Is a Cash-In Refinance a Good Idea? NASDAQ
Does it make sense to pay down your mortgage in order to be able to refinance at today's super-low rates? Is this a good strategy for homeowners who are underwater on their mortgages?
A lot of homeowners seem to think so. According to Freddie Mac, over one-quarter of all mortgages refinanced in the second quarter of 2011 were "cash-in" refinances, where borrowers paid down a significant part of their mortgage balance as part of the transaction.
At first glance, a cash-in refinance is a fairly straightforward solution for borrowers who'd like to refinance, but can't because declining property values have left them owing more on their mortgage than their property is worth. But it tends to be expensive. To get back into positive equity, underwater homeowners may have to write a check for several tens of thousands of dollars, if not more.
Generally, you don't want to do a cash-in refinance unless you're certain it's the best use of your money. Here's some of the main things to consider when deciding whether a cash-in refinance makes sense for you.
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How can I ensure I get the best rate on a home refinance?
We have stellar credit, but made the mistake of not gettng a fixed rate on our mortgage 5 years ago. What do we do to ensure that we get the best deal we can?
Thanks!
The easiest way in my opinion is to go to a few different brokers at least 3 or 4 and ask for a Good Faith Estimate. They'll take your info and determine what rate, etc they can give you. Then compare those and see who has the best deal. Don't hesitate to pit them against each other people do it all the time. If you like one person in particular but they have a lesser deal show them the other GFE and see if they can match it, sometimes they can, sometimes they can't but it's worth the shot. And finally, if you think somethings too good a deal (say 4.5% interest with no closing costs) it probably is. Finding a great broker is just as important as the rate because they will help you through the whole process and make sure you don't get hurt in the end. Good luck.
You can check out mortgage rates at bankrate.com.
morgages are trying to get ur business, pit them against each other
It is true that brokers need business, but it's also unfair to make them waste their time when they can work on some other file that is duable.
The Good faith estimate is only that, an estimate they cannot ensure you to get that specific rate as they do not really know how the market will be at the time of locking the rate; unless whey they propose a rate to you and it's low they can locked it right away. However in most cases they have to have already most of the paperwork in process.
Good luck!!
Who is offering the best rate for a home refinance?
We have a rental property that we would like to refinance and consolidate all our credit.
With your situation you're working with an investment property and will take a hit on rate because it's not your primary residence. But the rates that are available to you depend on your credit score, how much equity you have, mortgage payment history, and how much debt compared to income that you have.
I work for a company called MYLOAN and our rates are very competitive and service is top notch. If you'd like a free no obligation consultation you can fill out an application on my website, email me, or give me a call. I wish you luck in your search for financing.
Is there one website that you can go to and get home refinance rate comparisons instead of individual sites?
Try www.bankrate.com They have most everything concerning money and finance.
What will home refinance interest rate do in the next 6-12 months?
current jumbo mortgage is @ 6% fixed will I be able to significantly better that 6-12months out?
If I were able to predict the market I'd be a millionaire a few times over. However the likelihood of a rate better than 6% on a jumbo is very unlikely as jumbo money is very difficult and expensive to get these days.
I've been in the mortgage business almost 10 years, and have seen cycles. Twice a year (6/15 7 11/15) the feds adjust the lending rates to banks to control inflation.
Except doing a election year - the government wants to keep interest rates low.
Two years ago in November I was predicting rates would jump, before interest rates were 5.125% for 30 yr fixed. After the senator election, over night rates jumped back into the mid 6% range.
Just like gas prices - it price jumps during the beginning of the summer, then prices fall during the fall. Every year it's a different excuss.... somebody is making money of this.
If your stuck in a mortgage with a prepay, you might consider doing a loan modification with your existing lender. PM me if your interested.
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Where's the best place to go to refinance my home and what would be a great rate?
Are these places like Ditech any good or should I go to my current lender? I'm currently paying 6.5%.
Shop around. Call at least two banks, two national lenders, two brokers, and a credit union. Make sure everyone knows you are calling around.
So many of the people who got bad loans over the past few years set themselves up by only contacting one loan originator. When I purchased my present home - about a year ago - the company I had my old mortgage with quoted me 7.5%. By calling around, and making it clear I was calling around - I wound up closing at 5.5%.
The loan companies need your business. Make them compete for it. Let them know you're shopping and you will get the lowest offer.
Before you start calling, know your credit score. When you call for a quote, tell them your credit score, how much savings you have (reserves), you monthly income, and your monthly debt. While the quotes won't be binding - don't let them pull your credit report, tell them you're just shopping - if you start working with someone and they start to push the rate up, you'll know who to go onto next.
Good luck.
Here are reputed mortgage lenders.
See who is near your area.
http://mortgage-loans1.blogspot.com/
Be cautious of online lenders, some offer bait and switch tactics - hoping you don't catch the changes from the original quotation, some just stink at customer service (your loan is just another number), others charge high closing costs.
who has the best interest rates for a home refinance?
downey savings is advertising at 5.5, is there anything better?
Just because a company is advertising that they offer a 5.5, chances are your not going to qualify for it. That is a just a marketing trick to get you interested. They best way to tell what kind of rate you will qualify for is based on three simple questions.
1. On a scale of 1 to 10 what is your credit score like?
2. Have you had any 30 day lates or more on your mortgage in the past two years.
3. What is the loan to value on the home? Meaning how much do you owe against how much the home is valued at.
Only people with 700+ credit scores with low LTV will qualify for that rate in today's market.
Good Luck!
Mortgage help i just refinanced my home and got a adjustable rate can i still refinance and keep my loan 50k?
i just refinanced my home the original value was 45k and i had it paid down to 35k. when i refinanced it brought the value i need to pay back up to 51k. i have a adjustable rate now that will kick in may of 09 my percent is 12.750 i think. i pay 500 a month now for the mortgage and 720 total with all the taxes and stuff. i dont have a penalty for paying the loan of early so i want to pay it off in the next five years but with the arm my percent can go as high as 18.750. i dont want the bank to take my house from me because of the mistake i made by refinancing in the first place. so is it possible to refinance into a fixed rate and still keep the loan at 50k and still pay it of early with out any penalty. this is my first post so plz any and all help is great
Whether or not you personally can do any kind of refinance depends on your credit, income, and the value of the home.
If you're asking if no or low closing cost mortgages exist? Absolutely. Typically the rates are a little bit higher, but honestly your rate is really high right now, it should still be significantly cheaper than 12.75 even with the bank paying the closing costs.
By the way check your Adjustable Rate Rider from your original mortgage. Odds are there are caps on how much and how often your rate will adjust. If you're paying this loan off in the next few years it may not even be possible for it to adjust up to 18.75 that quickly.
Should I refinance my home from a variable rate to a fix rate?
My home will be paid off in 2017. We purchased it in 1987 with a var rate the worked well for us at that time. My mortgage rate has increased from 687.00 to 892.00 over the past two years. I suspect it will only continue to rise. I owe approxiately 47K @ 6.8%. How can I calulate what my mortgage payment would be if I refinance. Help. The Widow.
with 10 years to go you may be better off where you are at. here is what i would recommend. Get a quote on a ten year loan (fixed). Not a 30 year fixed for 10, but a 10 year fixed. The last thing you want is to start over on a 30 year term. when you get a quote there are two things to look at. the rate and the payment. the rate will need to be significantly lower than your current rate. the payment will need to be significantly less too. At the end of the day, the only thing that matters is which one will cost less to pay off.
Interest rates go in cycles, as I am sure you have seen in the last 20 years. You may be better off hangin on to your loan. You have already worked yourself into primarily paying off principal (you have gotten most of the interest out of the way). Lowest payment apples to apples wins.
Is it wise to refinance my home mortgage rate of 6 percent to current 4.8 percent rate?
What are the pros and cons?
4.8% is a phenomenal rate.
Here is what you want to do.
Decide how long you plan on staying in the home.
Take the total cost of the refinance and dived that by how much you will save to find your break even point.
Here is an example.
Refi cost = $4,000.00
Monthly savings with new rate of 4.8% = $128.78 ( I used a $200,000 loan amount @ 6% and then a new loan amount of $204,000 @ 4.8% to get this number )
$4,000 divided by $128.78 = 31.06 months divided by 12 = 2.5 years.
As long as you plan on staying for more than 2.5 years it looks like it makes sense.
What would be better, a home equity loan or refinance at lower rate to add on to my home?
I'm wanting to add on to my home but I've never used a home equity loan. I have used the refinance method where you borrow a little extra to add on. What would be the best now, with the way the economy is and the interest rates unstable?
Forget the economy and interest rates in general. The question is, what's best for you? Compare the two scenarios, overall costs of a refi verses the home improvement loan. If you are lowering your first mortgage rate at the same time you take cash out, usually that's the winner. I'd have to have details to make a call but it's your details I need, not the economy or who won the super bowl. If you need more info, send me an email.
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On the House: Is this a final farewell to ARMs? - Philadelphia Inquirer On the House: Is this a final farewell to ARMs? Then you might be able to refinance into a fixed rate lower than what was available when you bought the house. But they haven't had adjustables with such |