Mortgage Refinancing

Mortgage Refinancing questions and answers

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Q: mortgage refinancing.?
I refinanced 4 years ago for 15 yrs.Would I be better off refinancing for 30 yrs and paying more on my principal each month? I am trying to free up cash flow. My monthly note , I pay every 2 weeks about 900.00 a month. I was jsut wondering if I am really benefiting with a 15 yr mortgage. Would paying extra on principal each month be just as good.

A: Check out: http://homerefinance1.blogspot.com They have good information on refinancing a mortgage and more. http://homerefinance1.blogspot.com

Q: When refinancing mortgage will it reveal credit details to spouse?
My spouse and I are going to be refinancing our mortgage and added me on. I did check my credit and found that I have a good fico score. However, my spouse doesn't know about a couple credit cards that I have. Will these details be revealed when we go through the refinancing process to him, or is it more important that I just have a good credit fico score enough that any other details won't be revealed?

A: The information will not automatically be revealed, but it could come out. How will you explain when he asks "can i see what your report says'? It could also be ab issue, if, when sitting down with the mortgage agent, he goes over the report and says " your only problem might be these extra cards...". So I guess the answer is that it COULD come out, but it won't necessarily come out. I won't comment on the moral implications of hiding things from your spouse.

Q: Mortgage Refinancing market: good or bad right now?
I am a soon to be college grad that is currently interviewing with Wells Fargo to become a Credit Manager in the Chicago land area. Is the mortgage refinancing market a strong place to start a career right now? Fill me in on your thoughts. If you could, please tell me if you are in mortgage refinancing business or not. Thanks , The more responses the better.

A: Any experience working in a bank (or mortgage company) is great experience for a life. To truly understand how the banking world works will equip you greatly into the future. ~ no matter how you start. The larger banks in the USA (and other parts of the world too) have experienced big drops in their market positions because of the over lending to sub prime market. Interestingly, some of the smaller banks are doing really well with stock rises as they did not get involved in this over lending practice. all the best to you ~ its' a great education no matter what

Q: Can a person on the title but not the mortgage stop me from refinancing?
I have a loan contract with a person on the title (individual property grant deed) in which the contract for the loan "shall continue until the property is sold". Even though I am not selling the property, I have offered a buyout amount for his 10% share and he is threatening to block any refinancing unless I meet his demand for a buyout amount. We differ on the appraisal amount of the property. My appraiser was approved by my lender and is a Certified Residential Real Estate Appraiser in California and I have no idea if or what type of appraiser he used. Can he do this even if he is not and will not be on the original mortgage or the refinanced mortgage? Would it be better to rescind the offer and just wait to pay him when I sell at a later date? Please let me know if you have any ideas on how to handle this situation.

A: Yes. The person on the title can block your attempt to refinance. You can wait to sell, but he will have the same veto power over any contract offer as well.

Q: Would it be better to pay large lump sum to current mortgage before refinancing?
Currently looking at refinancing home, but can't decide if it would be better to add additional monies to current mortgage to lower amount to be refinanced, or refinance and put that sum onto new mortgage.

A: It depends on your reasoning for refinancing. Are you trying to get a lower monthly payment? Save more money in the long run by lowering your interest rate? Trying to get cash back to pay off some debts? I've been working in mortgage for over a year and I've seen a ton of scenarios, especially now with the rates being so low. If you currently have an interest rate that is more than one full percentage point higher than the current rates, you MIGHT want to consider refinancing. Instead of puting a lump sum of money towards the current mortgage, use it as a down-payment on the new refinance. Check out a local credit union if you have one. They are not-for-profit. That means, they DO make profits so that they can function as a business and offer more products, but that is not the focus of the institution. If I were to refinance with my credit union there would be an origination fee that is 1% of the loan amount. This fee covers the labor that it takes for the mortgage department to create your loan. The rest of the fees are paid out to contract providers such as appraisers and title companies. Also, most credit unions will not charge any fees to pay off your mortgage early. If you have an extra $50/month that you could apply towards principal, you could pay your mortgage off so much sooner. With a $165,000 house, paying $225 extra towards principle every month take a 30 year mortgage and pays it off in 15 years! Ask around for Good Faith Estimates. This is non-commital and the institutions have to provide the fees that they charge and what they are for. Compare them and see if the closing costs are worth it for you. If you owe less than $50,000 I would encourage you to look into the rates for a Home Equity LOAN. They are usually 15 year fixed loans (different than a line of credit which has a variable rate) and have lower interest rates than a mortgage loan. You also wouldn't have all of the closing costs associated with a regular refinance.

Q: How do you go about refinancing your mortgage?
I have a 5 year interest only mortgage and just closed on my condo 4 months ago. It appears rates are lower. How do I go about refinancing and what are the advantages? If it's lower should I autmoatically do it?

A: Hi, This is Greg Darlin with Choice Finance in Rockville, Maryland. 301-881-8900, ext. 106. I am the most Sr. Mortgage Broker with my company. Now for your answer . . . It depends on your current interest rate, how long you intend on keeping your property, the current rates today and your closing costs. Sounds like a mouthful but those are the considerations. Go to my website, www.choicefinance.net then e-mail me at: greg@choicefinance.net. Sincerely, Greg Darlin

Q: Who and where i can find the lowest closing costs on refinancing a mortgage?
Where can I obtain the lowest fees on closing cost when refinancing a mortgage? Also, why does conventional bank around the corner usually has one of the highest closing costs than a smaller mortgage company? Which mortgage company has the best deal and what is reasonable amount to pay on closing costs for an mortgage amount of $360K?

A: Look up Atlantic Bancorp of CA..or Atlantic Bancorp of America..they may have changed their name. But I've been closing deals with them for 3 years. They're pretty great. You can look at www.atlanticloan.com

Q: How do I get my ex-wifes name off my mortgage without refinancing?
I live in PA. My divorce is almost final. I am keeping the property that I live in. It has an extremely low interest rate. I don't want to refinance if I don't have to. How can I get her name off the mortgage without going through the added expense?

A: You cant get it off w/out refinancing. They have to Re-record the mortgage note, and title/deed with the court house. You can use your divorce decree to get a lower rate...by doing a Rate/TERM refinance instead of Refinance Cash out. This would only apply if you were paying out the equity to your wife.

Q: What are the differences between going to different lenders for a Mortgage refinancing?
I am working with my original lender to refinance my house, but I'm curious as to what advantages I have of looking somewhere else. Can the rates be lower from one lender to another or does the market pretty much make it the same for all?

A: I agree with above answer.. You should find a good mortgage broker. The mortgage broker must be affiliated to many lending institutions and should be licensed. - The mortgage broker should be working at a reputable institution. The name of the company could be checked at the Best Business Bureau or the Chamber of Commerce. - The mortgage broker should provide you with the names and contact numbers of people who can be contacted for credibility check. - The mortgage broker should ask you what you want on your loan. He must ask you questions rather than on giving you lots of facts. He should prioritize what you need and should come up with ways to fit this with various deals available in the industry. - The mortgage broker should have with him various lists of deals that he can offer. This is a good quality because if not, you might get the best deal. Getting a good mortgage lead on internet http://www.my-infoworld.com/mortgage/Mortgage_lead.html

Q: What company has a good reputation for mortgage refinancing in this market?
I'm in Wisconsin.

A: The Government controls much the mortgage business. President Bush have implemented an FHA refinance program called "FHASecure". To qualify, borrowers must meet 5 criteria: 1) History of timely mortgage payments before their adjustable rate increased 2) Rate will re-set between June 2005 and December 2009 3) 3% equity in home or 3% cash 4) Sustained employment history 5) Income must meet qualifying guidelines I found interesting information about your answer & the best options here. (mortgage opportunitty refinancing ) http://all-mortgage-calculators.blogspot.com/2007/06/mortgage-opportunitty-financing-and.html Good luck!

Q: What exactly does it mean to waive fees in a mortgage refinancing?


A: if they waive fees - you dont have to pay anything. For example, usually there is an appraisal fee ($300). If that is waived, either you don't need one or they pay. Watch for fine print. If you refinance with another lender (usuallly within a year) - you may have to repay some of the fees. And make sure the fees are buried into your mortgage (that's whne they say "no upfront fees"

Q: Is it possible to change mortgage companies without refinancing?
Our mortgage was sold to a really crappy company. We have thought of refinancing, but then we realized we have a really good rate for another 18 months (we have a 5 year ARM) and won't be able to find anything as low as we have now. It's completely unfair that we don't have a say in who gets our mortgage. I doubt we can have someone else buy it, but it was worth asking the question. See my question about filing a complaint against a mortgage company and you'll see why I hate them.

A: I would still consider the refinance. Yes you have a good rate for 18 months. But you also need to understand the market. Has your property value increased? If not, you may not be able to refinace now or in the future since you have not paid any principle for the past 3.5 years. Are you 100% sure your not upside down? The other point here is stop thinking about rate. Term is just as important here, maybe more so, rate doesn't put food on the table, total monthly payments do. Your payments are going to double in 18 months. If you have equity, why not do it now while you can. Yeah, your rate may go up 1 or even 2%, but if you pay the loan off in 15 or 20 years, you'll save thousands in the end. Also, would you like a bigger check from uncle sam every year. If your rate goes up, you get to write off that interest on your taxes. For example, if you have a 100k mortgage, 5%, 30 yr fixed your total finance charges are 193,255.78. Now, 100k, 6%, 20yr fixed, total financed is 171,943.45. 20k in savings looks good, plus your writing off more interest. Last, don't get caught in the refi trap. Most people don't bring closing costs out of pocket to the table, it takes you 2-3 years to pay this off, you never get anywhere unless you change the term or double your payment a couple of times a year. Hope this helps

Q: Mortgage refinancing- do it now, or wait? What direction are rates currently projecting on going?
Would it be better to refinance now at about 6.5% fixed for 30 years, or wait a few months? What's the rate outlook? This is for New York.

A: No one can project the rates very good. If you want to risk losing even more equity in your home for a lower rate, by all means wait. But, if I were you, I would certainly refinance today!

Q: How do I get lower interest rates with mortgage refinancing?


A: Very simple. You find a mortgage company that is willing to offer a lower rate than you are paying on your current mortgage. Whether that is possible depends on your current rate as compared to the market rate that exists now. Of course you have to look at other terms of the mortgages offered to you. For example, you may not want a 3% ARM with a maximum rate of 12% to refinance a 6% fixed rate mortgage.

Q: How does refinancing the current mortgage help?
When one should refinance home mortgage? Does it help to bring the number of period of payments down? If so how?

A: Great question! Unfortunately, there is no “right answer” here as it is dependent on your individual situation and what your financial goals are. Some questions that you need to answer (to yourself or a mortgage broker or lender) are: How long do you expect to be in your home? If you're only going to be in your home for a few more years, it may make sense not to refinance out of your ARM. If you're going to be in your home longer than seven years, it might be a smart move to refinance to a fixed-rate mortgage. How much equity do you have in your home? Using the equity in your home to pay off other bills can be a smart thing. Consider taking some money out to pay off high-interest credit cards bills, auto loans, and any other debts you have that have non-tax-deductible interest. Are you willing to pay points to get a lower rate? Paying points may or may not be your best option, depending on what you're doing. Points paid on a loan you've refinanced can be deducted from your taxes only in small increments—1/30th a year for a 30-year mortgage, for example. This means it could be several years before your lower rate makes up for the points you pay. However, if you're buying a home, points paid are a tax-deductible expense for that year. Will having lower payments more than make up for the closing costs, fees and points if any? Sometimes the money saved with lower payments is less than closing costs and other fees associated with refinancing. What type of mortgage are you currently in – fixed or adjustable? Again, you need to consider how long you plan on being in your home. Many people move within nine years so it may not make sense to pay a higher interest rate for a 30-year fixed-rate mortgage when you're not going to be in the home that long. Doing so may be costing you money. Consider refinancing to an ARM instead — you'll get a lower rate and lower your monthly mortgage payment. Do you have high-interest credit card debt? Unlike your mortgage, the interest you pay on a credit card is not tax-deductible and you normally pay a higher rate than you would on your mortgage. As always, I recommend you speak with your tax advisor as well as your mortgage lender or banker. If you have any questions, feel free to contact me through my profile. Good luck