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71 votes
Accepted

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

The lender is concerned that the loan was paid off with borrowed money and thus the borrower has a debt that they are hiding from the lender. It is absolutely routine for a lender to investigate any ...
David Schwartz's user avatar
46 votes
Accepted

Put my student loan in parents’ second mortgage - help?

The student loans are gone, all lenders see is a 2nd mortgage. Since the mortgage is secured by the home you'd likely have a hard time getting a better rate on an unsecured loan, but it doesn't hurt ...
Hart CO's user avatar
  • 70.6k
33 votes
Accepted

Buy house now, refinance later

You should not buy a house that you cannot afford given your current financial condition. Buying a house that you can't afford now hoping that interest rates will go down is a huge risk. If you can ...
D Stanley's user avatar
  • 138k
29 votes

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

I have a friend who is a mortgage broker. At the company he works for, if one of his loans is paid off within 6 months of origination, he loses his commission. It's only happened to him a few times in ...
TTT's user avatar
  • 47.2k
28 votes
Accepted

Is "odd days interest" really a thing in a mortgage refinance?

This is legitimate. You received funds on August 7th, but don't make a payment until October 1st. You therefore owe the interest that accrues between Aug 7th and Aug 31st. From there on, interest ...
D Stanley's user avatar
  • 138k
23 votes

Do I need my own attorney during mortgage refinancing?

I've never used an attorney for a mortgage refinance before, and never wished I had either. There really isn't much more to a refinance of a mortgage than any other type of refinance (e.g. car, ...
TTT's user avatar
  • 47.2k
20 votes
Accepted

Refinancing immediately after closing on a house purchase

I would ask her to be certain, but it should not hurt your loan officer. The loan officer gets rewarded for originating the loan. There is no penalty for them if a loan is prepaid that I have ever ...
D Stanley's user avatar
  • 138k
19 votes

How to remove a co-signer from HELOC?

If there is a zero balance, why not shop around for a HELOC (with no co-signer) from another bank/company? Then you can compare that to the offer from your bank to remove the co-signer from your ...
Orange Coast- reinstate Monica's user avatar
18 votes

Mortgage refinancing fees

tl;dr: I think you can find a much better deal. Doing a strait refi will cost you some amount of money. However, a 2.5% fee ont top of closing costs seems really high. You can get a quote from ...
Pete B.'s user avatar
  • 77k
15 votes

Interest rates dropped significant immediately after purchasing a home

If you can find a sufficiently better rate somewhere -- rule of thumb has been 1% cheaper -- paying another set of closing costs in order to refinance into the cheaper loan becomes worthwhile. To ...
keshlam's user avatar
  • 49k
15 votes
Accepted

Is it ever worth it to refinance an auto loan for a higher APR?

Strictly looking at the loan numbers: Your original loan was $20,000 at 4.75% for 60 months. That equates to a monthly payment of around $375. You'll pay a total of $2,508 in interest over those 60 ...
BobbyScon's user avatar
  • 14k
12 votes
Accepted

Will a mortgage lender ever lower a locked rate?

The term you are looking for is "float down". The lock will set a cap, but will also give you a lower rate if the rates drop. Because this transfers some risk to the lender, they will charge a higher ...
mhoran_psprep's user avatar
11 votes

Buy house now, refinance later

Is this a good strategy? Assuming that interest rates start falling within the next 2-4 years, and the bank allows for re-financing, I could own a new home today and still be saving in the long-run. ...
mhoran_psprep's user avatar
10 votes

Interest rates dropped significant immediately after purchasing a home

I think the problem you are having here is that you are applying logic to a process that is kind of set in stone. You might find a loan agent that can see your point but due to corporate governance ...
Pete B.'s user avatar
  • 77k
10 votes

Refinancing immediately after closing on a house purchase

This contradicts the other answer so I think it's worth mentioning: I believe different companies have different pay structures and the only way you can know for sure is by asking your loan officer. ...
TTT's user avatar
  • 47.2k
10 votes

My previous employer paid me too much and now they want the money back

Is this right? Yes. They overpaid you, and now they want it back. Turn it around. If they had underpaid you, and you didn't notice for six months for whatever reason, do you feel you should get ...
Magua's user avatar
  • 5,097
10 votes

Does it make sense to cash out most of the home equity (80% of value) when refinancing for other reason?

In the United Sates a cash out refinance isn't fully tax deductible. This is from IRS Publication 936 (2020), Home Mortgage Interest Deduction To be fully deducible: Mortgages you (or your spouse if ...
mhoran_psprep's user avatar
9 votes

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

Since the car is in her name, the cleanest option is probably just to buy the car from your friend and pay off the existing loan so that it is in your name only. If I have to retitle the car to my ...
D Stanley's user avatar
  • 138k
8 votes

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

The big one is to keep you from refinancing it with someone else to get a better rate. There may also be some funny-money reasons having to do with being able to count this as a new sale.
keshlam's user avatar
  • 49k
8 votes

Mortgage refinancing fees

tl;dr: I agree with Pete B.'s assertion that you should continue shopping. That's not the whole story though; there are other factors that can raise your rate, and affect your closing costs. The ...
TTT's user avatar
  • 47.2k
8 votes

Is "odd days interest" really a thing in a mortgage refinance?

Standard. It's how you pay interest until month's end at closing, so the mortgage starts on the new month beginning. I've never seen a mortgage that had a different cycle than starting on the first of ...
JTP - Apologise to Monica's user avatar
8 votes

My husband died and left no will.

To refinance a car, simply go to any bank that offers used auto loans and apply for a loan to refinance the car - you may have to shop around to get the best deal. Make sure you have the car VIN and ...
Michael's user avatar
  • 10.2k
8 votes
Accepted

What exactly are the logistics of refinancing a mortgage?

I don't know your experience, but I've never personally seen a lawyer involved in a "typical" real estate closing (either a purchase or a refinance). Perhaps this varies from state to state. The ...
D Stanley's user avatar
  • 138k
8 votes

Car is under my girlfriend's name, can I refinance it?

If we deconstruct the question to its constituent pieces, it sounds like you want to discharge the loan on your (ex-girlfriend’s) existing car, sell it and take out a loan to buy a new car. Well, you ...
Lawrence's user avatar
  • 9,392
8 votes

Refinancing Mortgage, same rate for 30yr vs 15yr (with closing credit)

But it seems like I should be able to find a better use for that $700/mo. Yes. That is the heart of the matter. Specifically, can you find something to do with the money that gets a better rate of ...
Daniel K's user avatar
  • 645
8 votes
Accepted

Refinancing Mortgage, same rate for 30yr vs 15yr (with closing credit)

Stop worrying about the sunburn (reducing 3.75% to 2.25%) when your hair in on fire ($30K debt at 10%). Facts: you've got $10K in cash, and can afford a $1927 monthly mortgage. @RonJohn still ...
RonJohn's user avatar
  • 50.7k
8 votes

Is it possible to swap homes without refinancing (without changing interest rate)?

You are looking for an assumable mortgage. That seemed to be a thing a few decades ago, but there still may be some available. Some FHA, and VA loans are assumable. This is from the Veterans ...
mhoran_psprep's user avatar
7 votes

Mortgage refinancing fees

2.5%? Whoa, you are being robbed there. Straight-up, stripped-down, and bent-over-a-table robbed. Never agree to "fees". If they don't want to do the work to give you a loan, there are other ...
Michael Lorton's user avatar
7 votes
Accepted

Refinance Car Loan

Step 1: Figure out where you are now. You are 2 years into a three year loan, what is the balance? Step 2: Figure out how much interest you will pay if you stick with the existing loan. Step 3: ...
Pete B.'s user avatar
  • 77k
7 votes

How can I refinance this loan?

Sell the car. This car is too much for you to handle. Yes, they have you at an abusive interest rate, but even at a low interest rate, you would be having trouble making payments, and you would have ...
Ben Miller's user avatar
  • 116k

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