Mr Mortgage – Home Equity Delinquencies Surge
Ask yourself these questions before you refinance your home equity loan or line of credit:
1. How Much Will it Cost to Refinance? – Figure the costs of refinancing and the increase or decrease in interest rate over the course of the loan. There are many refinance calculators available online that you can use for free to help you calculate whether or not the cost is worth it.
2. Are You Refinancing For More Favorable Loan Terms? – Sometimes people refinance for better loan terms, like a fixed rate, a shorter term, like from 30 to 15 years to payoff. Sometimes, if refinancing doesn’t necessarily save you much money, but you are moving to better loan terms, it can be worth doing the refinance anyway.
3. Are you including the loans closing costs in the loan balance? – If so, realize that not only are you paying those closing costs, but you are also paying the interest on those closing costs over time. Make sure you add those numbers into your calculations when figuring whether or not it’s worth refinancing. Add the interest costs and payments for the rest of your current home equity term and compare them to the interest costs of the proposed refinance loan. This will help you determine if there is a worthwhile savings.
4. Will you need your home equity line of credit in the future? – There are definitely benefits to having a home equity line of credit available to you in the future. If you don’t have much in savings, and have money available in your home equity line of credit, you may want to consider keeping it. If you refinance it, then if you run on hard times and need to borrow money from your home’s equity, you will have to take out a new home equity line of credit. You might not have the option of taking out a new home equity line of credit when you need one.
Watch the video related to home equity loan refinance
Check out my new blog… mrmortgage.ml-implode.com S&P, BofA and Fitch all concur that the ‘Home Equity Implosion’ is knocking on, or kicking down rather, the front door.
Help answer the question about home equity loan refinance
I need to get money out of my home – refinance or home equity loan?I need 20k by next month for medical expenses. My house is worth about 235k and my loan on it is 125k. My interest rate is 5.875%. Should I refinance at 5% and get 20k out, get a home equity loan or home equity line of credit? I plan on staying in this home for about 5-8 more years. Not sure which way is the best/smartest.
Cheers
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Article Source: ArticlesBase.com – Refinancing Your Home Equity Loan Or Refinancing Your Home Equity Line Of Credit
Tags: Affordable-Quicken, home, loan, loans, Making, modification, refinance
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September 18th, 2009 at 2:49 pm
It all depends on the difference in the value of the place and the amount owed on the loan – that is what's considered your equity. Many banks will only loan up to about 80% of the equity, but a few go higher. For example, lets say you owe $50,000, but the place is worth $60,000, then you have $10,000 in equity. Take 80% of that and you have about $8,000 you could loan against.
I found a great article about it on
http://www.payoffmyloansnow.com
September 18th, 2009 at 3:00 pm
If you have a great rate on the first then leave it. It also depends on the size of your HEloan. Ask your broker or bank to compare the two and see what's in your best interest. A HELOC is very easy depending on your credit. If the credit is good then you should expect a no closing cost loan at about 5%
You can email with any other questions
brandonbroker@yahoo.com
September 18th, 2009 at 3:49 pm
because the loan was secured by real estate it is technically a mortgage. If you do refinance you will be looking at a either a new conventional mortgage or a new home equity loan.
September 18th, 2009 at 2:26 pm
Hi Jim – leverage means many things to the banks as you have learned but primarily the amount of debt used to try and achieve returns.
September 18th, 2009 at 3:12 pm
We Can Help You Save Your Home From Foreclosure Go To homesaver(DOT)tk
September 19th, 2009 at 2:35 am
Hi there,
When it comes to refinancing a home equity loan you reall have to shop around to make sure you get the best deal. You your deciding on your option you make to make sure you get the following
*Competive Rate
*Lower you repayments
* Great Customer Service
You must not forget the last point, remember your the customer and the customer is always right !!!!
Give these guys a go, I think you will be pleasantly supprised
http://tinyurl.com/yqnx37
September 19th, 2009 at 1:52 pm
“percent?” or percentage points? I can’t make oyt from the monologue. Please explain here (if you have time)
September 20th, 2009 at 2:24 am
hopefully hot elvis and not 1977 elvis.
September 20th, 2009 at 10:57 am
Forget the economy and interest rates in general. The question is, what's best for you? Compare the two scenarios, overall costs of a refi verses the home improvement loan. If you are lowering your first mortgage rate at the same time you take cash out, usually that's the winner. I'd have to have details to make a call but it's your details I need, not the economy or who won the super bowl. If you need more info, send me an email.
September 20th, 2009 at 4:01 am
seems like forever.
September 20th, 2009 at 6:15 pm
How long can these banks keep this bad paper before they are forced by necessity to finally openly declare their losses?
September 20th, 2009 at 8:08 pm
Went to Costco today, NO RICE. LOW ON WHEAT, SALT, SUGAR, and Veg. Oil.
This is real time.
September 21st, 2009 at 12:46 am
FYI, I heard Fremont went to 4% on nego, my Mom heard on news Wells went to 4% on nego, but heard today someone got their 7.75 went to 7%, going to suggest he nego better. I don’t think it’s fair if your scores have always been low to go to 4% but hey if you can get it go for it! My Mom who has perfect credit & 5.75 from Nov ‘07 refi wants 4% now too. lol
September 21st, 2009 at 9:41 am
In almost all cases you can roll them both into one loan, applicable regulations for apply as per the state you live in and seasoning requirements may also apply if the second was done less than 12 months. Check this out with your lender before you pay for anything. I did that with my home in Florida and there was no problems with it. Hope this helps
September 21st, 2009 at 10:31 pm
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September 21st, 2009 at 11:36 pm
If your mortgage interest is still sufficiently high that you're reporting it on Schedule A then a HELOC would probably be the right answer. However, the first thing to do is work out repayment terms with the doctor and hospital and see what your insurance will cover (a $200K+ house suggests you likely have a job that provides insurance).
September 21st, 2009 at 8:23 pm
Mr. Mortgage,
Can you give me a definition of leverage? What is it? How is it used/created? What are the dangers and why would someone desire it?