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9 Refinance Mistakes and how to avoid them

When you've decided on a [url=http://www.mortgagefit.com/refinance.html]refinance[/url] in order to switch over to a better interest rate/loan, you should be aware of the mistakes most people make while refinancing and how to avoid them. A little know-how about the common refinance mistakes will prevent you from taking a wrong step during the process. Here are the [b:97fcd8bb5a]top 9 mistakes[/b:97fcd8bb5a] you should avoid when you refinance.



1. Refinancing without shopping around

Many believe it's easier to get a refinance from their current lender. But your current lender may not offer the best option in terms of rates, fees, and other terms and conditions. So, it's better to shop around and compare the offers until you find the right loan for you.

Even if you do decide to refinance with your current lender, you'll need to re-qualify for the new loan. This means your current financial situation will have to be verified by the lender.

2. Unaware of the Break-Even period

When you are trying to refinance, you'll have to pay closing costs that can be offset by your savings due to the lower interest rate. The time when your savings fully offset the costs of the new loan is the break-even period.

You need to calculate the break-even period, so that you can occupy the property until then and recoup your costs. This is helpful when you refinance with a similar loan in order to take advantage of a lower interest rate and monthly payments.

3. Not receive a Good Faith Estimate

Most lenders are likely to provide you with a Good Faith Estimate of closing costs within 3 business days of receiving your loan application. This helps you to trace any hidden costs that you can avoid. So if the lender doesn't provide you with an estimate, try contacting the lender. If the lender refuses to provide you with an estimate, contact another lender who will.

4. Considering Assessed Value of property

Do not depend upon the county tax assessor's assessed value of your property. The loan amount isn't based on the assessed value, but on the appraised value of your property determined by a real estate agent using either the Sales Comparison Approach or the Cost Approach.

5. Paying for an appraisal even if home value is low

It's better not to agree to pay for a formal appraisal when you are aware your appraised home value may be low enough to qualify.

If you think the appraised value of your home is low enough to get a good refinance loan, then you should ask your current lender to determine your home value using the automated valuation model (AVM). This approach takes into account the value of similar homes in the neighborhood.

The appraiser gives you a range of possible home values, which will allow you to determine whether you can afford the home with the financing that is available. You can even check out the home affordability calculator to know how much mortgage you will be able to afford: http://www.mortgagefit.com/calculators/howmuch-afford.html .

6. Signing loan docs without proper review

Check the loan docs before signing on them. Read the terms and conditions thoroughly before you sign them. If possible, ask the lender to allow you to read the papers in advance because you will not get enough time to go through all the docs at closing.

7. Not providing relevant docs in time

You can prevent unnecessary delays in closing if you submit the required documents to your lender on time. Otherwise, if closing is delayed, and mortgage rates go up then you may be stuck with the higher rate.

8. Getting a verbal Rate lock

It is best to get the rate lock in writing from your lender. This written statement includes your interest rate, length of rate lock, and other details of the loan program.

9. Taking cash from a HELOC (Home Equity Line of Credit)

Lenders often require that homeowners wait at least 6 months after taking money out of a home equity line of credit, before refinancing.

Moreover, if you withdraw money from your HELOC for anything except home repairs and then refinance, lenders will consider the first transaction as a "cash-out". This is because you've already accessed your line of credit. So, it's a good move not to pull out equity prior to a refinance.

Refinancing mistakes can cost you a lot of time and money. So, it's better to avoid them and stay away from mortgage problems that could land you in foreclosure.
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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Have VA mortgage loan of $124k at 6% fixed rate and 23 yrs left . Is it advisable to refinance to 15 yrs at 4% fixed rate. Will it lower my monthly payment? Have a HELOC on the property. Lender told, I have to pay $4000. closing cost. Is it advisable to refinance?

Like | Dislike | Share | Posted: Thu, 08/26/2010 - 12:59 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

in new york do most banks allow a person not on the deed to be on the mortgage. Will they allow that person's income to be counted for the debt ratio. We are not married but have been together for 15 years

Like | Dislike | Share | Posted: Thu, 01/17/2013 - 05:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I think I'll ride out my time. Id'd actually planned to sell my home and all it's contents last year, with the goal of packing up and moving to San Diego!! BUT...life happens...had a baby in February (at 44yo) and my only baby before her, a 19 year old son, was recently diagnosed with advanced colon cancer (a week before he was to leave for college in San Franciso). So, I'm up in the air as to if I should stay or go once he finishes chemo,...but your resonsed on refinancing have been helpful!

Like | Dislike | Share | Posted: Wed, 12/16/2009 - 04:51 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

All my best wishes are with you, Darlene. I pray to the Almighty that your son gets well soon.

Like | Dislike | Share | Posted: Mon, 12/21/2009 - 00:35

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi chitowncharlie!

Welcome to forums!

As the HELOC will be closed after you [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the exiting mortgage, it will be better if you do not pull out cash from that account.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 12/10/2010 - 00:03

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi suzana!

Welcome to forums!

If you plan to stay in the property for a longer period of time, i.e. for around 5-8 years, then it will be a good option to refinance the mortgage. Staying longer in the property will help you in offsetting the closing costs that you pay while you refinance the home loan.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 09/22/2010 - 00:01

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jenns,

Well, it will be completely the lender's discretion whether or not he will be ready to offer you a loan modification. However, you can contact a Texas based loan modification attorney and take his opinion in this regard.

Thanks

Like | Dislike | Share | Posted: Sun, 07/28/2013 - 23:39

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

It is a good idea to refinance the loan but you've to pay the closing costs. If you're planning to stay in the property for a longer period of time then it would a better to refinance the loan. Moreover, you should check out the interest rates that you would while you refinance the loan. If the interest rates are affordable for you, then you can go ahead with the deal.

Like | Dislike | Share | Posted: Mon, 12/07/2009 - 00:55

jenns5739's picture
jenns5739 | Joined: July 27, 2013 10:54 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My Texas home is in foreclosure. GreenTree said the can do a modification because my home loan is a refinance. That according to the Texas Constitution Texas does not allow mods on a refi.
I have read on the net that they can do a in-house mod. Is this true and if so where can I find solid documentation?

Like | Dislike | Share | Posted: Sat, 07/27/2013 - 10:59 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome jhwain,

In order to be on the mortgage, you will have to be on the property deed. Unless you're the owner of the property, you won't be able to [url=http://www.mortgagefit.com/Mortgage-Basics/do-i-qualify-for-a-mortgage.h... for a mortgage[/url].

Like | Dislike | Share | Posted: Thu, 01/17/2013 - 20:40 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome cruz,

There are chances that the refinance will help you in lowering your monthly payments as you're getting a 2% reduction in the interest rate. The closing costs may vary state wise. You can speak to some of other lenders in order to find out the type of closing costs you'll have to pay.

Like | Dislike | Share | Posted: Fri, 08/27/2010 - 01:18

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

have had mortage one year at 5.5o percent fixed @ 30yrs should i tyr to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] now to take advantage of the lower rates and can i even do this at all

Like | Dislike | Share | Posted: Wed, 03/24/2010 - 07:57 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi TG,

You will have to check out whether or not there is equity in your property. As you've applied for loan modification, I don't think there is equity in your property. In that case, the lender will not be ready to give you a mortgage.

Thanks

Like | Dislike | Share | Posted: Sat, 05/22/2010 - 00:06

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Rafael,

You should contact your local real estate attorney and he will help you in understanding the meaning of this paragraph.

Like | Dislike | Share | Posted: Sun, 12/19/2010 - 19:58

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

however, bear in mind that you won't find any 5-year terms. if you fully intend to try to do that, find a lender that will give you a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] at a very low rate. i think it's folly to try to refinance when you've got 6 years left, for the sole purpose of a minimal interest rate reduction. do the math first.

Like | Dislike | Share | Posted: Mon, 12/07/2009 - 07:37

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

anon, you don't need a ton of income to qualify for such a loan, but what we don't know and therefore cannot address is what your real estate taxes and homeowners insurance bills are. those are factors that need to get calculated in so you can learn if you are qualified. as noted, if you simply speak to a lender with all the particulars, you can surely get that information.

Like | Dislike | Share | Posted: Thu, 02/04/2010 - 08:04

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi rhamby,

As you're planning to stay in the property for a shorter period of time, it does not make sense to refinance the loan. You won't be able to offset the closing costs that you'll have to pay while refinancing the loan.

Like | Dislike | Share | Posted: Sun, 06/13/2010 - 23:47

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I'm refinincing with Quicken Loands, in the doc called Mortgage Note that I have to sign it says in paragraph 10(E): "Borrower agrees that should the Security Instrument and this Note secured thereby not be eligible for insurance under the National Housing Act within 60 days within 60 days from the date hereof, Lender may, at its opinion and notwithstanding anything in paragraph 10, require immediate payment in full of all sums secured by the Security Instrument. A written statement of any authorized agent of the Security dated subsequent to 60 days from the date hereof, declining to insure the Security Instrument and this Note secured thereby, shall be deemed conclusive proof of such ineligibility. Notwithstanding the foregoing, this option may not be exercised by Lender when the unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance premium to the Secretary."
What does this means?

Like | Dislike | Share | Posted: Sun, 12/19/2010 - 16:49 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

darlene, if you can have a healthy new baby at 44, then there's also hope that your son will be able to be healed from his cancer. we'll agree on that and pray.

Like | Dislike | Share | Posted: Wed, 12/16/2009 - 12:08

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you for your response. It was helpful. Here's another important question. My daughter wants to buy a house. She was thinking of FHA. However, she was married to a man who had a home. He owned it for several years. He put her name on the house in 2003. Her name was only on the house for a year or two and they divorced. She never qualified for any loan for the home. After the divorce, he took her name off. Can she still qualify for a FHA loan today? Thank-you again. Ann

Like | Dislike | Share | Posted: Tue, 09/28/2010 - 07:53 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

'Nuf said.

Like | Dislike | Share | Posted: Sat, 06/19/2010 - 08:39

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

just applied for refinance. we were told we qualified for 5% interest (from 8.05%). asking for 108,000 (payoff 102,000, cashing out 2,000, and including closing costs). appraisal came in at 102,000. requiring us to pay 6500 at closing! all comparables were 2 at 119,000 and 1 at 111,000. neighbors property refinanced 2 years ago appraised at 115,000 and we share the same driveway, roughly the same house size. what are we gonna do? :?

Like | Dislike | Share | Posted: Wed, 12/30/2009 - 07:04 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We only have 8 years left on the loan. It is a 15 year fixed at 5.375. We owe 92K and the house is worth 500K. If we refinance for 8 years can we get a low enough rate to make it worthwhile? Can we even get an 8 year fixed loan? Our payment is 1100.

Like | Dislike | Share | Posted: Sat, 05/22/2010 - 18:07 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

10 years left on mortage@ 6.25%, and i have line on credit, for a total amount 127,000 dollars owed. I would like to refin for 160,000 for upgrades to home for 30 years and add 350.00 dollars more a month to princapal., to pay down early ??? right now mortage is 1450.00 month and I pay 250.00 month on line of credit

Like | Dislike | Share | Posted: Thu, 09/30/2010 - 11:11 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Since my credit score has dropped substantially low and my wife credit has not, when refinancing companies are asking to just base off my wife credit and just put me on the deed. What are the disadvantages of doing this?

Thanks

Like | Dislike | Share | Posted: Tue, 06/01/2010 - 19:35 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jphillips,

You will have to check out whether or not you've equity in your property. If yes, then you can apply for a mortgage refinance and take a cash out for home improvement. If you don't have equity, then the lender will not be ready for a mortgage refinance.

Thanks

Like | Dislike | Share | Posted: Thu, 09/30/2010 - 23:21

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mortgage co has set us up with another mortgage co to refiance at a lower rate and with a principle reduction, we have never been late or missed any payments, so I dont know why they are even doing this, also my concern as the wife is I have always been on the loans before, but I got laid off back in March of 09, so I will not be on the lending part, we have asked that I be put on the deed or the title, they said they could. Will this cover me down the road if anything should happen, this will be the first time in 30 years that I can't be on the lending part, just want to make sure I am not putting myself somewhere that is going to cause problems maybe down the road. This is all being done with no closing cost. Please advise

Like | Dislike | Share | Posted: Wed, 12/30/2009 - 09:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have been in my home for two years. I have paid almost seven thousand toward a 120,000 dollar home. My rate is at 6% percent and I have been offered a 4.5% refinancing rate. Should I take this route or keep things the way they are? I only plan to stay in the home for another two years.

Like | Dislike | Share | Posted: Thu, 06/10/2010 - 09:48 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

something sounds weird, i agree. why would your existing mortgagee arrange a refinance with another company for you to begin with?

Like | Dislike | Share | Posted: Wed, 12/30/2009 - 10:20

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi, I refinanced in 2003 from a 30yr on my home purchased in 1999 for $75K at 7.5%, DOWN to 15yr at 5.75%. My payments went up $16.00 mo. and I cut 15yrs off my loan. I'm now wondering if I should refinance again. I owe about $40K and have 6 yrs (approx.) left on my loan (because I've always paid $100 extra toward principal). I went via my original lender and only paid a fee of $380! Can/should I refinance again, for maybe a 5 year term??? The current value of my home is about $174K. Thanks! This site has been SO helpful!

Like | Dislike | Share | Posted: Sat, 12/05/2009 - 09:22 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Currenty have a 30-year mortgage at 5.125% and an equity line of $25,000. Have been paying on both for 5 years.

We plan on staying in this house for 3-4 more years before selling. We only pay interest on the 25,000 equity line.

Should we refinance and roll the equity line into the mortgage? Should we do an ARM lona since we plan on selling in 3-4 years?

Like | Dislike | Share | Posted: Thu, 09/09/2010 - 06:22 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Bill,

If you're current on your mortgage payments, then you can refinance the loan. This will help you in getting a better interest rate. I hope you have a steady income and a good credit score. In order to get a mortgage, you should have a credit score of around 740.

Like | Dislike | Share | Posted: Sun, 11/08/2009 - 21:49

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I read recently that if you [url=http://www.mortgagefit.com/refinance.html]refinance[/url] your home with the same lender that you may not qualify to take the income tax deduction. Is this true?
Thank-you
Ann

Like | Dislike | Share | Posted: Sun, 09/26/2010 - 12:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My husband and I are refinancing our home. My husband's FICO score is 715, mine is 802. We want to raise his score for obvious reasons. The original loan is in my husband's name which includes a second "First Time Homebuyer" loan of $5000. Our question is: If he pays off his $5000 second will that raise his FICO score?

Thanks in advance!

Like | Dislike | Share | Posted: Mon, 10/11/2010 - 09:25 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi CAROLYN!

Welcome to forums!

If you're getting lower rates and plan to stay in the property for a longer period of time, then it will be a good option to refinance the loan. However, you should have equity in your property in order to get a refinance.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 11/09/2010 - 00:04

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi JennHolm!

Welcome to forums!

You can always negotiate with the lender in order to get a low interest rate. If you have excellent credit scores and a stable financial situation, then the lender may consider your request and give you a low interest rate while you refinance the loan.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 09/03/2010 - 23:15

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is it possible to renegotiate the interest rate directly with the mortgage company you are currently with and save on refinance charges?

Like | Dislike | Share | Posted: Fri, 09/03/2010 - 14:14 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Bill,

As your credit score is low, you won't qualify for the refinance. Thus, the lender wants your wife to remain on the mortgage whereas your name remains on the property deed. I don't think there is a disadvantage of this as, though, you will remain the owner of the property, you won't be responsible for the mortgage.

Thanks

Like | Dislike | Share | Posted: Tue, 06/01/2010 - 23:38

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

George, wonderfully stated. Please continue to pray for my son, Kalief. He WILL beat this!

Like | Dislike | Share | Posted: Fri, 12/18/2009 - 20:53

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Ann,

Presently, your daughter does not own a property. In such a situation, she will be able to qualify for a FHA loan and buy a property of her own.

Thanks

Like | Dislike | Share | Posted: Wed, 09/29/2010 - 00:11

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jason,

As you're planning to stay in the property for the next 3-4 years, it won't make much sense in refinancing it. You will have to pay closing costs when you refinance the loan. As you'll be staying for only 3-4 years, you won't be able to offset the closing costs.

Like | Dislike | Share | Posted: Fri, 09/10/2010 - 01:28

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i have a interest only loan and if i want a loan that allows me to pay the principal and interest would this be considered refinancing?

Like | Dislike | Share | Posted: Wed, 06/23/2010 - 06:41 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

single family home.new york long island area. approx 475k value.mortgage amt 262k @ 5.35% 30 year fixed ( one year old mortgage)
should I go to a 4.35% fixed with lending tree?

Like | Dislike | Share | Posted: Tue, 09/21/2010 - 19:06 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

As one year has passed since you've taken the mortgage, you would be able to refinance the loan. I hope you've equity in your property and plan to stay in the same house for quite some years. Unless you've such plans, it doesn't make much sense to refinance the loan. Also, it would be a good option to refinance the loan if you are getting an interest rate which is lower by at least 2% of what you have now.

Like | Dislike | Share | Posted: Thu, 03/25/2010 - 03:28

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We currently have a 30 yr. fixed loan at 5.625 with a balance of 228,000. The original loan was 250,000 (we are 6 yrs. in) and the property is assessed at 440,000. My current lender is offering 4.375 on a 20 yr fixed with the mo. payment a little less than what we currently pay. We should be in the house for at least 5 yrs. from now. Closing costs estimated to be approx. 2500-3000. Seemss like a great opportunity to me since break-even period would be in approx. 12-13 mos. & rates are historically low. Feedback would be greatly appreciated. Thanks.

Like | Dislike | Share | Posted: Tue, 07/13/2010 - 13:19 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Ann,

I haven't heard of any such news. As far as I know, for the interest to be fully tax deductible, home equity debt cannot exceed $100,000. The total debt on your home must not exceed its value.

Like | Dislike | Share | Posted: Mon, 09/27/2010 - 00:40

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi K&K,

If you can afford the current payments, then it's better to continue with that. Moreover, I don't think the lenders would offer you a 8 years fixed loan. If you refinance the loan, you will have to go for a 15 year FRM. Thus, it's better to stick your present loan.

Take care.

Like | Dislike | Share | Posted: Mon, 05/24/2010 - 02:16

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have owned my house for 5 years. In that time I have only knocked my mortgage down from $83,000 to $77,000. My property taxes are getting out of control ($4,300 a year) and I took a MAJOR pay cut this past year. My current fixed rate is at 6.5 which is not terrible, but I need to lower my mortgage payments or risk falling behind on my payments for the first time EVER!! My house has climbed in value and is worth some where in the range of $96,000-$115,000. My credit was never all that great to begin with and I have had a few hiccups (like a private student loan going to collections) along the way so I am sure it is far from stellar now. Is a refinance something that would be a good option for me to lower my payments? I also thought about selling and moving to a cheaper area, but I dont even know if I could get a loan with my poor income and not so perfect credit.

Like | Dislike | Share | Posted: Sat, 02/19/2011 - 19:22 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If a loan modification could be done for $1,100.00 ahd the rate would drop by .750% would that be considered cost effective?

Like | Dislike | Share | Posted: Tue, 11/09/2010 - 14:27 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if i refinance the loan on my residence, can this transaction hurt me if i want to pull out equity from my investment home later (which does not have a loan on it currently)?

Like | Dislike | Share | Posted: Mon, 04/12/2010 - 16:47 | Post subject:

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