home lenders refinance mortgage

July 15, 2010

Finding the right FHA lender (in Texas)?

Filed under: Renting & Real Estate — Tags: , , , , , , , , , , — admin @ 11:10 am
Lori O asked:


My husband and I live just a bit north of Dallas, Tx. I’ve been told that different lenders require different things when it comes to requirements. My husband’s score is 586, and mine is roughly 650-700. He signed for his brother’s home but he hasn’t lived there in years, but his brother hasn’t refinanced (even after 2 years of asking) and the bank won’t take his name off without a refinance. I am worried about how this will affect us getting a home. I’ve heard some lenders will not include this in your debt-to-income if you can show that they have been paying for 12 months+ without help. His credit is almost blemish free for the past 2 years (more, but I’m not sure exactly how long) and all house payments have been made on time for the past 6 years. Does anyone know of a great FHA lender in Texas (preferably around Dallas, but will travel if we need to) that will not include the other house into the DTI?

Louise

July 14, 2010

Refinance vs Home Equity Loan

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 7:25 pm
J Suffie asked:




If you find yourself in need of a large sum of money for some reason, you may be considering using the equity in your home by either doing a cash-out refinance or getting a home equity loan in order to gain access to the money you need.

With the federal government beginning to slowly lower interest rates, you may be wondering if you should do a cash-out refinance in order to get that lower interest rate as well as gain access to the money you have in equity. This may be a tempting situation, but a lower interest rate is only one of the things that you should take into consideration.

When you refinance your home, you are taking out an entirely new mortgage. You use this new mortgage in order to pay off your original mortgage. In the case of a cash-out refinance, you borrow more on your home than the original mortgage balance, using your equity as collateral. You can then use the money left over after the refinance is completed to do anything you’d like. You can pay off credit cards, take a vacation, make home improvements, etc.

There are drawbacks to cash-out refinancing. First of all, your mortgage balance will be bigger and will most likely be extending your loan term. Mortgages are written with either 15 year or 30 year terms. If you only have 8 years before you pay off your mortgage, refinancing to even a 15 year mortgage is nearly doubling your loan term.

There are also considerable fees involved when you refinance. It would be worth your time, and sometimes a great deal of money, to find the best deal on fees that you can find.

With a home equity loan you are using the equity in your home as collateral on a loan. Home equity loans can be for a set amount or you can get a home equity line of credit, which is an open-ended loan that can be used just as you would use a credit card, keeping in mind that when you use that line of credit, you are using the equity in your home.

Home equity loans are easier to get than a refinance, especially if you have bad credit. The interest rate is also usually lower than a refinance, and the payments sometimes qualify as being tax deductible.

No matter whether you choose a cash-out refinance or a home equity loan, be sure to do some research on the companies you are considering working with. The best way to choose a good company to work with is to ask your friends, family and coworkers for recommendations. Ask not only about the process itself, but about how they were treated by the people they were working with. Were they rushed into decisions, or did they feel that they were given good information so that they could make the final decisions themselves? Remember that you are the customer, and when you are taking a large amount of money out against your home, you shouldn’t be rushed into anything.

Tommy

How to Refinance a Home Loan With Bad Credit

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 1:13 am
Julian Lim asked:




With proper research, people with bad credit who wanted to go for home refinancing can definitely locate a lender that can provide them the loan with favorable terms. Here is an article that you should go through if you are interested in acquiring such a loan.

When you have poor credit, acquiring a refinancing home loan will not be an easy task. However, if you do your homework properly, you can definitely locate the right lender who is willing to work with you closely to help you acquire the right refinancing option that can help you with your current financial situation.

Carry Out Your Research Online

With the convenience of the internet, you can now carry out your research online. Try to locate a lender that provide the refinancing home mortgage at terms favorable to you. You do not need to settle on the first lender you come across online. Remember, you are just carrying out your research and have no obligation to sign up with any yet. Get the quotes from a few lenders and compare their rates. Also look at the overall cost in acquiring such loan. Do all the proper calculation and make sure that the new loan you acquired will not require you to pay more than the current loan.

Call Up Or Proceed To Lenders’ Offices To Clarify

Once you have decided on at least 2-3 companies that provide the best options, you should call them up personally or go to their offices to finalize any doubts that you may have regarding the refinancing home mortgage options they offered. Remember not to sign up with any yet. Get the final quotations from all the companies you have listed and compare them. Once you have decided on the best lender, you can then go ahead to submit the necessary application form and documents. Most of the lenders these days allow you to do this online.

If you are one of those people with bad credit thinking that refinancing your home mortgage can help you out too, do not hesitate to do so. Acquiring one with terms better than your current one not only can help you to repay your new loan on time, it can also help you to improve your credit rating. By improving your credit standing, this will make it much easier for you to acquire any loan in the future because of an improved credit rating.

Eugene

July 12, 2010

Bankruptcy and Home Loan Refinance Options

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 3:53 pm
Nazimabee Woozeer asked:




Home loan refinance opportunities may be difficult to find if you have filed for bankruptcy. The loaning company may not be helpful in providing an adapted financial security for you case. You may need to look in to all available options in order to find a programme that will suit your financial status.

If the loaning company can help you out with your refinance programme, and there are no hidden clauses that may create financial obstacles, then this could be a solution for you. It is however, important you investigate all your options and if they are not favourable, avoid engaging in the refinance programme suggested by any given loaning company. Avoid all loaning companies that tend to be pushy; there may be some hidden clause that can create more problems than you already have. Why not consider changing the company, if the relationship with your previous one has gone stale.

There are many other options for refinancing, you will just have to do some research work amongst possible financing companies, which may be able to offer a more favourable plan for your particular case of bankruptcy. Financing companies usually offer better deals as far as interest rates are concerned, but it is still important to research all possibilities before choosing your bankruptcy home loan refinance program.

Whereas some refinancing programmes may seem ideal, for they may offer to lower your payments by extending the period of refund, giving you some breathing space, this is not always a good idea. By choosing this option you will stretch out your payments for a longer period, so it will probably take you another thirty or forty years to pay your loan off. This might not be the best solution, if you have been paying for more than five years already.

Do not let a bankruptcy disrupt your future for a refinancing home loan. Although many loaning companies can make it hard for you, by proposing exorbitant fees and interests, you can find an adapted home loan refinance option for your case. To help you make the right choice, it might be a good idea to contact a bankruptcy attorney, who can help you choose between the available home loan refinance options and even suggest others. It is always best to seek professional bankruptcy counseling, it can save you a lot of time and money and will secure you an easier future for the refund of your loan.

Francisco

July 10, 2010

Refinance Home Loan – House Refinancing Do’s and Don’ts Tips

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 11:01 am
Julian Lim asked:




Once you’ve made the decision to refinance home loan on your property, there are still some things that you should be aware of before signing on the dotted line. These simple steps can help save hundreds or even thousands on the final house refinancing loan that you obtain. Most of these tips are common sense ideas that apply to many financial transactions, but extra caution is appropriate when you are dealing with what too many borrowers may be one of the largest financial deals of the lifetime. The refinance in some instances is larger than the original mortgage loan on the home.

Do: Read the fine print

When you want to refinance home loan, just as with any loan, you should make certain that you read and understand the impact of the fine print in the loan documents. If you didn’t realize that you have agreed that the lender can adjust the mortgage upward after two years to match the price index, you could lose your home. If you are agreeing to a balloon payment and refinance yet again in 3 years, make certain that you know about it up front, not after the papers are signed or worse yet, when the balloon payment is due.

Do: Shop for the best rates

When you are looking to house refinancing loan, don’t assume that every lender will have the same rates and costs associated with those rates. It is important to look at the entire package. One lender may have lower rates, but require a balloon payment in six months or two years. Another lender may charge points or added closing costs to obtain the loan. You may not qualify for some programs when you apply at a lender. It is important though, that you don’t apply at numerous lenders at the same time, as this can work against you with bad marks on your credit score.

Don’t: Borrow more than you can afford

Especially in times of uncertain economy, getting a loan with variable or adjustable rates because you want a larger house or a better location is not a smart move. The same thing is true when you refinance home loan. Don’t borrow extra money, just because you can, thinking you will put it back for an emergency. Borrow only what you need with a goal of paying off debt rather than incurring new debt especially if you have nothing to show for the loan later.

Don’t: ignore the fees and closing costs

To refinance home loan can be a daunting process. It is important that you understand your obligations and benefits at each step of the process. Many borrowers are surprised when they find out how much obtaining the housing refinancing loan is costing them and that is before considering the cost of interest on the loan. Fees such as title insurance, document preparation, points, loan origination fees and other costs will inflate the cost of the loan significantly. Don’t spend the proceeds of cash out on your home loan until you have determined without a doubt what the proceeds will be.

Brenda

July 6, 2010

Foreclosure in California?

Filed under: Renting & Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 8:11 pm
yuri asked:


foreclosure in the State of: California

Like most people in California, I own a distressed home. Here are the facts:

>> I bought my condo in 2006 for $440K, paid 10% down. 80% mortgage, 10% HELOC
>> I later paid the original HELOC back, refinanced the home for a lower rate then got another 10% HELOC. Right now my Heloc is frozen and I have $28K balance on it that I am paying on interest-only basis.
>> Now the home value is around $300K

My wife and I just had a baby and we wanted to move to a bigger house with a better school district taking advantage of the market. I figured if I lost $140K on this condo and I can get a house for $200K discount, I would do cost averaging. Our loan broker told us that we can show that we can get rental income on our condo and qualify for a 600K loan which would allow us to get our house. All was well.

However, one day I did a what-if scenario and found out that if we are being conservative and not depending on the rental income, we can only afford a $500K home. In bay area, even with the current market, that does not buy you much.

Before giving up completely, I decided to see if I have other options. One thing is clear, the condo has to go. The question is how?

1. If I buy the second house and then walk away from the condo to let it foreclose, what happens? I have been reading about deficiency judgment. Does that allow the lenders to go after the new home or other assets? Is there any online resource you guys found valuable regarding these procedures?

2. If I pay back the 28K I owe on the HELOC, what are my chances of negotiating a deed in lieu of foreclosure with HSBC (my primary lender)?

3. Related to number 2, I had this idea of going to HSBC and laying out my entire plan to them. Currently, they are being pretty aggressive to attract some good mortgages. They are giving out 4.5% APR to conforming loans with LTV <= 80%. I could tell them about what I am planning to buy (an REO actually). Since my new house would be a bigger asset to them, I thought I could negotiate a deal with them to accept my condo as a burden to keep me as a customer. Does this sound crazy?

Any other options I have other than waiting for my income to come to a level that I can manage both properties OR waiting for the condo to increase in value so I can sell it (both of which are unlikely for the near future).

Thanks all!

Jeffery

July 4, 2010

Refinance Home Loan – Benefits You Do Not Know

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 3:56 pm
Alan Lim asked:




When the borrower on a home mortgage has come to a position where the terms of the original loan are unacceptable, or more expensive than they need be, given the current economic condition, the borrower sometimes chooses to refinance home loan. In this situation, the original loan is paid off and the loan is replaced with a new loan the terms of which can be similar or can be quite different. In many ways, a refinance loan is like a brand new loan obtained from scratch since the loan equity, appraised value and capacity to repay must be approved by the lender.

Smaller payments

When you decided to refinance home loan, you may be able to structure the loan in such a way as to receive payments that are smaller. This can be very beneficial if your goal is to tighten your belt due to a reduction in income. Sometimes those who are entering retirement years will desire to stay in the same home, but will be living on reduced income, so prefer to reduce expenses to match. Smaller payments on a refinance may be due to a better interest rate that can be gained. If interest rates have dropped enough to offset the refinance loan fees added to a new loan, you may be smart to refinance.

Longer repayment time

One of the benefits that can be arranged when you refinance home loan is taking longer to repay the debt. This is desirable if you want to obtain a larger loan in order to pull out some cash at the time of closing. It may be for the purpose of lowering your monthly payment. Spreading out the same size loan over more years means that the interest paid will be greater, but the payment made will be more manageable in size for the homeowner.

Fixed payment

Another benefit that many borrowers find when refinance home loan with a fixed rate option is that the repayment amount remains the same from month to month. If the proceeds from the home loan have been used to get cash out, it is likely to be cheaper than obtaining personal loans, or maxing out the balances on the credit cards. Once the loan is set, the payment amount remains the same from month to month throughout the course of the loan.

Pay off debts

When you receive cash out amount as part of the home loan refinance, there are many uses for the lump sum cash. You can pay off troublesome debts, particularly those with large interest rates. This will free up available cash for your living expenses or that you can apply to pay down other debts. A refinance can allow you to pay for future expenses as well, such as covering college tuition costs for yourself or for family members. You can use the funds to renovate or do major repairs on the home that you live in. You may even use the funds to take a long desired vacation or holiday trip.

Stacey
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