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Refinancing advise

Question/Scenario:

We currently have a 20/80, 30yr fixed loan. Together the rate is about 7.5%. We still owe over 270,000 on the loan. Would it be wise for us to refinance?

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When Should I Refinance?

Generally speaking, if you can earn the refinancing costs (normally 1%-3% of the loan value) back within two to three years, and it’s a home you’re prepared to stay in for much longer than that,it’s usually a good option to refinance your mortgage. From a risk perspective if you have an adjustable rate mortgage, refinancing to a low 30 year fixed rate may also be a good idea because it will ensure your repayments never skyrocket and place you under financial duress.

Also, never blindly trust mortgage brokers who will give you life-of-loan refinance savings calculations that may not factor in the taxation implications (mortgage interest is tax deductible). Also, consider the opportunity cost of refinancing.

Refinancing Home Loans

Could you make more by putting that money into other investments? You can search on-line for a number of refinancing calculators and do the numbers based on your own personal situation. So do your homework before looking to refinance and like any financial product or service always shop around to get the lowest fees and best rates. Should I Refinance My Home?

Disadvantages of Reverse Mortgages

As defined in the previous post, reverse mortgages are loans converted from home equity that you won’t have to pay back until you die or move out. It is a means of a way out for cash-strapped seniors to get some needed cash. But with the real estate market falling, these loans are risky proposals to borrowers right now.
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Should I Refinance? – FHA Mortgage as an option

As rising unemployment and financial instability on the rise with the global economic downturn ongoing, credit borrowers’ options are limited. That is when FHA loans should be considered. The FHA, is a type of loan that used to take expensive mortgage that took sometime to process. But right now things maybe changing. Even though FHA doesn’t really fund mortgages, it will insure mortgages that will meet their requirements.  Should I Refinance Home Continue reading Should I Refinance? – FHA Mortgage as an option

Mortgage refinance rules in brief

Listed here are several important factors to determine wheter or not homeowners can qualify for help. The official list of guidelines is set to be released soon to the public.

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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.