Waiting to Refinance May Be a Mistake Patch.com
Many Fountain Valley homeowners may want to consider refinancing. Rates are at historically low levels falling to as low as 4.3 percent locally. But there’s another incentive related to a change in federal law.
A so-called credit risk retention rule, which is part of the federal Dodd-Frank Act, is expected to take effect in about a year. The rule requires lenders that securitize mortgages to retain 5 percent of the credit risk.
Homeowners would be required to have at least 25 percent equity for a rate-and-term refinance or at least 30 percent for a cash-out refinance. Some estimates indicate that fewer than 50 percent of American homeowners have that kind of equity.
So it would appear that fewer Americans will have the opportunity to refinance. Not only that, but they may end up stuck with a high-cost mortgage.
California is listed as one of the states with equity-poor homeowners. Some lost $100,000 or more in equity when the home market crashed in 2007 and 2008.
Reverse Mortgages Expected To Help Boomers Retire
Article by N. Sioris
Reverse mortgages are becoming popular financial planning tools for seniors in retirement. When Social Security was first implemented in 1935 the average life expectancy was 65 years. Today people are living healthier lifestyles and with improved medical technology we are living far longer than Franklin D. Roosevelt ever imagined. This is a sort of good news/bad news statistic. One of the greatest fears for older Americans is that they will outlive their assets. Even if you thought you adequately funded your retirement when you first retired, you may live so long that you will run out of funds to support yourself. The fear of insolvency will increase as life expectancies continue to climb and Social Security and Medicare become more tenuous. The enormous pressure that will be put on these entitlement programs when 78 million baby boomers begin to retire in the next couple of years, is almost incalculable. One thing for certain, is that we are all going to have to take steps to be personally responsible for funding a greater portion of our own retirement and health care than we might have predicted.
One funding source that has been gaining in popularity in recent years is the reverse mortgage. A reverse mortgage is a special type of loan that allows a senior homeowner (62 or older) to convert part of the equity in their home into tax-free cash that can be used for any purpose. There are no payments made by the borrower during the life of the loan and the loan only becomes repayable when the homeowner permanently leaves the home. The homeowner does not have to own the house free and clear, but if there is an existing mortgage on the home, it will be paid off with the proceeds from the reverse mortgage. Whatever remaining equity is left can be distributed in several different ways to the homeowner. The most popular forms of receiving the excess proceeds are either as a lump sum or as monthly tenure payments to the homeowner for as long as they live in the home.
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A Bad Credit Home Mortgage Refinance Loan Can Help Your Family
Should you use the equity in your house as collateral to acquire the financing you so crucially need? We can help you get that bad credit mortgage ...
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Americas Watchdog Endorses American Interbanc As The Best Mortgage ... - PR Web (press release) Americas Watchdog Endorses American Interbanc As The Best Mortgage The two proviso's are, the borrower must have very good credit, and they must have equity in their home, in the instance of a refinance. |
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(FED) Stabilizing the Housing Market: Focus on Communities - Forex Hound (FED) Stabilizing the Housing Market: Focus on Communities Had house prices continued to rise, many borrowers would have been able to refinance to avoid higher payments and perhaps to extract accumulated home equity |
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Regulations, Real Estate and Why You Should Buy Now: Advice from ... With lots of cash to spend from their home equity loans, consumers created demand for more retail stores and restaurants, which subsequently popped up to |
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How Banks Are Worsening the Foreclosure Crisis - Midas Letter How Banks Are Worsening the Foreclosure Crisis Home prices will go up, and you can refinance at a lower rate,' " Kelete recalls. He regrets signing a mortgage he couldn't afford—a mistake many people Obama to detail foreclosure plan Obama to unveil plan for stemming foreclosures, but new problems |
Run the Refinancing Numbers, Then Run Them Again - Atlanta Journal Constitution
Richmond Times DispatchRun the Refinancing Numbers, Then Run Them Again If you have top-notch credit, substantial home equity and expect to stay in your home for several years, refinancing may make financial sense. Erik S. Lesser for The New York Times To refinance or not to refinance. THAT is the question. Lenders tighten up on refinancing
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