Suze Orman gives advice on Adjustable Rate Mortgages
Below I have mentioned some terms you may want to become familiar with to help increase your knowledge and help you become prepared as you approach a When thinking of a Mortgage Refinance for a commercial property, you may want to consider becoming familiar with the terminology to help understand how the process will play out. This will increase your knowledge and help you prepare yourself for what to expect.
Long before I became involved in Commercial Financing and Real Estate Development, I would hear terms mentioned in regards to Residential and Commercial Loans and Mortgage Refinance options, ARMS, Balloons etc. I was just getting started in this industry and had absolutely no experience in any real estate or even how to obtain a mortgage loan, so these terms were like a foreign language. I realized very quickly that without thorough knowledge of the terminology it is hard to understand what direction you will go.
If you think back to when you applied for your original Commercial Mortgage Finance, you will remember specific terminology slightly different than that of Mortgage Refinance. You had to think about the price of the commercial property, the time it will take to secure a loan this size, it is possible for the amount of time specified on the contract to run out before you get funded, protection from default on such a large loan, not to mention collateral, down payment, closing costs and so on, not too unlike a mortgage on a house. Things can become very complicated on a loan for a commercial property.
You had to make sure you can handle such an obligation by speaking to your Financial Advisor and your Accountant about how long your finances could carry the loan if things don’t go as planned.
Before we move onto Mortgage Refinance terms let’s recap what terms you had to learn before, such as 1031 Tax Exchange, Environmental Reports, what type of commercial property qualifies for what type of loan, which is a lot for one to learn, the difference between Conduit and Mezzanine Loans, and so on. Most importantly, you had to find a great Broker that offers a variety of innovative loan programs for your specific need. So now, it is time to look at Mortgage Refinance.
The terminology is somewhat different when it comes to Mortgage Refinance. You start looking at possible Prepayment Penalties, Cash out Proceeds, and maybe you want to inject the money you cash out into another property or update your current property, what is the Discounted Cash Flow, Current vs. Proposed Loan to Value Ratio.
It is very important to look at how closing costs will affect the equity you have been building over the years. Two of the biggest reasons people look at Mortgage Refinance, are 1. To get a lower interest rate than they currently have, this means lower monthly mortgage payment (less payment more, more cash in your pocket). Second reason people refinance their mortgage is to “cash out” some of the equity they built in time and invest it in a new project.
Remember that knowledge is power, so stay informed by reading and researching your topic.
Watch the video related to mortgage refinance options
Is it time to refinance and get out of your ARM mortgage? Hear what Suze has to say… … Suze Orman CNBC NBC Mortgage ARM refinance advice debt house money real estate buy sell finance expert
Help answer the question about mortgage refinance options
What is the mathematical formula to calculate/determine suitability of mortgage refinancing options?About Author
This article is brought to you by the experts at EFD Commercial Investments Inc. For more free information about loan refinance, visit their Mortgage Refinance page.
Article Source: ArticlesBase.com – Become Familiar With Mortgage Refinance Terminology
Tags: equity, estate, flip, garcia, home, house, loan, mateo, mortgage, purchase, real, refinance, that
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August 3rd, 2009 at 1:45 am
August 3rd, 2009 at 2:15 am
If you no longer have 80% equity in your home, conventional refinancing is no longer a viable option for you.
You may however be able to convert to a FHA refinance at up to 96.5% Loan-to-Value.
August 3rd, 2009 at 2:11 am
Good video from Suze! Check out some of our videos on ARMs and other mortgage options.
August 3rd, 2009 at 3:24 am
Think for yourself is not very republican.
August 3rd, 2009 at 12:18 pm
If you go to a mortgage company, they should be able to help you find something. There are still a lot of lender out there that would go up to 95% or even 100%.
I think the more important questions is why do you wanted to refinance and is it worthit to do it.
August 3rd, 2009 at 4:22 am
Can you take Suze Orman seriously? My parents are strong Republicans. Can right-wing America really respect her? Are you kidding me?
If you are in the Military and can’t think for yourself, and have to call in to Suze’s show, no wonder why we are still stuck overseas!!!!
August 3rd, 2009 at 5:14 pm
Damn this bitch is stupid.
August 3rd, 2009 at 9:19 pm
The answer is “yes” Suze. Good thing the public has no recollection of the bogus advice you were dishing out 3 years ago.
August 4th, 2009 at 8:15 am
COMPLETE AND UTTER IDIOT.
August 4th, 2009 at 6:43 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.
August 4th, 2009 at 8:55 pm
This is info for women, and 20 year olds,
What she is teaching is basic, basic knowledge
to me. But I’m not 20 years old. It’s great for “noobs”, you gotta learn from someone
August 5th, 2009 at 11:12 am
If you can access your equity at a comparable interest rate. A good loan officer can save you a lot of headaches too. I suggest Hometown Banc Corp. My mom used them. They may be your best opportunity for someone to say yes. If your credit does not measure up, they don’t simply “forget to call you back.” They help you get into a credit repair program you can afford regardless of income. Check out the free evaluation form at http://www.totaldebtsolutionsllc.com and a Hometown loan officer will contact you .
August 5th, 2009 at 3:10 pm
Call your lender and explain you need to refinance. They may work with you. If they do not-there are lots of ways to be helped. Use a private real estate investor as they are aware of many different ways to help. Just be careful, there are a lot of scam artists our there right now preying on folks in your situation.
August 5th, 2009 at 8:58 pm
The first option is definitely the way to go. Put it to yourself this way: would you rather keep paying an interest rate of 12.125% on the $40,000 amount of the second for the next 5-7 years? At the end of 5 years, you will have paid almost $25,000 and still owe almost $38,000 on that portion of your debt, as compared to paying about $15,000 on that portion and owing only a little more than $36,000.
August 6th, 2009 at 6:11 am
If you miss a credit card payment, they'll scream and yell.
If you refinance your credit card debt by attaching it to your house, you'll be paying off your credit cards for the next 30 years, and then if you miss a payment, they take the house.
Get a copy of "The Total Money Makeover" by Dave Ramsey.
He explains a plan to never need credit cards again.
I'll summarize:
STEP 1: You're worried about emergencies. Good! Save up for them. Pay only the minimums on your credit cards for a month or two, until you get $1,000 cash saved. Withdraw the $1,000 as ten $100 bills, and buy a picture frame and get it engraved: "In Case of Emergency, Break Glass". Then put the Benjamins in the picture frame, and hide it in the back of the closet.
STEP 2: Once you have that cash saved, cut up your credit cards. Pay off the cards, just like you have been planning to. If you need to break your pretty picture frame, then go back to paying the minimums until you're back to $1,000 saved.
STEP 3: Finish your emergency fund. Continue saving the $700-$1000, and put it in a separate bank account (or buy a very large picture frame). When you have 6-months expenses saved (roughly $25,000), you'll be ahead of most people in the country.
STEP 4: Start saving for retirement. 15% of your income.
STEP 5: The kids' college fund.
STEP 6: Pay down the mortgage, until the house is paid in full.
STEP 7: Live like you're rich, because now you are.
August 6th, 2009 at 8:32 am
si it’s not for men that have no clue about money? This chick rocks, no matter what the demographic might be.
August 6th, 2009 at 8:38 am
there’s no need to call names. people get ARMs for many reasons first of all. there is no catch all. the crisis we’re in now is from people you described who got into million dollar homes who couldn’t afford it, but no ARM buyers are like that. Suzy presents another ARM buy, the investor.