Refinance Or Not? That Is The Question
Your home is most likely the single biggest asset you own, and can make the decision to refinance a difficult one. Also, a home is most often filled with the owner’s personal touches and contains many memories. You might ask what the heck family memories have to do with a home refinance. Good question. If you find yourself at the closing table unsure of your loan details, terms, benefits, and how your refinance will set you up for the future, thoughts of future financial uncertainty could suddenly pop into your mind. Shortly thereafter, slowly creeping into your consciousness, come visions of invading bill collector warriors attacking your castle, and you suddenly shout “Not my home!”…and choose to put a stop to the refinance plans. Now, your loan program at the closing may have been an excellent one that provided for sound financial benefit, or maybe not. What is really important is that you understand the impact that your refinance will have on your immediate and long term financial picture, before you sign the final papers. Many people view their residence as their “house” during the refinance process, and later feel it is their “home” at the closing table.
It may seem obvious, but you should ask yourself what you wish to accomplish in the short and long-term with a refinance, before you begin the process. Dig as deep as you can. You may be looking for a lower rate, lower payment, debt-consolidation, cash-out for various purposes, or to get out of a variable rate program and into a fixed-rate loan, or maybe a combination of objectives. Maybe you are looking for a 15 year repayment term to pay off your home as soon as possible, or maybe a 30 year term to lower the monthly payment and use the extra money for investments. Figure your current monthly expenditures to compare against various refinance scenarios. Determine the maximum monthly payment that meets your comfort level. Speak to your accountant to discuss the tax benefit comparison between your current mortgage and proposed refinance mortgage. The higher your mortgage interest accrued per year, the higher the tax deduction benefit if you itemize on your tax return, as opposed to taking the standard deduction.
How long do you plan to be in your home? This is an important question. If you know you will be moving in a relative short number of years, you may want to look at an adjustable rate loan that is fixed at a lower rate of interest for at least the number of years before you sell. If you are unsure, or strongly feel that you will be in your home for a long period of time, you will most likely be more comfortable with a fixed-rate refinance.
Your loan officer should be able to guide you throughout the entire process, and provide you with disclosure documents detailing the specifics of the loan program that you ultimately choose to utilize. The best refinance program is one that provides for immediate benefit, and also provides for future financial stability in-line with your objectives. Now that you know the details, terms, benefits, and future stability of your refinance program, you will feel confident at the closing. You should expect no less, because after all, your home is your castle.
Watch the video related to refinance programs
We’ve found another one. Newport Shores Mortgage’s Rate Reduction Department is at it again. Another client steps up and spills the beans on the Rate Reduction Program. With the FHA Streamline Refinance available, is this program any different? Did HUD really create the programs that NSM has been claiming can save FHA borrowers money on their mortgage payments. Watch the full story to hear directly from their past client. … fha streamline refinance mortgage rate reduction program …
Help answer the question about refinance programs
I am a foreign national; I own a rental single family home in NJ 07960. Do you know if I can refinance it?I have a SS# and my credit score is 747. Three lenders have rejected my application. I would like to take advantage of the Obama refinancing programs such as "Making Home Affordable" or something similar.
About Author
The author is a contributing mortgage consultant with the popular Refinance Tool Box. Visit today for free information and tools provided to help you learn about mortgage refinance in the states of Florida, Maryland, and New York.
Article Source: ArticlesBase.com – Refinance Or Not? That Is The Question
Tags: Foreclosure, Sale, Short, Stop
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September 5th, 2009 at 2:28 pm
September 5th, 2009 at 2:41 pm
September 5th, 2009 at 4:10 pm
There's two parts to homeownership. 1st is the actual ownership. This is determined by who is "on title." the 2nd part is who's responsible for paying the bill. This is determined by who is "on the mortgage." I've seen cases where someone is on the mortgage, but NOT on title because someone signed something without knowing what they were signing.
ON MORTGAGE: You are obligated to pay the loan–regardless of whether you live there, whether you can afford it, or whether you even own it. Even if there's an agreement that the ex is responsible for it, the mortgage company doesn't care–because your name being on the mortgage obligates you to pay. (Think similar to co-signing for your kid's car; if your kid doesn't pay, the loan co can come after you). This means if your mortgage doesn't get paid, your credit will be shot and when you apply for any future loans, NO ONE will listen to your sob story about why it didn't get paid.
I strongly recommend making sure that you do not relinquish your ownership rights by signing something called a quit claim deed (removes your name from title) unless your ex agrees to refinance your name off. Your name being on title is a good bargaining chip because NOTHING can be done to the house without your involvement (ie selling, future refinancing, or taking out equity lines/second mortgages)
September 5th, 2009 at 1:33 pm
Very informative video. I took some notes on the video and how it was done. I gave it 5 stars. Check out our vids and tell me what you think? We have some good stuff also.
September 6th, 2009 at 2:20 pm
sell it. that frees up all the cash
September 6th, 2009 at 10:00 pm
Your initial math is correct in theory. Leases can be great if used as intended. If you buy the car at the end of the lease, the manufacturer wins. If you just turn the car back in at the end of the lease, you the consumer wins.
It is NOT a good idea to lease a car that you plan on purchasing at the end of the lease b/c ou end up paying too much for the car in interest.
2-3 years of interest on the initial lease + 5-6 years of interest on the purchase at the end of the lease = 7-9 years of finance charges on 1 car.
September 7th, 2009 at 2:27 pm
September 8th, 2009 at 1:08 am
September 8th, 2009 at 4:43 pm
the new mortgage company will order the PAYOFF ….usually done by the processor (the title company conducts closing not loan services)
when they order the payoff the old mortgage company will let the new lender know if there is a prepayment penalty. Normally, you can find out yourself if you call them or view your old loan documents.
I'm sure your old lender will know that you're refinancing when they see you have applied for a mortgage. You should be expecting calls from other lenders as the credit bureaus sell your information when you apply for a mortgage (called 'trigger leads').
make sure to get on your old lender about the payoff. they usually take their time as they're hoping to 'retain' your mortgage with them instead of you going to a new company.