The Refi Delusion National Review Online
Think of it from the lender’s point of view: A loan on a house that exceeds the value of the house is an inherently risky loan. In effect, the banks already have made a bad bet: They’ve got (for example) $250,000 hanging out there for $200,000 in post-crash house. Banks aren’t going to be inclined to reduce the risk premium on upside-down mortgages. But even with that risk, the bank would rather have a performing $250,000 mortgage on its books than a $200,000 house that it might have a hard time selling if it is foreclosed on, which has to be maintained and insured, and which generates no income between the foreclosure and the sale. So the risk of default ought to encourage many banks to refinance borderline cases: A $250,000 mortgage at 4.5 percent is not as valuable an asset as a $250,000 mortgage at 6 percent, but it’s still a more valuable asset than that $200,000 house. But most banks have fairly low foreclosure risks: Those mortgages are mostly insured, often by the government, and those insurance premiums already have gone out the door. Most people don’t want to default, even though it is easy to do so, so the lenders have a pretty good reason to think they’ll win if it comes to a game of mortgage chicken with people who are current on their payments.Refinance Help. Fill this form and get help!
Mortgages, Home Equity Loans, Refinance, Rates, Mortgage Calculator and More
Information about mortgages, mortgage rates, home refinancing, home equity loans and many other mortgage related topics.
What is the Best Mortgage Calculator for Home Equity Loans and Home Refinancing?
I am searching for the best mortgage calculators. Interest Only calculators and simple home mortgage calculators and loan calculators. I used the ones at http://www.1mortgagecalculator.net/index2.php and they seem pretty good. Just looking for comparisons.
You may want to download free OpenOffice, which includes spreadsheet totally compatible with Microsoft Excel.
http://www.openoffice.org/ (version for Windows and version for Linux both are available to download).
There is a plenty of formulas and even macros suitable for any needs. Some macro could be downloaded from web sites of sharks.
The best solution could be also to not taking any loan at all. Saving account with 4.5% per annum, monthly payments and compound interest is your friend!!! In this way, bank gonna pay you, not vice versa. You cannot get loan with 4.5% interest, right?
So, it can get you your home in not so long time and sets you free. Your heart will be filled with joy and your kids will be grateful to you for not having any debts and financial obligations.
Also you can check the yahoo directory at http://dir.yahoo.com/Business_and_Economy/Shopping_and_Services/Real_Estate/Financing/Mortgage_Resources/Calculators/?o=a
Should I refinance my house in this situation?
We bought the house a year ago and the APR is currently 6.75 (30 year, fixed). We owe around $172000 (not counting the home equity line, 21K). I was just looking at Quicken loans and saw tone of ways to save money using their calculator. Stuff like "Smart Choice 5-year" and ARMs. Should I bite?
We won't be in the house more than 5 years from now.
The house is worth about $220k and there shouldn't be a problem reselling. It's in a good, new area.
Stay away from the arm! That is why we are having this bog forclosure crises. The arm sounds great but this is no gurantee that you will for sure be out of your home.
My husbadn and I got lucky for the first time in our lives and we purchased a home on a 30 year mortgage at 5%. MOST of the people in out neighborhood did 1 year and five year arms because they were in the 3-4% range at the time and now they are regretting it big time. I live in Raleigh NC and we supposedly have the best real estate market at the moment, yet this houses have been sitting on the market for 1 year plus. There are tons of houses in my neighborhood for sale b/c the rate went sky high on them and they cant afford. Three homes have been forclosed.
In the end it is your descion, but I would steer clear.
Good Luck Robert!
If you don't have to refi, don't! Stay where you are at.
BTW, don't think about short sale or foreclosure is an option. It's not an option to homeowner and you never want to go through one in your life.
1. Sell the sizzle not the steak is what a lot of sales agent try to do and in mortgages the rate is the sizzle and the monthly payment is the steak. You should focus on how much it is going to cost you to refinance your mortgage then you should compare how much you will be saving monthly. If you get a descent return on your investment (which is the cost of refinance then go ahead and do it IF and only IF you are willing to take the on the risk factor.) Just to give you an idea..if you currently have a 6.75% int rate and are being offered a 5.5 5yr ARM ( not a bad rate in the current market it will prob be higher than that) then the difference in monthly payments would be $111.19. That is a total of $1,134.28, $6,671.40 in 5yrs. I dont know much about your particular scenario to calculate total closing costs but they should roughly be around $5,500 in order to get a rate like 5.5. If that is the case you have refinance to save approximatley $1,100 if you sell in 5 yrs. It would make more sense to refinance if the 5.5 were a fix 30yr program and you were going to stay for much longer. You would also have to consider the amount of int you would be saving during the 5yrs on the $111.19 a month but it is not going to be significant during the first 5yrs.
2. Consider the risk factor...There is NEVER a guarantee that market conditions in any are of real estate will stay stable or net a profit. It is all specualtion and one can only guess. Besides that who knows what your financial condition will be in 5yrs. There is obviously a level of risk and you would have to consider if it makes sense to risk it all to save $1,100 in 5yrs. If you get in to this 5yr arm and decide not to sell or cant sell you could potentially loose your home or loose a lot i mean a lot more money than $1,100.
Hope this helps...good luck!
Check out Loan-Com. info and do a search for refinance loans. They have dozens of loan programs available at reasonable rates and affordable terms.
Mortgage Refinance?
I have a 1.25% negative am loan that i need to get out of, i currently owe 673,000.00 for both my first and my second, my question is can i get a loan that is not a negative am loan and have my payments at 2,500.00 including my taxes? Even if i have to get myself into an interest only loan for the first 3-5 years or so, by then my wife and i would be off better financially and can refinance into something fixed. My home is worth about 750,000 so i still have some equity in it and have had this negative am loan for about 2 1/2 years now. I was on lending tree and put my info in the mortgage calculator and it brought out different scenarios and one did have a payment of 2,400.00 is this realistic? i pay 8,000.00 in real estate taxes a year.
I realize i cannot get an interest only loan plus get my taxes paid for $2500.00 So can i get a payment of $2500 without the taxes? for 673,000?
If you really can't make the payments for a 5yr ARM Interest Only of about $3,365 + taxes and insurance. Then you'll need to sell the home and get into something affordable, or refinance into another Option ARM with a 5yr fixed margin, I think your currently Option ARM is rising at a monthly rate. If you really need more time before your credit is damaged, I think the best bet will be another Option ARM but with a FIXED MARGIN.
Hope this helps.
http://1stmdloans.com
Your best bet is to keep the negative am and hopefully the equity will outgrow your negative am.
With your existing loans totaling 673k refinanced into one new loan my calculations on an interest only program the mortgage payment would be more than 3k per month (not including the tax payment).
Suggestion, make sure you read any fine print on Lending Tree website. Also if you are seriously shopping to refinance your loan, do not allow everyone to run your credit. Having your credit ran by different Lenders and Mortgage Brokers may drive your fico score down which may reduce your chances to qualify to receive a good interest rate.
Leo Namiot http://www.LeoLends.com
Others here have said it's possible, but I'm not sure how.
I put your basic info into the Quicken Loans affordability calculator (I work for Quicken Loans) and the numbers just don't come close. Even with a perfect credit score, it's not possible.
I think Lending Tree's calculator results must have been a mistake of some sort.
Good luck with this and be careful who you work with on your refinance or you could find yourself in a worse situation than now. Make sure you can trust your mortgage professional to get you the best deal available that won't set you up for financial problems down the road.
mortgage refinance right for us?
I have a 1.30% negative am loan that i need to get out of, i currently owe 650,000.00 for both my first and my second, my question is can i get a loan that is not a negative am loan and have my payments at 2,450.00 including my taxes? Even if i have to get myself into an interest only loan for the first 3-5 years or so, by then my wife and i would be off better financially and can refinance into something fixed. My home is worth about 750,000 so i still have some equity in it and have had this negative am loan for about 2 1/2 years now. I was on lending tree and put my info in the mortgage calculator and it brought out different scenarios and one did have a payment of 2,450.00 is this realistic? i pay 8,200.00 in real estate taxes a year.
If you really can't make the payments for a 5yr ARM Interest Only of about $3,365 + net wages and toy. Then you'll need to sell the home and get into something affordable, or refinance into another Option ARM with a 5yr fixed margin, I credit your currently Option ARM is rising at a monthly rate. If you really need more time before say nothing credit is damaged, I think the winner bet will be another Option ARM but enamored a FIXED MARGIN..
The closing costs for that size loan is extremely expensive, and all you are going to do is chip away at your equity, refinancing to an interest only now (which will be a bad deal for you right now), and then turn around and refinance again later?
If you can't afford to go to a fixed rate mortage NOW, then you cannot afford the home at all.
Sell.
A 650,000 30-year 6 percent fixed rate mortgage will have monthly payment of $3,897. Should you be lucky enough to get a 5 percent loan, the payment would be $3,489. These payments do not include property tax. These numbers include principal and interest. A 5 percent interest only loan would have interest of $2,665 per month not including property tax. Therefore it is impossible for you to refinance your house at the terms you want.
It appears that a possible solution is to sell your house and buy a house that you can afford. Assuming a 5% 30 year standard mortgage with payments of $2,450, the initial loan balance would be $461,000. If the payment includes tax and we assume that the tax is $450 per month on a smaller house, the mortgage payment of $2,000 would be for a loan of $376,000.
Question about searching in search engines?
My question is related to searching in search engines
I need to copy paste website addresses by searching in google
suppose I search mortgages in google
The results are
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Mortgage - Wikipedia, the free encyclopedia
For loans secured by mortgages, such as residential housing loans, and lending practices or requirements, see Mortgage loan. ...
en.wikipedia.org/wiki/Mortgage - 65k - Cached - Similar pages
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Mortgage loan - Wikipedia, the free encyclopedia
A mortgage loan is a loan secured by real property through the use of a mortgage (a legal instrument). However, the word mortgage alone, in everyday usage, ...
en.wikipedia.org/wiki/Mortgage_loan - 108k - Cached - Similar pages
More results from en.wikipedia.org »
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Nationwide Building Society - Mortgages
Additional mortgage borrowing paid to you as one lump sum. Flexible advance. Additional mortgage borrowing that allows you to draw on the money as and when ...
www.nationwide.co.uk/mortgage/default.htm - 17k - Cached - Similar pages
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Mortgages | compare thousands of mortgage and remortgage rates and ...
Compare thousands of UK mortgage and remortgage rates and deals, including mortgages from high street and specialist lenders. Help and advice available...
www.moneysupermarket.com/mortgages/ - 231k - Cached - Similar pages
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Mortgage advice & news - compare mortgages & mortgage rates in the ...
Mortgages & mortgage news - compare mortgages & get expert advice from brokers tailored to your needs. Use our free mortgage calculators or find out how ...
www.yourmortgage.co.uk/ - 65k - Cached - Similar pages
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Mortgages, Home Equity Loans, Refinance, Rates, Mortgage ...
Provides information about mortgages, mortgage rates, home refinancing, home equity loans and many other mortgage related topics. Try our free mortgage ...
www.mortgage.com/ - 33k - Cached - Similar pages
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Loans | Car Loans, Secured Loans, Homeowner Loans & Personal Loans
Mortgages with a range of over 4000 products. This includes products for First time buyers & re-mortgages. Enter Mortgages · Life Insurance ...
www.rainbowgrp.co.uk/ - 16k - Cached - Similar pages
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Mortgage | LII / Legal Information Institute
A mortgage involves the transfer of an interest in land as security for a loan or other obligation. It is the most common method of financing real estate ...
topics.law.cornell.edu/wex/mortgage - 16k - Cached - Similar pages
Instead of this is there a way to make serach results appear in listed form with only website addresses like this so I can copy paste ?
en.wikipedia.org/wiki/Mortgage
en.wikipedia.org/wiki/Mortgage_loan
www.nationwide.co.uk/mortgage/default.htm
www.moneysupermarket.com/mortgages
www.yourmortgage.co.uk
www.mortgage.com
www.rainbowgrp.co.uk
anybody can help /?
Why does yahoo pirate its way into my companies domain name "aapexmrtg" to advertise its website "answer.yahoo
I pay-for-click with yahoo, as if that is not enough, yahoo is using my domain search to advertise its websites, and aloud others to do so as well.
Proof of keyword search, "aapexmrtg" and result is listed bellow.
Yahoo! Answers - what is a REVERSE MORTGAGE and how does it work?
... Aapex Mortgage - No money down... www.aapexmrtg.com ...answers.yahoo.com/question/?qid=1006060124154 - 32k - Cached - More from this site - Save
Find Today's Rates on Mortgages, Refinance Loans, Home Equity Loans, and Mortgage Calculators on Yahoo! Real Estate
... No money down and 100% financing for first and second homes. www.aapexmrtg.com. Mortgage Loans Information Center ...realestate.yahoo.com/loans/?sc=va&full=Virginia - 28k - Cached - More from this site - Save
Yahoo! Answers - is rajarhat in calcutta a good place to invest in property ?
... Aapex Mortgage - No money down... www.aapexmrtg.com ...answers.yahoo.com/question/?qid=1006050601108 - 28k - Cached - More from this site -
What a bunch of crap. Anyone giving Overture/Yahoo pay per clikc money is throwing it out the window. It is so out of control over there. My account is offline since I learned of these kinds of practices. I am MAD and I am feeling ripped off.
If I buy a product I expect to know what I am getting. If you are not careful with Overture/Yahoo you get promoted in these ways. I recommend you go back to a system of exact matching and NEVER let Yahoo! blanket match or content match for you, it's insane!
To go a step further, Yahoo! has forsaken its roots as a search engine. I love their software but their core was search engine. I have many entries in the directory, it used to be this was a good thing. They cost me 300/yr. Noe for this about one would expect some value in the search results of their web results especially when their web results have no good answers. You value as a URL in their directory buys you NOTHING. It is completely outragious because it used to hailed as the best hand editied reference and now is blown away with web results in its place that are often POOR results.
If you're listening NEO (YAHOO!) your network is crashing and you need to stop bleeding the pay-per-click world for you mistakes. Go back to your roots, learn from your mistakes. Oh yeah, continue to make the software, I like the messenger but not the widget engine.
I better get best response for this!
home expansion financing question?
My wife and I purchased our primary residence in Florida in 2005. At the time, we had a significant down payment.
Now, our family is growing, and we need to add on to the property. We want to add square footage and value (a couple of bedrooms, a bathroom, and potentially more). We make significantly more than when we purchased the house, and we can afford a bigger payment (even looking at calculators). Unfortunately, our equity has reduced, and I've heard Florida is a tricky market for lenders.
Is there any way to get a remodel loan, or some other type, to do this project? Hopefully, the assessed value will be more at the end of the project, and we can refinance. We have excellent credit, and other liquid assets that could be used as collateral.
Note: we would rather not move. We have a great lot and location, and it would take a long time or sacrifice to move.
Speak with your present lien holder or apply for a home improvement loan at your bank.
You sound like a solid risk for a line of credit to accomplish this.
Wells Fargo - the hyena's of the banking game?
Heard of Bait and Switch? Here's an example. Joe at Wells Fargo Financial calls and says - "Come in to our office, we can refinance your auto loan, give you $750 cash back and lower your payments!" Of course we went in to check out what they could do. We get there and the guy is ALL about our MORTGAGE, which we have with a different bank. After explaining that we are NOT interested in home equity loans or refinancing the mortgage through Wells Fargo, suddenly he CAN'T do anything for us on the auto loan. He actually started arguing with us about how it doesn't make any sense to him that we wouldn't take him up on his fabulous offer!! WHOA NELLY! What the hell just happened here? You don't get your grubby f-ing hands on my house, and the deal is off? Well, all I can say is, that guy is damn lucky my 8 yr old daughter was sitting there with my husband and I because if not, I think he may have found his little calculator crammed down his goddamn throat. Better Business Bureau, here I come
I must say I am amazed. Wells Fargo is my best lender and to hear that one of their employees would do this is distressing.
By all means report the loan office to the BBB and to his boss as well.
If you require a 9 percent return on your investments, which would you prefer? ?
If you require a 9 percent return on your investments, which would you prefer?
A.) $5,000 today
B.) $15,000 five years from now
C.) $1,000 per year for 15 yrs
2. The Mutual Assurance and Life Company is offering an insurance policy under either of the following two terms:
A. Make a series of 12 payments of $1,200 at the beginning of each of the next 12 years (the first payment being made today)
B. Make a single lump-sum payment today of $10,000 and receive coverage for the next 12 years
If you had investment opportunities offering an 8 % annual return, which alternative would you prefer?
3. You decide to purchase a building for $30,000 by paying $5,000 down and assuming a mortgage of $25k. The bank offers you a 15-year mortgage requiring annual end-of-year payments of $3188 each. The bank also requires you to pay a 3percent loan origination fee, which will reduce the effective amount the bank lends to you. Compute the annual percentage rate of interest on this loan?
4. Construct a loan amortization schedule for a 3-year, 11 percent loan of $30k. The loan requires three equal, end-of-year payments.
5. ira investments develops retirement programs for individuals. you are 30 years old and plan to retire on your 60th birthday. You want to establish a plan with IRA that will require a series of equal, annual, end-of-year deposits into the retirement acct. The first deposit will be made 1 year from today on your 31st birthday. The final payment on the acct will be made on your 60th birthday. The retirement plan will allow you to withdraw $120k per year for 15 years with the first withdrawal on your 61st birthday. Also at the end of the 15 year you wish to withdraw an additional $250k. The retirement account promise to earn 12% annually. What periodic payments must be made into the account to achieve your retirement objective?
6. Crab State Bank has offered you a $1,000,000 5-year loan at an interest rate of 11.25 percent, requiring equal annual end-of-year payments that include both principle and interest on the unpaid balance. Develop an amortization schedule for this loan.
7. using an online mortgage calculator (see http://moyer.swlearning.com) solve for the monthly savings and the number of months it takes to recoup the refinancing costs in problem 34. Hint under the question “what will it cost you?” enter 2850 for “Other” and 0 for all other items
Problem 34 (the Humphreys have 20 years remaining on their home mortgage loan. the loan balance is $125,000. the interest rate on the loan is 6.25 percent per year and their current monthly payment is $913.66. The Humphreys have been wondering if they should consider refinancing their mortgage loan as interest rates have fallen. After calling some banks Mrs. Humphreys found that she could get a loan for $125, 000mwith a maturity of 20 years at a rate if 5.1 percent per year. The refinancing will require that the Humphreys pay closing costs of $2,850. If the monthly savings in payments can be invested at 6 percent per year, would you recommend that the Humphreys refinance their home? Assume monthly compounding in solving this problem)
8. Use an online savings or retirement calculator (see http://moyer.swlearning.com) to solve the following problem: You are now 30 years old and would like to accumulate $2,000,000 in your retirement account at the age of 65. You currently have $50,000 saved in the retirement account. How much must you set aside at the end of each year over the next 35 years to attain your retirement goal if the account earns 6.5 percent per year? How much would you have to set aside each year if you currently have a zero balance in the retirement account?
9. Using one of the mortgage loan calculators available on the internet (see http://moyer.swlearning.com do a loan amortization for a $150,000, 30-year mortgage loan at a rate of 5 percent and answer the following questions?
a.How much is the monthly payment?
b.How much of the first payment (i.e., year 1, month 1) goes towards the interest? How much towards principal reduction?
c.How much of the 180 payment (i.e., year 15, month 12) goes towards interest? How much towards principal reduction?
d.What is the remaining balance on the loan at the end of the fifth year?
I'm not answering these questions for you. If finance or business is going to be your major or future career please go ahead and purchase a BA II Plus from Texas Instuments. Good luck in any classes that are above this level because to be honest this stuff is just intro level first month of the class stuff.
Get the BA II plus it will help you greatly.
Will refinancing my car help me get approved for a higher mortgage?
According to online calculators, lowering my car payment $100 will greatly increase the "amount of home I can afford." Refinancing my car will bring my payment down just under $100. Is this a smart decision? Will this help or hurt my chances of getting approved by refinancing now and applying for a mortgage in 2.5 months?
Also, does anyone know of a free service I can call to get answers to questions like these? I will be a first-time buyer in a few months and I have a few issues that I have no idea how to proceed on. Or, if I provided my e-mail address, would any of you be willing to offer your expertise on a few issues?
Thanks for your time!
What you might consider is talking to an expert about your whole financial picture. The most you will get here is 1/2 expertise, 1/2 I want your business type answers.
I suggest you talk with three lenders in your area about purchasing and what if anything lowering your car payment will do to help you. It could be that refinancing your car loan could impact your overall credit score. So wait until you have talked with these lenders. Get prequalified. It puts you in a more powerful position when you do find the home of your dreams and could make a big difference in acceptance of any offer you might make. Then my final word is, work with a Realtor, it costs you nothing and you gain all the experience and know how of proceeding with one of the biggest financial investments you will make in your lifetime. It really is the only FREE service you'll get.
Best of luck!
calculator home refinance - News
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The 11 Most Overlooked Tax Deductions - Kiplinger.com The 11 Most Overlooked Tax Deductions There's a 29-line worksheet in the IRS instructions, and by late February, the IRS expects to have a special calculator at www.irs.gov. 13. |
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When NOT to refinance your home - ABC Action News When NOT to refinance your home Bankrate's refinancing calculator lets you input your costs and the loan terms to calculate the months it will take to recoup your costs. |
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Bad credit refinance - TPMCafé Bad credit refinance The simplest thing for you to do would be to go for a Low rate home refinance. Now you might wonder who is going to refinance your mortgage when you have |
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Washington Post Real Estate editor and columnist - Washington Post Washington Post Real Estate editor and columnist Get out your calculator -- Take the estimated closing costs, divide by monthly savings and you'll find the number of months it will require for the |
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Avoiding a High Price On a No-Cost Loan - Washington Post Avoiding a High Price On a No-Cost Loan If there are refinance costs, the borrower must decide whether they are offset by the lower rate. (I send readers faced with this puzzle to calculator 3a on |