Ok … I literally don’t have a great Knowledge in this Subject but I do want to find out regarding this Letter I receieved from one of the Agents …. incase its a light in the darkness for me.
I have received a letter which mentions these things …WHAT DOES THIS MEAN ????
you may refinance and possibly lock in a interest rate and get a good amount of cash from your home’s estimated available equity through exclusive fast track loan program, available to you as a select, qualified COUNTRYWIDE home loans customer ? On top of this you may also qualify for 1/2 point reduction in in the DISCOUNT POINTs on your NEXT HOME REFINANCE or Purchase Mortgage ..
MY PARENTs own this condo for last 4 years and they received this letter …….. is this for REAL ???
DO I HAVE ANY benifits out of this ????
Country Wide is being bought by Bank of America … so I don’t even know if all these is for real ….
Any experts can let me know ….. ???? what does that Sentence mean ??
ANDREA
KIETH
OK well there are a bunch of parts to that so I will do my best to provide some light to you on your journey.
To refinance your mortgage you are essentiall paying off the first mortgage with a new one. this can be done many ways either keeping the same loan terms or extending or shortening the term; all of these will raise or lower your payment.
Locking in a new rate can mean one of two things: the first being that the current mortgage is an ARM or adjustable rate mortgage where the loan is about to ratchet up to a new interest rate. or you are just in a position to be able to benefit from a lower interest rate due to the rate reductions of late. Basically it is trying to get the loan holder to get a new loan at a different and hopefully better rate.
Now the cashing out equity part is generally a bad idea as house values are going down and it will increase your debt which would be bad if all of a sudden you need to sell so in today’s market a home equity cash out is pretty much a bad thing, however having a home equity line of credit isnt so bad in case of emergency where you need to tap into some cash, have the line of credit but dont use it unless it is a real emergency.
Of course Countrywide is being bought by BoA but that doesn’t affect you or your parents. it just means somebody else owns countrywide.
The letter is probably for real but if you dont own the condo then you probably will not directly benefit from it. Your parents may be in a position to lower their payments or protect their loan but it is up to them to investigate based on their current loan terms.
hope that helps
Comment by StockTrdr — July 6, 2009 @ 8:55 pm
BOBBY
It is probably real, but if you dont own the condo, it is of no benefit to you.
Comment by godged — July 9, 2009 @ 10:48 am