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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.

Government to Boost Ownership in Citigroup

I just read this report from the Associated Press that the US Government is about to close a deal that will increase it’s onwership in the beleaguered owners of Citimortgage, Citigroup. This will result in another large cash infusion in the bank while at the same time increasing government’s control on that financial institution. It will then demand changes on the board of directors, and other changes it has not yet disclosed.

Continue reading Government to Boost Ownership in Citigroup

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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.