Questions tagged [refinance]

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

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2
votes
2answers
2k views

To sell the house or not to sell the house?

Needing advice on how to get on track to be financially successful. I am 35 years old single parent and Currently have a home at 3.75% interest rate. Owe 220 and it's worth 290k. Debt totaling 126k ...
16
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8answers
16k 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
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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 ...
0
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4answers
282 views

Best refinance option

Edit 8/13 3:30pm: Thank you everyone for the helpful advice so far. The lender behind Options A & B contacted me and lobbied for himself, saying there is a $1000 credit towards closing which ...
1
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0answers
47 views

Interest expense deduction on rental property that was re-financed to pay off wife for her interest in home

I am in California in the United States. I stated renting my house out this year (2017). I originally purchased the home with my ex-wife in 2001, but bought her interest in the property as part of ...
3
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4answers
221 views

Fixed term or variable term for a student loan of 155,000 with the ability to switch between them

Friend is refinancing a student loan of 155,000 - check the details here or as below. Total amount now is about 155,000 now. While refinancing with Common Bond , we are getting the following payment ...
0
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2answers
149 views

Refi mortgage from 30 years to 20 years… what if I sell after 10?

If I can drop from 4.375% APR to 3.7% (or slightly lower) by going from a 30- to a 20-year note, I can save over $100,000 in interest over the life of my loan. However, like most folks, I have no ...
1
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2answers
739 views

Paying property taxes at refinance closing

I'm refinancing my existing mortgage, just to lower my payment, no cash out, in California. I currently have an impound account to pay for taxes and insurance but don't plan on having one for the new ...
6
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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 ...
2
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2answers
345 views

Transfer car loan for better interest rate

I just recently bought a car from a dealership with financing. At the time of purchase I was a temp-to-hire working in IT. About a week later I got a raise doubling my income. I just graduated college ...
3
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1answer
104 views

In a cash-out refinance (US) can I deduct interest on the original equity + 100K or just 100K?

I have looked at dozens of sites describing the US tax rules for a deducting cash-out refinance interest and I find they are all slightly ambiguous in their wording. All of those sites point out that ...
3
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1answer
273 views

How Can We Refinance A Home Mortgage As Part of A Divorce?

We are in the middle of getting divorced and one of our decisions is for one of us to keep the house. I am trying to figure out all the costs involved in that, but I need more information. Is it ...
0
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1answer
73 views

Best way to refi to consolodate second mortgage on dilapidated house? Personal loans?

My mother is 82 and has some cognitive impairment that justify some level of concern on my part. Her house and other assets are in a living trust of which I am co-trustee, if that makes any difference....
10
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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 ...
0
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1answer
321 views

What is the formula to calculate loans at variable rates and what is the function of PV (present value) in calculations?

Yesterday, I tried during the whole day to solve that problem: You have been living in the house you bought 6 years ago for $250,000. At that time, you took out a loan for 80% of the house at a fixed ...
3
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3answers
51k views

How can I get the car refinanced under my name if my girlfriend signed for the loan?

I was trying to get a car financed under my name and it turned out my girlfriend had much better credit than i did. She had a score of 826 and mine was like 560. So she signed on the loan solely under ...
8
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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 ...
4
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3answers
382 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 ...
3
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1answer
110 views

Mortgage advice needed please

I am currently renting out a property (I owned with an ex partner) with the mortgage companies agreement. I have purchased a new property with my current partner using the same bank but not ported my ...
1
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1answer
147 views

Occupancy Affidavit and Refinancing

In December 2015, I closed on a mortgage with a higher than ideal interest rate. I would like to refinance as soon as I file my taxes because my income from 2015 will qualify me for a much better rate ...
0
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1answer
213 views

Bank offer to refinance mortgage. Are they beneficial for the homeowner?

My bank Freedom Mortgage is offering me to refinance my townhouse and to also get rid of my insurance payment that I pay monthly. Currently I pay $1400 including the insurance payment at an ...
2
votes
1answer
141 views

Is there any reason to not refianance my student loans once I graduate?

I'm completing my masters degree after this Spring semester. I have no debt from my undergraduate degree, but have accumulated around $20,000 for my graduate degree. Currently my interest rates ...
3
votes
1answer
190 views

Numerous large student loan balances: Pay down principal or refinance to 5-year loan

My spouse and I have almost $150k in Federal student loans. About 60k of this balance is in consolidated loans, and the remaining 90k is split between roughly 20 smaller loan balances (the smallest is ...
4
votes
2answers
430 views

Can I and should I put my dad's Parent PLUS student loan under my name?

My dad took out a loan for me to go to school that currently has a principal of $58,000. Its interest rate is 7.5%. Even though it's not technically my loan, I'm paying all of it by the agreement my ...
1
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2answers
180 views

Refinancing Loans from USA to India

I have a friend living in USA who is a US citizen. He can take a loan of X$ from a US bank as a personal loan or a business loan. Can he finance my company in India with this loan he availed from USA ?...
1
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1answer
121 views

A home loan refinance problem

I have owned my home for 19 years. I purchased the property on my own with no co signer. About 9 years ago I had some credit issues due to an ugly divorce. I refinanced my home and quit claimed the ...
6
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3answers
6k 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 ...
13
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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, ...
0
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1answer
3k views

Paid appraisal by credit card but found out at closing it was just a portion?

I recently did a home refinance and I paid (what I thought) was the entire appraisal fee on my credit card early on in the process. I put the $360 appraisal fee on my Amex. At closing, the appraisal ...
1
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3answers
2k views

Car Loan upside down--refinance before selling?

I have a 2007 mini cooper that I bought for around 20K 3 years ago with CarMax. I currently owe about 10K but the blue book value is around 6K. I am starting a new job where I will be traveling 70% of ...
3
votes
2answers
241 views

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

Is it advantageous for me to refinance my house at a lower rate? My loan has the following information: Primary Residential Home: Current Principal Balance* $53,128.51 Current Interest Rate 4.125 % ...
4
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2answers
220 views

Upside down on Property with Mortgage and HELOC, now on Disability Income…

Excuse any Newby mistakes, this is my first post: I just got my SSI Disability and also owe more on my house than current market value due to 2 mortages. If I got rid of my HELOC, then my primary ...
2
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0answers
428 views

Downsides to refinancing with only one spouse?

My wife and I are talking with a lender about refinancing our home loan. Currently, our loan is in both of our names, as is the title. (This is a Lien Theory state, if relevant.) The house was ...
2
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1answer
67 views

How to finance necessary repairs to our home in order to sell it?

We are planning on downsizing due to financial and health issueswithin 12 - 18 months and need to do some repairs in order to get a fair price. The house is peeling and needs exterioir painting as ...
0
votes
1answer
206 views

How to fund sabbatical to prepare house for sale?

I own a large home in a recently gentrified and revitalized, very, VERY desirable urban neighborhood in the U.S. I purchased it for $400K 8 years ago, while the neighborhood and the house were not in ...
0
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1answer
53 views

At what point in a refinance application should I be able to get a rate lock?

I've submitted my URLA, credit is checked and appraisal is scheduled. The broker has sent a disclosure pack that he wants me to sign and return with all documentation in order to start underwriting. ...
3
votes
2answers
158 views

5-year fixed mortgage?

I have a 20-year fixed rate loan with 9 years left. I owe $91K. My interest rate is 5.625. Zillow zestimate of current home value is $205,500. I would like to refinance to a lower interest rate ...
3
votes
1answer
443 views

Is it a good strategy to +cash out refi every six months?

I was speaking to a coworker, who says he uses the following strategy: He refinances his house every 6 months with a +cash out refi (a refi that has negative closing costs). His argument is that ...
2
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3answers
170 views

How do I know if refinance is beneficial enough to me?

I have been contacted because mortgage rate dropped recently. But to what extent it will be beneficial to me to do re-finance.
0
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0answers
58 views

Mortgage Refinance: What is Yield Spread Premium?

I have a GFE from a broker that contains a hefty (>$8000) Origination Charge that includes a 2% Yield Spread Premium, and a credit for the whole of that amount. The rate is good and the broker insists ...
1
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1answer
166 views

Should I refi a rental property to reduce income tax from positive cash flow and use the equity pulled out to fund an annuity?

Smart to refi rental property? Want to reduce my taxes and use $200k to to fund an annuity. Statistics: Married filing joint Current rental property appraised value: $400k Income: $190k of which $21k ...
3
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3answers
6k 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 ...
9
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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 (...
6
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3answers
393 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 ...
4
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1answer
198 views

What are the downsides to refinancing student loans?

I have two large student loans right now (one private one federal) that are through two separate services. As of now, these loans have recurring payments at different times of the month and have ...
2
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2answers
254 views

Pitfalls of a Home Equity Loan

A person asked me a question, and quite frankly I am stumped! They have the opportunity to lower refi their home and lower their interest rate by about .75% with no closing costs. They would be ...
2
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3answers
267 views

Evaluating Mortgage Refinance Loan Offers - Short Time Frame

I currently have a 4.5% mortgage with a balance of $247,000, and am going to refinance. However, my situation is a little atypical in that I don't plan to live in the house more than 3-4 more years. ...
1
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3answers
215 views

How does a lender compute equity requirement for PMI?

I owe 280k on a house and asked my lender (CitiMortgage) about refinancing. My credit score is great (close to 850), and I'm a customer in good standing. CitiMortgage's appraisal came back at around ...
3
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1answer
85 views

How difficult would it be to refinance a second mortgage?

Some years back, my mom, now 80, took out a second mortgage on her house. I don't think it was a wise decision, but of course we can't do anything about that now. She recently complained that most of ...
1
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3answers
335 views

Investment property refinance following a low appraisal?

Before I met my wife, I bought a house in April 2007, using a mortgage from my credit union. In December 2011 I refinanced this mortgage into a 4.625% fixed conforming 25-year mortgage with a Lender. ...