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Refinance a mortgage at the right time and for right reasons.

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

I am wanting to refinance my mortgage in Texas. But because we live in a rural area with 180' of lakefront and there have been no houses sold in our area during the past 4 years, we cannot get a fair appraisal. The mortgage companies will not permit the appraisers to go outside of our county to identify comparable house. Is there a way to refinance without an actual appraisal?

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

I own a lage manufactured home in a 55+ community in MA. I want to retire and looked into a reverse mortgage but was told since I do not own the land I wasn't qualified for a reverese mortgage. I owe a very small amount on my present mortgage, less than 40,000. Is there any other way for me to go and obtain the equity in now have in my home? The house is worth 275,000. Thanks for your help.

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

Hi Carol,

If the mortgage broker has committed a fraud then you can sue him for it. I don't think there is any statute of limitations on filing a suit against a broker.

Hi Lerman,

As far as I know, there is no way to refinance the mortgage without an actual appraisal. The appraisal will help you and your lender to know the exact value of the property.

Hi Hodgie,

You can refinance your present mortgage and cash in the equity that you have on the property. You can even go for a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] to cash in the equity.

Thanks

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

I bought my condo here in Venice,FL in April 2005. Loan type: 5-year-ARM,
@5.625% Int. Rate. The current loan ballance is $ 131,500 and the value of my condo is about $ 103,000. My lender (Bank of Amerika) is offering a new loan @ 125% of my home value, which equals $128,000 @ 5.875% int. rate for 30 years. I do not know how long this offer will be available. It depends on the goverment's decision. My question:Does refinancing in these conditions make any sence to you? Should I go for it?
Thank you very much for taking my question and for your professional advice.
Regards,
Robert.

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

You should only refinance the loan if you feel you would be able to afford the mortgage payments. Moreover, how long are you planning to stay in the property? If you are planning to stay in the property for a shorter period of time, then you shouldn't refinance the loan as it won't help you in offsetting your closing costs.

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

it's pretty clear that your adjustable rate is likely to be going down this year. rates are low, and the indices on which arms are based are even lower. if you don't feel bad about your chances with the adjustable rates, then sticking with it may be worth your trouble.

when they offered you $128K, i gather that means that you'll have to pay down the difference between the loan amount and the current balance, along with closing costs - right?

honestly, if i were in your shoes, and i didn't have any difficulties in making payments, i have to say i'd sit still and let the rates take care of themselves. you'll presumably have another opportunity in a year, and of course, if the economy improves, your property value may stabilize at worst and improve at best.

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

I no longer have to pay PMI; if I refinance, will it come back on my loan?

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

sherri, if the loan to value ratio on your new refinance loan exceeds 80%, mortgage insurance would be required (conventional loan)

if you are planning on getting an fha loan in your effort to refinance, you'll pay mortgage insurance premium (MIP) regardless of the loan to value ratio.

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

Three years ago I bought a mobile home in Ca. 5% down, the owner held the note. May 1st the note becomes due, built in 1974, I'm having a hard time finding a lender. Any advice? seamles1

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

Mobile homes build prior to 1976 hardly qualify for loans. That's the reason why you are facing issues in finding a lender. You may contact the retailers selling mobile homes in order to get a personal property loan for your home. However, these loans are available at a higher interest rate.

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

seamles1 i agree with that assessment; you may find a local mobile home dealer who can arrange financing for you, or suggest another source for financing. shop around a bit by calling local banks and/or credit unions to see if you have a shot with them to obtain financing.

most lenders are leery about lending on mobile homes in general, and the age of your unit makes it especially hard to find financing. i hope you find success.

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

PLS FORGIVE MY IGNORANCE, MY WIFE AND I N EARLY NON-CONTESTED DIVORCE, OUR NAMES ARE ALL DOCUMENTS, HOME PLUS HONE EQITY LINE CEDIT COME TO 370,000, NEGATIVE EQUITY >120,000; NEITHER CAN REFINANCE ALONE OR TOGETHER, WE BOTH TRUST EACH OTHER, NO MINOR CHILDREN CAN WE CONTINE DIVORCE CHANGE DEEDS/TITLE ONLY AND CONTINUE SAME MORTGAGE PAYMENTS? WILL WE HAVE TO INFORM LENDER? THANKS

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

Hi MOBEE,

If there is a change in the property deed, then the lender will want anyone of you to refinance the mortgage. Thus, that person would become solely responsible for the mortgage. You and your wife can sell off the property and pay off the mortgage. This will free both of you from the liability of paying off the mortgage.

Take care.

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

if you wish to continue making the payments as is, go ahead and do so.

what you need to decide, most of all of course, is how you're going to work out living arrangements, and how to deal with that question as one of you has a new rent or mortgage payment to make.

as sara noted, your lender will be interested in what you're doing, so as to protect their investment in the home.

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

Hi,

Our mortgage is under my wife's name...and joint title...fast forward 5 years after we bought the place, my income is our main income, and my credit is much higher than my wife's.....can we refi from her being on the mortgage to just me being on the mortgage??? I know we can refi from her on the mortgage to both of us....but, when doing so, the banks will take the lowest med scores, i.e, my wifes....

In summary, when both spouses are on the title, but only spouse A is on the loan, can you go from A only on the loan to B only? or must be joint?

thanks so much

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

Hi VK,

If you have excellent credit scores and stable income, you will be able to refinance the loan in your name. I don't think the refinance has to be in joint names.

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

THE MODIFICATION GROUP'S COMPANY PROFILE Negotiation Experts: Our highly dedicated employee's at TMG are experienced negotiators that will secure your home with the lowest fixed rate available. We will reposition all the late payments back into your loan bringing the account current, lower your interest rate and payment making it easier for you to afford. Our Commitment: TMG, LLC is proud to have developed beneficial relationships with lenders, inspectors, contractors, and a wide range of housing professionals. We pride ourselves on building a solid foundation for your home to rest upon. Whether you are saving your home, purchasing, selling...we ensure that you have the support you need to make sound decisions and receive the best loan possible. • Are you in a loan you cannot afford?• Are you late on your mortgage payments?• Do you think you are the victim of predatory lending?• Are you having difficulties refinancing?• Are you in an ARM loan that keeps adjusting up and up?• Are you no longer able to afford your monthly payment?• Is your mortgage set to adjust soon?• Has your home decreased in value?• Have you had a notice of default or are you close to foreclosure? WE CAN ASSIST YOU TO RESTORE YOUR FINANCIAL FREEDOM! Call in today! HERE IS MY CONTACT INFORMTION:Aaron Kinkoff 6444 Pearl Rd. Parma Heights, Oh 44130 (877) 617-4383 Ext. 1006

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

to anyone who decides to cast his lot with aaron kinkoff, i say this: be very wary of what you're doing and make sure you read every word and have someone you trust implicitly review it all with you - preferably your own lawyer. there are too many modification scams out there not to be cautious.

this is nothing against you, aaron - i don't know anything about you. that's what makes me say what i say - my lack of knowledge of you.

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cecilpj's picture
cecilpj | Joined: April 11, 2010 01:46 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My credit record is below 620, can I qualify for refinancing in other bank? I applied but the bank said I don't qualify. The reason that I applied, I can hardly pay the high monthly amortazation due to my present financial condition. Is modification possible? Is the processing faster? What are the requirements? Is a short sale a good alternative? What are the advantages?

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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 current loan w American Home Mortgage at 8% ARM and am wanting to refinance it immediately. I am on unemployment and cannot afford it going up and down constantly. My house is at zipcode 76301 for $80,000, I have had it for approx 4 years and y balance is like $78,000. I really want to do the Obama refinance but don't know where to turn? Doesnt he have something for people on nemployment with houses?

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

To Cecil,

With a credit score of 620, it will be difficult for you to qualify for a loan. Moreover, if the lender is not convinced about your financial situation, then he won't be ready to give you a refinance. It's better to apply for a loan modification with your lender. This will help you in saving the property and you will also get an affordable payment plan to pay off the loan.

If you want to get rid of the property, then you can apply for a short sale. Your credit score would get reduced by 80-100 points and you would be liable for the deficient amount resulting from the sale of the property.

To Kathleen,

After the extension of the Obama's loan modification plan, even unemployed borrowers will be able to get temporary help from the lenders. You will have to contact your lender and check out whether or not he is participating in the program. If he does so, then you can apply for the help.

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

Call their Home Ownership preservation office, 800-505-3706

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

Wells Fargo holds the mortgage to my home. They have offered to refinance my mortgage at a rate a quarter of a percentage point below my present rate. I have a 30 year mortgage fixed rate at 5.625% and the refi will also be a 30yr fixed rate. My current mortgage has 25 years to maturity. I have a loan balance of 185,799.21 on my home which has a marketable value of $305,000. I have made all payments on time and will have no problem in continuing to do so. The bank has also offered to pay all closing costs on the new refinance. Why, and is there any downside?

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

Rates are going quite low and thus it is good time to refinance the mortgage. While you refinance your mortgage, your lender would be giving you the required documents. You should check the documents properly and be sure about the terms and conditions of the loan. Make sure to ask questions to the lender if you've any doubt. All these will make sure that there won't be any problems with your refinance.

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

Hello Jessica,
Currently my mother has about 2 liens on the house because of debts accrued by my stepfather but she co-signed on all of the credit to begin with so she is a part of it too. My stepfather has since willingly been deported to Africa and we want to refinance the house but the liens don't allow us to do so, there is 225,000 equity in the house, is there any way around this so that we can pay the debtors and lower her APR? It's currently at 9%? I need your help desperately
P.S. We do have a power of attorney and are currently working toward issuing my stepfather a conveyance of the deed to remove his name from the deed, But I would really like to know is: What are our options?

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

Welcome Guest,

Unless you pay off the lien, you won't be able to refinance the mortgage. As far as I know, the lenders will not be able to give you a [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] based on the equity of your property if your mother does not pay off the lien.

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

my boyfriend and I are breaking up and I want my name off the loan, if i refinance to do this, what does he have to prove for this to work, i.e. income, credit, etc.?

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

Hi Guest,

If you want to remove your name from the mortgage, then your boyfriend will have to refinance the loan in his name. In order to do so, he should have a stable income and good credit score. Also, the property should have equity.

Thanks

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

I see an impotant subject
here
h t t p : //2010refinancingmortgage.blogspot.com/

how about this?

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

I was wondering if it is possible to refinance a rental property when your income is already being used up by your home mortgage. My husbands income is just enough to pay the mortgage on our house do to the economy this year and I am a student without an income. My townhouse that we are currently renting out has a 7-year interest only loan that is about to expire and we were wanting to refinance the townhouse before that time. Is this possible?

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

I was wondering if it is possible to refinance a rental property when your income is already being used up by your home mortgage. My husbands income is just enough to pay the mortgage on our house do to the economy this year and I am a student without an income. My townhouse that we are currently renting out has a 7-year interest only loan that is about to expire and we were wanting to refinance the townhouse before that time. Is this possible?

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

I was wondering if it is possible to refinance a rental property when your income is already being used up by your home mortgage. My husbands income is just enough to pay the mortgage on our house do to the economy this year and I am a student without an income. My townhouse that we are currently renting out has a 7-year interest only loan that is about to expire and we were wanting to refinance the townhouse before that time. Is this possible?

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

We are wanting to combine our first and second mortgages with rates of 6.25% & 11.5% into one loan and lower the term to 15 years. Our home value is 355,000.00 and both loans would be around 334,000.00. do you think it's possible?

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

Hello,

I have a fha loan with a balance left of $54,000 interest rate 7.5%. I've had this loan for 11 years, when i didn't have any credit history. My credit score now is rated excellent, and I want to refinance. So what should I do? I live in an area where there where hit by foreclosers, and it drove my home value down to around $45,000. Should I go fha streamline? or are there any other measures I can take to lower my interest rate, without having to refinance and add to the balance? I'm trying to achieve lower monthly payments. please advise?

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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!

Welcome to forums!

To lunchlady,

Lenders will want you to have at least 20% equity in the property in order to refinance your mortgage. I would suggest you to contact your lender and apply for a refinance. The lender will go through the details and let you know whether or not you would be able to go ahead with refinancing.

To zoey,

I appreciate the fact that you have a good credit score. However, you should keep in mind that if you don't have equity in your property, you won't be able to refinance the mortgage.

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($)

I would like my dad to co-sign for my home loan. My question is how do I get him off the loan once I have bought my home. Should I transfer the mortgage, refinance...I'm not sure????? Thanks for any input.

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

Welcome Guest,

A query similar to yours has been replied to in the given page:
http://www.mortgagefit.com/predeal/about38980.html#166061

Take a look at it. Hope it helps you.

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

refinanced with credit union today and closing cost almost doubled from est. cost.. payments only decreased by 117.00 mo. should i go thru with loan amt. from org 97.340. to new loan of 102,000.00?

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

Hi elva,

You should refinance your mortgage only when you get an interest rate which is 2% lower than your present rate. Also, you should plan to stay in the property for quite a longer period of time around 7-10 years. This will help you in offsetting the closing costs. If you plan to stay in the property for a longer period of time, then you can go ahead for a refinance.

Thanks

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

My daughter has been trying for months to get a loan on manufactured home remodified. She is a mother of two children, ages 8 and 12. She works full time job & has no other help. The loan company kept telling her it looked good that the remodification would go through, then today they call her & tell her that by the end of June, they will push foreclosure. This is after they had prolonged this process for months. She had her hopes for being able to keep her home & reducing her payment monthly so she could survive. Do you have any suggestions, she works hard & wants to pay her own way but with recent life changing happenings beyond her control she needs help.

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

do you do home equitly loans?

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

Hi Reese

I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/problems/homeloan-modify.html

Take a look at it. Hope it helps you.

Hi dwtlrt,

This is a mortgage community and not a company. There are lenders in this community who may help you in getting loans. You can seek a no obligation free mortgage consultation from them and check out if you can get a loan.

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

We are 57 & 59. In 2003 custom built single family home $230,000, we owe $180,000, starting to pay on principal now. 30 yr fixed at 6.25%. Excellent credit. 15 yr. Home Equity for $20,000 at 7%. (still mad about that) Paying everthing just fine. My husband thinks we should refi and lower the monthly payment. He thinks he won't be around & we will not pay off the mortgage anyway so we should refi so we can free up $$. If we refi'd for 15 yrs & took the money we saved and payed on the mortgage, that might interest me. I have no intentions of leaving & I can still afford to stay there with the life insurance & investments. I don't want to make a bad financial decision. What is your opinon.

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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 mil!

Welcome to forums!

I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/refinance/goodcredit-lowerpayment.html

Take a look at it. Hope it helps you.

Sussane

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

I have this sister and her husband took her name off the house loan to refiance the house is there something else up his sleeve for doing this?

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

I purchased my home in 2002. I refinanced in 2007 and then 2008. I am at 6%. My payment would go down $200 with closing costs wrapped into the loan. Is it not a good idea to refi since I am never working towards paying off the 30 yr mortgage? I plan on staying the home for a long time.

What do you recommend? Keep it at 6% and finally start paying more than interest?

Thanks
Jane

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

I currently have a home valued at $220,000. I am upside down on the house with a mortgage of $208,000 (6.5%) and a 2nd mortgage of $39,000 (8%).

I have a investment property valued at $120,000 and a mortgage of $32,000 (5.875%).

I am thinking of refinancing the investment property, borrowing enough to pay off the [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] on our home.

What do you think?

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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!

Welcome to forums!

To tport,

If your sister's name is removed from the mortgage docs, it means that she is not responsible for the mortgage payment any longer. She needs to check out whether or not her name is mentioned on the property deed. If her name is there on the property, then she is one of the owners of it. However, if her husband has removed her name from the property deed, then she won't be able to claim any ownership in that property.

To Powers,

If you get a low interest rate, then you can refinance the loan. Thus, you will be responsible for making lower interest payments towards your mortgage. If you wish, you can even refinance it to a 15 year fixed rate mortgage. This will help you in paying off the mortgage faster and you will own the property free and clear within 15 years.

To Howie,

As far as I can understand, you don't have any equity in your investment property. In that case, you won't be able to refinance the loan to pay off the second mortgage on your primary residence. I would suggest you to contact both the lenders and apply for 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($)

My friend and neighbor's husband passed away suddenly at the age of 48 2 wks ago. No insurance of any kind and a mort pymt too high for his widow to pay. She needs info on how to reduce paymts or get advice on what to do so she can stay in her home. (Woonsocket, Rhode Island 02895). I would appreciate any advice you could give me so I can pass it on to her and her sisters who are also trying to figure out what to do.
Thank you,
Leslie

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

I purchased a condo in March 2010 for $239,000. FHA loan at 4.87%. I have now sold my old condo and have $130,000 cash. Should I refinance, restructure, pay a significant amount toward current loan? Do nothing? I currently pay $1592.00 for current loan (30 year) I WANT TO PAY LESS MONTHLY OVER SHORTER THAN 30 YEAR PERIOD. Please advise. THNANKS

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