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

Hi Guest,

Do you wish to get rid of the property? If you're already delinquent on your mortgage payments, then you can apply for a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url]. This will help you in getting rid of the property. Moreover, you won't be liable for paying off the deficient balance resulting from the sale of the property.

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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 first and a second and I would like to look at just refinancing my second..can you tell the rate on a second and some qualifiying factors?

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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 Guest!

Welcome to forums!

You should have equity in your property in order to refinance your [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url]. Unless you meet this criterion, none of the lenders will be ready to give you a loan. Apart from this, you should have stable employment situation and a good credit score. As far as the rates are concerned, they keep varying from time to time. So, you'll have to speak to the local lenders and get to know the rates.

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 owe about 90,000 or 23+ years with a 6.1 rate do you think it would be a good idea to refinance now. :?

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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 nola!

Welcome to forums!

If you're planning to stay in the property for a longer period of time, then it will be a good option to refinance the loan as the rates are going quite low. Staying longer in the property will help you in offsetting the closing costs that you pay while refinancing 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 am currently on the title and mortgage of my house as a single women. Im thinking about refinancing my house with my husband. Will he automatically be put on title when doing so or is there a way he can be put on the loan and not title?

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

Hi candy,

If you want to add your husband to the mortgage docs, the lender will ask you to add your husband to the property deed as well.

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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 5 years and i was wondering if we could get a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] to add on to our home

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

Awesome, that’s exactly what I was scanning for! You just spared me alot of searching around

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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 mlr!

Welcome to forums!

If you've equity in your property, then you will be able to get a home equity loan. Apart from equity, you should also have a stable income and a good credit score.

Feel free to ask if you've further queries.

Sussane

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foreclosureus1's picture
foreclosureus1 | Joined: November 24, 2010 03:42 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You can calculate it by any [url=http://www.mortgagefit.com/calculators/]mortgage calculator[/url]...

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

If my HOA puts a lien on another unit owner, will that affect my ability to refinance my unit?

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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 house that is in someone else's name. He refinanced it several times and then the market fell out. How do I get the loan into my name. The property is in my name just not the loan.

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

Hi Micimm,

You will have to refinance the mortgage in order to get the mortgage transferred in your name. However, your property should have equity in it in order to refinance the existing mortgage. If there is no equity, then you won't be able to get a mortgage refinance.

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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 a 30-year fixed at 6.375% with a balance of $132,000 and are in year 9 of current loan. Looked at a 5% 30-year fixed with no closing costs but believe a 15 or 20-year fixed would be better. We think a 15- or 20-year loan would be better to build equity as we plan to sell in the next 5-7 years. Is there any point in refinancing now if planning to sell in 5-7 years?

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

Hi Nunu,

Rates are going low. So, if you've equity in your property, then you will be able to refinance the mortgage with a 15 year FRM. However, if you don't have equity in your property, then you won't be able to get a mortgage refinance.

Thanks

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

i have bad credit.i am on disabilty.i own land..i want to move my mobile home on this land and then use it for colateral.can i borrow the money anywhere to do this and they take title and deed for collateral?

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

Hi Glenn,

You can use the land as collateral and get a mortgage on it. In order to do so, you should contact the local land lenders and apply for a mortgage. If you meet the required criteria, then you will be able to get a mortgage.

Thanks

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

I am recently divorced. My x wife's name is on the home title
She has also signed a quit claim. I tried to refinance through my current lender, they won't because of my income ( I am a contractor)
Do I have any other options because of last year being a "slack" year in my type of employment.

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

Hi vicktre,

It will be difficult for you to get a mortgage refinance if you do not meet the required criteria of the lender. You can apply for personal property loans in order to refinance the loan in your name but such loans are available at a higher interest rate.

Take care

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

I concur - it's awfully difficult for a lender to look favorably at a loan request when the income situation is shaky. Lenders who might look at you are likely to be exorbitantly expensive.

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

My parents are in the process of refinancing and they already “approved” to have lower monthly pmts. However, their tax adviser is suggesting that if they don’t report more income they can fail to prove that they can manage to make their monthly payments.

But isn't one of the reasons to be able to have lower monthly payment being that they can't afford to make their current monthly payment?

What is the advantage to report more income when trying to lower their current monthly payments?

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

I'm pretty confused about your post. You mentioned that your parents are already "approved" - why the quotation marks? Was the approval done by a chimp or a real human being? Did they approve themselves? Approval ought never to be contained in quotation marks - it either is, or isn't.

Why would their tax advisor get into the mix? Of course, they might have asked for that advice...I understand that's possible. But if they've spoken to a lender and received favorable responses, then what the advisor has to say might not be at all relevant to the transaction they're undertaking.

The advantage of reporting more income is that one is more certain to be approved when income is higher. But if they are already "approved" then all they need to do is remove those quotes and close the new 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 with a mortgage company that surrendered their loan license in 2009?

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

Our current balance owed on our mortgage is $23,000. Is it possible to refinance our current home and take cash out to buy another home for cash? Our plan would be to rent our current home to our son and family.

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

TM, if that broker that surrendered the lending license two years ago is still trying to do business, then you'll apparently be able to use him/her; but of course, that would make the transaction illegal, as one must be licensed in order to do a mortgage. Why in the world would you want to try to go back to someone who's not even licensed to do the mortgage? That would also mean the broker is not cognizant of recent regulatory and secondary market changes.

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

Tommi, there'd be no reason why you couldn't apply for a cash out loan that would allow you to purchase a new property. What you need to keep in mind, however, is that lenders will want to be certain that the property you're refinancing is intended for your primary residence and will remain that way.

Can you say you're purchasing a second home? Yes, you can.
Can you say that when you're not actually purchasing a second home, but a new primary? Yes, you still can, but it won't be proper; and if you get found out, you'll be penalized.

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

i bought a condo almost 2 years ago for 94000 at 5.5% rate. fha loan. is it worth refinancing for a 4.5% rate? im new at this stuff.. just kinda went for it. im not worried about making my payments... but just wondering if its worth doing so in the long run.

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

if property value goes down will that affect my mortgage payment. Should it go down to

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

I have 4 years left on my conventional mortgage. i also have a home equity line of credit. i want to convert the home equity to a 15 year fixed and keep
paying the conventional loan. am i able to do this

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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 jake,

If you're planning to stay in the property for a long period of time, then you can refinance the mortgage loan. Staying for a long period of time will help you in offsetting the closing costs resulting from the mortgage refinance.

To Guest,

Your mortgage payments won't go down if your property value goes down. You will have to pay off the mortgage payments as per the agreed payment plan.

To Pattycakes,

If you have equity in your property, then you can contact the local lenders and apply for a 15 years fixed rate mortgage. If you meet the required criteria by the lender, you'll be able to get a loan.

Feel free to ask if you've further queries.

Sussane

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

In response to Jake and Big Cat and Pattycakes:

Jake - you'll want to calculate how long it will take you to compensate yourself for the closing costs associated with a refinance, based on your savings in the payment itself. For example, if you pay $3000 in closing costs and your payment is reduced by $100 per month, then you'll compensate yourself for those costs over the course of 30 months. That's not such a great deal - unless you plan to be in the home for a very long time. You generally want to be able to recoup the costs within a 2-year time period at worst.

Big Cat - I agree with Sussane...your mortgage payment is based on what you borrowed, not the value of your home.

Pattycakes - Since you already have a conventional first mortgage, you'll not be able to duplicate that with a new 15-year loan. Any new loan would still be a [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url], and rates will typically be a bit higher on those than with a first mortgage loan. Shop around, by all means, but don't be surprised if you don't have as much success as you'd like to have.

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

02/11/2011-Chicago, Illinois

:?: Hello Jessica,

re:Refinance Mortgage

I Have:
*House Mortgage loan (Yr-2027) > $21,000 / $621/mo / R: 6.60%. Also,
**Line of Credit [url=http://www.mortgagefit.com/home-equity.html]Home Equity Loan[/url] (Yr-2012> $32,000 / $160/mo R: 6.00%
I Pay a total of $300/Mo. Toward this loan ** L.O.C.H.E.L. Add this to the above amount of $621/Mo---> Tot. Monthly for * & ** Equal $921.

I need to do Refinance for * & ** total of $53,000/ 25 yr/ fixed rate / with $500-$525 / Monthly Payment.
I need to know the lowest I -Rate I can get, so I can save cash to pay other bills. I have a very good credit rating; prompt loan payment history (no late payment fees ever since 1993). Good assets and liquid assets are there, tax returns are available. Financial statement is available "upon request".
PS. ASAP
Regards,

Nick :?: :lol: [quote:c9f0a528c9][b:c9f0a528c9][/b:c9f0a528c9][/quote:c9f0a528c9]

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

Hi NED,

The rate of interest that you'll get will depend upon the market situation. If you have good credit scores and income, then you'll be able to qualify for lower rates and better terms and conditions. However, in order to get a refinance, you should have at least 20% equity in your property.

Thanks

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

Nick, your "good credit" is going to have to be north of 740 in order for you to obtain the best rate these days. Even then, you'll pay a premium for cash-out, which you're doing because you have the home equity loan. Rates have gone up in the very recent past, so shopping today will be different than it was a week ago, and tomorrow may bring something altogether different as well.

You seem to be a good borrower, but having good credit isn't the same as great credit, though I'd have to consider that your good record since 1993 will contribute to an above-700 score. As long as your financials are in order (income), you ought to do well.

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

My 73 year-old aunt was approached by her bank with offer to refinance her home in Arizona and is asking be for advice. I'm suspicious because she is "upside down", owing more with home equity and first mortgage than the home is worth. She had refinanced to 6.75% six years ago and the bank is offering 5.75% for 30 years. Does the home equity loan become due in-full on refinance? What is the bank's angle? The officer says "She qualifies for a HARP refinance which is part of a government program that enables the bank to refinance our customers that do not have the standard 20% equity typically required. We would subordinate her current home equity line of credit behind the new first mortgage." Appreciate any help you can provide.

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

Hi Russ,

If there is no equity in the property, she won't be able to refinance the mortgage. If she has equity in your property, then she can refinance both the loans into one single mortgage. She can also refinance only one loan and her home equity line of credit won't be due.

Thanks

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

Russ, the lender here is trying to make itself comfortable at the same time as providing some possible relief to your aunt. She gets the benefit of a reduced interest rate which won't hurt the lender because they'll undoubtedly sell the resulting mortgage; and they'll be more secure knowing that a reduction in interest rate will enable her (presumably) to make payments more easily.

Undoubtedly, too, there is a likely incentive coming from the government when the lender grants a new loan under the HARP progam (don't quote me - I'm assuming this for the most part).

It might not be such a bad deal for your aunt after all; the longer she's able to pay with the new setup, the greater the possibility that the lender will reap the benefit of payment of both loans.

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

Can you find lenders who will refi for UK residents who have mortgage in USA?

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

If you co signed for a relative as a favor and now you want to get a home on your own, how long after you name is off the deed can you start looking to buying one?

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

Hi BARRYJOHNKENT,

The borrowers will have to speak to local lenders and apply for a mortgage refinance. If they meet the required criteria of the lenders, then they will get a loan.

To Guest,

Once your name is removed from the property deed as well as the mortgage, then you'll be able to get a mortgage in your name for buying a home of your own immediately.

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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 mortgage but I now need to rent the property because I am marrying someone who has an FHA mortgage and I plan on moving in with my spouse and renting my property. I've learned that with an FHA loan the property must be your primary residence. What are my options and what type of loan can I refiance with that would be beneficial to me?

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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 have equity in your property, then you can refinance the FHA loan with a conventional mortgage and rent the property so that you can move in with your spouse.

Thanks

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

[font=Arial:d87d6146ff]I just got divorced and need to refinance to get my ex's name off the mortgage. Can I use my assets and gift monies from family to pay down my current mortgage balance for a refinance? Current loan is $573K, I would have to pay down to about $372K. Also, when calcluating the debt to income ratio do you take taxes and homeowners into consideration? I have no other debts.[/font:d87d6146ff]

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

Hi MIMIMIMI,

You can use your other assets and gift monies in order pay down your current mortgage so that you can refinance the mortgage solely in your name. As far as I know, your taxes and homeowners insurance won't be taken into consideration when the DTI ratio is calculated.

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

I am trying to refinance my home.I have 8.5% interest rate.My home has gone down in value I owe 104,000. My value now is at 85,000.Is there any lenders out there to help or am I better just to leave it go and foreclose on it. I am having problems keeping up with mortgage payments,but have always been on time

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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 marilyn!

Welcome to forums!

As there is no equity in your property, none of the lenders will be ready to give you a refinance. It is better if you could apply for a deed in lieu of foreclosure in order to get rid of the property.

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($)

A very good friend is stuggling to keep his home. He receives disability and his credit isn't that good. His house note is about half of what he receives in disability payments. Plus he has to pay all other expenses. He lives by himself. Is there a reverse mortgage plan that will help him?

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

Hi bonnie,

Unless your friend is 62 years old, he won't be able to qualify for a reverse mortgage.

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davemarius | Joined: March 22, 2011 09:14 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

How can I refinance my mortgage in the easiest way ? I need advice.

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