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 ...
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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 ...
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  • 63.9k
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 ...
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  • 45.6k
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 ...
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  • 114k
25 votes
Accepted

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

I don't know what rates are available to you now, but yes, if you can refinance your car at a better rate with no hidden fees, you might save some money in interest. However, there are a couple of ...
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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, ...
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  • 45.6k
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 ...
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  • 114k
19 votes
Accepted

Pros and Cons of Interest Only Loans

Pros: Your mortgage payment is lower Cons: Your mortgage payment is artificially low, nothing goes towards principal. The rates are adjustable; given that rates are historically low, where do you ...
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  • 74.9k
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 ...
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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 ...
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  • 74.9k
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 ...
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  • 31.8k
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 ...
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  • 13.8k
13 votes

Mortgage Refinance

No. The longer answer is that you are handing a banker 10K, which goes into his pocket and to pay for the refinancing expenses. Then in a few months you will be selling the house. The purpose of ...
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13 votes

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

The only way I know to do this is to refinance the loan. That needs his signature on paperwork to apply for the new loan, but last I checked boot camp was still reachable by US Mail and he should be ...
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  • 31.8k
12 votes
Accepted

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

In Glencore's situation they do not have the means to purchase the debt even at the lower valuation. As quoted in WSJ: But investors have become concerned about the high levels of debt Glencore’...
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  • 802
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 ...
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11 votes

Mortgage Refinance

All I see is "we are refinancing to raise our raise from 3.75% to 3.875%." There is a special place in hell for the guy who would sell you such a refi. The fact that you are going from 30 to 15 ...
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11 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 ...
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  • 5,067
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 ...
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  • 74.9k
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. ...
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  • 45.6k
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 ...
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9 votes
Accepted

Will refinancing my auto loan hurt my mortgage approval or help it?

Generally it is not recommended that you do anything potentially short-term deleterious to your credit during the process of seeking a mortgage loan - such as opening a new account, closing old ...
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  • 11.6k
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 ...
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  • 114k
8 votes

Pros and Cons of Interest Only Loans

Given the current low interest rates - let's assume 4% - this might be a viable option for a lot of people. Let's also assume that your actual interest rate after figuring in tax considerations ends ...
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  • 4,680
8 votes

Is SoFi too good to be true?

Having looked into SoFi loans myself, I have found a few drawbacks. It may still be worth it overall to grab a better rate, but if a student is going from federally guaranteed loans to private loans, ...
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  • 4,839
8 votes

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

When you refinance, there is cost (guess: around $2000-$3000) to cover lawyers, paperwork, surveys, deed insurance, etc. etc. etc. Someone has to pay that cost, and in the end it will be you. Even if ...
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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 ...
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  • 45.6k
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 ...
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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 ...
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  • 10.2k
8 votes

To Cash-Out Refi or Not?

First off, it sounds like you're in a lot of debt already, so I would definitely not go with option (3) as that would just put you even deeper in debt, which you state is not your goal. For (2) it ...
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