Five states hit hard by the mortgage crisis will soon share $1.5 billion in federal funds to help the unemployed and the underwater who owe more than their homes are worth.
The Treasury Department on Wednesday approved proposals by Arizona, California, Florida, Michigan and Nevada. The states will use the money primarily to subsidize homeowners’ monthly mortgage payments and to reduce their principal. Some of the funds will also go to paying off second liens or facilitating short sales.
Should you refinance your mortgage to take advantage of falling interest rates? Here are some answers on interest rates and getting a new mortgage. Continue reading Cheap Refinancing
With the interest rates we’ve been experiencing for the past year or so, it may seem like there is no end in sight to historically low rates.
In the United States, Freddie Mac’s recent Primary Mortgage Market Survey, which provides a snapshot of U.S. average mortgage rates, reported a national average rate of 4.56 per cent with 0.7 points on a 30-year fixed-rate mortgage. At the same time last year, the rate was 5.2 per cent with 0.7 points. So once again, you might be asking yourself, is it time to refinance?
Assuming you can qualify to refinance your mortgage, here are some things to consider.
Your Overall Financial Picture
Refinancing can be a great way to save money. It can also be a great way to get yourself into financial trouble. You shouldn’t refinance if you suspect you will make a refinancing choice that will hurt your financial situation in the long term.
Your Breakeven Period
Your breakeven period is one of the most important considerations in a refinance. To determine your breakeven period, you need to look at the monthly savings you’ll create by refinancing and the total cost to refinance your loan.
The easiest and fastest way to get a complete picture of your refinancing situation is to use a detailed mortgage refinancing calculator, available online.
I contacted SunTrust Mortgage on April 30, 2009 about a 30-yr refinance on my primary residence. The uniform residential loan application and all required financial documentation was completed and sent to them on May 1, 2009. I was quoted a rate on the phone and I asked the loan office (Steve Fahrenthold) to lock. I was also asked to pick a closing date during the first week of June. Receipt of all information by SunTrust was confirmed via email on May 4, 2009. After several unanswered email and voicemail messages, SunTrust responded on May 20, 2009 and told me in writing: “Your loan is in process. Please understand that with the overwhelming volume, they focus on everything closing at the end of this month first. We are on line for a closing by mid June.” Continue reading SunTrust Mortgage complaints
MORTGAGE REFINANCE
A mortgage refinance has always been dependent on a good credit score. In the past, people with solid credit histories have had nothing to worry about. However, recent actions taken by the credit card industry are affecting even credit-worthy people who’ve always played by the rules, casting doubt on their ability to get a mortgage refinance.
REFINANCE MORTGAGE LOAN
Refinancing is when you apply for a secured loan in order to pay off another different loan secured against the same assets, property etc. If this original loan had a fixed interest rate mortgage which has now declined considerably, then you would like to avail of a new loan at a more favorable interest rate.
REFINANCE OF MORTGAGE LOAN OPTIONS:
Typically home refinancing is done when you have a mortgage on your home and apply for a second loan to pay off the first one. While taking the decision to go for the home refinancing option, it is important to first determine whether the amount you save on interests balances the amount of fees payable during refinancing.
BENEFITS OF REFINANCING MORTGAGE LOAN:
A house is the largest asset you may ever own. Likewise, your mortgage payment may be the largest expense you’ll have in your monthly budget. Wouldn’t it be great to use this asset to reduce your monthly payment and put extra cash in your pocket? When you refinance your mortgage, you can take advantage of the equity in your home and enable this to take place.
