Mortgage Refinance
Mortgage Refinance questions and answers
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Q: mortgage refinance?
My husband and I bought a house in October with a no documents loan and ended up having to split our mortgage and have two smaller loans. Our mortgage servicer recently called and said that they have been unable to sell our mortgage and would refinance our loan at no cost to us. The woman I have been talking to said that they could combine our two loans and get us a better interest rate...sounds great
But is this legitimate? Is this something that I should be concerned about or is this something that happens often?
We still owe about 94K on the original loan and they are trying to combine both the loans. Overall it looks like it will be good for us because we'll have one loan instead of two and our interest rate will be lower...can we just tell them not to refinance? How does that work? Our loans are crap right now so it wouldn't take much to make it better for us
We're in Oklahoma City
A: It is true that they may not be able to sell your loan.
That isn't your problem.
The servicer is just servicing for whoever owns it today.
You may have an 80% 1st and a 20% 2nd (If you did 100% financing)
It certainly IS possible that a different loan will be easier for them to sell, but you aren't going to know if it is better or not.
Do they want to refinance both your 1st and 2nd into one loan OR just refi your 2nd ?
You need to get some straight advice from an independent consultant. Find out what kind of loan they want to put you in and post the info here.
Also post your current type of loans and interest rates and payment amounts, AND what your proposed loan, term rate and payments will be.
You can only get the right advice if your provide ALL the info.
You are NOT onligated to refi your loan. Many loan originators cannot sell 2nds today. Usually the 1st isn't the issue.
If you are happy with your loan, don't be pressured.
What state are you located in ??
Q: mortgage/refinance?
based off of the most common outlook for the housing and financial markets, are mortgage and refinance rates going to decrease?
A: The answer is right now, it is anyone's guess as to what is happening with the market, because the entire market is collapsing at the same time. I work for a very large conventional mortgage lender, and the ususal indicators that would point to rising/lowering rates are conflicting at this time.
That being said, here is what is going on, or things you can follow that may help better answer your question:
1. The dollar is weak - normally would mean rates increase, as this would help attract foreign currency, and push the value of the dollar back up, and thus lower rates in the long-run.
2. Mortgage rates follow the 10-yr treasury index - long term mortgage rates typically follow the 10-yr treasury, and this is the best indicator of rate behavior from one day to the next. Rates will run anywhere from 2-3.5 points higher on average depending on other factors.
3. Fed cuts do not equal mrotage rate cuts. This is the oldest myth in the books, but Fed ACTIVITY and DECISIONS can impact mortgag rates. Example, the last 3 fed cuts in 2007 pushed mortgage rates UP.
4. Good news for the stock market is generally bad news for rates, as people take money out of bonds/treasuries, and dump it back into stocks, thus increasing yields.
5. Recessions are typically good for rates, as people invest mroe in bonds/treasuries during these times, pushing yields down.
6. Liquidity - or what people call demand - will affect rates. If there is no demand for mortgages on the secondary market (as there is right now) then rates go up, and vice versa.
7. PMI companies - yes, these people have a big impact on mortgage programs and rates. You will not be able to finance 100% of a home anymore, at least not conventionally for some time, as the PMI companies will not insure them anymore. Also, two of the largest PMI companies in the US are not expected to make the end of the year, so expect rates - based on this alone - to increase, unless something else happens.
8. Bear Stearns, and other such companies, that go under affect liquidity, and thus rates, and program availability, etc.
As you can see, these are only some of the issues that affect rates. Right now the trend is upward, and it is anyone's best guess as to when it will stop. According to Greenspan's book, he sees rates going back into the double digits sometime in the coming years like back in the 80's.
Also, a mortgage program that was available yesterday, may not be availabe in a week, or even tomorrow, and there is no control over this. We live in a free market, and therefore, these changes happen all the time.
Also, the agencies (Fannie Mae and Freddie Mac) that govern conventional mortgages are implementing pricing adjustments that will affect everyone with scores less than a 710 pretty soon, so rates will be much higher for people with lower scores.
Lastly, mortgage markets are forward-looking, and if the investors feel the news is bad, which it is right now, expect rates to reflect that. Inflation is increasing, and so will rates.
I know that this may not directly answer your question, but I hope it helps.
Q: Where can I find the lowest interest rate for a mortgage refinance?
Where can I find the lowest interest rate for a mortgage refinance in Arizona? I would like to be able to look for it online.
A: Hi There,
Try typing in 'home loan interest rates' or 'arizona mortgage' in your Google search engine and see which mortgage companies come up in the search. Then see what each company has to offer. If its unclear which links to follow, check out the search links that show up in the right hand column. If you have good credit, for the lowest rates, look for websites offering 'wholesale rates'.
Keep in mind that interest rates are tough to compare between mortgage companies because they hinge on so many factors including your credit, term, and the type of loan you're interested in. Instead, focus on how much the mortgage company can lower your payment. Or, pay close attention to how long the company has been in the industry, client satisfaction rate, reliability, and trust. You can typically get a good idea of how a mortgage company is received by the public through client testimonials.
If you have any questions, you can contact me directly. I hope this helps!
Q: when does mortgage refinance make sense?
Hello all,
i 'd like to know how to best use mortgage refinance, and usually for what reasons people refinance. Also does refinance ultimately cost more? I don't need to lower my monthly payment, so I don't have any clear purpose in mind. It is just that I have heard a lot of different views on refinance. I hope to get some insights and analysis from you out there. Thank you.
A: Hello,
There are several reasons to refinance. However, it really depends on your unique situation.
Besides lowering their mortgage rate and monthly payment, the biggest reason people decide to refinance usually would be to consolidate debt, or take cash out their home or investment property (in other words borrow money against their home).
Another reason, especially lately, is to refiance out of an ARM (adjustable rate mortgage) to keep mortgage payment from rising.
Any of these would be a great reason to refinance. Hope this answers your questions. I've included a link to our refinance page for more information and scenarios for refinancing.
Q: Which bank offers the lowest interest rate for mortgage refinance in California?
I need to refinance my second/investment home in Milpitas California and I'm looking for a mortgage broker or a bank that offers lowest interest rate based on 700 or more fico score. Preferably a loan program with minimum monthly payment is preferred.
A: find the best rate you can find and then add 1% (1 point is what is the standard to add when dealing with an investment home)
A mortgage broker is supposed to find you the best rate from all the companies she works with. If you don't have a good one shop around.
Here is a website to find the average and best rates:
http://www.bankrate.com/brm/default.asp
Q: Mortgage refinance when is the best time ?
Refinancing mortgage is not an easy decision, when is the best time to refinance ?
A: Interest rates fluctuate together with economy. Depending on what they were at the time of closing the loan, you may have chosen an adjustable rate loan or a fixed rate loan. That means that you get the benefit of keeping low interest rates or modifying the rates to a lower value if you have an adjustable rate loan. If, on the other hand, they were to rise to abnormal values, there is a maximum or “cap” to limit the incidence of rates on the loan. Read more http://refimortgage-online.blogspot.com/
Q: Can someone answer a mortgage refinance question?
When you refinance your home with another mortgage company then the one you have know, who lets them know you've gone with another mortgage company? Are there penelties? We are in a sliding rate and are trying to get into a fixed rate. thanks!
A: the new mortgage company will order the PAYOFF ....usually done by the processor (the title company conducts closing not loan services)
when they order the payoff the old mortgage company will let the new lender know if there is a prepayment penalty. Normally, you can find out yourself if you call them or view your old loan documents.
I'm sure your old lender will know that you're refinancing when they see you have applied for a mortgage. You should be expecting calls from other lenders as the credit bureaus sell your information when you apply for a mortgage (called 'trigger leads').
make sure to get on your old lender about the payoff. they usually take their time as they're hoping to 'retain' your mortgage with them instead of you going to a new company.
Q: My 5/1 arm will reset in 18 months, should I refinance home mortgage now, or wait for few more months?
Current rate of ARM interest is 5.125%. Would it better to go for 6.75% mortgage refinance at no closing costs, if I am planning to live in the same house for next 7 to 10 years?
A: DeeDee, what does your mortgage indicate? Is there a pre-payment or other penalty? Has your homes value decreased? Do you have equity in the home.
If your home is in a declining area, your lender may require a 5 percent payment available from the equity of your home. (95 percent LTV)
I would check all your paperwork and speak to your current mortgage company. None of us know what will happen to interest rates or home values in the next 18 months.
Q: what's the current minumum fico score for doing a stated home mortgage refinance deal?
i want to refinance my home,but my broker tells me that the minumum fico score is constantly changing,so,i want to exactly know what is the minumum score to do a stated refinance mortgage deal right now?
A: at my brokerage we can currently do 70% LTV with a minimum of a 680 score. i don't know what that guy was talking about income for, the whole purpose of a stated loan is for people who don't have enough income. if your score is over 700 however we can go higher on the LTV
Q: Do I need to report the equity "cash out" from mortgage refinance as income?
I do my own taxes every year, but this year I have a question. I refinanced my mortgage in the spring. Had a significant amount of equity and decided to "cash out" some of my equity to help pay off some outstanding debts (car, student loan, credit card balance) and kept some to keep in saving (so it's accessible, if needed). I know the government tries to take a piece of everything, but this is MY money. It's not "wages" -- does that make a difference?
A: No.
You report equity on your home when you sell it. Then, you subtract your total costs from your home from the selling price to figure your profit on the sale. If you are single and have owned your home for two years or more, the first $250,000 is not taxable income. If you are married, the first $500,000 of profit is not. Any amount above and beyond that amount or if you have not lived in your home as your primary residence for more than two years, all profit is deductible.
Q: What is the 4506-T for in regards to a mortgage refinance?
I am a loan officer for a mortgage company refinancing one of my clients. He is stating his income as he is self-employed. One of the conditions required by the lender is a 4506-T tax form. I forwarded it to my client, but he is hesitant to submit this form in fears of being audited by the IRS? What is the likelyhood of this actually happening and what would need to happen for the IRS to take such drastic measures? Otherwise I'm not sure why this is a requirement from the lender...
Of course I haven't been a loan officer for very long...if I had been in the industry for many years, I doubt I would be coming to Yahoo Answers to obtain smarmy replies from know-it-alls. But hey, you were all in the same boat at one point in your careers, right?
A: I agree with boston. In the fact that you havent been a loan officer very long.
4506-T or even without the T is a form that allows a 3rd party, your lender, to verify what they make from the IRS. They submit the form to the IRS and if they are stating they make 5,000 a month on their loan application, and they are saying to the IRS they make 2,000 a month. Its loan fraud.
All lenders will request that form. Why? because if it goes into default, they will check. Most lenders dont check before, but it gives them the right to check at anytime.
Q: Is it better to pay down my current mortgage and refinance or refinance and use the money for downpayment?
I have inherited some money and I want to use it to pay down the debt on my house and to make the payments lower. Would it be better to pay the mortgage down $100K and then refinance the $75K balance or Should I refinance the $175K and put a downpayment of $100K? Maybe it would be the same difference, but I just wanted to make sure I am using this money in the best way. Thanks!
A: Depends. Here are some things to consider:
1) If you refinance, you will drastically lower your payment, but it will still be 30 years until you own your home. If you need to reduce your bills now, that may be a good option.
2) If you pay down, you don't have to pay closing costs on a new loan, which could be significant. However, you will still have the same monthly payment you have today.
3) Another option would be to invest the money in long-term CDs or bonds. Depending on your mortgage rate, the CD or Bond could pay you better than downing your debt. Just use the monthly interest payments to help offset your housing payment.
For most people, investing the money is wiser than downing a tax-deductible mortgage that you are paying 6% on.
There is a link to a google spreadsheet below that will help calculate your options. Sheet 1 assumes you refinance, Sheet 2 pays your current mortgage, and Sheet 3 invests in a CD.
You can change the investment assumptions on the right, and the sheet will automatically recalculate. Just below the assumptions is a synopsis of your situation in five years.
Sorry, but the amortization chart only goes to 97 payments because google spreadsheets only gives you 100 rows. I could have done better in Excel.
-->Adam
Q: does anyone know where you can obtain a Home Mortgage refinance while in a Chapter 13 Bankruptcy?
looking to refinance my mortgage I am currently in a chapter 13 bankruptcy have been paying my mortgage and the trustee on time
A: you would need to have no credit lates in the last 12months to do FHA.....
FHA also allows chapter 13buyouts
Q: What exactly do home appraisers look for when doing an appraisal for a mortgage refinance?
We live in Ontario! We need an appraisal to re-finance our mortgage, and are unsure of what they look at on the property and what they base the value of the house on. Any tips would be appreciated!
A: They are not likely to actually look at your house. If you made a lot of improvements since it was last appraised you need to let them know.
They take home sales within 1/4 mile (sometimes more, because they need at least 6 sales) done within the last 4 months, average them per square foot and then multiply that number by your square footage. The same is done for the lot, it is valued per foot, not your personal landscaping.
Q: Will a mortgage company refinance a loan currently in forebearance?
I've got a mortgage that is in a repayment status under a forebearance plan, but they want to modify the loan and put what I currently owe on the back of the loan. I want to know if another mortgage company will refinance me with the loan currently being behind (although payments have been made as agreed through the plan).
Thanks for your help!!!
Stressed in GA...
A: They will if your credit still qualifies. If you are in a repayment plan its most likely you have hurt your credit. It may not be high enough anymore.