12
votes
4answers
1k views

Pros and Cons of Interest Only Loans

I currently have a home with an FHA loan which require me to make mortgage insurance payments for the next 4 years. I am considering a refinance and have came across the idea of interest only ...
2
votes
1answer
104 views

What questions should I ask a mortgage broker when refinancing a condo in Wisconsin?

I live in Wisconsin. I'm trying to refinance my condo right now. I have next to no experience with refinancing, but I'd like to do some research on the subject before I start asking these questions, ...
8
votes
1answer
301 views

Pay off debt with RRSPs, or refinance and roll into Mortgage?

A few years of a combination of under-employment and trying to keep afloat a floundering business has left me (us) with 50k debt on a line of credit and a credit card. We are getting 5k back from ...
8
votes
1answer
119 views

Are there downsides in refinancing with 5 and 1/2 yrs left?

I have 5 and ½ years left on my 15yr 4.75% mortgage. I originally borrowed $200,000, and according to the amortization table, I will pay a little over $12,000 in interest on the $86,000 left. I have ...
6
votes
3answers
785 views

How does refinancing work?

I heard someone say that he refinanced his house, and reinvested the money into the mortgage to lower his monthly payments. What I don't understand is: Since there was no sale, where does the money ...
2
votes
1answer
1k views

Does it make sense to refinance and convert the HELOC back to a fixed 20 year low rate mortgage?

I have $5k left on a primary mortgage at 5.375% interest. I have $155K debt on a HELOC at a variable 3% rate. The total line of credit approved is 200K. 3.0% APR. No penalty for pre-pay. Can lock ...
3
votes
2answers
838 views

want to refinance FHA loan, may move out unexpectedly and would like to keep as investment property, what are my options?

I'm currently in my primary residence with an FHA loan. I'd like to refinance for a better rate (as I can likely get it down at least 1.5 percentage points or so). I also intend to ultimately use ...
3
votes
1answer
312 views

How do I qualify for a mortgage (refinancing) after I retire and no longer have a paycheck?

I've just retired and wish to refinance my mortgage. However, when I spoke with my bank, they said that since I no longer have a consistent paycheck I dont qualify under their rules for a refinance. ...
2
votes
3answers
4k views

Why would this FHA refinance cause my mortgage insurance payment to increase so much?

I have a 30-year fixed loan at 5.25%, of which I still owe $184,000. Current payment is $1463/month including PMI, escrow, taxes, etc... and I've been in this loan for 2 1/2 years. Current appraised ...
2
votes
2answers
172 views

Have 20% equity in house, but bank requires a principal payment for refinance

We are trying to refinance our mortgage. The mortgage has a balance of $123000. Our house was appraised at $266000. If we did the math correctly, we have $53200 in equity which gives us ...
5
votes
4answers
242 views

What's the deal with these mortgage-refinancing fees?

currently we have 400k on a 20 year mortgage at 3 and 7/8 percent. We can move to 3 1/8 percent 15 year mortgage. The guy says this should save us around 70k over the life of the mortgage. The ...
5
votes
3answers
673 views

Does it make sense to refinance a 30 year mortgage to 15 years?

I have a fixed mortage of 260,000 at 4.5%. I could refinance this loan to 15 years at 3%. I also have a Heloc with an APR of 3.25%. On the Heloc I have a line of credit of 95,000 and available credit ...
0
votes
2answers
2k views

Are there restrictions on refinancing after a short sale

I previously had two mortgages and last November completed a short sale of my second home (which I owed $410K) that was not my primary residence. I missed 10 payments leading up to that short sale. ...
2
votes
1answer
111 views

Does re-financing an FHA-insured mortgage incur the UFMIP again?

I currently have a low-down payment FHA-insured mortgage. When I got the mortgage, I rolled the 2.25% up-front mortgage insurance premium into the loan. Rates have fallen, and I'm considering ...
0
votes
1answer
776 views

FHA Reduction Notices From Third-Party Companies - Scam? Or Something To Consider?

We've got an FHA loan on our house with a 4.75% interest rate. We get a lot of seemingly junk mail but one item from "American Financial Network" caught my eye: The Federal Government recently ...
4
votes
2answers
716 views

Mortgage broker asking for a rate extension ($1,300) - is this fair?

Here's my situation. I'm working with a mortgage broker to refinance my existing mortgage. I locked in a rate on Feb 14, 2012. The lock was for 30 days. The broker has now told me that they cannot ...
8
votes
2answers
1k views

Stop paying your mortgage to lower your interest rate?

A few days ago I called my bank and ask them what will take to refinance my primary home mortgage. They said that advertised lower interest rates are only available for new clients and they don't ...
4
votes
3answers
3k views

Why would refinancing my mortgage increase my PMI, even though rates are lower?

I'm currently stuck in a 5.5% loan on balance 167.5k. PMI is roughly $75/mo. I am trying to refinance, but my lender tells me that even going down to ~4% rates, it wouldn't be worth it because my PMI ...
5
votes
2answers
117 views

Are higher closing costs worth a shorter mortgage term, if I'm making extra payments in either case?

I have a loan with 18 years left at 5.125%, with balance of $132k. I pay about $1,020/month ($1350 with escrow and whatnot). I can refinance to 15 years at 4.00% with closing costs of $967. Monthly ...
1
vote
2answers
133 views

What is the process to refinance a home?

All, A family member is thinking about refinancing their home. The idea is to take advantage of low rates to get a lower interest rate loan, ideally with a longer term (current mortgage is 15yr I ...
9
votes
3answers
162 views

Close to retirement & we may move within 7 years. Should we re-finance our mortgage, or not?

We want to refinance; currently at 6.75% on a 30-year fixed. We are unsure how long we will be in the house but assuming at this time we will want to move within 7 years. I am looking to retire in 3 ...
10
votes
1answer
732 views

Does it make sense to “save” for college by paying off my mortgage?

Assumptions (using round numbers): Two children start college in 12 and 15 years. Currently saving $400/month in a college savings fund earning ~2%. (Some in a taxable account, some in a Coverdell.) ...
8
votes
4answers
515 views

Should I get a personal loan to pay on my mortgage to go “above water” to qualify for a refinance?

I purchased my primary residence in 2007. The rate was 5.99% on a 30 year fixed. Rates have dropped dramatically since then, but so have home prices. I wanted to refinance a while back, but it looked ...
8
votes
6answers
2k views

What is the incentive for a bank to refinance a mortgage at a lower rate?

I can't figure out why banks would actively try to get their customers to refinance their mortgage at a lower interest rate. And to be absolutely clear, I am talking about a bank refinancing a loan at ...
2
votes
2answers
687 views

Is it possible to eliminate PMI (Personal/Private Mortgage Insurance) on a mortgage before reaching 20% down on principal?

I am a relatively new home owner, having purchased my first home in October 2009. Overall, I feel I got an excellent deal on the loan, which was 5% no-cost, no points, and 12% down. I had to take on ...
5
votes
3answers
190 views

Is it advantageous for me to refinance my house at a lower rate?

I bought my house about two years ago, the interest rate is 5.25%. I'm seeing interest rates as low at 4.50% now. Is it worth refinancing my house this soon, or is it likely the fees will out-weigh ...
6
votes
4answers
258 views

Mortgage Refinance calculator

What is the best mortgage refinance calculator out there to play around with?
4
votes
1answer
201 views

Credit check for refinance inquiry?

I'm thinking of refinancing my mortgage. I called my current lender, and was given a quote for a refinance with a lower interest rate, and $1200 in closing costs. Now I'm trying to shop around for ...
4
votes
2answers
1k views

How to calculate incremental interest rate for home refinancing?

Summary: When you refinance your house and borrow more money, how to calculate the incremental interest rate you pay? I currently owe $95K on my house, 4.75% interest rate, $510 monthly payment ...
5
votes
1answer
89 views

When and how do I lock a mortgage rate while shopping for a refinance?

We're in the process of hunting around for a lender in our area (US) to refinance our mortgage with. I'm having a hard time understanding the steps in the application process. In particular once ...
3
votes
3answers
302 views

Advantages/Disadvantages to refinancing online?

There's a fair amount of ways to refinance online via sites like Zillow marketplace and lendingtree. I'm hesitant to dive into using these services, I prefer dealing with a person directly. However ...
5
votes
3answers
620 views

FHA Streamline Refi causes principal balance to increase $9000?

I am in the process of doing an FHA Streamline Refi from a 5% 30-year-fixed to a 2.7% 5/1 ARM. I will only have to come up with slightly less than the amount of my monthly mortgage payment at closing ...
5
votes
2answers
164 views

How to compare current mortgage to re-finance?

I'm trying figure out how long it will be to recoup the cost of refinancing our present mortgage. I'm doing this for 2 reasons a) b/c the interest rate I could get is about 0.75% less than I pay ...
7
votes
2answers
476 views

Can I refinance a property in the U.S without U.S. income?

I'm Working for a big international corporation and I'm back from a few years of relocation in the U.S. while I was in the states on a US payroll (I'm not an American citizen) I bought a property ...
4
votes
2answers
1k views

If I moved out of my house and rented it out, would I need to refinance into an investment loan?

I'm curious what I would need to do about my mortgage if I moved from my current house to a larger house in five or ten years. Would I need to refinance my residential mortgage into an investment ...
3
votes
2answers
145 views

Should I renew the rate on my ARM to a lower one, considering the fees charged?

I have a 5-year ARM at 4.5% APR. I can renew the rate at 3.25%. However, that would cost $800. The current loan value is $156,219. Is it worth it for me to renew the rate? How long would it take to ...
1
vote
1answer
655 views

What are the state and county taxes for refinancing a mortgage in Virginia?

I'm in the process of refinancing a mortgage, and want to know what state and county taxes apply. I'm not talking about property tax here, but the recordation taxes and fees charged by the county and ...
4
votes
2answers
123 views

Home loan refinancing woes about costs and paybacks

My wife and I bought our house about 4 and half years ago, just a little before the housing market crashed. We didn't have a lot of money, so we played it safe and got into a house that most would ...
6
votes
3answers
282 views

What is the best way to determine if you should refinance a mortgage?

What is the best way to determine if you should refinance a mortgage? Is there a general rule of them as far as difference in interest rates? I know closing costs are also a factor. Is there a good ...
11
votes
7answers
1k views

Want to refinance: 7-year ARM, 30-year fixed, or 15-year fixed?

We want to refinance; currently at 6% on a 30-year fixed. We are unsure how long we will be in the house but assuming at this time we will want to move within 7 to 10 years. We are offered a 3.75% ...