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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 recent significant financial changes of a borrower to look for ways they might be hiding debt.
It's not unusual for people to receive gifts to help them afford ...
46
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 to go chat with some lenders and see what options exist.
I imagine the best chance for a lower rate would be a re-finance on the first mortgage (assuming there'...
29
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 9 years, and he had to repay the commission on those loans in the form of future paycheck reductions. In his case 2 large loans happened in the same month ...
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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 is paid in arrears, so your October 1 payment covers the interest from Sep 1st through Sep 30th.
but I don't recall seeing this on any mortgage origination I'...
25
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 watchouts:
Your original loan was a 6 year loan, and you have 5 years remaining. If you refinance your car with a new 6 year loan, you will be paying on your ...
answered Apr 4 '16 at 20:35
Ben Miller - Remember Monica
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23
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, student, credit cards, etc). One bank gives you money (probably at a lower interest rate), and you pay off the other loan with that money. Typically there is a title ...
20
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 heard of.
However, you need to look at what the closing costs are for the new loan to know if this is a good idea. Consider how much out-of-pocket you'll need ...
19
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 think they will go?
Given the variable rates, and nothing being paid to principal, you greatly increase your risk of paying on a home.
Before the housing bubble ...
18
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 Quicken loans pretty quick and compare their fee. Also I would check with a local bank, preferably one you already do business with. The 2.5% is probably their ...
15
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 determine if this is worthwhile, the easiest solution is to get the details on the loan you are interested in and plug those into the refinance calculators mist ...
15
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 months.
You have $9,000 left, which means about 26 payments remain. You've paid about $2,000 in interest so far.
If you refinance that $9,000 into a 60-month ...
13
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 the 15 year loan is to pay it off faster. In your situation you will pay off the loan in 4 months: no matter if you refinance. Before refinancing you owe X ...
13
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 able to find a notary so this should be quite doable. Talk to the bank about what their requirements are.
12
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’s trading arm needs to quickly buy, sell and move goods around the world. Its credit rating is two notches above junk status, and a downgrade would freeze it ...
12
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 lock fee. There is no guarantee that in your case that rates will drop, so the extra feature might never get used.
Some lenders offer this feature, some don't. ...
11
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 and not the other way around is what's troublesome. Nearly all fixed rate loans will allow prepayments. So, calculate the new payment and start paying at a faster ...
answered Oct 12 '14 at 17:23
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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 the money owed to you?
Legally (IANAL), your terms of employment are a contract, and breaches of contract can be pursued for up to six years in the United ...
10
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 or government regulation there might be a policy that all refinances have a new appraisal. Besides the loan companies pass on the cost to you, so other than ...
10
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.
A friend of mine purchased a house earlier this year and just last week he told me he wants to refi but is currently waiting because he too doesn't want to ...
9
You should have her sell it to you for the amount of the outstanding loan. You take out a loan in your name for the amount (or at least, the amount you have to come up with). You then transfer the title from her to you, just as you would if you were buying the car from someone else.
While the title is in her name, she has ownership. This isn't a ...
9
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 accounts, running up balances, or otherwise applying for any kind of loan (people often get carried away and apply for loans to cover furniture and appliances for the ...
9
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 name, will that negatively affect my score?
Not the retitling, but the opening of a new loan will have an impact. HOWEVER, you shouldn't make that a deal-...
8
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 up at around 3%. I think I am being pretty fair with the numbers.
Now every dollar that you save each month based on the savings and invest with a higher net ...
8
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, then some of the benefits will go away as well. This is part of the reason private loans may present such a cost savings, since the debtor is ceding certain ...
8
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 you get a "no points no cost" loan, the cost is going to be hidden in the interest rate. That's the way transactions with knowledgeable companies works: they ...
8
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 published rate is typically the best rate you can get. Here are some other factors that can raise your rate:
What is your credit score? (Obviously the higher the ...
8
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 the month after closing.
No reason why it can't be done, but it makes for easy bookkeeping by the services. You close and the mortgage starts on the first of ...
answered Jun 26 '17 at 22:20
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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 all needed documentation to complete the loan application.
The real question is who is the title of the car under? If the title of the car is under your name, ...
8
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 sounds like you're paying $6k - $1,200 (plus a slightly higher interest rate on your existing home debt) for the privilege of having your debt be in the form of ...
8
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 process for a refinance would be as follows:
Shop around for the best deal for you, which may mean the lowest effective rate or the least amount of cash up-front, ...
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