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Are you burdened with rising monthly payments and seeking better terms and conditions on your mortgage? Or, are you looking to consolidate your unpaid debts and get rid of them faster? All these mortgage scenarios and many more can be accomplished by mortgage refinancing. To get the basic idea on refinancing, go through these topics:

Do it yourself!



What is mortgage refinance?

With mortgage refinancing, you can replace your original mortgage with a new one with better terms and conditions but the new mortgage should be within your affordable limit. The same property that you used as collateral to secure the original mortgage is used to secure the new loan also. The new loan proceeds are utilized to pay off the existing mortgage. In case there is any remaining money after paying down the original mortgage, that amount can be used to meet other financial obligations.

Example: Suppose each of the two borrowers A and B took out mortgage loan worth of $500,000. Again, say after 5 years, both A and B paid down $250,000. So, for both these borrowers, remaining unpaid mortgage amount is $250,000.

Borrower A then took out another loan worth of $250,000, so as to repay the remaining balance on the existing mortgage. This depicts a case of simple refinance.

Borrower B then took out another loan worth of $350,000. Out of this new loan amount, B used $250,000 to pay down the original mortgage. B could use the remaining $100,000 to meet other financial obligations. This describes a case of cash out refinance.

The first scenario is a simple refinance while the second is that of a "cash-out refinance".


5 Reasons that make refinancing sensible

There are some strong reasons which make mortgage refinance a very sensible move. Here we delve upon 5 of those -
  • To reduce monthly payment:
    If the mortgage rate is lowered or if the mortgage term is extended, your monthly payment amount gets reduced. With reduced monthly payment, you can pay off your mortgage with more ease. In case the term of the loan is extended, you have to however pay more in interest during the whole life of the loan.
  • To switch from ARM to FRM:
    Fixed rate mortgage (FRM) offers you the certainty of making fixed payment over the term of the loan. Whereas, in case of adjustable rate mortgage (ARM), the monthly payment amount may rise or fall, depending upon the prevailing mortgage rate. So, in case of ARM, the monthly payment amount is not fixed; rather it is uncertain. If you are looking for certainty in payments, then you can convert your existing ARM to an FRM through mortgage refinance.
  • To repay mortgage faster:
    If you want to pay down the mortgage early, then you can shorten the term of the loan. However, here your monthly payment amount increases. Here, over the term of the loan, you save more in interest payments. You also attain property ownership early.
  • To combine two loans into one:
    If you have adequate equity in your property, you can then consolidate your first mortgage and the second mortgage into a single mortgage. The main advantage of this type of consolidation is that the monthly payment on the single loan is less than the combined payments on the 1st mortgage and the 2nd mortgage.
  • To pay off high interest debts:
    If you have sufficient equity in your home, you can opt for a cash out refinance. You can use the remaining money to pay high interest debts such as credit card bills, car loans, installment loans etc.


What is the best time to refinance?

You may not always be eligible for refinancing or the situation may not always be conducive for refinancing. You have to time your move correctly so as to reap its benefits. You need to check out these crucial things carefully before applying for mortgage refinancing -
  • If you have built up equity:
    You may be eligible for refinancing when you have built up equity of at least 10% in your home. However, for mortgages owned by Fannie Mae, the equity requirement is 5%. It is possible to get the refinance approval even with less than 5% equity, but in that case you may have to pay a certain sum of money to compensate for the deficiency in equity.
  • If the refinance rate is sufficiently low:
    If the current mortgage rate is sufficiently lower than the rate on the original mortgage, then it may be wise to opt for refinancing. Here, you need to follow the 2% Rule. As per the 2% Rule, refinancing is beneficial for you in case the refinance rate is 2% lower than the rate on the original loan. Here, the savings accrued from low rate outweigh the costs of the new loan after a certain period of time, which is called the break-even period. To get benefits of refinance, you have to stay in the house at least till the break-even period.
  • If you have removed negative items and paid off debts:
    Before plunging into refinancing, obtain your credit report from the credit bureaus and review it carefully. If you find some negative items such as collections or late payments, dispute those items immediately and get those items removed from your report. Prior to refinancing, pay down as much debts as possible. All these will work in your favor in getting the refinance approval.
  • If you have no late payments in past 1 year:
    If you have history of late payments in the past 1 year, then your refinance appeal may be rejected. So, before refinancing, make sure you don't have any late payments in the past 1 year.


When refinancing is not a good idea?

Despite the fact that refinance has several benefits, it is not always a good idea to go for mortgage refinancing. There are some cases when your refinance appeal is rejected by the lender or it may not fetch the desired returns. Here are some cases when refinancing is not a good idea at all-
  • If the property value has declined sharply:
    If the value of your property has declined appreciably, the remaining balance on your original loan may be higher than the refinance loan amount. In other words, with the new loan proceeds, you won't be able to pay down the original mortgage loan.
  • If you have already used up your equity:
    Your equity is the key to get approved for refinancing. If you have already used up your equity by taking out a home equity loan (HEL) or a home equity line of credit (HELOC), then going for refinancing would not be a good idea.
  • If you have only a few years left on the existing loan:
    It does not make good sense to go for refinancing if you have only a few years left on your existing loan. It is not rational to refinance the loan which you have almost paid off. If you have almost paid down a 30-year fixed rate mortgage, then it is unwise to opt for refinancing. After all, refinancing is just like taking out a new loan and all the costs associated with taking out a fresh loan are applicable here too.
If you have the right reasons and if the time is right, then you can surely seek for mortgage refinance. However, before making the final decision, do the necessary research, take quotes from different lenders, make a comparative analysis and choose your lender.
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Refinance a mortgage at the right time and for right reasons.
gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

at 6% right now, you'd have to determine if the costs of reducing your rate(s) would be offset by the savings. how long do you plan to remain in the home? will you realize a real savings within the first couple of years based on what it will cost? answer these questions first. shop around anyway and see what rates and fees are out there for you.

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

Divorced just over a year with ruined credit from his bill paying tricks, he's
coercing me to refinance him off the mortgage when I owe more than it's worth. I am making the payments on time but my credit was ruined during the marriage and I don't know how to find help. I understand his only option is to have the house auctioned off for a loss but then me and our kids will be homeless. Isn't there something I can do? I pay my bills and all I want is for him to be off the mortgage! Please help!

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

Hi Angela!

Welcome to forums!

You're in a tough situation. You can contact your lender and apply for a loan modification. The lender will judge your situation and decide whether he would accept your request or not. This will help you in saving the property as well as your credit score. When you're in a better financial situation, refinance the loan and get the mortgage transferred in your name.

Feel free to ask if you have further queries.

Sussane

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manoj_gopale's picture
manoj_gopale | Joined: February 16, 2009 10:31 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i think in this precarious situation you should opt for child help as alimony from your ex-husband which will serve some purpose for payment to the mortgage.
Discuss about loan modification to your lender.
:wink: :wink:

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eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

I suggest that you continue to make your payments and ignire his requests. Just follow your divorce decree. He wants you off probably because he is trying to buy something else and cannot qualify with your loan on his credit report.

How much is your home worth and what is your loan balance?

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

Help me please make a decision.
I paid off my 30 year mortgage about 4 years ago. It was a hi rate and i was able to pay it off. Then i decided to take a large home equity line of credit, my home is worth $800,000.00 and i had excellent credit *00 credit score.
So i took $200,00.00 i re-did my entire house, extension, kitchen and bathrooms. I owe $190,000.00 at 5.7% on a 15 year loan and i have a little over 12 years left on the loan. My monthly payment is $1740.00 and i also make 1-2 extra payments per year when i can. So the question is? Should i re-finance? Between the closing costs and the points on a 15 year loan or even a 10 year loan does not sound like it is a good idea. Help me?? My email is r.corrado@albawheelsup.com Thank you

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

robert your best way to calculate if it makes sense dollars-and-cents-wise is to determine how long it will take you to recover the costs of the refinance based on the savings in rate. if you plan to be in the home long enough (another 5 years at least), it might be worth your trouble.

of course, rates being funny like they are, they yo-yo each day lately, and you're rapidly losing ground, as they ratchet up a bit. at 5.7% you're still doing pretty well, and i can't disagree with you on it not sounding like a good idea, especially since you are in the habit of making prepayments.

your home equity line of credit is undoubtedly variable, which might color your decision a bit, though rates are definitely in your favor as they go.

it's clearly your decision to make, but unless rates spike quite a bit, it seems a good idea to stick with what you've got.

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

We have filed bankruptcy in 11/07. And we could not include the [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] so we decided to keep our house. Our house payment we can handle , but the second mortgage at 11.75 percent is killing us. Can people ever refinance these loans?

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

the answer to your question is yes, lou. lenders often refinance second mortgages. however, your bankruptcy filing is going to get in the way of whatever you try to accomplish.

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

the loan on our house in in my husband's name only. the deed is in both names- tenants in entirity we want to refi. the mortgage tells us they will do a streamline refinance but needs me to sign a deed of trust. should i? we live in maryland.

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

Hi Guest,

Does the lender wants to include your name in the mortgage deed? If yes, then you need to sign the deed of trust.

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

I have a Double-wide on a perament foundation.I own the property also my credit score is about a 550 now my husband 620-650. we are just tryin to find someone to give us a fha loan we owe 148,000 th home value at 200,000 int he state of delaware could you recommend someone.

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

It will be difficult for you to get a FHA loan as your score is only 550. However, your husband can qualify for a FHA loan as his score is around 620-650. He can take the loan alone in his name. Your husband can speak to the local lenders of your area and check out what type of rates you would get. You can even speak to the lenders of this community and seek a no obligation free mortgage consultation. This will help you in knowing whether you would get a loan or not.

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

Kindly explain how this term is used in the world of mortgages.
Thank you.

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

Hi people, great forum you have here!

I own two properties and would like your opinion if I should bother refi'ing.

My current middle fico score is 637

I own a 3 unit apt building that I do not live in. I've owned it for 5 years and never been late on a payment. I currently owe $64k and the APR is 8.72%. Zillow.com lists it's value at roughly $119k so I have plenty of equity in it.

My primary residence has a 1st mortgage at 5.88% and I owe $45k on it.
There is also a 2nd mortgage at 9.48% and I owe $24k on it.
According to zillow this property is worth $95k.

I have called about refi's but have been told that I need to pay for an apprasial out of pocket BEFORE they will give me a yes or no answer to the refi. I'm concerned that after paying the $800 for 2 apprasials, the bank could come back and refuse to refi. Then, I will have wasted $800.

Any help or advice would be appriciated.

thank you

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

guest, i'd have to opine that neither of these is necessarily a great move for you.

my reasoning: with your investment property, you'll pay a severe premium based on your credit score (upwards of 3 [u:6a167cc202]additional[/u:6a167cc202] points). if you are attempting to take some cash out of that equity you have, you'll be penalized even more for that.

as for your primary residence, you could find yourself being limited to 85% of the property value (if a cash-out), which would be a loan of about $80750 based on your zillow citation. the second mortgage you mentioned may cause it to be cash-out. fha is your best alternative for a primary residence refinance since you'd only pay an extra quarter of a point for the credit score - whereas with a conventional loan it's an additional 1.75 points.

as for the appraisal situation, that's the essence of the situation. the lender can tell you if you'll be approved in theory, subject to appraised value. however, they can't promise anything until the value is determined. and, of course, that means you pay the appraisal cost up-front - it is a third party fee, not a lender fee, and the third party deserves to get paid for the work done, after all.

i've not given you much hopeful information, but it's the facts as i see them in your case. if you're simply trying to refinance to lower your rates with no cash coming back, it may be worth the trouble.

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

Exactly what does 5.125% with 1.875 points mean?

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

the first number means the interest being calculated on your loan will be at 5.125%. as an example, based on $100,000, the interest for one month will equal $427.08. that's calculated by multiplying $100,000 by 5.125% and dividing by 12 months (100000X.5125/12). Each month you pay for a loan, the interest will decline (quite slowly at first and then more so as time goes on).

the 1.875 points mean that you are paying 1.875% of the loan amount as a fee to the lender (fee = points). again, using $100,000 as a guide, that would mean your points paid are equal to $1,875.00. each point is equivalent to one per cent of your loan amount.

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

My wife and I would like to refinance our double wide. We own the property and the house is on pier settings and tied down with no axles under it. Both of our credit scores are 790+. The balance on our mortgage is less than 57,000 and I am assuming an appraisel value of 90,000 to 120,00 for the property and home. Why can't I find a bank willing to refinance me for 75,000.

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manoj_gopale's picture
manoj_gopale | Joined: February 16, 2009 10:31 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

confused about banks,

if you are going to refinance it on both (your and your wife's name) then i do not find any reason why banks will decline it.one reason may be (i am just guessing) if you or either your wife have lost full time job.
So, only in this condition it could be little difficult to convince bank officials but still you can do it.

[b:f99849d78c]keep in touch.[/b:f99849d78c].......
:arrow: :arrow: :arrow:

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

Every bank that I have talked to said that since my double wide is not on a permenant foundation there is nothing that they can do.

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

confused - that's pretty standard requirements for lenders as it concerns mobile and modular housing. there are lenders throughout the usa who grant loans on mobile and modular housing, so my thought would be that you ought to be able to locate one who could assist you.

i am not personally aware of who you might find to deal with but an internet search will afford you lots of possibilities.

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

we currently have 2 mortage loans. we JUST found out they are interest only loans. If we refinance will our monthly payments go down eventhough we don't have very much principal built up? We have been told by the lender we are working with that we can only refinance one of the loans because we have very little principal built up. We had a penality stipulation, we could not refinance before 7/1/09. What are your thoughts?

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

JUST??? did you never read any of the documents you signed at the closing, nor pay attention when you would periodically receive statements from your lender?

the only way your monthly payments will be reduced when you switch from interest-only payments to payments of full principal and interest is if your interest rate is going to be reduced markedly. the far greater likelihood is that your payments will be substantially higher, so as to allow for reduction of the principal each month.

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

if you are sef employed can you use your bank statements for proof of income.

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

are you there

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

yes, guest, there are people here online.

brenita, you used to be able to do what you propose to support claimed income, but i believe that's gone now.

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

can you dispute a low appraisal for refinance due to the market?

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

bella, if you have reason to believe that an appraisal is not valid and you have information that backs up your belief, then you can certainly present that information and have it considered.

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

I have an fha loan and want to do a streamline refinance. How many mortgage companies supply this service and how do I get in touch with them?

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

anyone who offers fha loans can do streamlines.

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

we have had a mobile home for about 13 years and we are about 6,000.00 under what we bought it for. we are thinking about refinancing is this a good idea

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

Hi dorinda!

Welcome to forums!

As the mortgage on the property is greater than the value of the property, the lender will not refinance your mortgage. This is because, you don't have equity in the property. In my opinion, it would be better if you could speak to the lender about a loan modification.

Feel free to ask if you've further queries.

Sussane

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

Land is not in loan, we need to improve rate. Only want go 10 years and improve our home with solid base, new roof, upgrade inside and outside. I like go with company other than Green Tree, we where with Cosico, they sold to Green tree lets say customer service is nor the best. Not late, never have been. Then this would change our statis to homestead, instead of Mobil Home. Very low pay off. Year of home, 10-1999.

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

Do you have any suggestion where we should try? Our Appraisal is higher than our loan balance due.

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

We have a beautiful doublewide mobile on 5 acres. Problem, the banks here in AR will not give a loan for a mobile. We have an ARM thats up in 2 1/2 years, we did not understand that. Where can we go to get a regular loan? Help.

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

Hi,

To Teresa,

As you've equity in the property, you should shop around and check out the type of rates and terms offered by the lenders. This will give you an idea whether you would be able to afford the refinance or not. However, you should note that you should have stable income and good credit score in order to get a refinance.

To poet,

You need to check out with your current lender whether or not he can refinance the loan for you. This may help you in getting a fixed loan. However, you should note that if you don't have equity in the property, you won't be able to get a refinance.

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

Hi-I just bought my first home with cash. So, I do not owe any money-or pay a mortage. I want to take out $40,000 to do home improvements and other things-I do not want a home equity line of credit-as I do not want to have debts. I want a monthly fixed payment and mortgage loans are the best interest rates available. I have already paid for my home owners insurance for the year also. I am disabled and receive a little over $1,000 monthly and have a boyfriend-no dependents. Is this the best way for me to go? I'm so confused-Thank you:) :roll:

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

peato, you can actually obtain an FHA 203(K) loan (for rehabilitation/renovation) for what you propose to do. this is a loan type specifically designed for properties that need updating, repairs, etc. rates are slightly higher, in general, than an ordinary fha loan, but not prohibitively so.

clearly, to qualify you need to have sufficient income in comparison with debts owed, and your real estate taxes on the home plus insurance would factor in, and you'd need a credit score of not less than 620.

it's definitely within the realm of possibility for you.

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

My son quit-claimed a house to me 2 years ago. I am attempting to re-finance the house after making mortgage payments for two years; however, the mortgage company (not the one that holds the mortgage on the house) wants to see my name on the mortgage or year-end interest statements before they’ll go ahead with the re-fi. Currently only my son’s name is listed. Any suggestions?

[size=9:e2a16f31d9][color=Red:e2a16f31d9][E-mail address deleted as per forum rules. Thanks.][/color:e2a16f31d9][/size:e2a16f31d9]

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

Hi Sherrryd,

If your son had quitclaimed the property to you, then your name should be listed on the property deed. If your name is on the property deed, you can apply for a refinance and transfer the mortgage in your name.

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

sherry i think the issue the bank has raised is that you cannot document having made payments for the previous two years. ask them if that's what they're looking for, and if you can provide bank statements to show your having made payments, you ought to be good.

you can also move on and begin doing business with someone else who might be more amenable to your circumstances.

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

I am the owner of a single family rental property in Smyrna, GA. I am trying to find an option for refinancing the property, but can only find a lender willing to do 75% LTV. Are there any other options for folks with exceptional credit (750+) and a high income? I simply don't want to tie up liquid cash in this place, but I can't sell it now, due to the economy.

Thanks!

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

GA you may find a not-so-conventional lender to do what you wish, but my suspicion is that you'll not like the interest rate they'll charge you.

investment properties are one of the least favorite property types for every conventional lender in this country. that's why you need to go "outside the box" to find someone willing to grant you a benefit.

one other option (perhaps) - try a local bank that tends to keep its loans in portfolio, or a credit union in the area. in either case, they may have the flexibility that you're looking for and still grant a decent interest rate.

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Jimmymackin's picture
Jimmymackin | Joined: August 17, 2009 11:59 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you own a primary residence that has equity, perhaps you could draw 75% off of the rental and come to the with the remainder from your Primary home's equity to free up some cash.....

Otherwise I would try George's option of going through a local bank

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

We have been interested in refinancing our current mortgage loan. Just wanted to find out information without having someone to push you into signing the loan. What is the difference with a mainstream loan and a refinance mortgage loan. How would you know what is the best way to go.

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Jimmymackin's picture
Jimmymackin | Joined: August 17, 2009 11:59 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Could you clarify the question? I am not familiar with the term "Mainstream loan"

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

Hey shyone,

Even I'm not familiar with mainstream loan. As far as refinance is concerned, it is a new loan with better terms and conditions which helps you in replacing your current loan.

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

can I refinance by putting my loan into someone else's name?

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

Hi Guest,

You cannot refinance the loan in any other person's name. The other person will have to refinance the loan in his/her name.

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