Crystal asked:


I will have the money to pay it but thats 2 weeks later. Thanks to my late husband, I have bad credit and can not get a loan. I have never filled bankrupsy and this home is refinanced.

ENRIQUE

mhunt3 asked:


I am trying to figure out if I should refinance my home. I currently have two mortgages on my home (an 80/20 loan). The 80% has an interest rate of 5.5% that is fixed until June 2010. At that point the interest rate will be variable. The 20% has a varialbe interest rate that is currently at 8.75%. The equity that I have in the home is minimal (assume 5%). There is a 75% chance that I will sell in two years, when the fixed interest rate becomes a variable interest rate. With interest rates so low, should I go ahead and refinance now to a standard 30 year mortgage even though there’s a good chance that I’ll be moving in two years?

CLIFF

Sun Refinance asked:


While most people do not want to refinance their home, there are occasions where it makes sense, but all other avenues should be explored first. There are situations where it makes sense and is the best move forward but that does not mean that you shouldn’t try for the best deal available.

 



Typically home refinancing is done when you have a mortgage on your home and apply for a second loan to pay off the first one. While taking the decision to go for the home refinancing option, it is important to first determine whether the amount you save on interests balances the amount of fees payable during refinancing.

Cash-out refinancing leaves you with additional cash above the amount needed to pay off your existing mortgage, closing costs, points and any mortgage liens. You may use the additional cash for any purpose.

A house is the largest asset you may ever own. Likewise, your mortgage payment may be the largest expense you’ll have in your monthly budget. Wouldn’t it be great to use this asset to reduce your monthly payment and put extra cash in your pocket? When you refinance your mortgage, you can take advantage of the equity in your home and enable this to take place.

Another advantage of home refinancing is that you can shorten the term of your mortgage. Let’s say, for example, that you originally had a 30-year mortgage and have been paying it for eight years. Thanks to mortgage refinancing, you can switch to a shorter term of either 10, 15 or 20 years. This can save you thousands of dollars of interest. Also, if the refinance rate is lower, but you maintain the same monthly payment, you will build up equity in your home more quickly, because more of your payment will be going towards principal.

Finally, homeowners can do all of their paperwork online and this is a very convenient point on the list of reasons why being able to refinance online is a great new tool. Most people today are just too busy to spend the time looking for a lender and then taking more time out to arrange the refinancing. Of course you will have to visit the lender at some stage to sign the refinancing home loan agreement but all the other laborious tasks have been completed from home. In some cases everything can be done over the internet so that the homeowner doesn’t have to visit a lender at all, which is in fact, becoming more of the norm for those who turn to the internet for refinancing.



TEDDY

lazydazy asked:


fdic took over bank/we have 90 days to refinance or they sell our loan with a balloon note due in dec. but they refinanced it every 3 yrs.when due after first year/we have paid on it for 4 yrs, it is an older trailor on a lot/contacted over 7 places including banks,credit unions,fdic,fed.programs/have been early on payment/what is going on?we owe no other bills/always early/fdic said it was best to refinance/can’t find a lender/what happens now?same job for over 16yr. with the state/nothing from ANB bank was reported to credit bureau so have no credit/saved all receipts and canceled checks/ bankruptcy 8yrs ago due to divorce but have paid everything early since/have checking and a little savings and retirement account/no credit cards/how can it be this way/thanks/any real help appreciated
it was appraised with the land for $28,000.00…the land is part of the note/there are so many people having to refinance here that nothing is available since the second largest bank in ar. failed…..no way to save this much before dec. but thanks
sorry, about the slash marks never done this before…I was trying to save space…won’t do this again…banks couldn’t give us other ideas….loan is totally due in dec. but were told they could ask for full amount in 3 months when sold….the bank failed so the fdic took over and will sell assets…loans are assets…thanks

ROLANDO

Jerry Parker asked:


There are so many different reasons why home owners want to refinance. A few would like to switch from higher interest rate to a lower interest rate, a few would like a fixed rate and others would like to tap on the equity of their house. No matter what that reason might be, keep in mind that making even the least possible change to your mortgage might have an effect on your current finance to a great extent.

It takes a large amount of research, consideration as well as time and hard work on your part on refinancing your mortgage. Despite the fact that there are several reasons to think about refinancing and that includes, to bring down your interest cost, modify from a variable rate mortgage to a fixed rate mortgage, otherwise to evade balloon payments, there is however, one vital piece of information you would like readily available ahead of you even submit an application. I would like you to inform you with reference to your credit score.

You can save a lot of time and energy by just knowing your credit score. Simply for the reason that your credit score, along with other things, will be what your lender will consider at the same time as determining whether to approve your loan or not. If you have a high credit rating, odds are that not only will you get the loan that you are eager for, but it will be one with the low interest that will make a new mortgage worth the cost of refinancing.

Financial institutions look out for people who will give them the least risk thus the difference in interest cost between different individuals. The better the income and clean credit report the lower the risk involved and so lower the interest rates. In contrast, a lower credit rating can make your condition to some extent stickier. That means, even if you convince, the loan officer to approve the loan, he will have no option but to approve your loan with a higher interest rate because of your lower credit score. This can hamper your very idea to save money by refinancing making it a worthless exercise. So, if a lower credit rating is what staring at you, do everything you can to increase it right away.

Scrutinize all those areas that are pulling your score down, now work on them by taking appropriate steps to reach your goal. For the time being, if you can’t get the new mortgage you need, make an effort save yourself some money. And did you know that by paying just an extra fifty-dollar a month which you can easily do towards the principal amount can trim a few years as well as a few thousand dollars off your mortgage. Besides, your search for refinancing your mortgage must at all time start with your credit score. Make all the right decisions so that you can live in peace with that new mortgage for the next few years.



LELAND

whiskeyman510 asked:


I am considering a home loan modification to reduce my interest rate (and thus my payment), but I was told by the mortgage company it has a negative affect on one’s credit score, but they couldn’t give me details.

I don’t want to refinance as I probably won’t remain in the house long enough to cover the closing costs.

My interest rate, while fixed, is high (7.5%). My credit score is good (740)

For anyone who has done this or is in the industry; any information is appreciated.

I am not behind at all on my payments, and not likely to be. I just feel 7.5% is way too high in today’s environment and I think I’m paying too much but don’t want the expense of a refi.

I posted this once before and only got 1 answer, so I’d like to get at least a couple of perspectives.

Thanks

EARNEST

KmmK asked:


How quickly after you buy a home should you/can you refinance if you have an 80/20 mortgage? How quickly can you get a home equity loan if you’ve done a ton of home improvements that have greatly increased the value of your home?

JORGE

Deee asked:


I want to refinance since the rates are low, do I have to only go through countrywide since they have my mortgage?? I want to take advantage of the low rates but I have no clue what to do now. Could I possibly go to another bank and refinance??

JEFFREY

Kristin Abouelata - Home Loans asked:


With the current “mortgage meltdown” we hear so much about these days, your average consumer thinks that the days of 100% financing have gone by the wayside. True, you are hard pressed these days to find a bank or lender that will want to carry a second mortgage that combined with a first mortgage adds up to 100% financing. That’s because if there is a default, sitting in second lien position is particularly dicey. Too much risk is involved. And since, in recent history, that scenario of the 80/20 combo was the most common 100% financing vehicle available to a certain group of consumers (non first time homebuyers), there’s a misconception out there that 100% options are all but dried up.

But, a-ha! There is hope for someone who has great credit but prefers to invest his/her assets elsewhere when rates are so low. It’s called the Flex 100. And it can apply to purchases and refinance transactions.

I heard an analyst mention on television the other day that mortgage money is so cheap right now it’s like a sale at Macy’s. That made me chuckle, but it’s true. In which case, why not invest your money elsewhere if you qualify for 100% financing. After all, the homes are still appreciating in most areas, but not at the stellar rate we saw in the past.

The Flex 100 requires you to invest $500 of your own cash towards the transaction, so I guess it’s technically not 100% financing, but it’s pretty darn close. And no, you don’t have to be buying your first home to get this deal. You can actually have owned a home in the past three years! However, it does apply to financing your primary residence only. You can’t get this deal for that nice cabin in Gatlinburg you want to use on the weekends or for that great rental down the street you think you can get a good deal on. You’ve got to live in the house to qualify for this financing.

But you can do a refinance, as long as it’s not a “cash-out,” meaning you’re not paying off debt or taking equity out of the property. It must be a rate term refinance only. However, you can pay off that second mortgage or home equity line of credit you hate, IF you obtained that 2nd lien mortgage when you got your first mortgage (a piggy back closing, we call it). Or to make it clearer, you originally had that 80/20 combo mentioned earlier. If you got that home equity mortgage a month or two after your initial closing to build a deck or payoff a credit card, than it that won’t work for a Flex 100 refinance.

What about your credit score? Well, it will affect the price you get, but there is no “minimum” credit score required for this program. You just have to get an approval through the automated underwriting system required. But be realistic – if you’ve got “iffy” credit, you probably won’t get an approval. A borrower with a credit score below a 620 would probably have to have a low loan to value or debt to income ratio for a chance of an approval.

A Flex 100 may or may not make sense for you. But hey, at least you know it’s an option. Your lender should be able to help you determine if this opportunity to flex your mortgage muscle makes sense for you.



ALI

Christen Scott asked:


Refinancing the home mortgage loan seems to be the best solution to escape from the troubles created by existing loan. But, it is not so in every case. People must consider many aspects before applying for Home Mortgage Refinance Loan.

It is not so that if you get refinance at lower interest rate then, you are going to save money and this would be the best financial solution. Lower interest may let you save some money but other expenses like home re-appraisal, attorney fees, and loan application fees add up to a lot of money. This way you may go into loss in spite of saving money.

To avoid this situation you must do some homework that is to search and compare the interest rate and other expenses. This is not enough to get best refinance loan, the most important thing is to compare the amount you would need to pay for your existing mortgage and the amount you will need to pay after refinancing including the hidden charges. If your refinance lets you save some money then you deserve this loan otherwise this would lead to overpaying in spite of saving some money.

To calculate refinancing amount many websites are available over internet with free mortgage refinance calculator. Here you can not only check whether refinancing would be better for you but you can also find how it will be good for you to repay the amount. You can check by entering different length of time and your amount that how much monthly installment you will have to pay for how long?

To get best deal with Home Mortgage Refinance Loan, you should also avoid overpaying by watching out retail markup. Mortgage company or brokers markup your interest rate to increase their revenue and they do not want you to know about this.  They do this because the wholesale lender pays them a bonus for overcharging you for your Home Mortgage Refinance Loan.

To avoid retail markup you must check the original loan rate guarantee from the wholesale lender, so that you can come to know about the actual rate of your refinance. If, the wholesale lender does not give the guarantee to check then you must do is to search for another lender. This way by being careful and checking all the aspects of Home Mortgage Refinance Loan you can make a smart decision and can borrow a smart refinancing loan.

EDWARD