Is It A Good Time For You To Refinance?
If you’re like a lot of people nowadays, you may not be sure if it’s a good time to refinance. Here are five signs to look for that may indicate that refinancing is right for you.
You have an Adjustable Rate Mortgage – As many people have discovered, a low “teaser” rate is only asking for trouble later on. If you have an adjustable rate mortgage that is getting ready to be increase, refinancing to a fixed rate mortgage will probably give you a better financial picture in the short term as well as in the long term. Even if your mortgage payments don’t go down initially, your mortgage payments will be stable over the life of the loan, and you will be able to budget your money more effectively.
You Have Equity in Your Home – If you are among the people who didn’t buy into the real estate market when everything was overpriced, you’re probably sitting on a little bit of equity right now. You have probably been watching what people have been going through on the news, and maybe even among your friends and family. You know how careful you have to be when pulling equity out of your home. If you are selective with how much money you take out of your equity and use it wisely, you can avoid having regrets down the road.
You Have a High Interest Rate on Your Current Fixed Rate Mortgage – Right now, mortgage interest rates are low. If your fixed rate mortgage is two percentage points or more higher than current interest rates, refinancing in order to get the lower interest rate can make a huge difference in your monthly mortgage payment.
You Make a Decision to Stop Being a Slave to Your Credit Cards – If you are like a lot of people who have gotten stuck in the credit card trap, now that the cards are all maxed out, you can see how it works. The easy money of a credit card has turned into the payments stretching out for years. The payments you’re paying today are for things that you probably don’t even remember, and sometimes don’t even own anymore. By refinancing, you can pay off your credit card debt and finally be done with it.
Your Child is Going Off to College – After a lot of hard work and a successful high school career, all that stands between your child and a college education is the money. Even with scholarships and grants, most college students need additional money for living expenses and transportation. By refinancing and using that money to help your child with college expenses, you can allow your child to focus on his studies rather than trying to carry a full course load and hold down a job at the same time. If you have built up equity in your home over the years, refinancing in order to help pay for your child’s college education can end up being one of the best investments you ever make.
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Part 6 of 7: Making home affordable program, Refinance, Loan Modification, Reverse mortgage (HECM), “Refinance to an Affordable Loan (REAL)” program, HERO Program and Beware of foreclosure rescue scams. Presentation sponsored by: Pike County Commissioners/Human Development, Delaware Valley School District, NorthPenn Legal Services, Neighborhood Housing Service of Lackawanna County, and the United Way of Pike County. Visit www.NEPAHomeHelp.org for more information. … foreclosures pike county …
Help answer the question about refinance school loan
401k contribution vs. pay off credit card debts AND take out school loans to pay off credit cards – can I?So i can't decide if i should stop my 401k contributions and pay off my high interest credit cards. Here's my situation. My company matches dollar for dollar up to 5.5%, which is great! However, i have >$10K in credit card debt w/ APR of about 17%….
Let me add one more wrinkle. I plan on leaving the US next August to attend grad school in London. This will no doubt require student loans… given this info what should i do? Should i stop 401k and attack credit cards? I've been told i can take a large student loan out for more than i need and use that money to pay off the excessive debt (essentially "refinancing" the debt at a lower rate)? Can I do this?
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You may be considering getting a home refinance right now. Well it’s not something you go into uninformed. There are mortgage brokers out there that will happily take you money with no benefit to you. Get informed here: http://www.refinancingright.com
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July 20th, 2009 at 1:04 pm
July 20th, 2009 at 1:28 pm
July 21st, 2009 at 1:19 pm
it all depends, there is no way anyone answering this question can give you the correct advise as no one knows your entire situation, and you shouldnt put your entire situation in this forum. the issue with seconds is if it's a line of credit, it shows up as revolving and it is accruing interest daily. There are benefits to a second, but not at 8 or 9%. If you have equity in the home I would speak with a professional that has access to FHA as they will refi to a higher ltv than most banks will. I would also advise having a plan for the home, are you looking to use it to retire off of, or for college education, etc. Think about term of a loan, can you afford an extra couple hundred and pay this off quicker and save tens of thousands in the long run. Good luck and feel free to ask questions
July 22nd, 2009 at 4:27 am
Rates change every day, so you'll have to keep an eye out. I got a 4.5% rate about a year ago, and only occasionally see them dipping that low now. If you wait for a good deal, I'm sure you'll find a good rate. Either way, getting out from under a 10% loan is a great idea.
Refinancing is kind of expensive (1% fee, plus other fees as well), but the difference between a 10% interest loan and a 5-6% interest loan is worth it!
July 22nd, 2009 at 9:15 am
Stay where you are ! That is a great rate! Unless you want to consolidate debt or you are in an ARM, don't refinance.
July 22nd, 2009 at 6:39 pm
Given the information you have provided, the finance 101 answer is, no, you should not refinance.
If you aren't sure than you can and will live there for at least 7 years with a plan to live there 10 or more, the costs to refinance plus the added 3 years to be free and clear nix the idea.
July 22nd, 2009 at 7:33 pm
Depending on where you live you may not be able to refinance due to the decrease in home values. Also, it is a lot harder to get 100% financing these days. That being said, if your home has increased enough in value and you have good credit, it is very possible to obtain a loan with a 5.75%, or possibly even lower, interest rate.
July 23rd, 2009 at 3:23 pm
It is nearly impossible to refi in this market. I have stellar credit, low debt to income ratio, making good money, and I've been involved in my loan with BOA for over 3 months. It is unbelievable.