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Should I Refinance?

Should I Refinance?

Answer: YES

Should I refinance?

STEPS TO BE TAKEN CARE OF: Most banks are much stricter on their lending criteria and only those with excellent credit and equity in their homes will get access to these record low rates. Here are the some of the main considerations and hurdles you think about when refinancing your mortgage:

  • STEP1: You must have a Credit Score greater than 720
  • STEP2: Your “credit utilization” ratio, which reflects to the amount you’ve borrowed as a percentage of your available credit, accounts for 30% of your credit score. No bad credit home loans here.
  • STEP3: Must have at least 20% home equity.
    You should have at least 20% equity, based on your home’s current appraised value (not what you bought it for). If your home has dropped in value, and your loan is greater than the value of your home (i.e. you are underwater on your home) you will almost certainly be unable to refinance.
  • Home Mortgage Refinance

  • STEP4: No other mortgages or lines of credit.Should I refinance?
    If you have a home equity loan or line of credit, you’ll probably need to pay it off before refinancing, which means you need to do a cost/benefit analysis of whether refinancing makes sense for you. Before a lender will refinance your first mortgage, it typically needs approval from the lender that holds your second mortgage.

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Cheap Mortgage Rages – Refinancing 30 year mortgages

The global economic slow down has caused a lot of problems for many but other positive opportunites have arisen. The most significant positive that has developed is in the area of refinancing a 30 year mortgage. Continue reading Cheap Mortgage Rages – Refinancing 30 year mortgages

Applying for a 2nd mortgage to payoff 1st mortgage

Q: I want to apply for a 2nd mortgage (fixed rate home equity loan ) and use some of if to pay down my first mortgage.  1st mortgage interest rate: 6.6%; 2nd mortgage interest rate: 5.5%.

Is this a good idea and is this legal?

Continue reading Applying for a 2nd mortgage to payoff 1st mortgage

Troubled mortgages hit record high

From cnnmoney.com:

Despite all the hand-wringing and attempts to contain the foreclosure plague, the problem still spread during the first three months of 2009, as the number of foreclosure actions started hit a record high, according to a quarterly report.

The National Delinquency Survey released Thursday by the Mortgage Bankers Association (MBA), reported the largest quarter-over-quarter increase in foreclosure starts since it began keeping records in 1972. Lenders initiated foreclosures on 1.37% of all first mortgages during the quarter, a 27% increase from the 1.08% rate during the last three months of 2008 and a 36% rise from the first quarter of 2008. All told, more than 616,000 mortgages were hit with foreclosure actions.

Continue reading Troubled mortgages hit record high

Interesting bits

Latest from the News

Read the news carefully today. You never know what you're gonna get. For recommended reading materials on mortgages and refinance aspects and how to fix your deeds or just plain news on real estate, check out the new york times online. It's a very good source of information.