QA1: Should I Refinance?

Question: Should I Refinance? Our home mortgages remain both our biggest monthly bill and our greatest investment. With all the economic uncertainty, we still have very low interest rates between four and five percent for 15 year loans, and less than six percent for many 30 year loans. A question facing many families is: Should I refinance?

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5 Reasons to Refinance

1 – Lower Monthly Payments

Interest rates are low, you’re already halfway through your existing mortgage and your monthly costs are up and you could really could use the cash. By taking advantage of lower than low interest rates and extending your 25 year home mortgage that has only 15 years remaining on it back for another 25 years, you lower your monthly payments and you get more cash in your pocket at the end of each month. Keep in mind though, that you are still in debt and that you are now going to be paying that loan for a much longer period of time.

2 – Bigger Savings

With lower interest rates and less fees these days, refinancing could save you thousands in the long run. You can also try to take advantage of the bonuses for earlier repayments. These things combined could amount to several thousand dollars in cumulated savings.

3 – Get Cash. Now.

By refinancing that mortgage in a way that gives you some cash to use, like switching to a Home Equity or Line of Credit loan, you get the opportunity to add some value to your home, or even get that car you urgently need. But remember, this is not cash you own, but cash you owe so spend it wisely.

4 – Debt Consolidation

Taking out a new loan can let you pay off your existing mortgage as well as your existing credit card debt and replace it for a loan that may take longer to pay but has a far lower interest rate than that credit card bill you have been struggling to pay off.

5 – Early Mortgage Repayment

Let’s say you just had that rare salary increase and you think you would like to put that mortgage out of your mind earlier in life. Refinancing your existing mortgage sounds like a good idea. You can take out a new loan with shorter terms, say 10 years instead of 25, and you can end up owning your house sooner than later. Less things to worry about later in life.

Taking out a new loan for your existing home mortgage might sound tedious or scary but by just getting the facts straight and throwing in a little careful math, you can make refinancing work for you.

Does having a second home be able to alllow you to refinance or adjust the mortgage?

There are currently no federal laws that applies to folks with second homes or investment properties. Under the rules, only troubled owners of primary residences need apply. There isn’t any difference between foreclosing on a primary residence and repossessing a vacation home, save that it might be even more difficult for the lender to recoup its investment in the vacation property because most resort markets are moving even slower than those mostly made up of primary residences.

Basic Steps to Refinance Your Mortgage

Refinancing is when you get a loan (secured) to pay down an old loan. In this case, “mortgage refinancing” thus meaning to pay off your old mortgage.
This most often happens to get a lower rate of interest or to get some cash out to do other things with from the equity your home provides. There are a few steps that one goes through during the mortgage refinancing process.

  1. You obtain and then complete the loan application that is in front of you.
  2. You then are presented with loan offers from the loan consultant.
  3. Once you choose what one you will go for, there will be some documentation that will be needed to start it.
  4. After a brief period of time you will receive the various disclosures (legal information, terms etc) to which if your in agreement, you sign and return them to your loan consultant.
  5. Upon the loan consultant receiving this information he or she will set up an appraisal company to contact you about appraising the value of your home. This must be done so that the loan is secured against the predetermined value of your home.
  6. You sit back a little, as your loan consultant does the work to order the payoff of your old loan with the new one and a title search and processes the loan file.
  7. The underwriters then obtain the information from the loan consultant and either approve it or request any additional information they may need. If they need more information, they will get a hold of your loan consultant to get in contact with you. Then if all goes well, the final approval is given and a closing date is scheduled.
  8. The final document is sent off to the title company, notary public, or lawyer who is closing it. You then sign any final documents, provide id, etc.
  9. During the next three days, you have the right to cancel your new loan agreement.
  10. The mortgage refinance process is completed and you have successfully refinanced your mortgage.HOW TO REFINANCE UR MORTGAGE : Refinancing…

Home Mortgage Rant

Home mortgages right now are so crazy. What should we do about them? All of a sudden, the Rich Dad Poor Dad thinking doesn’t seem so smart.

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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.