Archive for October 6th, 2009
Refinance and Combine First & Second Mortgage Loans
Posted by: | CommentsMortgage rates have dropped to 4.75% so why haven’t you consolidated your 1st and 2nd mortgage into a fixed rate mortgage that is affordable? Many people bought their first home with the 80-20 combo loans. Everyone loves no money down and the 20% second mortgage is as clever loop-hole for avoiding the costs of private mortgage insurance. The goal of course is for you home’s equity to appreciate 20% as quick as possible, so you can refinance both loans together for one new mortgage with a rate reduction, and lowered monthly payments, and still avoiding private mortgage insurance.
* Simplified 1st and 2nd Mortgages
* Low Rate Refinance Loans
* FHA Mortgage Refinancing
* Home Loan Consolidation
Fortunately the Fannie Mae & Freddie Mac 30 year fixed rates haven’t spiked too much as it still hovers in the 6% range. The 3/1, 5/1, and 7/1 interest only arms have been affected adversely by the Fed’s new rate policies. Just a few years ago these hybrid mortgages were well over a 1% lower than the 30 year fixed rates. Add the interest only feature to those adjustable rate loans, and homeowners were saving hundreds of dollars every month with those historically low terms.
As the popular 3/1 hybrids reach the period when the fixed rate disappears, and now the adjustable rate kicks in with high margins from the Libor and MTA Indexes. The bottom line, the average Americans are waking up one morning only to find their mortgage payments have jumped up $350-$600 a month. Now you have two adjustable rate mortgages with increased monthly payments that you can no longer afford. Now you are you feeling what mortgage executives call “payment shock” and now the topic of “housing Affordability” has shifted into a bad topic. Talk to a loan officer now and discover what mortgage refinance opportunities are available for you.
Refinancing Adjustable Rate Home Equity Lines with a Fixed Rate Mortgage
Posted by: | CommentsAt the end of the mortgage day, we know that one way or another, your variable rate home equity line of credit is getting refinanced. For a few years, every time the Federal Reserve sneezed the interest rates tied to the Prime Rate would go up. Your fun loving home equity line of credit rates increased almost 4% between 2006 and 2008. Yes the equity line rates started to drop again in 2009 but we all know when Mr. Inflation arrives in 2010, that the adjustable rates will go through the roof. Now that you can admit your maxed out line of credit has lost its luster it time to consider some fixed rate mortgage refinancing options.
The fact that this HELOC once helped you avoid a down-payment and mortgage insurance has long been forgotten. You need to convert this out of control credit line into a fixed rate FHA refinance loan that guarantees simple interest and fixed terms for loan repayment. If you want a cash out refinance or have high interest equity loans and credit card with compounding interest, now is the time to consolidate your debt.
