Mortgage Refinancing
Mortgage Refinancing questions and answers
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Q: mortgage refinancing.?
I refinanced 4 years ago for 15 yrs.Would I be better off refinancing for 30 yrs and paying more on my principal each month?
I am trying to free up cash flow. My monthly note , I pay every 2 weeks about 900.00 a month. I was jsut wondering if I am really benefiting with a 15 yr mortgage. Would paying extra on principal each month be just as good.
A: Check out: http://homerefinance1.blogspot.com They have good information on refinancing a mortgage and more.
http://homerefinance1.blogspot.com
Q: Mortgage Refinancing market: good or bad right now?
I am a soon to be college grad that is currently interviewing with Wells Fargo to become a Credit Manager in the Chicago land area. Is the mortgage refinancing market a strong place to start a career right now? Fill me in on your thoughts. If you could, please tell me if you are in mortgage refinancing business or not. Thanks , The more responses the better.
A: Any experience working in a bank (or mortgage company) is great experience for a life. To truly understand how the banking world works will equip you greatly into the future. ~ no matter how you start.
The larger banks in the USA (and other parts of the world too) have experienced big drops in their market positions because of the over lending to sub prime market. Interestingly, some of the smaller banks are doing really well with stock rises as they did not get involved in this over lending practice.
all the best to you ~ its' a great education no matter what
Q: Can a person on the title but not the mortgage stop me from refinancing?
I have a loan contract with a person on the title (individual property grant deed) in which the contract for the loan "shall continue until the property is sold". Even though I am not selling the property, I have offered a buyout amount for his 10% share and he is threatening to block any refinancing unless I meet his demand for a buyout amount. We differ on the appraisal amount of the property. My appraiser was approved by my lender and is a Certified Residential Real Estate Appraiser in California and I have no idea if or what type of appraiser he used. Can he do this even if he is not and will not be on the original mortgage or the refinanced mortgage? Would it be better to rescind the offer and just wait to pay him when I sell at a later date? Please let me know if you have any ideas on how to handle this situation.
A: Yes. The person on the title can block your attempt to refinance.
You can wait to sell, but he will have the same veto power over any contract offer as well.
Q: Who and where i can find the lowest closing costs on refinancing a mortgage?
Where can I obtain the lowest fees on closing cost when refinancing a mortgage? Also, why does conventional bank around the corner usually has one of the highest closing costs than a smaller mortgage company? Which mortgage company has the best deal and what is reasonable amount to pay on closing costs for an mortgage amount of $360K?
A: Look up Atlantic Bancorp of CA..or Atlantic Bancorp of America..they may have changed their name. But I've been closing deals with them for 3 years. They're pretty great. You can look at www.atlanticloan.com
Q: How do you go about refinancing your mortgage?
I have a 5 year interest only mortgage and just closed on my condo 4 months ago. It appears rates are lower. How do I go about refinancing and what are the advantages? If it's lower should I autmoatically do it?
A: Hi, This is Greg Darlin with Choice Finance in Rockville, Maryland. 301-881-8900, ext. 106. I am the most Sr. Mortgage Broker with my company. Now for your answer . . .
It depends on your current interest rate, how long you intend on keeping your property, the current rates today and your closing costs. Sounds like a mouthful but those are the considerations.
Go to my website, www.choicefinance.net then e-mail me at: greg@choicefinance.net.
Sincerely,
Greg Darlin
Q: How do I get my ex-wifes name off my mortgage without refinancing?
I live in PA. My divorce is almost final. I am keeping the property that I live in. It has an extremely low interest rate. I don't want to refinance if I don't have to. How can I get her name off the mortgage without going through the added expense?
A: You cant get it off w/out refinancing.
They have to Re-record the mortgage note, and title/deed with the court house.
You can use your divorce decree to get a lower rate...by doing a Rate/TERM refinance instead of Refinance Cash out. This would only apply if you were paying out the equity to your wife.
Q: What are the differences between going to different lenders for a Mortgage refinancing?
I am working with my original lender to refinance my house, but I'm curious as to what advantages I have of looking somewhere else. Can the rates be lower from one lender to another or does the market pretty much make it the same for all?
A: I agree with above answer.. You should find a good mortgage broker.
The mortgage broker must be affiliated to many lending institutions and should be licensed.
- The mortgage broker should be working at a reputable institution. The name of the company could be checked at the Best Business Bureau or the Chamber of Commerce.
- The mortgage broker should provide you with the names and contact numbers of people who can be contacted for credibility check.
- The mortgage broker should ask you what you want on your loan. He must ask you questions rather than on giving you lots of facts. He should prioritize what you need and should come up with ways to fit this with various deals available in the industry.
- The mortgage broker should have with him various lists of deals that he can offer. This is a good quality because if not, you might get the best deal.
Getting a good mortgage lead on internet
http://www.my-infoworld.com/mortgage/Mortgage_lead.html
Q: What company has a good reputation for mortgage refinancing in this market?
I'm in Wisconsin.
A: The Government controls much the mortgage business.
President Bush have implemented an FHA refinance program called "FHASecure". To qualify, borrowers must meet 5 criteria:
1) History of timely mortgage payments before their adjustable rate increased
2) Rate will re-set between June 2005 and December 2009
3) 3% equity in home or 3% cash
4) Sustained employment history
5) Income must meet qualifying guidelines
I found interesting information about your answer & the best options here. (mortgage opportunitty refinancing )
http://all-mortgage-calculators.blogspot.com/2007/06/mortgage-opportunitty-financing-and.html
Good luck!
Q: What exactly does it mean to waive fees in a mortgage refinancing?
A: if they waive fees - you dont have to pay anything. For example, usually there is an appraisal fee ($300). If that is waived, either you don't need one or they pay. Watch for fine print. If you refinance with another lender (usuallly within a year) - you may have to repay some of the fees. And make sure the fees are buried into your mortgage (that's whne they say "no upfront fees"
Q: Mortgage refinancing- do it now, or wait? What direction are rates currently projecting on going?
Would it be better to refinance now at about 6.5% fixed for 30 years, or wait a few months? What's the rate outlook? This is for New York.
A: No one can project the rates very good. If you want to risk losing even more equity in your home for a lower rate, by all means wait. But, if I were you, I would certainly refinance today!
Q: How do I get lower interest rates with mortgage refinancing?
A: Very simple. You find a mortgage company that is willing to offer a lower rate than you are paying on your current mortgage. Whether that is possible depends on your current rate as compared to the market rate that exists now. Of course you have to look at other terms of the mortgages offered to you. For example, you may not want a 3% ARM with a maximum rate of 12% to refinance a 6% fixed rate mortgage.
Q: How does refinancing the current mortgage help?
When one should refinance home mortgage? Does it help to bring the number of period of payments down? If so how?
A: Great question! Unfortunately, there is no “right answer” here as it is dependent on your individual situation and what your financial goals are. Some questions that you need to answer (to yourself or a mortgage broker or lender) are:
How long do you expect to be in your home?
If you're only going to be in your home for a few more years, it may make sense not to refinance out of your ARM. If you're going to be in your home longer than seven years, it might be a smart move to refinance to a fixed-rate mortgage.
How much equity do you have in your home?
Using the equity in your home to pay off other bills can be a smart thing. Consider taking some money out to pay off high-interest credit cards bills, auto loans, and any other debts you have that have non-tax-deductible interest.
Are you willing to pay points to get a lower rate?
Paying points may or may not be your best option, depending on what you're doing. Points paid on a loan you've refinanced can be deducted from your taxes only in small increments—1/30th a year for a 30-year mortgage, for example. This means it could be several years before your lower rate makes up for the points you pay. However, if you're buying a home, points paid are a tax-deductible expense for that year.
Will having lower payments more than make up for the closing costs, fees and points if any?
Sometimes the money saved with lower payments is less than closing costs and other fees associated with refinancing.
What type of mortgage are you currently in – fixed or adjustable?
Again, you need to consider how long you plan on being in your home. Many people move within nine years so it may not make sense to pay a higher interest rate for a 30-year fixed-rate mortgage when you're not going to be in the home that long. Doing so may be costing you money. Consider refinancing to an ARM instead — you'll get a lower rate and lower your monthly mortgage payment.
Do you have high-interest credit card debt?
Unlike your mortgage, the interest you pay on a credit card is not tax-deductible and you normally pay a higher rate than you would on your mortgage.
As always, I recommend you speak with your tax advisor as well as your mortgage lender or banker. If you have any questions, feel free to contact me through my profile. Good luck
Q: Question about refinancing a mortgage and the tax implications?
My future son-in-law is trying to refinance his home mortgage. The man handling the refinance suggested that he might get a lower interest rate if he included my daughter's income and assets. They are unmarried, living together in Minnesota and expecting their first child in December. There are two parts to this question: Part One - Is this true about the possible lower interest rate and a good idea? and Part Two - Would they have to file taxes together from that point on? I would appreciate any advice and comments.
Forget about Part Two of my question - I already know the answer to that, I don't know where my mind was. Appreciate answers/advice on part one. Thanks
A: It is likely that your daughter has a better credit score than your future son-in-law and that would cause the bank to offer better terms on the rate.
It is always a good idea to get the best fixed rate possible. If he isn't able to qualify for the best available fixed rate (I would not, under any circumstances, take out any form of variable rate loan at this point in time, no matter what the loan officer is promising) on his own then it is highly likely that the mortgage that he is looking to take out is more than they should be borrowing. If a payment is unaffordable ("affordable" is usually defined as being no more than 30% of your monthly gross income; depends who you talk to) using the best 30 year fixed rate that he qualifies for, then the loan is too large and they need to look at a smaller house. The single biggest financial mistake young couples make these days is buying too much house, under the assumption that they're income will grow into the payment or that they'll be able to refi to a fixed rate loan at a later date when they can afford the payment better.
No, they would not be able to file taxes together unless they were married. If they were both listed on the loan, then either one of them would be able to claim the mortgage interest as a deduction on their federal return, but not both of them.
Q: What are the negotiating terms/drivers for a 40 year fixed rate home mortgage refinancing deal?
I'm looking to obtain the best deal possible, so help me with the hidden quirks on this of type of transaction.
A: There shouldn't be any hidden quirks. If that's the product you think you want, it should be relatively simple to get a few good-faith estimates from a couple different banks and brokers.
Getting them all on the same day will help you know who is lowest, regardless of daily rate changes.
Compare rates and fees, and do make sure you have confidence in the person you choose, but this is the only way to get your best deal. Start shopping. Ask for referrals from people you know for loan officers they've used in the past.
Q: Refinancing mortgage to make down payment on investment property?
I bought my primary residence 2 1/2 years ago for $60,000 and put $20,000 into it (it was a "fixer upper"). It now appraises at $145,000.
I plan on refinancing my $60,000 mortgage to pay for the debt of $20,000 (mixture of credit cards with 0% intros that are running out!) and to make a 20% down payment on an investment property (so I can avoid PMI). I plan on getting another slight "fixer upper" and only want to put in 10-15k into it. I will rent it out for a year or so until I think ive reached a good profit and sell it. Plus I only want to have to pay 15% tax rate instead of like 33% (long term investment).
I am not familiar with refinancing. Should I first get a contract on a property so I can refinance just enough to pay the debt, 20% to put down on the house and alittle money to fix it up? OR should I just estimate and refinance now and keep that money in the bank. I would hate to pay interest on money just sitting in the bank. Or do you know another way of doing it?
A: There is always a home equity line of credit you only pay interest on the portion you take out. ie 100k line of credit you pull out 50k you would only pay interest on the 50k
you can usually draw on a line of credit for about 10years
you can also convert it at any time to a fully amortized loan. If you would like to compare loans feel free to contact me directly I would be more then happy to help my website is http://homefrontmortgage.us