Time to refinance? How low can mortgage rates go? Reuters Blogs (blog)
Mark Sass and his wife Jan decided to refinance the mortgage on their Cincinnati, Ohio, home on Friday, just days before the Federal Reserve pledged to keep rates near historic lows through the first half of 2013.
“I knew the Fed statement was coming out and rates had dropped to historically low levels, and it just seemed like an opportune time. I hadn’t even thought about it until then,” says Sass, who owns his own marketing research company.
Their original mortgage had a 20-year amortization period — at a 4.875 percent rate — with 12 years remaining. They are rolling it over into a 10-year mortgage with a 3.5 percent rate. “I was able to knock a couple of years off the term with a very modest increase in the monthly payment,” Sass says. “It seemed like a no-brainer to me.”
Sass and his wife are both 55, so retirement is on the horizon. “The opportunity to look 10 years out and know that – unless things change – we won’t have a mortgage when we retire looked like a smart decision,” Sass says, adding the overall savings on interest by reducing his term will be in the neighborhood of $20,000.
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I need to refinance my mortgage next month. What questions should I ask the lender to get the best deal?
I was going to compare rates @ the Lending Tree. What do I need to know or need to ask? Do I need money down, need to pay points, how much are closing costs? I now have a fixed rate that is turning into a flexible rate next month. I pulled up my credit report and looked up Experian and I have a 740 "vantage" score. What kind of rate could I qualify for?
Please help! Thank you for your information!!!!
Hello Aunt Fanny,
You are on the right track with the few questions you have asked here..
In a refinance transaction, you do not need to have any money down... All closing costs will be rolled into the loan itself..
As for paying points.. You do not need to pay points.. It makes no sense to pay points in a refinance loan.. If you have a broker trying to charge points, they are simply overcharging you to make a profit..
As for closing costs, there are a few third party companies that have charges that cannot be wiaved to complete a refinance.. These include title charges, appraisal, closing, processing, and underwriting... These are all tasks preformed by anb outside organization and are a necessity to complete a transaction...
Other fee;s that can be charged are origination and broker fee's.. Typically these fee's can range anywhere from $1000, to $5000 depending on your loan size..
My company on the other hand only charges a $500 administration fee. there are no broker fee's or origination fee's...
as for the sentence you wrote "i have a fixed rate that is going flexible next month" just so you know, this means you have an adjustable rate mortgage, or ARM... You have a fixed period (2-7 years) and then it adjusts..
If your rate is about to adjust, you want to act now before your rate sky rockets.. If you plan to live in this home for the rest of your life, i would suggest you get a FIXED rate this time around.. If you plan to move in less then 7 years, then it will be better for you to get an ARM..(They are lower then a fixed rate, but only smart if you plan to sell or refi before the adjustment point)
As for what you qualify for, with a credit score of 740, as long as your other qualifying factors are okay (income, reserves, equity) then you will qualify for a "conforming interest rate" or in other words, A+ paper... You have a very good credit score so you will qualify for a good interest rate.. (probably around 6.125 - 6.5%) (just estimating, it could be lower depending on your factors)
And last but not least, i want to tell you a little bit about "Lending Tree" Just to let you know lending tree is not a mortgae lender... I know their commercials make it seem that way, but what they do is act as a lead generator... You submit information online, or by phone, and lending tree then sells it to 4-5 mortgage companies..
Now one might think it is smart to have 4-5 companies look at their credit and give them an analisys... Unfortunately, THIS CAN BE DETRAMENTAL TO YOUR CREDIT SCORE...
What i mean by that is every single time you have a mortgage company look at your creidit, it creates what is called an "inquiry" Every time you get another credit pull, or inquit\ry, your creidt score drops..(sometimes as much as 2-3 points) This is the last thing you wnat to happen.. Every point you lose on your credit could mean thousands of dollars more you spend in interest!!
What i always suggest is that you work with a single lender that is "partnered with multiple investors"..
My company for instance is licensed and partnered with 42 spereate lending institutioins.. We pull ONE credit report, and then shop among our investors with the "one single report"
By doing it this way, i can find for you which lender is willing to giv eyou the lowest rate and fee's, and the best possible mortgage solution for you...
This is the whole idea behing being a mortgage advisor.. Its no different then real estate agent who assists you in finding the best home, or a financial planner, who assists you on where and how to invest your money...
From experience in working with Lendng tree in the past, it is more of a hassle then it is a convenience.. The last thing you wnat is 4-5 mortgae companies hounding you, and more importantly having multiple companies pull your credit....Not a good idea for any consumer...
So, i hope ive answered your questions thoroughly, if i havent, or you have any more, i am available at all times to answer anyting else...I ahve helped alot of people from this site both refinance a mortgage, and also purchase a new homw.. I take pride in knowing that i can help people in need of answers both make a educated decision, and offer assistance with the financing side of the loan...
Feel free to call or email me at any time!!
Good luck!
Jason Fry
Licesned Mortgage Advisor
Providential Bancorp
jasonf@providential.com
312-550-5583
Manager of a company
A private Holder
A broker in banks
A director in any office or company
A high investor of and compay
If you are one of the following you can get $10,000,000US as loan or if personal loan you can request for 5,000-5,000,000 as loan. hope to here from you soon.
Name In full____________ ____________
Occupation___ _______________ ______
Counry_____ _______________ _______
State____ _______________ _________
City___ _______________ ___________
Zip code:__ _______________________
Phone Number ____________________
Sex _______________ ______________
send these info it is important. Mind you loans is given to every part of the world only if i see you to be honest and will pay back after duration. If you are interested you have to send the amount you need as loan so that i can give you the terms and condition on the loan for your information loan are given to every part of the world on honest people so if you are honest apply for the loan now. email chris_per_lenders@yahoo.com
Thanks.
What is loan modification and how much does it cost compared to a refinance?
Is it easier to modify a loan if you don't fit the underwriting guidelines for an FHA refinance?
Not in foreclosure; just have a high-interest rate ARM and too high of a DTI.
Thanks for your input.
Well, if you have an adjustable rate loan getting ready to reset to a higher rate and your income is in jeopardy of not supporting it you should be eligible for a loan modification. It is one of the criteria to qualify. If you owe a lot more on your home than it is worth, you are eligible.
Is it cheaper? well, it could range from $900 to $3,000 and then there are some real sharks out there trying to get $5,000 to $7,000 Wow. those people are just slime.
Yes, you can go with LoanSafe and learn how to do it yourself, buy a loan modification kit for $200 or hire a company/attorney to do it for $1,000 to $2,000.
They claim the professionals get you a better rate in the 3's or low 4% range than if you were to do it yourself. But that is debatable.
It is your choice and it really depends on your current loan servicer as to the leverage you have or don't have. I do think some companies promise you the world but overall they do get you a modification, maybe not principal reduction in all cases.
http://www.loansafe.org/forum
I'm trying to refinance my condo. Should I check with lendingtree.com or are there any other options?
I just would like to compare rates from different lenders. What would you suggest is the best mortgage out there?
I'd suggest just calling a few brokers in your area, tell them your credit score and ask for a good faith estimate. THen compare the ones you receive and pick the best one and try to negotiate a better deal. lending tree is ok, but without a good faith estimate the lender you pick from there could easily change their fees or rates by the time they start working on your loan and you'd have to start again. I've seen it happen numerous times where someone tried to get a loan they saw off there and then upon contacting the mortgage company or even right before closing learned that the fees and rate is different.
Is negative amortization a good idea to refinance my house?
Here's the scenario: I've been offered by my lender into a 1% neg amortization with a 50K cash out. I do have enough equity to apply for this loan. My monthly payment will be reduced into half compared to my current rate. But the downside of neg am is at the end of every year, they will add an additional $3500 to my principal with a 3 year pre-payment penalty, in which I thought it's not that much. I was thinking to buy another investment property using this 50K cash out and get another negative amortization loan on this 2nd property and I can rent it out. I thought this will be a good offer since I can get a cash flow through this rental. The reason I'm refinancing because my current rate was a 1 year arm and it's going to increase to 7.5% soon.
In finance, negative amortization, also known as NegAm, is an amortization method in which the borrower pays back less than the full amount of interest owed to the lender each month. The shorted amount is then added to the total amount owed to the lender. Such a practice would have to be agreed upon before shorting the payment so as to avoid default on payment. Also known as deferred interest or Graduated Payment Mortgage (GPM).
All NegAM home loans eventually require full repayment of principal and interest according to the original term of the mortgage and note signed by the borrower. Most loans only allow NegAM to happen for no more than 5 years, and have terms to "Recast" (see below) the payment to a fully amortizing schedule if the borrower allows the principal balance to rise to a pre-specified amount.
This loan is written often in high cost areas, because the monthly mortgage payments will be lower than any other type of financing instrument.
Negative amortization loans can be high risk loans for inexperienced investors. These loans tend to be safer in a falling rate market and riskier in a rising rate market.
Start rates on negative amortization or minimum payment option loans can be as low as 1%. This is the payment rate, not the actual interest rate. The payment rate is used to calculate the minimum payment. Other minimum payment options include 1.95% or more.
NegAM loans today are mostly straight Adjustable Rate Mortgages (ARMs), meaning that they are fixed for a certain period and adjust every time that period has elapsed; e.g., One month fixed, adjusting every month. The NegAm loan, like all Adjustable Rate Mortgages, is tied to a specific financial index which is used to determine the interest rate based on the current index and the margin (the markup the lender charges). Most NegAm loans today are tied to the Monthly Treasury Average, in keeping with the monthly adjustments of this loan. There are also Hybrid ARM loans in which there is a period of fixed payments for months or years, followed by an increased change cycle, such as six months fixed, then monthly adjustable.
The Graduated Payment Mortgage is a "fixed rate" NegAm loan, but since the payment increases over time, it has aspects of the ARM loan until amortizing payments are required.
The most notable differences between the Traditional Payment Option Arm and the Hybrid Payment Option Arm are in the start rate also known as the "minimum payment" rate. On a Tradiitional Payment Option Arm the minimum payment is based on a principal and interest calculation of 1%-2.5% on average.
The start rate on a Hybrid Payment Option Arm are higher yet still extremely competitive payment wise.
On a Hybrid Payment Option Arm the minimum payment is derived using the "interest only" calculation of the start rate. The start rate on the Hybrid Payment Option arm typically is calculated by taking the Fully Indexed Rate (Actual Note Rate) then subtracting 3% which will give you that start rate.
Example: 7.5% fully indexed rate - 3% = 4.5% (4.5% would be the start rate on a Hybrid Pay Option Arm)
This guideline can vary between lenders.
Alias's the Payment Option Arm loans are known by:
* Negative Amortizing Loan (Neg Am)
* Pick - A - Pay
* Deferred Interest Option Loan (This is the way this loan was introduced to the mortgage industry when first created)
Could you tell me what my interest rate is with these numbers?
this is from my last statement from my auto loan company...not too good with numbers and im trying to figure out what my current percentage is.....my loan payment is 305.28.....and it states: 217.45 principal + 87.83 interest.....i have made 7 payments out of a total of 72 so far....i am thinking about refinancing and im wondering what my current rate is so i can compare.
youre interest rate is 19.3% it is a high interest rate ,anything lower then 10.00% is good for you
Mortgage Rates--Refinance?
I live in Virginia and recently purchased a home. This is my second mortgage. I had no idea how much mortgage rates had increased. I am paying 6.75 as compared to 6.125. Are mortgage rates expected to climb or is it possible for me to refinance and get back to less than 6.5? My credit is still the same and both mortgages were 30 years fixed interest.
It is hard to say the rates have risen siginficantly lately, if they follow the same trend as last year the rates will go down in the beginning fall. This is exactly what happened last year the rates went up at the beginning of the summer. You may want to look at getting a good deal now and not refinance later on. If you are going to be in the house for over 5 years then you may want to look at buying the rate down it may be cheaper then actually refinancing in a year for .25% where you will not save any money because of the cost to refinance.
For the record, your current rate is too high. I believe your loan officer made a lot of $$$$ on your deal. On May 1st the 30-yr fixed was at 5.875% - again for loans of $100K and more. That said, refinancing now would be foolish. Wait for rates to drop or refi into a shorter term (20 or 15 year fixed).
They are cutting the life of repayable interest DRASTICALLY and getting a fixed rate. If you have equity in your home, maybe you want to entertain this option. Talk to a mortgage broker or banker.
I just bought down a few of my clients fixed rates under 6% fixed for 30 years.
Good luck!
Just try:
http://www.proloanz.com/Mortgage_Refinancing.htm
http://www.mortgagerefinancingatlowrate.com/Mortgage-Refinancing.asp
http://www.topamericanmortgage.com/debt-consolidation-loans.asp
http://www.apply4less.com/mortgage_refinance.htm
these website links will definetly help you in solving your mortgage refinancing problems.
Hi whats the best website to find out and learn about refinancing a house?
i have to refinance my house in june i would like to find out how mortgages work, what types. ect. i want to investigate lenders and compare all i can to get a good rate they have so many it is real important they have alot off brokers out there even banks. that when you go to closing the numbers or percent changes and with a house. (my only thing to leave my children) i want to find out all property value ups and downs ect. i,m getting real scared im going to mess up help please joni
That's a tall order. If you like, go to http://www.newprimehomeloans.com and give them a call. You can get a free analysis from them about all different types of loans. Ask for Jon Griffin. He helped me out a lot, and he will walk you through the whole process and tell you what is done, how it is done, what requirements are, AS WELL AS give you information on how to protect yourself from predatory lenders.
Look into a 30 year fix or 30 year fix interest only loan. Great security in both. Good luck
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 /?
How do I know that I got the best deal in my home mortgagerefinancing?
On June 4th I signed the paperwork for my home refinancing for the amount of $415000 at 6% fixed interest rate for 15 years.My credit rating is excellent, home appraisal and my income are excellent.I paid $2000 (title,appraisal,doc.fee..)for closing costs with 0% points..Is my rate deal good? IAre the closing costs reasonable? Is there any database on mortgage loan transactions to analyze and compare?
There is no database on closing costs I know of, best thing is to call other mortgage companies and ask how much theirs would be. For PA it looks like you got a good deal, depending on the title insurance and riders.
Would it be better to refinance every U.S. Citizen's Primary mortgage than give >$1tril to financial giants?
The current ~$700Billion plan looks a lot like Government is bailing out its buddies in BIG BUSINESS, and nothing will ever trickle down to the common U.S. Citizen. To turn that around use the leftover ~$300Billion Bush Administration bail-out plus President Elect Obama's $825Billion to pay the Mortgage industry (the cost of processing the loan) to alter an process every U.S. Citizens primary residence mortgage decreasing it by ~20% and refinance that amount at the current Fed bank-to-bank trading rate. Banks are writing down all these mortgages/loans anyway because of decreasing values. Yes, these institution have some medicine to take, but there are hard times ahead, and the majority (U.S. Citizens) need to feel support.
The majority of U.S. Citizens upside-down in their mortgages are more likely to see value in making payments rather than just giving their house keys to the bank and vacating, which will wash-out home values, equity, and personal wealth in our Nation with catastrophic effect. This will allow every U.S. Citizen, in our Nations consumer economy, a long-term (30-year mortgage term!) solution to add breathing room in the upcoming years of this global economic downturn. The beneficiaries are the U.S. Citizen that then trickles up to U.S. Retailers, U.S. Banks, and Wall-Street.
This provides relief to ALL U.S. Citizens, even Us that made conservative decisions knowing what we could afford, while also restructuring recent mortgages of those duped by the greedy practices of this decade. The majority of mortgages will still get paid, banks can maintain cash flow, homeowner mortgage vs. home value evens, right-sides up, or equity is built. If the U.S. Citizen losses their house it's a good bet they will walk away from Credit Card debt and any other outstanding loans. Then what will happen to the Financial industry and all the $400billion in tax-payer money that's already been handed to them to do with as they please?
This isn't about the American public seeing immediate benefit (i.e. one-time stimulus check), but as a longer term (~30 year mortgage term!) solution to stimulating our consumer (~62%!) economy. It also shows that Government is supporting real people, not just big business. I think if You do the math You will find that the cost of writing these loans, which is consumed by the leftover ~$300Billion Bush Administration bail-out plus President Elect Obama's $825B stimulus package, doesn't compare to the cost to Financial institutions, and the U.S. Tax-payer swallowing ~10% (or greater) National home foreclosures. What will Financial institutions do with all these assumed homes and property that are now worth 30-50% less than their original cost to them? Will Government, I mean the U.S. Tax-Payer, buy them? Restoring consumer confidence is what the focus is here. How does getting 9 financial institutions to start loaning money to ultra qualified people that don't need a loan, compare to ~130,000,000 homeowners across 50 states having a few hundred extra dollars a month, for the next 30 years, to do with how they see fit?
Excellent response Jeff T, but if the U.S. is trying to support homeonwnership, which is a massive staple of our 62% consumer economy, when the next avalanche of foreclosures hit what will happen to personal wealth in all classes in the U.S. Remember the original question dealt with if the Government couldn't do nothing, would it have been better to give the money back to the people in the form of refinanced 20% decreased mortgages very low interest rates so 10's of millions of families would opt to keep paying their mortgages (and other debta) rather than just walk away to let the remaining tax paying nation to bail them out. And then what about after the next wave, then the next? As foreclosed homes flood the market and the nations wealth is swept away, and more an more credit is lost, and more and more banks board their doors, who will be left to bail them out? How can this chain of events be stopped? We must bring more minds to the table to discuss this!
compare refinance rate - News
Lending rates for infrastructure projects may come down - Hindu Business Line
Fresh NewsLending rates for infrastructure projects may come down Bankers say that lending rates for infrastructure projects could come down, subject to the refinance rate being competitive and funds being available for a Lower interest rates to boosts exports, India afloat with 7.1 Interim Budget’09 Oust IT Industry Budget: The fiscal policy overview -
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MonitorBankRates.com Launches Comparison Shopping for Auto Loans ... - PR Web (press release) MonitorBankRates.com Launches Comparison Shopping for Auto Loans MonitorBankRates.com releases new comparison shopping feature that allows consumers to search for the best auto loan rates, mortgage rates and obtain the |
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Wake Up Money: Should You Refinance? - MyFox Houston Wake Up Money: Should You Refinance? She says homeowners need to analyze the type of loan they have now, compare the interest rates, and understand closing costs are always part of the equation |
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As mortgage loan costs fall, refinancing perks up - Tampa Tribune As mortgage loan costs fall, refinancing perks up With interest rates at their lowest in years, Ken and Christine Kline saw an opportunity to refinance their Palm Harbor home. "The rates were a little bit |
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Bailed-Out Banks Charge Highest Fees in FDIC Sales The agency, which established the program to help banks refinance debt maturing this year, said it is considering extending the guarantee’s duration. |