Posted: Tue Apr 29, 2008 7:48 pm Post subject: How do I refinance with no equity?
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Hi I'm a was a first time homebuyer who rush on what I thought was a good deal but it wasn't I bought a duplex for 150,000 with no equity and I have a first and second mortgage one of them is interest only and its killing me since their is no equity no one wants to refinance me at 100% can someone help me
Posted: Tue Apr 29, 2008 9:21 pm Post subject: No equity refinance
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Welcome Tiqd,
A no equity refinance can help you in this situation. But it's never easy to obtain a no equity refinance. What you can do is, talk to the lender and request him for a separate repayment plan so that you can at least make payments till you build some equity and are able to refinance. Or else, try refinancing the first loan with a cash-out if there's equity for that. Using the extra cash, you can at least pay off a part of the second loan if not the entire second mortgage debt. _________________ Procrastination is the enemy of your financial success
Posted: Wed Apr 30, 2008 5:33 am Post subject: No equity refinance up to 125% ltv
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Hi Tiqd,
Welcome to the forum.
I think you can go for a no equity refinance up to 125 percent of your home value but if you owe more than your property value than you may not refinance the mortgage. So do you owe more than the property value?
Posted: Wed Apr 30, 2008 10:46 am Post subject: No equity refinance: a Very bad idea
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It's generally a very, VERY bad idea to refinance so highly because you're putting yourself in massive debt for a long time. Is this something you really need to do? As a long term strategy, I generally never advice refinancing. I've seen one my my buddies hit rock bottom thanks to it. _________________ www.mymortgagehelp.info - a FREE site dedicated to home owners like you and me, packed full of articles and updated daily. Fun tips and tricks to avoid financial ruin.
Posted: Thu May 01, 2008 5:28 am Post subject: refinance with no equity
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Hi aosotsi,
I agree that the poster shouldn't go for refinancing especially when he has no equity left in the home. Actually what the poster has gone through is quite common. In the past 1 year a lot of people have gone for loans which they couldn't afford. And then they've landed up in foreclosures or loan workouts etc.
However, if the poster goes for a no equity refinance on the combined loan with a sub-prime lender too, i think he'd mess up his situation more. So, the best is to sell the home and pay off the loan, though he may not be able to cover the balance. Alternatively, if he can refinance the interest-only second mortgage with a cash-out option, then I think it will be fine. For this, I suggest Tiqd to have a talk with some of the lenders in this community. I hope they'll be able to come up with the right offer on the refinance loan.
Tiqd, you can go for free loan consultation with some of our community lenders and know what's the right step to take or which is the best offer for you right at the moment.
Mortgages are my favorite topic. Everyone seems that its okay to pay a monthly obligation for years on end when the majority of the payment goes to interest. Especially Interest Only mortgages.
Posted: Mon May 05, 2008 3:03 am Post subject: RE: pay interest-only loan faster?
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And what's the solution DJ? I hope you're talking about interest-only loans here? isn't it? are you talking about extra payments? well i think if that's what one decides to do then why go for interest-only loans. _________________ Know how to compare lenders with mortgage booklet
If you have the foundation to budget properly, IE, account for all the minimums of your monthly debts, your utilities and all your living expenses, you should have extra money left over each month right?
The thing most people do not realize is that money you have sitting around does nothing but grow dust and cobwebs. What if there was a way for money to constantly move and impact your debts every single day?
I show people how to live on a average daily balance way of paying interest instead of working with an amortized schedule. Everyone knows that an amortized schedule is loaded front heavy with interest. By using money that you can easily obtain, you can defeat the heavy interest in those first few years, earn equity quicker, and pay off the debts faster. The greatest case is with a mortgage.
Its hard to explain without numbers, so I would like to ask anyone to provide me with some.
I would need monthly income, discretionary income, amount of mortgage, length of mortgage, interest of mortgage.
I could calculate how long it takes to pay off the mortgage, and how much interest would be saved.
Please throw some numbers that make sense to you, and compare my calculations with yours. _________________ DJ Jennings
Alaska Debt Elimination Services
So, according to the numbers you provided larry, and once again, its a simple and rough calculation, one of my services can show you how to pay that off in under 16 years, save over 105,000 in interest, and do all this without refinancing, or changing your lifestyle.
I had to make these general assumptions
1. You have about 10% left in after bills, debts and other expenses each month
2. You are paying about 1750 a month in mortgage, including escrow
3. You are able to get a Line of credit.
Posted: Sat Mar 07, 2009 3:04 pm Post subject: buyer beware
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I do not know what AlaskaDES is offering, but it sounds like he is with one of those scam companies that arrange your loan so you are making 26+ (payments) vs 24 payments a year. Most lenders will let you pre-pay principle at your own pace and they will not charge you for it. When you sign up for a "special" payment plan you are paying someone to do something you can do free by calling your current lender. As a word of advise, DO NOT go with someone who claims they can do something that others can not. When you see a special offer the chances are someone is trying to profit off of your stupidity. The more helpful the lender claims to be the more immoral he probably is.
Posted: Fri Mar 13, 2009 10:10 pm Post subject: There are solid...
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Biweekly programs out there. It is true that your current lender will help set up a biweekly plan, but I have seen the actually lien holder charge one of my customers $1100 to set it up on their own loan.
Do your research and plan to spend about $400 to get one set up. They aren't a scam if it is done with a reputable company.
I have seen many borrowers save a lot of money with this... either way, figure out a way to do it cost effectively and do it.
The author of The Automatic Millionaire recommends setting it up on autopilot so that it will happen month after month and you can focus on the better things in life.
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tigd29
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