Mortgage rates fall, payments improve USA Today
Mortgage rates fell to, or near, record lows in the latest week, and mortgage delinquencies improved in the second quarter.
Freddie Mac said Thursday that the average rate for 30-year fixed mortgages fell to 4.32% this week from 4.39%. The 30-year loan hit a record low 4.17% in mid-November.
The average rate on a 15-year fixed mortgage, a popular refinancing option, fell to a record low 3.50%, from last week's record 3.54%.
Mortgage rates tend to track the yield on 10-year Treasury notes. A weakening U.S. economy has led many investors to shift money from stocks to bonds, which are seen as safer bets. That has pushed Treasury yields to historic lows.
In another mortgage report Thursday, credit reporting agency TransUnion said the percentage of late-paying mortgage holders — those who were 60 days or more late with payment — fell in the spring for the sixth straight quarter.
The Best Way To Refinance With A 2nd Mortgage
The decision to refinance a second mortgage will not be taken lightly. Yes, of course it’s one way of getting extra cash such as single premium immediate annuity but it also signifies acquiring a new loan. You’ll want to make sure that your second mortgage may not just come with surplus cash but greater loan rates and conditions as well.
Why You Need To Refinance using a Second Mortgage
Not every scenario would warrant re-financing and not every fiscal need can be solved with a second mortgage. You’ll want to consider every issue and cost involved in the method before making your decision. Listed here are some excellent factors that would merit replacing with a second mortgage.
No longer Private Mortgage Insurance
Private mortgage insurance could have been levied on your first as well as existing mortgage but if anyone refinance with a second mortgage, you can avoid paying for May. Unknown to many, personal mortgage insurance is quite a pricey expense. You may not recognize it because it would be able to be included in your monthly premiums, but PMI can cost you thousands of dollars every year. That’s income wasted and not well-spent!
Negotiate All Mortgages a single Loan
By refinancing which has a second mortgage, you can combine your existing mortgage as well as perhaps even other debts into one simple loan. Obviously, this might only be valuable in case your second mortgage incorporates better rates as well as terms. Shop wisely!
Better Rates and also Terms plus annuity formula
Had periods been especially tough when you acquired your first mortgage? That could be the reason why your present interest rate is uncommon high? But today’s information mill different and there may be preferential rate mortgages anyone can take full advantage of. With low interest rates, you’ll be able to ensure reduce monthly premiums as well.
What about the terms of your overall mortgage? Are you satisfied with that? If not, you can refinance utilizing a second mortgage with terms that match your existing financial needs. In case your first mortgage’s due to terminate this year but you haven’t but enough money for that balloon payment, you’ll be able to refinance with a second mortgage to settle the last payment and rest easy with a extended loan term.
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Mortgage Information : How to Refinance a First & Second Mortgage
Refinancing a first and second mortgage together is a simple process that is quite similar to a first mortgage refinance, but the two loans are ...
Is it possible to refinance a 2nd mortgage, and not touch the 1st?
I have a great fixed rate on my first mortgage 4 3/4%, however I am paying about 11% on my second. Are there any companies out there that will refinance only the 2nd? And how does equity come into play with this, the CA housing market is not that great! Not looking for cash out, just a lower monthly payment. If anyone knows a company that might work with us, please let me know. Thanks,
yes you can. Just apply to refinance your second mortgage only. Shop on this site for low rate and fee.
http://www.amerisave.com/partner/chongthong
To find a local mortgage company that will do this you should look in your telephone book and call a local mortgage broker. Tell him that you are looking for a "Rate and Term" refinance of your second mortgage. This means that you will want to refinance your second but want no cash in your hand, you just want to lower your interest rate.
Once you speak with the mortgage broker he will tell you about the equity and other qualifications you will need in order to get this transaction done.
I hope this has been of some use to you, good luck.
"FIGHT ON"
Can you refinance a 1st mortgage and 2nd mortgage without equity?
I own a single family property in IL. I have a 1st mortgage that was 100% LTV that was used to purchase the home and a 2nd mortgage that is a 120% LTV that was used to consolidate debt. The value of the home is about $40,000 short of what I owe based on both loans. I want to refinance my 1st mortgage which is at a rate of 7.25%. Is this possible?
you would have to create equity by putting up the the differance plus probably a bit down as well, looks like that would be a bit of a hefty sum
If anyone offers to do it for you run away fast, they are liars.
Go to http://www.MyMortgageSaver.com to have a local mortgage broker contact you.
Good Luck,
Jon
Is it possible to refinance my 2nd mortgage and leave my 1st alone?
I ask this because most lender said I have to refinance my 1st in order to pay off my 2nd, but if I do that because of my low credit score my interest will go way up and it will double what I am paying now. Is there a solution?
Like I said previously. FHA home loan. I'm a mortgage broker, I work for Summit Capital Lending. The women on the other question who refinanced her second is an idiot. Even if you're first goes up some what you'll still end up paying much more with a lower first and a higher second. With low credit you probably won't even being able to refinance a hoam equity loan. Depending on what state you live I might be able to help you. You can contact me via email at magula.summitcapital@gmail.com
My names Matthew
Is it possible for me to refinance my 2nd mortgage and leave my 1st alone?
I ask this because most lender said I have to refinance my 1st in order to pay off my 2nd, but if I do that because of my low credit score my interest will go way up and it will double what I am paying now. Is there a solution?
Try going to a credit union. They usually have very competitive rates and usually give better service to small loans.
Lender's are telling you that you need to refinance both into one mortgage because you will not qualify for a second by itself. My advice is to look at what your goals are. Not what the loan is. Are you trying to save money? Are you trying to consolidate debt? Give those goals credence over interest rates. After all, how good is a low rate if you're still coming up short every month in your overall budget? If you're just trying to lower the amount of interest you need to pay back, then get a copy of your credit report and see what you can do to better your credit score.
For more information and good rates call me at 480.751.4125 or write to me at kishaloy_bhowmick@yahoo.com .I am a loan officer and i can surely provide you a very good deal.
regards,
kish
Can you refinance a 2nd mortgage?
I bought my home with no money down:
1st mortgage 270K at 5.375%
2nd mortgage 93M at 8.625
Can i refinance the second without refinancing the first?
How can I do that?
It seems a lot of places won't just refinance the 2nd alone.
Thanks!
Yes you can refi your 2nd alone. however it would not be cost effective for you.
I highly suggest you refi both and combine the loan. That way you have only 1 loan to pay for, plus reduction of payment. Keep in mind that you do get a tax write-off for refinancing as well.
I have been in the business for over 10 years and own my own mortgage company.
Please check us out at www.1stcontinental.com for ligit information, then email me if interested at fabbian@myfirstcontinental.com.
P.S.
this guy "bostonian" who just answered before me sounds super skitso, and needs to relax b/c if someone offered to help and they knew your scenario, then why wouldn't you take the offer? If oppurtunity knocks, answer the door!
Talk soon!
What you might want to do is try to pay off that second as quickly as possible. That depends upon what other debt you have and at what rate. If you have no high interest debt (credit cards; car loans with a higher rate, etc.), then start adding any extra money you can to pay off the second as quickly as you can. Unless there was a fairly unscrupulous company, no second mortgage I've seen had any prepayment penalty. In the current market, without paying a significant amount of points, I don't see you getting a similar rate to your first.
Don't contact the predators posting here, they are very bad news.
BTW, don't waste your time contacting the scumbag spammers who post their "I can help!" garbage here. Most of them are scammers working out of Nigeria or Latvia or some other God-forsaken hellhole. Even if they're not, they're not bright enough to read the CG and TOS so would you REALLY want to trust them with a major item like a mortgage??
I brought my home 1yr ago, I want to refinance, my mortgage was setup with a 1st and 2nd mortgage?
Total I brought the house for 87000 and I owe about 85000 total between the two mortgages. First mortgage has an itnerest rate of 9.5% and the 2nd is about 12%. Is this a good time to refinance. In total I am paying between 750-800 a month (not including taxes or homeowners insurance) should I refinance.
you'd have to borrow at least 85000.00 as that is your total as you would have to pay other two liens off
It may make sense for you to refinance, and it also may not make sense. The smart thing to do is consult with your mortgage broker or lender so they can review specifically 'your' situation and give you the best advice. The overall situation for each borrower can be very different, even though it seems on paper to be the same. You need to approach your decision making from a very personalized standpoint.
i don't know what state are you from, but it will not hurt to ask your loan officer if refinancing is the option for you. if you combine 1st and 2nd mortgage your payment will be lower, but of course there is a lot of factors to consider and the best way is to talk with specialist.
Refinancing takes many aspects to evaluate: interest rates, loan to value, closing costs, market value of the property, amount of existing morgages, credit score, credit history, your current income and expenses, additional debts after you bought the property, etc.
I suggest you to call the financial institution that you trust an explain to them your goals and your current situation. They are better qualified to inform you and help you determine a course of action to refinance your property.
Both of the rates you are paying are high. I'm guessing you bought the home about 2 years ago, judging by the amount you've paid down on the mortgage. Rates back then were much lower, and you were probably overcharged if you're paying 9.5% and 12%.
Depending on whether there's a pre-payment penalty or not, it may make A LOT of sense to refinance now. Has the property gone up in value? If so, you may have more equity, and you can probably combine the two payments into one.
You'll probably need to contact a competent mortgage broker in your area (not a bank)...they should be able to get you a good loan.
It may though be beneficail to eliminate the 2nd mortgage by rolling them together into one...
Im just letting you know to disregard the people talking about 7% rates...Unless your credit has doubled, then it will be very hard...
Yhey are correct to say though that you need to speak with a professional loan officer and go from there...
My name is Jason Fry, i am a licensed mortgage originator from Providential Bancorp.. We are a mortgage lender serving most of the US...
Feel free to call me at 312-264-6448, or email me at jasonf@providnetial.com..
Good luck
Jason Fry
Licensed Mortgage Consultant
Providential Bancorp
312-264-6448
If you would consider my company we offer consolidation of two loans and come up with a better interest rate which is half of the total interest rate of your 2 loans combined that is 10.75%. so instead of paying 21.5% monthly now you'll gonna be paying 10.75% which means lower interest rate, lower monthly payments. e-mail me if you are interested and we can do a customize proposal for you, it's free. One thing, if you have a big FICO score 720 and above, 100% chance you'll get a very low interest rate when your two loans are consolidated. thank you..
clifford here.. you can e-mail me your # so we can talk on phone and talk about all your queries. honestly, we can give you 10.5% interest rate for your 2 loans. godbless!
Antal
Surefast Mortgage
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When to refinance and what to do with 2nd mortgage?
Bought home in October of 2006.Bought it with no money down. Did 80/20 Loan: 1st Loan 7.125% 2nd 10.5%. Interest only 5/ARM. Price was $584000 In the Los Angeles area.
Bought Home below market value, houses around my area are selling for $650K and up.How soon can I refinance to a fixed rate and what can I do about the 2nd mortgage in order to avoid getting a Jumbo Loan rate and having to pay PMI?
Please, before you go any farther, look at your Mortgage Note, and any and all riders associated with your property. You got (I am sure) a big package at the closing table in October. Look them over carefully for a pre-payment pentality. You may have one and if so, what is the percent. If it is 2 percent based over a 2 yr period or a 3 yr (which is normal) broken down over a 3 yr like a 3-2-1 percent.
2nd you would have closing costs associated with your loan again. If you do refi, than contact the title company you recently used and see if you can use them again, since you already have had title insurance with them, and they would still have all your information on file. That may save you $$$$.
3rd, since you are in a interest only now - nothing has been paid on your mtg. And you have only paid 1 payment on the interest (if it was due in December). A new lender will want to see the mortgage history - - and you may have a seasoning issue on having to use the orginal appraised value vs. the new appraised value. So lenders will require you to be in the property 6 months, and others 12 months....to go off the NEW appraised value. If I were you, I would wait 1 yr (12 months) of payment history to be reported (Or at least 6 months) to go off a NEW appriased value.....Values may go up even more in 4 months time, in the Los Angeles area.
Based on the informaiton you mentioned, you could in 4 months (best if it is 6 months) have a appraisal done (after you get qualified) for a 617,500 loan (That is 95 percent of 650,000). That would pay off your first and 2nd, if you do not have a pp (Pre-Payment). You could even call your Lender and see if you have a PP. But check your paperwork (ok).
If your credit is good, and it sounds like it is, than a 6.125 on a JUmbo is not unheard of with a payment of $2,534
Go to: www.interest.com or www.rates.interest.com
National Mortgage Rates
12/18/2006 8:48:31 PM
APR Rate
30 Yr Fixed Jumbo 6.11%
15 Yr Fixed Jumbo 5.90%
Good Luck - the Loan Process can be fun - at least I love being a Broker, getting to help my clients is rewarding to me. Find a Broker who cares and will go over the full loan process with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process
not a problem, if there is enough appreciation to do 80% in the first based on current valuation ... otherwise may be a problem juggling paying off and simultaneously refinancing both ... unless you can get another hybrid pair.
also ... with respect to timing ... be sure you are aware of any prepayment penalties in your existing loans ... and consider the impact of any points on either the old or the new loans ... fees and points can eat up the economics pretty quickly
Of course you can refinance your first loan, to get a fixed rate. But how long are you planning to stay in the home? You've only bought the house 2 months ago. If you're not sure, I wouldn't refinance yet. You'll just end up paying brokers fee twice. And even if its a "zero point, zero cost" loan, that cost is still gettiing rolled into the back and it WILL cost you money.
Your loan is a fixed rate for 5 years, I would suggest try to wait until (a) you can pay off some of that 2nd loan and/or (b) your property price increase, before you refinance.
Refinance a traditional mortgage and 2nd mortgage?
Can I refinance my 2 loans together. I have a traditional and a 2nd. Should I just refi one or the other?
This depends on a few things.
Is the combined loan balance less than 80% of your homes market value?
Is your credit as good or better than when you took out the loans?
After you figure in all the additional fees and costs, is it worth it?
If you are going to refi, the best place to go first is to your current mortgage holder and see what they can do. If you have been a good customer they won't want to lose you and may cut you a great deal.
Beware of these independent brokers as they are a huge part of the problem and are still breaking the law to keep their own butts in money.
Good luck.
I have a 1st and 2nd Mortgage, If I refinance can I just refi the 2nd?
Or will lenders require me to refinance both?
Yes, you should be able to refi the 2nd with no problem, assuming all the other credit issues are clear. A neutral site I like with a lot of information on refinancing is at http://www.refinance-and-loans.com/ and they have a section in their topics on refinancing second mortgages.
Is it possible to refinance 1st & 2nd mortgages for a brand new house immediately after I close?
I am required to use my builder's mortgage company b/c they are giving me incentives but the rates are 0.5% higher than other lendes on both the 1st and 2nd mortgages.
I am wondering if I would be able to refinance both mortgages immediately after I close? What do I need to consider? What questions do I need to ask?
Sale Price: $960k
New House in California
Interest Rates for 1st/2nd mortgages: 6.75%/8.675%
Excellent FICO scores - high 700s to low 800s
6.75% is average for 30 years fix loan.
8.675 is high of course, but you don't have down payment, lender wants high rates to compensate.
It is hard to find another lender to give you better rate.
I would stay away from adjustable loans or interests-only, because housing market continues to slump. Adjustable loan is "toxic", which means if rates go up while housing price stays, you will in bad spot.
As for interests-only, mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.
Would you consider delaying your plan? As housing market continues to slump, it might save you 10% simply by waiting for a few months. Another way to look at it, you can increase profit by 10% when you are ready to sell it.
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514
If you want to go ahead with your plan, threaten to back out, they probably will give you incentives without asking you to use their lender.
Good luck!
Would you consider dela