Is this the Best Time for Mortgage Refinancing
ByIs today the best time to refinance your mortgage? How is your credit score? What is the current estimated value of your home? Can you document your income with pay-stubs, W2, etc? What is the existing interest rate on your 1st mortgage? Do you currently have a FHA home loan? Are you seeking a cash out refinance or simply a rate and term transaction? Do you have a second mortgage or home equity loans as well? Have you been turned down recently by other lenders? How long do you anticipate staying in your present home?
These are a few key refinancing questions you should expect from your lender when applying for a new refinance loan. Remember, if you don’t qualify for a traditional refinance, ask your loan officer about the possibility of a mortgage loan modification?
Is it a Good Time to Refinance?
With the Federal Reserve continuing to drop interest rates, many homeowners are beginning to wonder whether it is wise to refinance their mortgage again. However, what is the best scenario in which to do this? Can a mortgage loan still be an avenue for wealth-building? Matthew Sapaula comments on Fox News and offers some mortgage refinancing tips and insight on how your mortgage management is a key to building lasting wealth.
4 Comments
February 3rd, 2009 at 3:47 pm
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February 9th, 2009 at 9:53 am
My husband and I have a 67K mortgage on our valued $170K condo in WA. We are looking to buy a foreclosure in WI for retirement. We have some cash, but would need a 135K second mortgage loan to secure the property, while keeping our condo for another 18 months. We have excellent credit. Is there a mortgage loan that could help us? – Annette
February 9th, 2009 at 9:55 am
I own a home in PA, 85K mortgage, 46K equity loan. I recently moved to WV for a new job (salary is 116 K); and we were approved for a mortgage in WV for a new construction home and just closed. Home is appraised at 295K, our mortgage is 277K, so I have 18K equity in it.
So here’s my question. I cannot sell the home in PA for what I owe on the mortgage and equity. So I’d like to use my new home in WV, take a 125% mortgage on it; will use the money to pay off the home equity loan on my PA home, which means I will then be able to sell it for what I owe on the first mortgage. I would also use the remainder of my funds from the 125% mortage to pay off all of our credit cards and probably have some money left.
This would save me money in a number of ways. The second mortgage payment is basically the same as my home equity loan in PA, so that would be a wash, but by removing the equity loan on the home in PA I can realistically sell the house which would save me 900/month when it sells and probably save another 900/month on credit card bills. So in the short term I’d save 900/month on credit card payments, once the house sells, I’d save 1800 a month.
If necessary I would let you cut checks directly to my home equity loan institution and credit cards so you can be confident that we use the funds as I outlined above. This would make a huge difference in our situation.
I have read about 125% mortgages and I am going to be in WV and in this house for at least the next 15 years, plus property values are stable and increasing in this area,, Morgantown WV (I work as a professor at the Univ of West Virginia) so am comfortable in the process. – Mark
February 9th, 2009 at 10:03 am
I am assisting a firend to find a refinancing of a variable rate mortgage coming due in February. Disabled, not working, receiving social security payments, excellent credit rating, never missed a loan payment and assets in the bank – has been rejected by his regular bank and current lender as not meeting regular underwriting requirements relative to income.
Any mortgage refinancing options through you?