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Refinance a mortgage at the right time and for right reasons

Are you stuck with increasing monthly payments and looking for favorable rates and terms on your loan? Or, do you want to consolidate your debts and pay them off faster? All these and more can be done by refinancing your mortgage. If you want to know what refinancing is all about, check out the following topics:
Do it yourself!

What is refinancing?

Refinancing replaces your current mortgage with a new loan that has a more favorable interest rate and terms that you can afford to manage. The new loan is secured on the same property as your current loan. The new loan funds are used to pay down the current mortgage while any remaining money can be used to your best advantage. [b]Example:[/b] Mr. X and Mr. Y both took out a mortgage loan worth $400,000. After 4 years, both of them paid off $200,000. Mr. X then took out another home loan worth $200,000 in order to repay the existing loan balance. On the other hand, Mr. Y took out another mortgage worth $300,000 in order to repay the unpaid loan balance which is $200,000. Mr. Y could use the remaining balance in order to fulfill other financial obligations. The first scenario is a simple refinance while the second is that of a "cash-out refinance".

5 Reasons why you should refinance

If you're thinking of refinancing your house, check out these 6 reasons why a mortgage refinance might be right for you.
  • You want to save more:
    Your monthly payments will be reduced if you get a lower interest rate or when the term of the loan is extended. However, with an extended term, you will be paying more in interest during the life of the loan.
  • You want to pay down your mortgage quickly:
    You can shorten the length of your mortgage by reducing the term of the loan. Your Monthly payments will go up, but you will be able to save more in interest payments. Moreover, you'll be debt free sooner.
  • You need extra cash to pay off credit cards:
    If you have enough equity in your home, you can refinance and borrow more than the current loan balance. With the extra money, you can pay off high interest debts such as credit card balances or installment loans. This refinance loan may be tax deductible under certain conditions.
  • You wish to consolidate 2 loans into one:
    If there's enough equity (due to high appreciation), you can consolidate a 1st and 2nd mortgage into a single mortgage. The monthly payment on the new loan might be lower than the combined payments on the first loan and the second mortgage.
  • You want to convert an Adjustable Rate Mortgage (ARM) into a Fixed Rate Mortgage (FRM):
    A FRM prevents the lender from increasing your monthly interest payments over the life of the loan, unlike with an ARM. This means your monthly payments will remain the same.
  • You want to keep your name in home during divorce:
    In case of divorce, you may want to keep home and at the same time and want your ex-spouse to be clear from mortgage payments. For that you should refinance the loan into a new one in your name only.
  • When to refinance a mortgage

    "Should I refinance my house now?" This is what most people ask when they're looking to reduce their mortgage payments by taking advantage of low rates. To find the answer, check out the mortgage refinance tips below:
    • Build up equity:
      You can refinance when you have built up at least 10% equity in your home (Fannie Mae owned mortgages, require 5% equity). It is possible for you to refinance if you have less than 5% equity, but you may have to pay a certain amount of money in order to make up the difference in equity.
    • Check if mortgage refinance interest rates are low:
      It's better to follow the 2% Rule. The 2% Rule allows you to enjoy the benefits of home refinance if the refinance interest rate is 2% lower than your current loan's interest rate. The savings in interest will help you recoup the costs of the new loan, provided you aren't planning to move soon (the break-even period). However, there are no-cost as well as low-cost refinance loans where the costs of getting the loan are included. However, these loans have comparatively higher rates than loans that do not include the refinance costs and your options are limited when the credit market is experiencing a slump. Learn more about the when to refinance rule of thumb. As always, compare mortgage refinance interest rates offered by different lenders in order to get the best interest rate. This will help you save more over the life of the loan.
    • Pay off any late payments:
      There is no such limit on the number of times you can go for home refinance loans. Most lenders prefer that you have no late payments in the last 12 months before you refinance.
    • Remove negatives and improve your credit score:
      Get your credit report from the bureaus and review it for any negative items (late payments, collections, etc) and inaccurate items. Dispute any inaccurate items and remove them from the report. Pay off as much of your debt as you can. Otherwise, you won't get a low interest rate and may not even qualify for a refinance loan. Of course, there are lenders in the subprime lending market who may offer you a mortgage refinance loan, but it's better to avoid them as they'll charge higher interest rates and fees and could be fraudulent.

      When not to refinance

      Refinancing is not a good idea if:
      • Your property value has gone down:
        If your property value goes down and you refinance up to 80% of the appraised value, your original mortgage amount may be higher than the amount you borrow. Therefore, the new loan will not be enough to pay down the existing one.
      • You have been paying off the first loan for a long time:
        If you are almost finished paying off a 30 year fixed mortgage, then refinancing is not a good idea. You will lose equity in proportion to the amount you borrow over and above the remaining loan amount.
      • You have used up enough equity:
        Refinancing is not a good idea if you have already reduced the amount of your equity by taking out a 2nd mortgage or a home equity loan. Refinance loans for 100% of the loan are rare, and with the mortgage market currently in a crisis, are hard to find.
      • You have a few years left on the current loan:
        If there are only a few years left on your current loan, then refinancing is not a good idea. Taking out a new loan will only put you deeper into debt just when you were about to become debt free.
      Refinancing makes sense for the right reasons and at the right time. You need to decide whether to opt for a simple interest rate adjustment refinance or a refinance that will provide you with extra money. If you'd like to check out what mortgage refinance rates and terms are currently available, request a no-obligation free mortgage refinance quotes from our community lenders and brokers.
      Related Readings
      Related Forum Discussions
      [b][/b][b][/b]

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
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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($)

my home is paid for. . I'm paying a car note ,but i need funds to renovate my home,can i refinance car note and get extra moneys,I need about 10,000 dollars :cry:

Like | Dislike | Share | Posted: Fri, 12/26/2008 - 15:27 | Post subject:

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

Hi Pauletten!

You have mentioned that you need funds to renovate your home. In that case, you can take a home improvement loan. As far as car note is concerned, you will be able to refinance it. But you will have to inform the lender that you will use the money for home improvements.

Thanks.

Like | Dislike | Share | Posted: Mon, 12/29/2008 - 01:29 | Post subject:

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

I'm a first time home owner. I've been in my house for a little over 3 months. My interest rate now is 6.75%. I've recentyl seen where rates are somewhere around 5.3-5.5. I have perfect credit with little to no other debt. Can someone give me a few options on refinancing? Am I able to now? My mortgage company has not returned any messages.. frankly, they have not been a bit of help since they got my money!! I feel lost and alone. Thank you for any help.

Like | Dislike | Share | Posted: Sat, 01/03/2009 - 12:37 | Post subject:

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

You may have to wait another three months because most banks will not allow you to refinance for six months. In addition, if you have good credit and you got a rate of 6.75% three months ago from your current lender, then I would suggest that you try a few other lenders as well. That rate seems a bit high three months ago.

Eric
"http://www.dreamhomefinancing.com"

[color=Red:2d09c3e813][size=9:2d09c3e813][Link deactivated as per forum rules. Thanks.][/size:2d09c3e813][/color:2d09c3e813]

Like | Dislike | Share | Posted: Sun, 01/04/2009 - 16:51 | Post subject:

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

I have a first mortage loan and a fixed [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url]. Can I refinance just the home equity loan? The first mortage already has a good rate.

Like | Dislike | Share | Posted: Mon, 01/05/2009 - 10:31 | Post subject:

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

Am I imagining it or do some of the fees associated with refinancing seem like a borderline scam? It seems like the borrower should have more control of this. I.e., why couldn't we compare rates from the various providers to get the best value instead of having the banking "professionals" co-opt this and just bundle thenm together as-is?

Also I wonder, do the fees change at all based on how long it's been since the last time that a mortgage was financed?

Thanks (and sorry to seem so negative, but even to do a re-fi, it seems like I engage this huge juggernaut, when the Title search, etc was all done just last spring)

Like | Dislike | Share | Posted: Mon, 01/05/2009 - 16:25 | Post subject:

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

Hi,

To Tom H,

As far as I know, yes, you will be able to refinance the home equity loan. You do not need to refinance the first mortgage.

To anonymous guy,

You definitely have the option of comparing the mortgage rates before refinancing the property. I don't think the fees are based on the fact as to how long it's been since the last time that a mortgage was financed.

Thanks

Like | Dislike | Share | Posted: Mon, 01/05/2009 - 23:47 | Post subject:

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

Hi Theresa

You can check out the option of refinancing with your current lender as well as other lenders. This will help you in knowing the rates and terms available in the market. I would suggest you to do some mortgage shopping before finalizing the deal with a lender. You can also speak to the lenders of this community and seek a no obligation free mortgage consultation from them. They will tell you what type of rates and terms you might get.

Thanks.

Like | Dislike | Share | Posted: Wed, 01/07/2009 - 00:52 | Post subject:

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

I live in 92882 zip. I owe $105,000 on my property. It is now worth approx $300,000. My current rate is 6.5. I'm looking for the best rate with the a low cost to me. Thank you "memster2you2@aol.com"

[size=9:93a5c8d80b][color=Red:93a5c8d80b][Link deactivated as per forum rules. Thanks.][/color:93a5c8d80b][/size:93a5c8d80b]

Like | Dislike | Share | Posted: Tue, 01/06/2009 - 14:16 | Post subject:

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

Has anyone heard of any lenders that offer a "one-time privilege rate adjustment", without closing costs, when refinancing a home loan, when the homeowner has just owned the home for a few (three) months?
I am trying to refinance without paying any closing costs. Do ALL refis require closing costs? Thanks.

Like | Dislike | Share | Posted: Wed, 01/14/2009 - 18:09 | Post subject:

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

Welcome JustCarl,

As far as I know, all refinances require closing costs. Well, I haven't heard of the "one-time privilege rate adjustment". Did any lender offer this to you?

Like | Dislike | Share | Posted: Wed, 01/14/2009 - 22:35 | Post subject:

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

I am refinancing my house, but the house value appraised to less than what I bought the house for (a little more than what I currently owe on the house, but not by much). Does it make sense to still refinance at a lower interest rate (and very low closing costs) or will it hurt me in the long run - particularly when I sell the house in the future? Does it affect the price I want to put on the house when I put it up for sale in a couple of years?

Like | Dislike | Share | Posted: Wed, 01/21/2009 - 13:36 | Post subject:

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

Hi MKA

As the appraised value of the property is less than what you bought the house for, I doubt whether the lenders will refinance the property. I do not think a refinance will affect the price of the property when you try to sell it off in the market.

Thanks.

Like | Dislike | Share | Posted: Thu, 01/22/2009 - 00:51 | Post subject:

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

Hi, I want to refi- I got in touch with a mortgage Co. and was told that all I needed was the award letters from both my son and I and my grandson, we all live in the same home. I produced them, and then the Co. said that I needed a letter from social security saying that they were permanant disabilitys, I got in touch with them to let them know and their response was this, They said that the award letters should be enough, that they have never given anything like the Co. is asking for. I explained this to the Co. and they would not except this. They now want me to go to a Dr. so that he can write a letter stating that the disabilitys are permanent, I explained to them that that is not possible, since the disability came into existance, 9yrs. ago. and the social security office is the only one that makes that kind of dicission, I have never heard of such a thing, have you?

Like | Dislike | Share | Posted: Thu, 01/22/2009 - 18:03 | Post subject:

yoovle's picture
yoovle | Joined: January 23, 2009 04:08 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Cay, the interest rates now are a lot lower that your 9.3%. But I think that the best thing is to ask in your bank.

Like | Dislike | Share | Posted: Fri, 01/23/2009 - 04:49 | Post subject:

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

I recently got a great paying job and I still live with my parents I pay the light bill and the cable bill.They recently told me they want to refinance their home again.WILL it ruin my credit if I sign any paperwork stating how much I make so they can lower their monthly payment, my credit is not great but I have my own bills I need to pay off like loans for school expenses. how will my credit score be affected?

Like | Dislike | Share | Posted: Tue, 02/03/2009 - 19:40 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

[i:d7b08b04f0]To lillypad[/i:d7b08b04f0],

I think you should not deal with this company. There's something fishy about it. The social security authorities are quite justified. Better look out for some other company. If interested, you may have a talk with the lenders in this community. They have been helping people with low income and disability with loans that serve their purpose. Just go for a [i:d7b08b04f0]no obligation free mortgage consultation[/i:d7b08b04f0] with the lenders here and see what they have to say about your options.

[i:d7b08b04f0]To Not trusting[/i:d7b08b04f0],

What I understand is, your parents probably want you to act as a cosigner of the mortgage. That is, you have your name on the loan but you don't make monthly payments. Only when you parents default, you'll be asked to take over the payments. Just being a cosigner won't affect your credit in any way as long as payment are made on time.

Good luck

Like | Dislike | Share | Posted: Sun, 02/08/2009 - 07:50 | Post subject:

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

Hi RichieRich,

As far as I know, the balance on the old loan and the new loan after refinance can be different. If you have any doubt regarding the loan, contact your lender and ask him to explain it in details.

Thanks.

Like | Dislike | Share | Posted: Fri, 02/13/2009 - 02:44 | Post subject:

m.snover92571's picture
m.snover92571 | Joined: February 10, 2009 09:53 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

wonderful post!! good information

Like | Dislike | Share | Posted: Tue, 02/10/2009 - 10:38 | Post subject:

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

I did a "no-cost" refinancing and the principal balance of my new loan is higher than the closing principal balance of my old loan. Shouldn't they be the same? I get a month with no mortgage payments before my new loan starts but even if I figure that in my new balance is higher than my old one.

Like | Dislike | Share | Posted: Tue, 02/10/2009 - 20:09 | Post subject:

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

richie rich you ought to have received a good faith estimate at the time you applied for this new loan. on that document, you should have seen any and all costs related to the transaction.
furthermore, when the new loan closed, you should have received copies of the hud-1 settlement statement, which also would reflect all costs, etc. on your loan. somewhere you must have information that would explain why your mortgage balance now exceeds the balance you had when you began the process.
review that documentation - if you don't have it, get it - either from the lawyer or title company that closed your loan, or from the lender directly. you need to review these documents to ensure that what you believed was true really was.

Like | Dislike | Share | Posted: Mon, 02/16/2009 - 08:20 | Post subject:

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

I have just been quoted $4,500 for re financeing, just this sound excessive?

Like | Dislike | Share | Posted: Fri, 02/20/2009 - 01:44 | Post subject:

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

without knowing any of the other details of your loan request, it is impossible to tell you if $4500 is high, low or just right. in general, closing costs are partially driven by the amount of the loan. if you are borrowing $100000, then i'd have to say the quote is high. if you're borrowing $300000, then it's probably low.

Like | Dislike | Share | Posted: Fri, 02/20/2009 - 06:51 | Post subject:

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

how soon after buying a house can you refinance?

Like | Dislike | Share | Posted: Sat, 02/21/2009 - 15:47 | Post subject:

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

Hi wewe,

You will have to wait for at least a year in order to refinance the property. While you refinance, you will have to pay the closing costs as well as other related costs once again. Moreover, you will also have to go for an appraisal of the property before refinancing.

Take Care.

Like | Dislike | Share | Posted: Mon, 02/23/2009 - 02:42 | Post subject:

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

I am trying to refinance my house through the streamline program and I am going 4 days into the next month. Is it true that I have to pay a whole months worth of interset. I know I have to pay off the previous months interest.[color=Red:f4a99b4fb2][/color:f4a99b4fb2]

Like | Dislike | Share | Posted: Thu, 02/26/2009 - 15:58 | Post subject:

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

As far as I know, you will have to pay the whole month's interest. But in my opinion, you should consult your lender in this regard. He will be the best person to tell you what you need to do.

Like | Dislike | Share | Posted: Thu, 02/26/2009 - 21:44 | Post subject:

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

yes, fha loans require interest in advance.

Like | Dislike | Share | Posted: Fri, 02/27/2009 - 12:52 | Post subject:

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

recently divorced and in divorce decree i was awarded all title intrest and equity in and to the homestead what do i do to remove his name he has skipped out of state

Like | Dislike | Share | Posted: Sun, 03/01/2009 - 10:00 | Post subject:

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

Hey carol,

In order to remove your husband's name from the title, you will have to ask him to sign a quitclaim deed in your name. You can contact him and ask him to sign the deed in your favor.

Like | Dislike | Share | Posted: Sun, 03/01/2009 - 21:46 | Post subject:

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

I AM 55 YRS OLD. LIVE IN COLORADO. AM ON DISABILITY. AM 2 MONTHS BEHIND IN HOUSE PAYMENTS. IS THERE ANY HOPE FOR ME?

Like | Dislike | Share | Posted: Tue, 03/03/2009 - 12:33 | Post subject:

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

Hi eehale!

Welcome to forums!

As you are two months behind on your monthly payments, I would suggest you to contact your lender immediately and inform him about your hardship. If you want to save the property, you can negotiate with the lender for a loan modification. In this process, the lender will give you a new payment plan to pay off the dues.

If you do not want to save the property, then you can go for a short sale or a deed in lieu.

Feel free to ask if you have further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 03/03/2009 - 22:01 | Post subject:

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

I am refinancing. My loan broker told me that the lender is required by the state of Virgina to keep a reserve equal to my annual property tax payment and has added the value of the reserve to the cost of my loan. This was not a cost included in my good faith estimate. Is this legitimate?

Like | Dislike | Share | Posted: Wed, 03/04/2009 - 18:48 | Post subject:

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

Hi Jeff

As far as I know, in Virginia, lenders can ask the borrowers to pay the property taxes for 3 months at time of settlement. This amount will be deposited in the escrow account. But I don't think you should be required to pay a reserve equal to your annual property tax payment.

Thanks.

Like | Dislike | Share | Posted: Thu, 03/05/2009 - 02:37 | Post subject:

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

Do you expect rates to remain volatile or remain status quo?? I am nervous about locking and do not want to miss the best rate!

Like | Dislike | Share | Posted: Thu, 03/05/2009 - 10:13 | Post subject:

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

In my opinion, the rates may vary on a day to day basis. But as rates are going quite low these days, it would better if you could lock the rates as soon as possible.

Like | Dislike | Share | Posted: Thu, 03/05/2009 - 22:28 | Post subject:

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

If I have a 169,00.00 30 year mortgage, wanted to pay it off in 15-20 years early, how much would I have to pay extra per year for this to happen?

Like | Dislike | Share | Posted: Tue, 03/10/2009 - 12:30 | Post subject:

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

Hi gagirl!

Welcome to forums!

You have mentioned that your loan amount is 169,00.00. You haven't mentioned the interest rate. Suppose, your interest rate is 5.5% and you will have to pay it off in 30 years. In that case your payment will be $ 959.56.

Now other things being the same, you want to pay off your mortgage in 15 years. So your monthly payment will increase to $ 1380.87. Thus, you will have to pay $421 extra towards your mortgage. If you wish, you can use the given link to calculate the payments yourself:
http://www.mortgagefit.com/calculators/simple.html

Sussane

Like | Dislike | Share | Posted: Wed, 03/11/2009 - 22:45 | Post subject:

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

Does anyone know which banks would finance a mortgage for a condo in litigation?

Like | Dislike | Share | Posted: Mon, 03/16/2009 - 05:52 | Post subject:

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

not quite sure what you mean, natasha.

Like | Dislike | Share | Posted: Mon, 03/16/2009 - 07:30 | Post subject:

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

Do I need to pay the closing costs with cash or can they be part of the mortgage?

Like | Dislike | Share | Posted: Thu, 03/19/2009 - 17:17 | Post subject:

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

Hi texmets,

You can definitely pay the closing costs with cash. Moreover, it is always better to pay the closing costs upfront rather than wrap them into the mortgage.

Like | Dislike | Share | Posted: Thu, 03/19/2009 - 23:48 | Post subject:

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

are there any programs specifically for this situation. my husband is disabled drawing SS and I am just recently unemployed drawing umployment. we can still pay our mortgage, but would like to refinance to pay off some debt and lower payments if possible. live in Kentucky. what do you suggest. Want to keep house. Have owned for 9 yrs. never late.

Like | Dislike | Share | Posted: Wed, 03/25/2009 - 06:58 | Post subject:

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

anonymous you ought to bring this subject up with your current mortgage holder, as you may qualify for a modification or something like that. your unemployment status is going to hurt your qualifications for a new loan with any other lender. if your husband's SS income is sufficient to allow you to qualify, then you can shop around; but lenders won't give you credit for the unemployment compensation.

Like | Dislike | Share | Posted: Wed, 03/25/2009 - 11:29 | Post subject:

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

We currently have a fixed rate which will reset in 2011. We managed to make extra principal payments to reduce our mortgage balance to $415k prior to my forced retirement. My loan is insured by Freddie Mac but my current lender is offering a re-fi only. Are there any principal reduction programs available?

Like | Dislike | Share | Posted: Thu, 03/26/2009 - 14:03 | Post subject:

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

I currently have 10 years lefted on a 15 year mortage at 5.37 interest rate,including APR. I want to do some home improvements, I live in Texas so there is no home equity loans. I owe approximately 97, 500.00, should I refinance or just pay off the existing loan.

Like | Dislike | Share | Posted: Fri, 03/27/2009 - 07:09 | Post subject:

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 fxray!

If you are refinancing the loan, then I doubt whether the lender would offer you any principal reduction. However, if you are in hardship and have applied for the Hope for Homeowner, then you can get a principal reduction.

To Joni,

If there is equity in the property, then you can refinance the loan. This will also help you in getting some cash to do some home improvement.

Sussane

Like | Dislike | Share | Posted: Fri, 03/27/2009 - 21:02 | Post subject:

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

I owe $286K on my 30 year fixed loan of $390K. I put $100K down in cash last year. My rate is 5.625, but I'd like to take advantage of lower rates. Is now a good time to refinance. I have no other debt other than my mortgage.

Like | Dislike | Share | Posted: Tue, 04/07/2009 - 16:09 | Post subject:

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

Hi amyt,

Rates are quite low now a days. If your property has equity and if you have a good credit score and income, you can definitely take advantage of the lower rates. But you will have to pay the closing costs while refinancing. However, you should refinance only if you decide to stay in the property for quite some time.

Like | Dislike | Share | Posted: Tue, 04/07/2009 - 22:28 | Post subject:

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

I am working w/ my bank to refinance. Original yr 30 loan of $168,000 at 5.875% taken out in 2002. New loan 4.75% 30 year but my loan balance will go from a payoff of $147K to $154K (discount $1,348, closing costs of $3,200 and approx. $3,000 in prepaids). Monthly payments reduced by $180. Didn't expect loan balance to increase by $7K. Looking for help to determine if this refinance makes sense. Bank rep. originally told me costs would only be $3,700...not $7,000.

Like | Dislike | Share | Posted: Wed, 04/08/2009 - 07:32 | Post subject:

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