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Questions tagged [refinance]

for questions that relate to refinancing of debt. A country tag should also be included when asking about refinancing.

31
votes
2answers
5k views

Why would a lender care who paid off a debt during a refinance evaluation?

We have a family member who had their father cosign a student loan for them that was recently paid off post their credit check on the father who is attempting to refinance their mortgage. The lender ...
17
votes
2answers
4k views

Is “odd days interest” really a thing in a mortgage refinance?

I've got a question on closing costs for a mortgage refinance. For whatever it may be worth, this is a FHA streamline refi. One of the closing costs is "odd days interest". This was explained as ...
15
votes
8answers
15k 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 ...
14
votes
3answers
2k views

Mortgage refinancing fees

I'm about to refinance my home from a 6% 30 year to a roughly 3.5% 15 year. I am going through a local non-bank third party company. He quoted me a fee of 2.5% for the refinance. I haven't refinanced ...
13
votes
3answers
3k views

Etiquette around loan refinance - decision is going to cost first broker a lot of commission

We are in the process of doing a refinance. However, we just took out the original mortgage loan recently. The new loan is 3/8 of a point better than the original loan and we are going to save a lot ...
13
votes
2answers
4k views

Why don't companies buy back their own (cut-price) debt?

A thought occurred to me today. Glencore's debt is trading at about 70% of face-value. If you're Glencore, what's to stop you buying that debt yourself and pocketing the difference? In particular, ...
12
votes
4answers
2k 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 ...
12
votes
7answers
2k 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% ...
12
votes
1answer
4k 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.) $...
11
votes
4answers
5k views

Refinancing immediately after closing on a house purchase

I recently purchased a new home as a primary residence with a 4.375% 30 year fixed mortgage. I discovered, a little too late in the process, that I could find rates significantly lower elsewhere -- ...
10
votes
4answers
3k views

Interest rates dropped significant immediately after purchasing a home

Imagine that: One buys a home at an interest rate, for example 3.625% Several days after closing, interest rates have dropped to 3.4% The timing is rather unfortunate here. Is there any way to ...
10
votes
3answers
334 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 ...
9
votes
3answers
2k 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 ...
9
votes
1answer
227 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 ...
9
votes
4answers
2k 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 ...
9
votes
1answer
369 views

Should I be concerned about a loan refinance offer that adds $1000 to my loan in exchange for $1000 in cash?

I am in the process of trying to refinance an auto loan. I got 4.69% a year ago and should be able to do better now. The loan balance is about $13,000. I called to refi through the same company and ...
9
votes
2answers
1k 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 (...
8
votes
5answers
4k views

Paying off a loan with a loan to get a better interest rate

I've never had credit or a loan till recently when I bought a new car. This has recently given me a much better credit rating after having the loan for a year with 5 years to go and 2 credit cards ...
8
votes
3answers
348 views

How to handle old 401(k) I have, with respect to refinancing some of my debts?

I have recently been shopping around to see if I could get my home refinanced. I purchased in Oct. 2007 for $200,000 - 30 year fixed at 5.99%. I called my lender and they were willing to refinance at ...
8
votes
4answers
37k views

Is it even possible to refinance an older car?

I'm looking to refinance my car loan. However, it's 2012 and my car is a 2004. Bank after bank is refusing to even let me apply if my car is over 7 years old. Is it even possible or am I stuck with ...
8
votes
2answers
696 views

Can I refinance my student loans?

I have student loans from graduate school with an interest rate of 6.625%. I see that interest rates are quite low. (Mortgage rates are at 4.6% for a 30 yr fixed.) So I am wondering: Is it possible to ...
8
votes
3answers
685 views

Walking away from a mortgage & home - financial options

I currently have a home that is 100% Loan to Value. It has lost a significant amount of the value i paid for it -- hence now a 100% LtV guesstimate. I am able to comfortably make my payments as it ...
8
votes
1answer
445 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 ...
7
votes
4answers
21k views

Is SoFi too good to be true?

I'm considering refinancing some student loans with SoFi from a variable rate of 6% (based on the LIBOR) down to a variable rate 4.16% (based on the LIBOR). The new rate, once I setup auto-pay will ...
7
votes
3answers
150 views

Under what circumstances might getting an ARM be warranted?

Specifically, I'm curious about the 7/1 and the 10/1 ARMs. I'm half-way seriously considering refinancing into one of these, mostly because I doubt I'll still be in this house in 7-10 years. I'm ...
6
votes
3answers
5k 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 ...
6
votes
5answers
320 views

Does it make sense to switch from a 30 year 6.99% loan to a 6.89% loan (Australia)

I have recently bought an apartment and have an outstanding loan for $200K. I looked around but the bank I presently bank with somewhat surprisingly offered me the best rate at 6.99% (discounted off ...
6
votes
3answers
3k 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 ...
6
votes
3answers
392 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 ...
6
votes
3answers
325 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
1answer
387 views

What are my options for paying off the large balance of my federal, high interest student loans?

I have a large student loan from grad school that's over $41,000. I graduated in 2007, before the economy crashed and I was locked into some very high interest rates. I consolidated the Plus and ...
6
votes
3answers
1k 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 ...
6
votes
2answers
1k 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 ...
6
votes
5answers
355 views

Mortgage Refinance calculator [closed]

What is the best mortgage refinance calculator out there to play around with?
5
votes
3answers
1k 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
4answers
434 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
2answers
2k views

How do we remove an ex-girlfriend from a car loan?

My son is currently in boot camp, and his ex-girlfriend is threatening to go to court because she wants her name off a car loan they got when together. She is the primary borrower, but my son is the ...
5
votes
3answers
592 views

What is the best way to get a “rough” home appraisal prior to starting the refinance process?

Given the tightening of regulations on appraisals in the home financing process, I would like to get an idea of the "rough" value of my home before initiating the refinance process. Since our ...
5
votes
1answer
677 views

Can I remove a cosigner from a car loan? Will it affect my credit?

I will be moving from NY to California for a job that starts 3 months from now. I flew to California to finance a car from a dealership, but since I had not found an apartment yet, I had no california ...
5
votes
2answers
199 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 ...
5
votes
2answers
232 views

I'd like to refinance; how can I shop around at different banks without it affecting my credit?

I want to take advantage of the lower rates... and I want to shop around at different banks (unless you think that is unwise). What must I know/do before each bank runs my credit report?
5
votes
1answer
236 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 ...
5
votes
2answers
227 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 ...
5
votes
2answers
2k 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 ...
5
votes
1answer
199 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 I'...
5
votes
2answers
1k views

Refinance a land loan into a mortgage loan

If I obtain a 10 year land loan and but finance the build of a house with my own money will I be able to refinance that land loan into a conventional 30 year mortgage loan eventually?
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 ...
4
votes
2answers
225 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 ...
4
votes
4answers
243 views

Sanity check on choosing the term for a mortgage refinance

This is a VA refinance (IRRRL). The fees are the same no matter which choice. yr apr p+i 15 3.875% $869 20 4.000% $718 30 4.000% $566 IRRRL does not include ...
4
votes
2answers
2k 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 ...