More homeowners shorten mortgage terms USA Today
Spurred by low interest rates and a desire to pay off their debts, homeowners are shortening the terms of their loans. In the first quarter, 34% of refinancers switched to a 20- or 15-year loan, the highest level in seven years, according to mortgage giant Freddie Mac . At LendingTree, an online mortgage broker, requests for 15-year mortgages are up 30% from a year ago, says Mona Marimow, vice president of marketing.
Quicken Loans recently launched Yourgage, a customized product that allows borrowers to select the term of their mortgage. The most popular term for Quicken borrowers? Eight years. The second most popular is 13 years.
STORY: Mortgage rates reach record lows, sparking refinancings STORY: Economists see 30% chance of recession"Mortgage-burning parties are back," says Bob Walters, chief economist for Quicken Loans.
In one sense, this trend bucks conventional wisdom. The average rate for a 30-year, fixed-rate mortgage was 4.32% last week, close to a record low, according to Freddie Mac. That's cheap money, especially when you factor in the tax deduction for mortgage interest. Some financial planners might argue that you're better off keeping your payments as low as possible — which usually means sticking with a 30-year mortgage — and investing the balance.
Reduce Your Debt Load With Home Mortgage Refinancing
by eyewash
Reduce Your Debt Load With Home Mortgage Refinancing
Article by Crystal Mate
What volume of debt are you carrying right now? If you are like most Canadians, you have debts that exceed your annual net income. Getting a handle on all of this debt can put a lot of strain on today’s households. Home mortgage refinancing is one possible solution to the debt load problem.
Where is All This Debt Coming From?
The rise in debt loads for Canadian families has been widely reported. According to Statistics Canada, the median debt load for Canadian households grew 38% between 1999 and 2005.
A lot of this increase is attributed to higher costs for home purchases and the need to take out a mortgage. But there are other expenses involved. Line of credit debt doubled in the same six-year period, while vehicle loans increased by over 40% and credit card debt jumped 58%.
Households have typically cut back on savings to finance some of their debt, a trend that has some economists worried. With no savings to fall back on and heavy debt loads, an increase in interest rates could be devastating. Most experts advise families with high debts relative to their income to put themselves on a budget, and start saving everywhere they can.
Can Home Mortgage Refinancing Help?
Home mortgage refinancing is not for everyone, but for many people it can make sense.
With home mortgage refinancing, you pay off your existing mortgage to switch to one with a lower rate. Cash-out refinancing enables you to borrow more than you currently owe on your mortgage, giving you some extra money for other expenses, like outstanding debts, home renovations, or university tuition.
...Refinance Help. Fill this form and get help!
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Is now a good time to refinance a home? We tried 6 months ago but were upside down. Trying to lower monthly ..?
about 6 months ago we tried to refinance our home, for a lower monthly note. However, we were upside down due to the recent crash of the housing market. So, is now a good time to refinance? We'd love to be able to do a no closing cost refi, but don't think our credit fits the bill. Our home is 3 years old, and we've been living in it for 2 years this month.
You're still upside down. Just work more hours and cut your expenses to pay it down quicker.
So, if you qualify, now is the time to refinance before the rates go up.
But property values have gone down more AND banks aren't lending anyone money right now.
Try going to a few banks to see if anyone can help you. You might also try www.hud.gov or www.fha.gov to get more info.
I would wait until Washington figures out what is happening with their latest and greatest rich person bailout. So, early next week.
good luck.
So, while now would be a good time to refinance (interest rates are low), you can't if you owe more than the house is worth.
If you have both a first and a second, look for some way to pay off the second.
Otherwise, you'll just have to stick it out. I don't know how much prices have come down where you are, but in many areas of the country it'll probably be 4-6 years before there's any chance of refinancing (getting out from an upside down situation).
If you need help in getting the amount of interest rates and wanna apply online for refinancing your home then must visit 123refinanced.net for more information.
Hope it might clear your doubts.
Does anyone know what this new bill Bush just passed that is going allow people to refinance their homes?
It's supposed to keep people from losing their homes so I guess it's for those who are facing foreclosures, etc? Supposedly all of those with sub prime mortgages that have raised their payments are guaranteed a refinance to get caught up and get a lower rate? Can you get your equity out of your home at the time of refinancing?
Not everyone is going to qualify.
What he said was you would have to prove that your mortgage was current when the rate went up and have at least 3% equity in your home to qualify.
Add to this that F.H.A. does require proof of income and a lot of people are not going to qualify since they lied about their income and the housing market has not performed like people thought it would so the equity is in question.
can you refinance a home equity loan to lower the payments?
My mother signed a home equity loan with my grandfather who has just passed, and I am trying to help her pay the bills but the payment on the house is too high. If she refinances could her payment go down? Are there any other options, or any kind of loans or help from anywhere? I am totally clueless this was very unexpected.
If she has the income she can get a different mortgage and they will pay that one off. If her interest rate goes down and fees aren't high the payment could be less.
God bless, maybe this is not a mere coincidence, I am just browsing and I found your question. God work in mysterious ways to help people.
how many people on here need to refinance there homes for a lower monthly paymnt, cash out or to pay off bills
refinance. cash out, lower payments, lower interest rates
oh screw off.
If you can't afford to pay for an ad why would anyone want to deal with you?
Need to refinance house but medical bill collections are killing us. I just can't keep up any more .?
Had to be a stay at home mom I still have a small income and my husband is main provider. After judgement on medical bill came out my check I could no longer pay the daycare the 800 a month anymore. I gave the hospital 40 a month for 4 years and then they turned me in to collection when I requested paper work other then the reciepts they had nothing . So now my husband has had he's hours cut and we are trying to refinance but everyone keeps going back to medical bills on report causing low score. I need to refinance before I lose everything. Any advise on what I can do to about medical bills one credit report so we can get a refinance loan?
I am really sorry to hear your plight. If you hold on until Obama get into office he may bailout the homeowners rather than the banks.
should i sell my car or refinance?
I bought a 350Z over 2 years ago so i paid quite a bit off already. I owe about 20K left on it but the KBB value is around 18K so i'm alittle upside down. I'm getting married next year and i'm trying to lower my bills to save up for the wedding and was wondering if you think i should trade it in for a cheaper car or just refinance. I don't want to sell it!!! That's my baby...lol... but i'll do whatever i can to save for the wedding.
sell to private owner or try to get a good deal on a trade with a lower priced car which will decrease your monthly bill.
It's a material possesion.
Think about what's really important right now.
A car. Or a perfect wedding. One of the most important days of your life.
Why refinance - you'll still have money to pay off. Just sell it - get a cheaper one.
You need a car how much could you possibly add to your wedding budget by sacrificing a car you love. its not like its a 50 k jag or mercedes that you are trading down to a 20 k vehicle. you're already at the most reasonable car price level you can be
Just have fewer guests at the wedding and have a bigger housewarming or something.
Can I refinance my home with bad credit?
My husband and I need to refinance our home to lower our monthly payments. We are paying 9% right now. We both have bad credit. About 4 years ago we started getting behind and couldn't make credit card payments. It was either pay them or pay our house payment. So I just didn't pay them. We also have some unpaid medical bills that our insurance didn't cover after the birth of our daughter. The creditors are always on our backs. In May we will be eligible to refinance our home (we had a prepayment penalty clause in our mortgage agreement). What chance do we have of getting a lower interest rate and lower monthly payments? Any help is greatly appreciated!
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!
There's dozens of subprime mortgage companies going bankrupt right now, so that entire market is going a little crazy at the moment. Rates and products will vary widely between different lenders, so call several. Get the first one to tell you your credit scores, maybe even get a copy of your credit report from him/her, and use that to shop from other lenders.
It is so ironic that the banks give the best rates to those who have lots of money but charge the highest to those with the lesser incomes?? Makes no sense. I would be very careful, some have lost their homes to refinancing schemes.
To find out what you would qualify for, you would need to complete an application and let a lender obtain a credit report. This can be done right over the phone.
What is the best short term loan for refinancing our condo?
Our condo in FL has been for sale for 2 years! Not planning for this...We need to pay off some bills to lower monthly payments. What is the best way to go to refinance? We want low closing and of course no pre-payment penalty. ARM? Fixed? Not sure where to start? Our credit union wanst about 5k for fees and closing!!
I'm sure you will have about 5 people telling you they can help you out on here...no problem :)
I've bookmarked this site...
http://loan.surveyland.org/
All the best to you.
What is the best way to negotiate with a mortgage company to keep or lower your house payment?
We have a 3/1 that goes to an outrageous rate that we will not be able to afford. House is worth less that what we owe so we cannot refinance. Will this new housing bill help us even though we are not customers of Fannie Mae or Freddie Mac? We are with HSBC. HELP!
The housing bill can help you even if you are not a customer of Fannie Mae or Freddie Mac. The bill is urging lenders to forgive a portion of the debt when customers are "upside down" on their mortgages to give them the ability to refinance. Some of the forgiven debt is expected to be repaid to the bank (down the line) if/when the economy recovers and the house increases in value, but it will still help you to get out of your current situation. HSBC does not have to agree to help you, you can still refinance.
Here is a great article. Read it carefully for helpful information:
http://bankrate.com/brm/news/mortgages/housing-bill-20080725a1.asp
Best of luck to you!
How do I refinance my car, if I have bad credit?
How can I refinance my car. I have bad credit and I am behind on my payments. I thought I would be able to make up the payments with my tax refund, but I owe $639.00 back in taxes. Is there some place that can help me. I got behind on my bills because I was out of work for 5 months and it is really hard to catch everything up. I now have a good job, but my payments are still behind, because I can't catch up. My job is an hour away from my house, so I need my car to get to and from work. My loan people are really rude and are not willing to work with me. I really need to lower my payment and keep my car. Any advise will be helpful.
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!
bill lower refinance - News
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Industry Insider Tips from Residential Finance Corp: Clean Up Your ... - Business Wire (press release) Industry Insider Tips from Residential Finance Corp: Clean Up Your “In just a few weeks, Jeff helped me update my credit report and complete my refinance at a far lower rate, and he cut my monthly payment by $400,” adds |
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Wall Street Does Need Incentives - New York Times Wall Street Does Need Incentives Thanks to an 11th-hour amendment to the stimulus bill in the Senate, the fiscal alchemists of Wall Street are mobilizing their forces en masse. |
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McCain derides stimulus, Obama's cabinet choices and Arpaio - Arizona Capitol Times McCain derides stimulus, Obama's cabinet choices and Arpaio The plan is expected to include the creation of a fund to buy up at-risk mortgages at a reduced price and then allow the homeowners to refinance at a lower |
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School directors authorize borrowing up to $13M - Norristown Times Herald School directors authorize borrowing up to $13M 9 meeting, the Wissahickon Board of School Directors authorized the borrowing of up to $13 million to refinance $11040000 in bonds issued in 2001 and 2004. |
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Grading the Stimulus Package - Seeking Alpha Grading the Stimulus Package Households with conforming mortgages have also been able to refinance. Corporate borrowers and jumbo mortgage holders have not yet received much benefit |