Mr Mortgage- Non-Mainstream Mar Existing Home Sales Rpt
Refinancing an existing home equity line of credit can save you money on interest charges. It will also help you establish a payment plan to help you get out of debt sooner. Another benefit to refinancing is that you can get better terms, avoiding extra fees associated with a line of credit.
Get Better Rates And Terms
Getting better rates and terms on your home equity line of credit is one of the chief benefits of refinancing. With a line of credit, you have a couple of refinancing options. You can decide to refinance both your mortgage and line of credit. Overall this will provide you with a low rate, but don?t trade in your low rate first mortgage for a more expensive refinance home loan.
The other option is to just refinance your line of credit with a second mortgage. A second mortgage can offer lower rates, either fixed or adjustable.
Establish A Payment Plan
Refinancing a line of credit will help you establish a payment plan. Before you apply for refinancing, calculate how much you can afford in a monthly payment. This payment amount will give you an idea of what terms to choose.
Just remember that your interest charges will be smaller than what you are currently paying. Also, the shorter the loan, typically the lower the rates are.
Find Better Terms
Tired of paying fees for such things as having a below minimum balance with your line of credit? Then refinance for better terms. Most refi mortgages don?t have annual fees. While you will have to pay closing costs to process the loan, you don?t have to worry about keeping a balance or paying the account off early.
However, it does pay to check. So before you sign for your refi, ask about any fees included. Late fees should be expected. Early payment fees can usually be deleted from the contract by paying a fee upfront.
While refinancing can save you money, it is important to shop around for the right lender. Ask about their rates and terms. Request loan quotes and compare to other lenders. Time spent researching financing options is an investment that will pay off for years to come.
Watch the video related to refinance home equity mortgage
Check out my new blog… mrmortgage.ml-implode.com Mr Mortgage dives into the March Existing Home Sales report with information not being reported…as usual.
Help answer the question about refinance home equity mortgage
Mortgage Refinance or Home Equity?I have some home repairs in the near future and am wondering whether it is best to go with home equity line of credit or just refinance on my mortgage. The home is a recent purchase so the mortgage rate would probably not be any lower. I'm leaning toward the line of credit because I also work for a company that is going thru some restructuring and figure having a line of credit available is some security if I find myself out of work. What is your vote… line of credit or refinance?
About Author
View our recommended Refinance Home Equity Loan http://www.abcloanguide.com/refinancehomeequityloan.shtml lenders.
Tags: alternative, assistance, attorney, avoid, bailout, bankruptcy, crisis, estate, expert, Foreclosure, fraud, Help, home, info, information, loan, loss, meltdown, mess, mitigation, mod, modification, mortgage, news, prevention, process, real, Sale, scam, service, Short, specialist, survive
Related Articles:
- Mr Mortgage – Home Equity Delinquencies Surge
- Refinance Home Equity Loans Down Under
- Compare Mortgage Rates For Refinancing – Choosing The Best Refinance Mortgage Option
- Mortgage Payoff New Special payoff home in approx. 5 to 9 Years
- Franklin First Financial Special Report
September 13th, 2009 at 3:32 pm
Well if you are affording the curent payments on your loans, the new payments on the changed situation you descibe will probably be a little higher (since you will have about 35k new debt and since you may not be able to get the 5.6% rate that your main loan has) but not to much higher.
Also, so long as you have no other major costs (you said these were your only debts so that sounds like the case), it sounds like you have enough income to afford the new loans. The bank probably won't lend you more than 80% of the homes value without other costs (PMI and fees) so 517K borrowed on a 650K house is about all you would want to borrow (very close to 80%).
I'd advise going to your current bank (the one with the 300K mortgage) and telling them the whole situation and asking them if they will write the loans you describe. They will tell you if they can do it, and also will give you a "Good Faith Estimate" of what the approximate costs to do this would be. You may want to also go to a few other lenders to compare costs.
September 13th, 2009 at 3:39 pm
If you could get 6% on a cash out refinance without PMI and minimal costs, the new first mortgage would give you a lower average cost of funds and monthly payments.
On the other hand, if you have to pay a couple thousand in closing costs on a new first, the low closing cost on the 2nd might be better. It may really come down to how much additional borrowing you would be doing at the higher rate vs. what the difference in closing costs is.
To do a proper analysis, I would need more information. I would suggest calling a couple banks and having them put together some good faith estimates. The analysis is not difficult so any competent loan officer should be able to help you with it. Watch out for pressure to refinance the first. If you are only borrowing a few thousand on the 2nd (home equity), you are probably going to be better off going that route, the the LO may try to steer you into a new first as they can't make any money on a little loan.
Good luck.
September 13th, 2009 at 2:23 pm
We Can Help You Save Your Home From Foreclosure Go To homesaver(DOT)tk
September 13th, 2009 at 2:51 pm
thehelpfund.blogspot
September 13th, 2009 at 4:57 pm
the banks are all doing something different but from what I am hearing they are releasing a very small percentatge each month – much less than they are taking back. For example in the state of CA last month there weer 27k new and existing home sold. 38.4% were REO. BUT, there were 43k notices od default of which 80% will go to foreclosure within 3-5months AND 28k foreclosure auction notices of which 90% go to auction and 97.7% go back to the bank. The REO on adds up to about a little over 10k.
September 13th, 2009 at 5:38 pm
I will do what I can. You have the best approach of anyone I have seen. You understand the situation in a comprehensive manner, put the numbers to it in a clean, easy to understand way, and you have a good voice to back you up. You are going somewhere!
September 14th, 2009 at 2:16 pm
Suggest you also do some calculations on the effect of the refinance. If you took the money that you'll probably have to pay in fees and put that directly against the mortgage you may end up with a net savings in interest. With only 8 years to go (didn't specify the original term) the amount of interest you are paying on the first is probably fairly low.
September 14th, 2009 at 6:52 am
hook me up Harley!
September 14th, 2009 at 3:37 pm
How much are you borrowing?
If you exceed $100k, home equity loan interest would no longer be deductible. Then refinance might be a better choice. Otherwise, I would agree with the first answer. Go with the better interest rate.
Best wishes.
September 14th, 2009 at 6:48 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 14th, 2009 at 7:00 pm
if you have enough equity in your home you should try wrapping these loans together into one 1st mortgage at the lowest rate possible. If you can afford the payment on a 15 year fixed loan, those are probably the best rates available right now. Some banks will even let you amortize the new loan for the amount of years remaining you currently have, especially the small local private owned banks.
September 15th, 2009 at 3:26 am
Sure….as long as your value in your home has not depreciated under the amount that you owe.
September 15th, 2009 at 9:08 am
mr. mortgage, when you say that in CA we are still overvalued by 20-50% in most MSA’s, do you mean that some homes can still drop 50% or that a 750K home can fall to 500K (therefore 50% overvalued). was it possible you meant some homes can drop another 50% vs. being 50% overvalued? thanks for your insights!
September 16th, 2009 at 3:13 am
You have one option.
First, call your lender(s) and ask to speak to someone in the Loan Modification Department. They should be able to help you get your
rate(s) down.
Please don't fall for any of the Modification scams going on right now. Anything that they say they can do for you you can do as well directly with the Lender.
Godd luck and I hope this helps
September 15th, 2009 at 7:41 pm
Mr. Mortgage you need your own radio show!!! You could give a lot more detail to the picture than someone like Dave (I don’t know THAT much) Ramsey.
September 16th, 2009 at 12:53 am
We recently sold our home on the east coast and moved to Fl. Have been concerned about the foreclosure rate in the area but our realtor has only given us seller to buyer sales comps even after pressing her about foreclosures. Thank you for enlightening us about the continuing decline and all of your helpful information regarding foreclosure stats. We do want to buy but want to be informed and prepared. We lost over 250,000.00on our other home by the way (all cash down).
September 16th, 2009 at 6:43 pm
mr. mortgage, are the banks with high reo inventory currently blowing them out aggressively using estate brokers and auction aggregators or are they pacing themselves? whatever they’re doing, the case schiller index is in freefall. do you know what the max y over y loss could end up being for the top 10 metro cities? 17%? 20%? 25%?