77% of refinancing homeowners reduce or maintain mortgage amount Housing Wire
Freddie Mac says 77% of homeowners who refinanced first-lien mortgages in the second quarter either reduced principal loan amounts or maintained the same loan value while benefiting from historically low interest rates.
Of those who refinanced, 51% ended up with the same loan amount, while 26% lowered their principal balance in 2Q, according to second-quarter refinance analysis from Freddie Mac.
Meanwhile, the median interest rate reduction for a 30-year, fixed-rate mortgage was about one percentage point, or an interest rate savings of 18%. Those same borrowers will save about $1,550 in interest payments on a $200,000 loan during the first year of the refinanced loan's life, Freddie said.
“Savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 50 years to lock in interest savings," said Frank Nothaft, Freddie's vice president and chief economist.
"Over the first half of 2011, fixed-rate mortgage rates hit a low during June, with the 30-year product averaging 4.50 percent and 15-year averaging 3.68 percent over the last four weeks of June," Freddie said in its Primary Mortgage Market Survey.
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Where can I find the best HELOC rates to refinance my second mortgage?
My current rate is near 10%, and I'd like to find a HELOC rate of prime minus 1%, no fees, and accepting a LTV of 90%
I agree, www.bankrate.com has rates from many different lenders, and links to specific places to obtain loans, like lowermybills.com. the HELOC rates are around 7%, but I'm not sure if they will allow an LTV of 90%.
http://www.bankrate.com/brm/rate/brm_loansearch.asp
Out of all of the banks that I have worked with, I find that CHASE, WELLS FARGO, and US BANK offer great rates and very low hassle.
So like I say, what you are going to do with it, should play a factor in selecting the propor HELOC.
Pen Fed CU regularly has extremely good rates on both HELOCs and regular home equity loans.
https://www.penfed.org/index.asp
You won't get such terms as prime minus 1% on a 2nd mtg either, have you thought about what's the avg. rate you are paying for BOTH your 1st and 2nd mtg.? Consider refinancing and consolidating both mtgs into one.
Can we refinance our second mortgage?
We bought a house last year with two mortgages. Because we only put down 10% for the loan, having the second mortgage of 10% of the loan, this way we don't have to pay for the insurance. This second mortgage has an interest rate of 9.75% while our other mortgage is at 6%. We want to refinance this second mortgage to a lower rate. Can we do that? Is there anything that preventing us from refinance just this second mortgage? There is no early payment (repayment) penalty on both of our mortgages. Thank you very much for your help.
most likely you wont be able to just do the second you will have to do the first as well combining them together. You should have done better research though. If you have good credit and a good history of paying on time then you could have been elidgable for programs that have no PMI up to 90%. My company has these if you are interested email me. cheeba0228@yahoo.com
Log into:http://www.4refinancemortgage.com/yourmortgagebasics/second_mortgage.html
http://www.4refinancemortgage.com/index.html and learn
all the basis and insight into mortgage refinancing.
http://www.help-with-your-rent-mortgage.org
Hope this helps!
1.How are property prices holding up in your area?
2.How strong is your credit profile now?
3.Are you willing and able to verify your income and/or assets?
Something that you need to be wary of are the modifications recently done to the Loan Level Pricing Adjustments made by Fannie Mae and Freedie Mac. Basically these are premiums that lenders are forced to assess onto interest rates depending on how risky a loan is. For instance, the rate of a 95% loan on an investment property will be significantly higher than the rate of an 80% loan on your own home because of the pricing adjustments assessed on rates on investment properties and loans above 80% due to the greater risk they represent to lenders.
Even more imperative is the need to make a decision that is inline with your long term financial plans. This means that any new financing you obtain should take into account your children’s 529 college savings plan (if applicable), any major expenses you’re contemplating in the immediate future (a new car, the purchase of a second home, the birth of a child, etc., etc.), your present investment strategy, your insurance needs and obligations or other important financial plans that can be complicated or even derailed if you make the wrong decision about your mortgage financing now.
If you’re looking for a comprehensive solution to your financing needs feel free to contact me at RLFunding@AOL.com. We are licensed in all 50 states and specialize in TAX FREE mortgages in the state of New York.
Best Regards,
J. Polanco
Financing Advisor
Robbins and Lloyd Mortgage Corp.
347 5th Avenue, Suite 1506
New York, New York 10016
www.RobbinsLloyd.com
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.
Can I refinance a second mortgage with another bank to get a lower rate?
You can always shop around as much as you want; you are a consumer and you have the right to do business with whomever you want! Credit Unions and commercial banks are always looking for good people to lend money to. There are web-based companies that shop for you then get a commission if you do business with the firms they recommend. You have many options! Keep in mind that credit is very tight right now and without strong credit scores you'll be offered higher rates on loans and in some cases, with low scores, no offers at all.
Then yu wood hafta konvins banker...kan yu?
refinans requie kloes kosts. Banker mae insist on get hous revalued.
Which bank offers the lowest interest rate for mortgage refinance in California?
I need to refinance my second/investment home in Milpitas California and I'm looking for a mortgage broker or a bank that offers lowest interest rate based on 700 or more fico score. Preferably a loan program with minimum monthly payment is preferred.
find the best rate you can find and then add 1% (1 point is what is the standard to add when dealing with an investment home)
A mortgage broker is supposed to find you the best rate from all the companies she works with. If you don't have a good one shop around.
Here is a website to find the average and best rates:
http://www.bankrate.com/brm/default.asp
Can a first mortgage be refinanced to a lower rate if there is also an existing second mortgage?
If a homeowner has a first mortgage and a second mortgage, and would like to refinance the first mortgage at different terms, can this be accomplished - does the existing second mortgage put a monkey-wrench in refinancing the first?
if the 2nd mortgage holder agrees to subordinate it can be done. heres the situation when u refi, the 2nd mortgage automatically becomes the first, therefore ur new mortgage would be in 2nd lein position, which would be at a higher rate than you are figuring on as no one is going to be in 2nd place without a higher rate, therefore, you must approach the current 2nd holder tell them what u r planning and get them to provide in writing the fact that they will subordinate to the new first mortgage. they can say no, depending on how much equity u r planning on taking out. understand if u default the first mortgage holder get paid first, and the second gets whatever is left, if there isnt enough the 2nd holder takes a risk of not getting all his money back. therefore he may allow you to refi the balance, but not take anymore equity out to say consolidate, use for vacation, or just mad cash, however it doesnt hurt to ask, i have done dozens of loans where the 2nd did subordinate, and only a few have refused to cooperate. gl
Is refinance or second mortgage a better option (specifics in details)?
We bought our house in 2004 for $54K and have a 30 year fixed mortgage at 5.25%. Our balance on our mortgage is $47,500 Our house has appreciated and is now worth about $100K. We have student loans totaling $16K and credit card debt of about $10K. No car loans. We're expecting a tax return of about $4,500. We'd also like to add on another room to our house and have a quote for $7,500. We'd like to refinance for about $80-$85K. With interest rates getting back down to the mid to low 5% is it a better deal to refinance or get a second mortgage?
Thanks in advance.
My husband and I both have excellent credit.
Refi, w/o a doubt. Second mortgages tie you option-wise for down the road. You're in good shape here.
I'd refinance, pay off the debt put the room addition on, and you're sitting pretty.
Plus, based on having excellent credit, stress excellent credit, you're rate will close to the same as it currently is.
Nice job!
Get in touch with me if you want to talk about specific rates.
I would wait until the summer to refinance though. We won't see these rate cuts for at least that long. If you can hold out I would until then.
However, here's another thought for you. Why don't you immediately discontinue usage of your credit cards and aggressively pay down that debt instead of putting another room onto your house and sucking equity out of your house...effectively using your house as an ATM?
I'm not trying to be a jerk, but if you are actually looking for the best decision money wise, then pay down that credit card debt. When you have 16k in student loan debt and another 10k in credit card debt, it really is not the time to suck equity from your home to add an addition.
Paying off your credit cards has the advantge of saving interest costs which I assume you itemize and deduct. But it reduces future credit because you no longer have credit.
Your student loans are similarly two sided.
What is your intent behind your room add-on. In this real estate market it will not likely increase market value. If it is not for a kitchen upgrade or bathroom, it will not add significant value in any case.
What is the rental value for your home and what is your rental market strength. In this market, you may be better off by renting your home and buying another with little or nothing down, including a foreclosure, whose bank might even provide you money at closing to make repairs or improvements simply to get the property off the books.
ALL DEPENDS UPON THE STABILITY OF CURRENT INCOME. Few jobs are forever, including government careers.
You are likely at a point of your lives where you can take a little risk. Present market conditions encourage that provided there existing no income loss risks.
Even with the recent change of Fed Fund rate, a 5.25 30 yr loan will be hard to match. I would keep it and look for a second T.D. for the amount of money needed. The blended costs will minimize loan and transaction costs.
Cash-Out Refinance or Second Mortgage? If Second Mortgage...home equity loan or HELOC?
My 2-family home is valued at 375K. I have 12 years and 88K on it left. My current loan is at a 4.9 interest rate. I need to borrow 220K and need it in lump sum. With todays rates being around 6.5 for a 30 year, I know refinancing is out of the question. Which would be better for me, a HEL or a HELOC? What would my payments be for 30 years, 15 years? Thanks
look the best interest rate you will get is a fixed rate at 30 year if you can not afford this rate, you will get crushed with a home equity or other second note, they are variable and rates are not coming down but going up, after the teaser rate period is over you are going to get whacked almost double the payment, so when looking at a home equity read the fine print, see how long the teaser rate last and figure what ever your payment is double it once the teaser period is over
Bank of America won't refinance our house although we have a first and second mortgage with them now.?
Our property is a unique home, made of steel with a metal roof, finished out normally inside with 2x4 walls, etc on 10 acres, but because there are no homes similar in the area that have sold in the last 6 months, they won't refinance. It appraised for $200,000. We're only asking for $116,000? What has changed ? They have our 1st and 2nd now. They say it has nothing to do with our credit rating, it's fine.
Welcome to recession! Sorry to say, but real estate has practically kicked the bucket, and barely anyone can re-finance anymore.
Welcome to the new America!
I have an adjustable rate (currently 9.25%) second mortgage, is now the time to refinance?
You won't know until you do the research but with that adjustable at that rate, I'd sure do that research now.
Fixed rates, depending on your credit score, are running 6-6.125%. That could save you a bundle.
I'd be happy to help you find out what your options are. Feel free to email me.