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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.

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

How to add registered domestic partner to title after home purchase complete

QUESTION

I am buying a house and mortgage is in my name only. I would like to add my registered domestic partner to the title after escrow closes. How is this done?

ANSWER

You will have to sign a quit claim deed  and add your partner to the property deed. Your name will be mentioned as the grantor of the property whereas both you and your partner’s name will be mentioned as grantee to the property.

What is a Mortgage

A mortgage can be defined as a legal document which uses real estate as a collateral against a loan. This legal document can also be called an instrument and is a document that is written that states the rights and liabilities of the people involved in that transaction.  It is noteworthy to remember that a mortgage takes place between two parties whereas a deed of trust includes a trustee, although the two are usually considered one and the same, depending on your location and situation. But the question is should I refinance home?

Down Mortgage Paying

The reader notes that just about every personal finance guy he has read says not to pay off your mortgage with the idea being that market returns typically, I say typically, exceed mortgage interest rates paid..

Continue reading Down Mortgage Paying

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.