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 do not need to lower my monthly payment, so I do not 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 ysis from you out there. Thank you

Responses:

When you can get a MUCH better interest rate on your loan. NEVER, EVER refinance to include other non secured debts like charge card debt into your home loan
rule of thumb if you can save 1% or better it is good to refinance! some would say that paying off credit card debt is a bad idea but if you are paying a interest rate of 14% on a card it is best to refinance and include it if you are also getting a lower rate on the mortgage than you started with! Its best to have a professional look over the idea and see if it makes sense. always get a fixed rate mortgage for stability. contact someone and see if it makes sense you may find you save alot of money depending on what rate you have currently try directlendigplanet they should be able to tell you if it makes sense and show you on paper within a few minutes directlendingplanet.com
If you can lower your payment or change to a fixed from an adjustable rate loan. why would not you want to save some money? Some people also use a refinance to fund a college education or add on to their existing home or remodel. If you consider this, please be aware of the potential consequences of removing the equity in your home. Many are facing foreclosure now as they used their homes as a piggybank. When house prices began to drop they found that they actually owe more than what their home is worth. Instead. Be conservative
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 have included a link to our refinance page for more information and scenarios for refinancing
People refinance to get a lower rate or into a fixed rate or maybe even a interest only loan. It all depends where your current rate is on your home. Also people refinance to do debt consolidation take money out of there equity to pay of bills or remodel there home. In which some equity sometimes a second mortgage or heloc / home equity loan comes in handy
If rates were to go down you could refinance and switch your current rate with a lower one
There are any number of reasons to refinance. Many people need the lower payment. If you trade one 30 year loan for another, you will end up paying for another 30 years no matter how long you have been paying for. You could refinance into a 15 year loan, especially if the rates drop. We recently refinanced into an interest only to free up more available cash each month as a safety net. We can afford the payments be we leveraged our home into 2 additional rental properties and if one sits vacant we can pay just the interest if needed. With our interest only, we can pay additional amounts toward principal each month
Yey! Refinancing. what joy!. something you should investigate, because there are tricks in refinancing too as well as selling or buying a home. Compare rates and DO NOT be rushed into signing anything no matter how well you get along with the lender. Their job is to get along with the client to get a commission on the refinanced loan. So be careful litirally! Avoid signing a variable rated loan of any kind and ONLY look for fixed rates and be diligent in comparing rates to get the one you can afford to pay. Read up on lender laws that are always changing to keep up on your knowledge to throw back at a lender should they get to that con stage. You want your money back through a future sell, then it is most wise to use your money for any upgrades needed to keep current with the market demands and laws: Such as updated earhtquake straps for the water heater, if you live in California, emergency gas shut off valve, f you live in CA, water regulator, updated certified termite treatment / report, etc so you do not get had in escrow if you were to sell your home at a future date. I would check with the city or even an escrow company first on what list of items that most people get stuck with in escrow who are the sellers and get the pricing on each item. Take that into consideration dearly to CYOA. That way you will know how much you need to refinance for to keep your home current. Unless you are current, then I would refinance to possibly update a room such as a kitchen, bathroom or even possibly a new addition. Think about the reward, but put your self in the buyers shoes and walk through your house and think of what turns you off, get estimates from qualified contractors so that refinance can help fix that. Avoid using your equity on the refy to pay for vacations and extravagant endeavers as this will just damper your future profit on any future sell of that house. Or even make for a worse monthly payment
This depends wildly on a variety of factors your current income? your future income? your plans to stay in your home long term or not? is your current rate low? is your current rate fixed or currently adjustable? Is your rate fixed for at least a few more years? Do you have a deferred interest loan? Are you comfortable paying ALL of your bills on time? How much equity do you have? Are the values in your area going up? Staying about the same? Plumeting? Do you have kid s ? Do you plan on having kid s ? If you have or plan to have kid s do you live in a good school district? Is your home the right size for your family? etc. Ok so now that you know I am answering this question semi blind lol I will give you some "basics" If you have a deferred interest loan or a loan that is currently adjusting or has less then 2 years to adjust and you plan on staying in your home long term get the hell out of that loan and get a FIXED rate! Get a 15 year fixed if you can afford it because the rate is lower and you save tens of thousands of dollars in intereste over the life of the loan and you will own your home out right that much sooner. To the person who says do not consolodate debt that may or may not be true. IF you are having trouble paying your bills and a consolidation can save you a LOT of money a month $300 or more then it "may" be a good idea to do so! ONLY if you NEED that payment relief in a bad way! Otherwise the prior poster is correct. Also, as long as doing so is not eating up too much of your equity! I used to do debt consolidation and I would save people $500 a month or more! This made the difference between paying everything on time and not! So to say that debt consolidation is a no no under ANY circumstances is wrong. Although in general this is not a good idea but it CAN be exceptionaly useful in some situations. Also, when you consolidate your credit card debt now becomes tax deductable which gives you further savings. I hope this helps!? lol!
to get a LOWER rate or into a fixed rate or maybe even a interest only loan. 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 all - mortgage - calculators. blogspot.com / 2007 / 06 / mortgage - opportunitty - financing - and.html Good luck!
You can refinance to pay off debt, cashout, remodel your home, lower rates. Go from variable to a fixed. Get out of a negam loan, get out of a balloon loan. There are tons of reasons, maybe you want to go from 30 year to a 15 year or you're just tired of dealing with the bank that has your loan. You can tap into the equity in your home and invest it or maybe you need to pay for your childrens college education. It's really something that changes from individual to individual, so it's really hard to say how to best use a refinance, because it depends on what your situation is
Generally if you can save money it is worth doing. You need to factor in the costs of a new loan. If you have an arm that is scheduled to reset. I'd get a fixed rate loan now. It is not a particularly good idea to include other debt in the refi especially now with falling Real esate prices - so be careful. Good luck

Tags: show, stability, correct, general, switch

Follow this dicussion..

Related Images:

Knowledge Base

Home loan bad credit How to get it?

can any one help me out in getting home loan with bad credit. thanks in advance. recenlty my friend got home loan of 500000$ for 25 years on 1. 5% which should be paid annually my friend doesnt have good credit his credit score is below 500 but still he (home equity loan)

Do we need to get a new le insurance when we refinance our home mortgage loan?

we bought a le insurance when we first got our home loan. we are now refinancing with another bank and they are requiring us to get a new le insurance. is this right?. i work at a mortgage company, and most banks require le insurance for every mortgage that they (home equity loan)

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 have gone with another mortgage company? are there penelties? we are in a sliding rate and are trying to get into a fixed rate. thanks!. the new mortgage company you (mortgage refinance)

Related Images:

Knowledge Base: Home Loan

Home Loan! ?

know where i can get a home loan fast. give me the number. moneysupermarket.com really depends who you go to and how much equity you have in your house / how much you want to borrow. any one who gives you a loan fast over the phone is not going (home loan mortgage)

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 do not need to lower my monthly payment, so i do not have any clear purpose in mind. it is just that i (bad credit home loan)

Does anyone know any reputable bad credit home loan dealers?

my partner and i both have bad credit. we want to know if there are any reputable bad credit home loan dealers out there that will help us get a home loan with little to no deposit required. we are both employed full time but our finances are being eaten (home loan credit)

Home loan?

my boyfriend is applying for a fha home loan today, he has great credit, 700's and has had a job for awhile. the only thing is that he has cut back hours lately because of going to school and work and they asked for his last month of pay stubs. (home loan)

Mortgage Refinance?

i have a 1. 25% negative am loan that i need to get out of, i currently owe 673, 000. 00 for both my first and my second, my question is can i get a loan that is not a negative am loan and have my payments at 2, 500. (home equity loan)

Related Images:

Knowledge Base: Mortgage Refinance

mortgage / refinance?

based off of the most common outlook for the housing and financial markets, are mortgage and refinance rates going to decrease?. they are not directly related. you are talking about two different markets - housing and financial. and mortgage rates are actually rising right now as the housing market continues (mortgage refinance)

when does mortgage refinance make sense?

Why would we be turned down for a credit card when we just p ed a credit check for a mortgage refinance?

the same week my husband looked into a balance transfer credit card i started an application for a mortgage refinance to get rid of some credit card debt. my husband was turned down for the credit card now he is worried about the mortgage finance. we have had our mortgage (mortgage refinance)

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 (mortgage refinance)

Mortgage Refinance?