's not clear. Do not sign anything until you are satisfied that you understand what you're signing and what your obligations will be.
There are no surprises for those that do their homework. This means understanding the terms of the loan agreement you're entering into. Also, in the case of variable loans, it means understanding the economic and political situation in your country and it's impact to the index used to set your interest rate. Do not assume you know what some of the financial terms mean. For example, if you don't know what a margin is, then educate yourself.
For example: If you pay $3K in closing costs on a refi and your monthly payment goes down $100 per month it will take you 30 months to start saving money, i.e. the break even point. If you are going to be in your house for more than 30 months then it makes sense to refi. Plus the savings in decreased interest over the life of the loan.
Another example: If you have been paying on a 30 year loan for 10 years, lets say $165K at 5.5%, then you have already paid $112,422.22 in interest and principle payments and if you paid all 30 years you would pay a total of $337,266.67. If you can refi the remaining principal of $136192.64 to a 15 year loan at 5% interest your monthly payment would increase but the total you would pay for your house including the first loan and the refi would be $318,480.57, saving you about $19K over the original 30 year loan.
But, if you took the second example, and instead refinanced it into a new 30 year loan (again using 5% as an example), your monthly payment would go down, but your total loan payments for first loan and refi would actually come to $385,622.37, costing you about $50K more than sticking with your original loan.
I assumed for these examples that you plan to stay in your house for the life of the loan, if you plan to sell before your loan is up then you should do your own calculations to see whether you will save money or not.
I got these numbers using this calculator: http://www.bankrate.com/brm/mortgage-calculator.asp
It depends on how much your closing costs will be, how much lower your monthly payments will be and how long you plan to stay in the home.
For example, if your closing costs (minus taxes) are $1,500, and you can save $150 a month in interest and principal payments, you would have recouped the closing costs in 10 months - a pretty good scenario, if you don't plan to move in 10 months.
When you refinance your home mortgage, you can pay off your first mortgage, so you can decide anew on a shorter loan term that is more applicable to you. Also, many homeowners choose to do home refinance to get a more reasonable interest rate on their loan, or to pay off their first or second mortgage loans.
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Usually when the rate drops a full 1 1/2 percentage point.
If you're paying them, you get to choose them - so long as you don't choose an appraiser who is somehow a related party to the transaction.
And your friends houses appraising for the exact dollar amount needed to justify the loan as submitted is nothing unusual. Sometimes it's a number "manufactured" to make clients happy - stay away from those appraisers. Sometimes it's an appraiser who could get more value, but sees no reason why they should work harder than they have to, or assume more liability
Most of the time the bank or mortgage company has adjusters that they use. You will have to ask the company that you are refinancing with.
The bank is the one that relies on the data and they use the appraiser of their choice. It is done with the computer, there should not be a wide variance.
Refi companies typically have a list of appraisers they will accept appraisals from.
Typically the bank or mortgage broker chooses the appraiser since they are the one's risking money to do the refinance. Some lenders do have a list of approved appraisers though. Check with your broker to see if your appraiser is on their list and you may be able to use them.
Appraisals for refinances are often different than for purchases. We had a similar situation. Unfortunately we were not allowed to choose our appraiser either. If you have the choice NOT to refinance at this time, perhaps you shouldn't. In many places in the country people in the industry are trigger shy. Perhaps that might get better in a few years?
I don’t think you can choose your appraiser due to conflict of interest concerns, but you might be confused about the appraiser’s function. Their job is to come out and make sure the house is worth as much as the amount you’re paying; that’s not to say it couldn’t be worth more.
I just bought a house that’s worth about $160K. My appraisal says my house is worth $140K, which is what I paid. If I paid $150K, the appraisal would be for $150K. That’s why your friends appraisals are matching to the prices they paid.
The appraiser is supposed to come in and make sure the collateral (the house) is worth as much as your loan. Should you default on your loan or chose to sell, the owner of your mortgage wants to be sure they can recoup what they are owed. If you’re trying to pay $225K for a house only worth $200K, the appraiser is doing you and the loan company a big financial favor by telling you so. Would you rather overpay, and end up upside down in your house?
no, the bank will choose the appraiser or have a list of approved vendors they select from.
Generally not. Most lenders prefer to let a vendor randomly select the appraiser. This gives them the most unbiased opinion of the value.
Appraisers tend to stop at the value expected, rather than go beyond that. If the purchase price or cst's estimated value is $100,000, they stop as soon as they reach $100,000.
if you use a broker....then maybe...if they're 'blacklisted' then you can never use them
if you use a bank or direct lender then they will use their own appraiser...and there's not questions about that
I see someone mentioned loan modification and that's only to prevent foreclosure not to refinance. I would say refi unless you have a large prepayment penalty and you plan to stay in the home.
As for closing costs the only out of pocket expense you should have is for the home appraisal and it's averaging $300.
Hope this helps.
Do you mean it will adjust in Nov 2009? Otherwise it has already adjusted.
I don't like to guess about the future, I am usually wrong. If 5.125% is affordable and makes sense, then do so now. Closing costs are negotiable.
If you wait, they could go up or you might have other issues making obtaining a loan more difficult.
nooooooooooooo don't do that.. now there is a thing called a modification you should research a little more about it butit's alot better than refinancing and chaper and your home payment decreases
Yeah, I would lock a low rate in. If we see hyperinflation, interest rates will skyrocket.
Go to a local bank and take out a fixed rate fully amortized 2nd mortgage. They don't charge any fees for this.
Leave your money in your 401k earning a nice rate of return.
Make extra payments on the 2nd mortgage when possible to pay it off earlier.
Don't use your credit cards after you consolidate!
There's some really good advice here. With that kind of equity in your home, you should really have some give a mortgage analysis for you.
You are certainly on track by looking to consolidate your bills and let your home do the work for you.
Definitely leave the 401k alone. I can show you a couple of different ways where you can keep everything the same, but by restructuring your debt, you can set yourself up for retirment.
Feel free to contact me at casey.x.casperson@chase.com.
Or you can check out my site at caseycasperson.com
Ditech.com. Debt Relief Consultants.
You should be able to get a second mortgage which would probably be lower than any payment plan in which you don't even have to touch your first mortgage and keep that good rate. You definitely have enough equity to do so.
I would leave your 401K alone. You should only tap into that for emergencies. Sounds like a home equity loan might be the best route for you. The interest is tax deductable too. Be careful to not get into debt again. Not sure what you mean by a payment plan. If you can set up a schedule and stick to it that would be an option depending on the interest rate. If the Home Equity rate is less that would be better.
Be careful of those debt services too. They can actually make your credit worse by following their payment schedules. You get out of debt but end up with bad credit.
A home equity line of credit would make the most sense. I just had this same scenario and after much research and my CPA this is what I did. Borrowing on the 401k is a definite no no-don't even go there. Refinancing would commit a large amount or all of your equity along with high closing costs, points, and little flexibility on payback terms and amount borrowed.
Home equity line is being offered from competitive lenders at prime + 0% with no closing costs. You can borrow as little or as much of the total line when you want and pay it back over flexible terms without refinancing large amount at now higher than your current rate. Refi your prob looking at 6.5% ballpark with closing costs and all negatives above vs prime (8%) with much greater flexibility and save the difference by no closing costs.
I just did it myself and happy about my decision. Good luck!
All most all lender is do bank statements as full doc.
The big question is how the credit? You stated 563 FICO score, but what about the payment history? If you have no late mortgage payments the better off you are.
This is not going to happen Ann. You are at least going to need tax returns for income, not "bank statements". You are also going to need some serious equity, your client obviously has some trouble with repaying their debts.
Chances are good that such a firm would be named "Vido The Street Corner Loan Shark." Seek, and ye shall probably NOT find.
go to Lendingtree.com
you'll need a broker to get banks to compete for your business. This way they'll run his credit once, and show prospective banks to see who bights.
if you go to individual banks, every bank will run credit and each time a credit report is ran, it takes a big hit on your score.
maybe this company will be able to help citifiancial
AS with anything, I believe that if you look hard enough you will find someone who can give you what you want. The bigger question is what will it cost you.
If you are looking for a stated income loan (showing only bank statements) with a credit score of 563 you will have a narrow group of companies or individuals who will lend to you. The street name for the type of loan you are looking for is "liar's loan". The proper name is stated income.
What you may find is that someone is willing to take th chance on lending to you, but the interest rate may not be something you can afford. You very well, in this market and with that credit score, end up paying in the mid to high double digits in an interest rate. Remember, always look at what the payment will be and truly judge if you can afford that. The rule of thumb is that no more than 30% of your income should go to housing. Therefore if you make $40,000 per year you should pay no more than 12,000 per year total on a house ($1,000 per month).
If you have a huge amount of credit card debt or other major payments (for example 2 car payments which take a huge chunk out of your monthly income) then you will need to lower the amount you can put toward a house to live comfortably.
Good Luck!
Reality check the trailer is virtually worth nothing no matter that is is your home and you love it.
It is on a rented lot making it even worse as far as value.
You will not be getting a loan. It is hard enough to finance a new trailer let alone one with no value. Sorry
You may still owe 6,500 on the home but the value is $0 and you will not get a loan.
As you probably know by now there are very, very few lenders who will finance a trailer.
Do not send th people who would spam your question one dime for a loan you will never get.
It's extremely important to understand that with a little time and the right approach getting the absolute best mortgage refinancing is not a huge problem.Companies/businesses that arrange financial products of this natureenter into some research and groundwork on your own because the Internet can equip you with an absolute pot of gold of very helpful data when it is essential that you get the best mortgage refinancing.
I am thinking no bank will touch it because the actual value is not there. If your credit score is less than say 675 you dont have a chance.
You might try going to lendingtree.com fill out the form and if there is anyone out there that is interested in making the loan, they will be calling you.
Good Luck
go see a mortgage broker.
also, order yourself a credit report to see what your credit score is. 720 (or above) is the best, and will ensure you get the best rate.
in the meantime, pay off as much debt as you can.
Yes! Try using one of these companies to help improve your credit score. You have to pay, but if you are having trouble it's well worth the money in interest savings. You get what you pay for in the end so don't skimp on it. Good luck!
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your % rate on your loan is determined by your credit score. there are three credit burrows that they look at and they take the mid score usually. Also your DTI (debt to income) will also take a factor in it. most lenders like you to be under 50% not including your mortgage payment, just other ones like car, credit, ext... If you would like to feel free to give my husband a call or shot him an email. His name is Paul. he is a mortgage broker and would answer any questions you may have.
360-241-8970 Paul
financialevolution@comcast.net
It has a lot to do with your credit and debt but if you credit is really good, you debt doesn't matter so much. The property is the thing looked at the hardest right now because of inflated appraisals effecting the foreclosure rate. Contact who you have your current mortgage or a mortgage bank not a broker. I work for HomeLoan USA in the corporate office and we have branches in 40 states so you look for one of branches. I don't profit from this, I am only suggesting because at the corporate level we make sure our branches don't overcharge the customers because we have a predatory lending policy. Anyway, good luck :-)
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The answer will depend on your circumstances. Your best course is to do your own research, get several quotes and do not let anyone pressure you into a plan that you are not happy with. It sounds like you have several possible options, so be choosy!
This website has a useful article about just this topic. I hope it will help you.
Good luck!
There is some useful advice here.
Different companies have different offerings. It's always best to look around and compare these home loan loan refinance offerings before making a decision. Here's to get your started: http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html.
Cheers
If your mortgage interest is still sufficiently high that you're reporting it on Schedule A then a HELOC would probably be the right answer. However, the first thing to do is work out repayment terms with the doctor and hospital and see what your insurance will cover (a $200K+ house suggests you likely have a job that provides insurance).
i would probably take the home equity line of credit.
if you refinance, you're typically looking at a 30 year mortgage - though some of them will look at a 15 year one.
take the line of credit for as little as you can (so the $20K you need, but not more), and then make payments to it.
refinancing in this market isn't very safe right now. because the bank you refinance with may not be the one that continues to carry your loan.
a recommendation - you might want to look into BECU, if you can join it - i know in WA state, anyone can join, but i don't know where you are.
It probably makes sense for you to do a refinance if you're pretty certain about staying in the home for 5-8 years. You'll save almost a full percent interest on the $125k loan balance, plus the extra $20k that you borrow will be at the 5.0% rate also. If you take a HELOC you'll probably pay closer to 7% on the extra $20k. The interest you save will probably make up for the closing costs before you move.
Although, before you borrow against your home, I would suggest you talk to the medical provider about setting up payments on the medical bills. Medical bills are typically interest free if you set up payments. That way you don't set yourself back on paying off your house.
Talk to your lender and see if you can refinance without paying any fees. If they want to charge you then go with the equity loan.
A sign out front that reads..."Bank", "Savings and Loan" or "Credit Union". If it says something like "Mortgage Company"... run away. ... fast...
Read the fine print...Do Not get an adjustable rate mortgage...don't be another sucker
My second mortgage balance is $94,000.00 with a adjustable payment currently at $786.00 per month.
The appraised value of my home has dropped from $845,000 to $730,000 in one year. What can I do?
First, stop making less than the full interest payments. You are only digging a deeper hole adding interest to your principal balance.
Secondly, what is your credit like? Are you trying to lower your payments? If your 2nd mortgage company will agree, you may be able to refinance just your first mortgage into a low fixed rate. Otherwise, call both lenders if you are having trouble making payments and see what they can work out with you.
Are you in Las Vegas?
Not a thing, your in the same boat as many people due to the real estate and mortgage market. I would never advise anyone on an "adustable rate" anything. If you can't do afford a "fixed" rate, you can't afford it . Call a reliable debt counselling service.
GENERAL QUESTION: WHO "NEEDS" A $730,000 HOME? Also if you just "WANT" one....pay cash.
What can you do? Basically nothing except wait for home values in your area to go up again or find a way to pay off your second asap and refinance your first mortgage.
If you have a home that is that expensive, you certainly have corners you could cut in other areas (less expensive car, rent out a room or two, etc) in order to pay off your second and get that albatross off your back.
Appraisals are an opinion of value. You may want to get a second appraisal. If it can be shown that you have at least 20% equity in your home then you may be qualified to drop the mortgage insurance provided to your lender. This should drop you monthly payment.
Unless your income warrants such a house, get out from under it.
add trees or cut your losses before they get any worse........
Welcome to the club. (you must live in California) You won't be able to refinance because of the drop in value. Save your money, don't get another appraisal. At this point you have no choice but to ride out the next couple of years and wait for the market to go back up...which it will. Other choices would be to try and sell the home just to break even or you can declare bankruptcy or you can walk from the home and give the bank a deed in liu...both will ruin your credit for at least 2-4 years.
If you can afford a payment like that you can probably afford an accountant
I am amazed at how some one can afford a house payment like that IE have a good income and ask such a stupid question. You are upside down you can not move with out losing your shirt yea you have have to pay some one to move or buy your home.
Since the bank has screwed you i would pay the least amount possible and save and hide the rest, you will need that money since it will cost you big time to walk away after you go bankrupt, do not worry that adjustable will kick in big time and soon.
Also i would buy a fire proof safe and hope you have bad wiring and a fire burns down every thing, the funny thing there is your insurance will still only cover the appraised Value and you still have to pay the mortgage off.
Best of luck you will need it.
As long as you are comparing apples with apples and oranges with oranges.
If you go to an adjustable from a fixed, the rate will drop, but in the long term, the amount of interest may go up. It also depends on whether you go from a 30 (monthly) loan to a 22 year loan (paid bi-weekly).
Also, beware that you should compare where you are in the payment schedule on your current loan.
Yes, most of your payment goes to interest. Lower the interest rate and your payment will be less.
You can refi for a lower interest rate with a shorter term and end up with about the same payment but it will be paid off faster
Yes it will lower your payments, but be sure to get a fixed rate. Also keep in mind how much less is the interest's rate. A lot of the times when you re-finance you will pay fees
( closing or process fees, which ever you want to call them) and it may take a year or two to recoup those fees with the lower payment. It depends on the size of the loan.
for example if the new payment saves you 100.00 a month and your process fees are $3000.00 it will take you 30 months before you really save anything. Also if you decide to move in that same time period you didn't save a dime.
Not exactly. You may end up paying more because of additional charges. Check out http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html
if you want to know more.
Yes, if you are talking about a refinance that gives you the exact same type of mortgage - i.e. 30 year fixed at 7.0% refinance into a 30 year fixed at 6.30%.
In theory, yes.
In reality, maybe.
Every loan has closing costs. If these are added to the principle of the loan, then you could have a lower rate of interest, but have a higher payment because the loan was bigger. Sometimes, the closing costs are inflated as well, so you are paying more for the loan than you should be.
If I were you, I would sit down with your financial planner and analyse the whole picture before I made a decision. If you don't have a financial planner, you can go to any of the big banks, perhaps the one you have your checking account in, and talk to them about the advisability of refinancing in your particular situation.
Mortgage brokers are good at what they do, in that they get mortgages done, and they make the terms look easy, but they are paid to get loans done, not to advise you.
If you aren't comfortable with a bank, you can also talk to an accountant, or a tax preparer, not H&R block, but one who is schooled in accounting, but not necessarily a CPA.
Good Luck
1. I have $30k in credit card debt.
2. I have a 1st mortgage for $200k (4%) and a Home Equity line of $170k (at prime rate) with no additional credit available.
3. I am buying another house at the end of April.
Would I be better off refinancing my Home Equity and Credit Cards into a new Home Equity loan, or just stick with it as is?
I have heard that I may be able to get better rates on my loan for my new house if I refinance. Could this be true?
Thoughts? Opinions? Alternatives?
You don't mention how much equity you have left in the home, but lets assume you have some equity. You would not want to "max out" your equity. Save at least 5-10% since you are going to be buying another home soon. Now if you have equity left to refinance your equity loan & pay down some credit cards, by all means do so. To best improve your credit score, pay off what you can, but at least reduce each credit card so that you have some available credit if any are at or near their limits. These are important factors in credit scoring and will get you a better rate on your new home. Its best not to close the cards that you pay off. Having that available credit will help your score. Close the cards after you secure your new home loan. Good luck!
Save as much equity as you can. With recent fed rate cuts now is the time to refinance your equity loan. Protect your credit score and credit standing. Cut credit cards you don’t really need. Keep one for emergencies and another for daily use.
http://refinanceloanrates.fimark.net/ http://answers.yahoo.com/question/accuse_write?qid=1005121401867&kid=NbUvWDK_VzlOjTkH6ksJ&s=comm&date=2008-01-29+11%3A27%3A10&.crumb=
Buying another home with a HELOC of $170K is a bit risky. If you are doing this for investment purposes, be sure you can cover your new mortgage / taxes / monthly maintenance. That said, consolidating your credit card debt is a good idea ONLY if you are willing to cut up all of your credit cards and never use them again. Learn to pay cash before you leverage yourself with debt through owning 2 homes, a HELOC, and credit cards.
http://www.CreditCardHelpDesk.com will help answer this question for you.
Lots of good free info.
I wouldnt do either. If you put that money on your house and something happens and you cant make the payments. You will lose your house.
The goal here is to pay off your house not add to the debt.
If you get an equity loan you will have two payments each month, one for your regular mortgage, and the other for the equity loan. Refinancing may mean a different interest rate, so be careful and investigate the rates on the new loan. If you need cash and can pay back the equity loan fast, it may be cheaper since banks don't usually charge closing costs on equity lines of credit. The equity line also lets you "loan" yourself only what you need when you write a check on that account. You can pay that back before you borrow more for something else. Refinancing will give you the total cash out in a lump, and you will have to pay it back over the entire life of the mortgage.
Yes, b/c that person has to credit qualify in order to be on it.
Why would you want to do that without a refi? It would not lower your rate. If you just want them on the deed then just add their name, but if you want them on the mortgage you might think of a good reason to do so other than just because.
because the loan was secured by real estate it is technically a mortgage. If you do refinance you will be looking at a either a new conventional mortgage or a new home equity loan.
You can refinance a home equity loan. 5.85 seem like a very low rate as it is for a home equity though.
what your current rate is, what your new rate and term would be.
what are the advantages to refinancing your home now??
are you trying to get out of an Adjustable rate?
are you trying to consolidate debt?
going for a lower interest rate?
what will your new payment be and will that be an ammortizing payment- as in make sure your not getting put into a sucker loan that a lenders just recommending to you because they know they can make a lot of money on it.
need help hollar at me!
If you have a pre payment penalty is the main thing.
Banks will often time give you an appraisal for 125% of the homes actual market value on a refinance loan so be aware that your home may not be worth what the banks appraisal says it is. That high appraisal gives the bank the ability to make the loan work and it "seems" more attractive to a home owner in many instances.
If you have equity, how is your credit, what is your annual income...just to name a few
You should know the interest rate offered by the company as well as the period of time that you will be given to pay for it. This will help you compare interest rates and get a loan that would help you save more money. Source: http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html
I would not re-fi your car loan until after you get the house done, It will look like your financially struggling to the new lender. Also, if that is the case and you are only re-financing your house you already have, I would roll your car payment into your house loan, that way the interest you are paying to the car is now tax deductible. Good question
Hope you get your loans with a great interest.
Stay away from Amortized loan and get you a strait fixed rate. It is your safest bet.
Tracylyn S
I live in the city of Norwalk California, close to Riverside, Los Angeles and Orange County any questions regarding loans just let me know It would be a pleasure to help you with any
usually no. if your balance is small on the car, then still no. look, if you refinance both, you are consolodating?this means your principle will be eaten away much slower on the home side. so if you add $3000 to that balance, youll pay more.
now if your car fees are high, and you do the math and the cost per month increase is nice, then by all means.just beware, you can turn a mole hill into a mountain.
bright side, got along time to climb it.
Talk to your loan officer! A new car loan will effect your credit rating. It is likely that a new car loan will nix any chance for a home loan.
It should have very little impact.
I hope you are doing this to get a lower rate or payment?
When you get your home loan, borrow enough money to pay your car loan. This way, all your interest in tax deductible. (interest on car loans are not tax deductible)
If the loan is that small, its unlikely that you're going to able to refinace profitably. The fixed fees spread out over such a small loan will make it uneconomical. tba
It can be challenging to refi in the Detroit area today, mainly because property values are down significantly - but it can be done. However, as the poster above indicates, with a loan that small, it's not likely that you'll be able to refinance in a manner that will make economic sense. Even a significant reduction in the rate won't add up to a huge difference in the monthly payment, and the costs to close it (1,500+) will be tough to recover. And with a loan that small, you're not likely to find a no-cost or low-cost loan.
Forget the economy and interest rates in general. The question is, what's best for you? Compare the two scenarios, overall costs of a refi verses the home improvement loan. If you are lowering your first mortgage rate at the same time you take cash out, usually that's the winner. I'd have to have details to make a call but it's your details I need, not the economy or who won the super bowl. If you need more info, send me an email.
Just make sure whichever you choose to make sure it is a fixed rate. With the home equity, you can pay off or consolidate other bills and put it under your home interest to take off at the end of the year with deductions. Refinancing at a lower rate would be ideal
This depends on the conditions of the home loan. If one can make extra repayments without penalty then the lower interest rate is better. The only positive of equity loan one can borrow up to the equity of the property ie if in the future one needs more money its easier to access the cash without having to refinance. The decision is depends what one future plans are! The big downside of an equity loan is the temptation of being to be able to get more cash on a whim.
why not do both!
Seriously... you can refinance at a lower rate... lock it in, and maybe leverage some of your equity at the same time.
re-fi at lower rate,with cash out for add-on,if you can qualify...I heard equity lines were all frozen ,without alot of media coverage,untill the banks review write-downs...
home equailty lone
I think a home equity interest rate would be higher. But it would depend on how long you borrow the $ for.
Read how your interst is charged and any hidden lines about credit rating and interest rates as well. Fixed rate mortages are usually the best as ARM are adjustable and can go to high in interest to ever pay.
how much equity do you have?
Edit: You only need about 3% after you roll in closing costs for an FHA loan.
If your score is 620+ you should get a rate in the low 5s on 30 yr fixed
I doubt you will get it unless you owe very little against value. But I have been wrong before.
My friend the mortgage broker said that 5 of the major mortgage banks are only approving people with scores of 800 or better.
Which is why gifting the banks more money is not going to help our economy at all.
noneya is correct in this but if trying to go conforming then you will have hits to the rate with these scores as Fannie just announced some changes today as to scores and loan to value
I am a mortgage banker in TN & KY
unless you have like 30% equity. i think you will have to pay a high raye.
Once your house comes off MLS your good. It usually takes 30 days.
It will vary from lender to lender. US National and National Pacific will both refinance a borrower immediately after the listing has been lcosed.
Depends on the lender. Countrywide requires the home to be off the market 6 six months, Exceptions are made based on Ltv, Reserves, and Outstanding credit.
Countrywide2008
It probably depends on the lender, but I was bombarded with refinace offers within a month after I bought my house.
90 days is the standard if you had your house on sale in the MLS and you decided to refinance instead of selling the answer is 90 days
Do you mean the home was on the "market" (in MLS?)...most lenders want at least 30 days from the time it was removed from the MLS....each lender will vary...these days, a re-fi is much harder to get.....
Do you mean you were trying to sell your house, and it's no longer for sale?
The lender I work for only requires one day off the market.
1 day for rate term finance
and cash out can be up to 6months.
it really depends on the lender and Loan-to-Value
First you did not mention what your rate is right now - on a VA loan - the rates are very good. But since you just got your loan, you should have gotten a good rate? Did you? You will have closing cost again associated with your loan - that will be rolled into your new loan - and you will be financing that amount, which will not save your much money unless you get a interest rate at a fixed for 30 years and 1 point lower....than what your rate is now. You can always ask the person, what rate they are offering you, get it in a approval letter.... What is your payment now ? Add 4,000 to your loan amount now for closing cost - That is just an estimate ok. Go to any web site out here, or go to mine, and put in the loan amount, 360 months (or 30 years) put in a 6 rate and see if you are saving any money...
VA Loan Information: Visit the home page of the VA. http://www.va.gov/
http://www.vamortgagecenter.com/
The VA has increased their loan limits! The maximum loan amount in most cases is $417,000. The VA also offers some advantages over conventional loans:
Other benefits of a VA Loan:
1. No Down Payment required at closing
2. Lower closing costs than conventional loans
3. No prepayment penalty if you pay off your VA loan early
4. No monthly Private Mortgage Insurance payment
5. The lender is willing to negotiate your interest rate
GOING TO THIS SITE, IS A MUST: http://www.homeloans.va.gov/veteran.htm
yes it is OK to refinance if you really see benefits from your new refinancing like lower monthly payment or big difference in the new inter es rate. consider this, that you will pay new closing cost and even interest rate will be smaller (0.25%-0.50%) , but you can end up with the same payment and bigger loan amount. ( you can roll your closing cost in the new loan amount).
Hi I'm a Real Estate agent in Orange County,CA
feel free to give me a call,my toll free number is (866) 825-9618
California Home Realty
NO,of course not your property hasn't even gained equity yet and plus you would have to pay prepayment penalties since it's less that two years.Were talking around six months of interest that you would pay for penalties.
Depends on your current note. Is there any kind of prepayment penalty? Dont believe everything you hear. They will say you can get a 1% interest rate too. Do you believe that? Do you think that would be a good choice if they could somehow make it happen? You have to look at what the consequences would be later.
it would be ok, always go for the better deal if you can....watch for pre payment pent....you can call me directly if you have more questions. 814-532-6012 D'ona
You sound like the posterchild for the Overindulgent American. Why did you get into such a predicament? The only reason that would be satifactory is if you had medical bills. You are in real trouble with all that credit card debt! Try to pay that off as soon as possible. Start working full time. And go to the following link and find suitable non-profit debt consolidation service to help you get out of debt most efficently. Shop around.
If your home loan was taken out at a time when finances were better for you, chances are you will not be able to get a better deal now, if any.
I am afraid if they do a refi for you, rates will be awful.
You could of course lie, which I think many people do. Greedy mortgage brokers are always filling out mortgage applications with BS info.
btw - mortgage brokers love to place your kind of loan, because if they can swing a deal it is usually padded with plenty of extra profit for all involved.
What is your income? We need more info than this. If you can afford a higher mortgage monthly go for it.
Mortgage refinance of a property is quite hassle free and usually a good idea to save money.Borrowers who find it difficult to meet their repayment obligations due to financial constraints opt for refinancing their property.
http://worldbestloans.com/Mortgage%20Loan.htm
There are various repayment options that can be chosen by borrowers and lenders mutually.
Sell the house.
Buy a cheaper property cash.
Pocket the difference.
Cha Ching!
Not enough info. Why do you want to refi? What is your objective?
Hi there..
I agree that these are very good wquestions...as a broker these have to be some of my most common questions asked...
Here's to answer the main question...
A home equity line of credit, and a full refinance are 2 completely different things..
A HELOC (Line of credit) is simply a loan that shows up as a lien on your property..(similar to a mortgage) Unfortunately it is not a mortgage... A HELOC is a giant CREDIT CARD secured by your house... On your credit report a mortgage shows as a real estate debt.. A HELOC shows as a REVOLVING DEBT (same as a credit card)....Also a home equity is a 2nd lien position to your first mortgage...(which makes it much more of a risk)
A refinance is borrowing a new loan to pay off your existing home loan, personal debts, car loans, credit cards, do improvements, etc... Many things!! The thing is in a new refinance, you are simply re establishing a new first mortgage (which will be a REAL ESTATE DEBT)
A 1st mortgage has much less risk to a lender, and also is MUCH MUCH BETTER for your credit!!!
Now a days almost every LARGE bank in america tries to SELL (keyword sell)... HELOC'S to their cliend\ts because they can make alot more money form them...
You will see commercials saying low or no cost HELOC'S... Lets face it, its 2006, and nothing in life is free anymore... You pay for what you get.... If you are going to do a loan from a lending organization for NO COST.. there's a catch...
here it is... in the last 3 years the prime rate on a home equity line of credit (heloc) has went from 4%..to a staggering 8.25%!!!!! Th unfortunate thing is it is still rising!!!!
People that got a HELOC 3 years ago saw their payments more then triple in the recent year!!!
THIS IS WHY I SUGGEST TO STAY FAR FAR AWAY FROM HELOC'S!!!!!
Here's what i would suggest..
You do what is called a CASH OUT REFINANCE... you can take out cash to pay off your brother... You will now have a new mortgage with a new monthly payment...
Now as you were saying you will get the lump sum from the sale of your condo... WHen that time comes (which you have no idea when) you take the lump sum, and pay off most of the mortgage...
Now if you leave it at that, then you are right..YOUR MORTGAGE PAYMENT STAYS THE SAME..YOU JUST WILL BE ALMOST PAID OFF IN FULL~~~
What you can do then if you want a lower payment is refinance again, and extend your term..(although i wouldn't advise that unless you NEED a lower payment)
The reason i wouldn't advise htat is because as im sure you realize, the longer you finance something the more interest you pay... Sometimes though, it is inevitable that you HAVE TO PAY THE INTEREST IN ORDER TO HAVE AN AFFORDABLE PAYMENT...
It would pretty much be up to what you can comfortably afford at the time, and you would have to decide whether to do a new mortgage for 10, 15, 20, or 30 years..(the less years the lower the payment)
My name is Jason Fry, I am a licensed mortgage loan officet for Providential Bancorp.. I hope this information is helpful, and i would also be hapy to assist you further if need be..
Being you are asking the question here, i assume you dont have a broker you normally deal with..(or trust for that matter)
I would be happy to step in and assist you with your financing... I have been in the business for 8 years, and i have the knowledge and experience to find you the best options...
Feel free to give me a call if you have more questions, concerns, or would like to do a refinance.. My direct line is 312-264-6448, and you can email me at jasonf@providential.com...
My company is nationwide, so i am licensed to originate in all states!
Thanks for reading, and good luck to you!
Jason Fry
Senior Mortgage Specialist
Providential Bancorp
312-264-6448
it would be considered a new mortgage or refinance. With a home equity loan, you usually keep the original loan and have another loan based on the equity in the home. In your case you are paying off the original loan (your brother) and starting over. As for the payments and lump sum thing... I'd assume your payments would be the same no matter what, just get paid off faster. It will depend on the terms of the mortgage company. Some have early pay off fees, etc. If you want lower payments after you pay the lump sum, you may need to refinance again. You need to discuss your options with a mortgage broker or such. They should be able to help you find the best options for your situation.
these are all very good questions, adn you should seek an expert on this to go over the entire situation.
go to lowermybills.com and put in your info and someone will call you to talk about it. i used them last year for a refinance adn it worked really well.
Since the money was originally borrowed from a family member this would be a first mortgage unless your brother has it registered at the courthouse that he is the lender. When you pay on the mortgage with the money you get from the sale of the condo your principal amount will go down. Your payment will remain the same.
If you now own the title for the new home, then you have the option of refinancing or taking out a home equity line.
If I may suggest a home equity line of credit (HELOC) Again if you own the title, then it should be easier and quicker for you to obtain a HELOC. It will also cost you less in fees intitially. You can make a lump sum payment with our worrying about pre-payment penalties. And, if you ever need to tap into the equity of your home, you won't have to go thru the process of getting a new loan.
6 months ago definatly good canditate for refinance but make sure you dont have a pre-payment penalty. If you do than a heloc or closed end second is your best avenue. If you refinance the entire home and cashout make sure you state is to consilidate bill or purchase a car. Dont tell them its for your brother in law because no one is likes to give money to the private. Also stayaway from online companies like lowerbills and lending tree just lead companies that sell your information for about 3 months and than you get calls for the next 5 years
If she has the income she can get a different mortgage and they will pay that one off. If her interest rate goes down and fees aren't high the payment could be less.
Hello, I am sorry about your grandmother and you are such a great daughter to help her out. You can get a free consultation at 310-755-5330 and they will help you with your situation.
God bless, maybe this is not a mere coincidence, I am just browsing and I found your question. God work in mysterious ways to help people.
I'd be more than happy to prequalify you and let you know exactly what is available to you. I also have a package that I can send you that will educate you on the process and even teach you how to shop around for the best mortgage.
Once I prequalify you, I will provide you with a Total Cost Analysis that will allow you to determine if it's worth refinancing or looking for alternatives.
You can email me casey.x.casperson@chase.com or visit my website caseycasperson.com
Talk to several lenders to get their input on costs, interest rates, etc.
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You can still qualify to buy your first home. Actually, if your parents were consistent with there mortgage payments you can even get something better than what first time buyers get on conventional loans.
There are three types of programs for first time buyers:
1. Down payment assistance programs form your local governments and charities. These are typically for low-income people or neighborhoods and can only go up to certain amounts
2. Government sponsored loan from lenders. These are FHA type loans that can be used along with down payment assistance loans. Again, these are limited in theire scope.
3. Conventional first time buyer loans. These are usually more flexible than government programs. they can go to 100% up to $1.1Million without having to qualify for any assistance. Not all lenders do these loans and they usually come with lower rates.
You, on the other hand, can qualify for loans that you normally wouldn't be able to because technically you are not a first time buyer. The loans that you can get will probably be better than you would have gotten otherwise.
Call me if you'd like to see how much you qualify for and what your payment would be. My phone number is 818-361-8585 (Just ask for Kevin)
I do notknow myself but if you call Aslam Ansari.He is the only person I use for mortgages.1 917 602-5942 tell him Tom gave you the number. He is very knowledgable .I hope it helps. Good luck
Is there a first time home loan you have found? It's states and counties who offer benefits for being a first time homebuyer in their area. Talk with your Loan Officer and have him/her contact one of their Title company contacts for an accurate explanation.
No.
Closing costs vary greatly by lender. There are some that are fixed figures, but the rest is tied to the loan amount.
Shop around a bit, ask for a truth in lending good faith estimate of closing costs. And don't stop there. Ask about transaction fees, pre-payment penalties, late fees - anything that could also cost you money down the line.
Make sure you are comparing apples to apples before you sign on the line.
HAHA, your Lucky to even have a loan especially the way the market it is.
An average figure would be meaningless. The cost depends on many factors, such as legal fees, stamps, title insurance, whether the loan includes points, prepayment penalty on the old loan, etc. You can ask for a complete breakdown of all costs before you sign anything. If any part is not clear, ask to have it clarified. Some items are required by law, some by the lender, and some may be optional. If the loan is for $50,000, the amount is too high. If it is for $500,000 it may be very reasonable.
Most of the refinance charges vary with the size of the loan. There are a lot of people that have to get paid, and not all of the closing costs are really "costs".
You have the bank charges, and these can vary from zero to 2% of the loan.
Then you have "prepaid" items, including interest to the end of the month, and the amount they want to hold in the escrow account to pay your taxes and insurance when due; these can be several thousand dollars, but that's still your money, even after closing.
Then you have the attorney fees, including the title search and title insurance, and filing in the Land Records, and probably plus the cost for the closer to send the docs back in the overnight mail.
Your credit score impacts the loan availability and the interest rate, it doesn't impact the closing costs so much.
I have a better solution! you have a great rate now! the cost to refinance now would be at least a few thousand dollars. instead make extra payments! below is a link to show you how making extra payments will effect your loan and what it will save you .
MAKE SURE WHEN MAKING EXTRA PAYMENTS YOU MAKE THEM WITH SEPARATE CHECKS MARKED ON SUBJECT LINE. .....( APPLY TO PRINCIPLE) this ensures you have a record of the extra payments and that the payments where to go to principle
Ey sup doug
Im not exactly sure what you looking for...
But I found this site below and from the looks of it I think it would be a lot of help...
anyways, gud luck doug
bi weekly realy usually only works out to one extra payment per year. and your mortgage company will usually charge you to set it up. best bet pay extra every month and on your coupon earmark it for principal. go to google and search for amaturization calculator it will show you how fast you will pay off your mortgae if you pay extra use it to help you decide what amount to pay extra.
Here's the type of calculator you are looking for
http://yourmortgage.com.au/calculators/repay_advanced/
Really it depends on the conditions of your loan. If you can increase your monthly payments, do, as this will be your best option, rather than paying extra to change your mortgage settings.
Hi there,
When it comes to refinancing a home equity loan you reall have to shop around to make sure you get the best deal. You your deciding on your option you make to make sure you get the following
*Competive Rate
*Lower you repayments
* Great Customer Service
You must not forget the last point, remember your the customer and the customer is always right !!!!
Give these guys a go, I think you will be pleasantly supprised
Yes, it is not uncommon. A home equity loan is a second mortgage, and the process is essentially the same as refinancing your primary mortgage.
Depending on your financial goals, you may want to consolidate your first and second mortgage into a single, low interest primary mortgage.
This can be beneficial since second mortgages (home equity loans, HELOCS, etc) always have higher rates than first mortgages.
However, if you are certain you want a new second mortgage, keep your credit clean, as second mortgage rates are heavily dependent on your credit score (even more so than first mortgages)
Feel free to check out my mortgage information site (no, it's not a sales site) http://www.mortgagemystery.com/ - it containts a good deal of useful information about every aspect of the loan process
you cannot refi if your house is currently listed on the MLS. Alot of lenders wont even let you refi within a year of it. I do have some relationships that will let me perform a refi 1 day off the MLS. But if you are looking to refi for spare cash while you are waiting to sell... I wouldnt recommend it. It is going to cost you about 10K of your equity, ride it out and get that thing sold.
Fatty is absolutely correct. You are better off selling as quick as you can.
fatty is correct!
good job fatty...!
also just a note----when you do get ready to refi...stay away from the internet sharks!
good luck
interest rate- loan type (fixed, adjustable, interest only)
know the benefit to you and the cost.
i know some people out there that will not tell you all the fee's or promise you the world, get you commited and make you believe that whatever they change, or fee's that come up that it is the only way for you to go and now your stuck.
if you want some help send me a message.
- copy your driver's license
- 2 year's W-2's, 2 month's bank stmts, 2 years tax returns
- home owner's insurance company info
- who to call to verify employment
- account #, 800# of mortgages being paid off
- copy of your Owner's Title Insurance policy. this will save you a couple hundred bucks.
Ist thing is to find out what type of loan program you will be needing. Several loan program require very little documents. If you have a Great Credit Score, you can go with a stated program and state your income and not hassle with tax returns, pay stubs, etc.
http://www.RefinanceHomeLoan.com http://answers.yahoo.com/question/accuse_write?qid=20061031132531AAcLQaI&kid=RZJLDXb9N21V5Edt_0Lt&s=comm&date=2007-06-18+18%3A40%3A01&.crumb=
Last 2 years of W2's
Last 2 paychecks
Bank statements from all banks
retirement statements if applicable
As far as the house itself, you usually dont need anything. They create the vesting documents on their own.
just last 2 years of w2's and most recent month paystubs...give me a call.1-800-766-5185. Ive been in the mortgage undustry for 20 years and could point you in the right direction.
taxes from the property and proof of insurance
if you want to know more.
It all depends on the difference in the value of the place and the amount owed on the loan - that is what's considered your equity. Many banks will only loan up to about 80% of the equity, but a few go higher. For example, lets say you owe $50,000, but the place is worth $60,000, then you have $10,000 in equity. Take 80% of that and you have about $8,000 you could loan against.
I found a great article about it on
It depends on if you go through a bank or mortgage company. Many mortgage companies are willing to turn it in as soon as the sale is final. Banks generally are more resistent in this type of thing.
If you already have a relationship with a lender then approach them and tell them what you want to do with the money. They will more than likely require an appraisal and make a decision based on your credit, income, debt and assets.
need to lower my monthly payments and i don't want them to raise during the time.
what to ask for?? where to go??
lending tree???
lending tree screwed me over big time
Go to a bank,
Wamu
BofA
Wells Fargo.
THe newest program is 30 year fixed with the first 10 years they only require an interest only payment.
Which is better? A home equity loan, or refinance our existing loan? Where do we start? What should we know? And what we should be careful of?
If you have a great rate on the first then leave it. It also depends on the size of your HEloan. Ask your broker or bank to compare the two and see what's in your best interest. A HELOC is very easy depending on your credit. If the credit is good then you should expect a no closing cost loan at about 5%
You can email with any other questions
