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Mortgage Refinancing: Getting the Finest Rate

With rate on historic lower, it is easy to understand why so many homeowners opt to remortgage their mortgage. It makes sense: low price means low payment — it doesn’t get any clearer than that. However the thing is, there is certainly more to this statement than most people who would like to ride the bandwagon understand.

You see, replacing your mortgage if the prevailing rate is less than the current rate you pay for your existing loan may give you enough savings, yet lenders will not create it for you on a silver precious metal platter. You have to need it, search for it and demand for it.

Obtaining the best rate is just like shopping for a bargain. You need to search, even search hard from the pile in order to get to those that remain untouched but in excellent condition. When looking for the best rate, you need to dig deep and shop around. With lots of lenders to choose from, there aren’t any shortages of companies to match. That leaves a person with the task for making a list of companies that are willing to lend you money to get your existing loan and give you a different one.

Call possible, but reputable lenders and have relevant questions regarding the chance refinancing. Do not limit your option to your own existing lender. Often, closing out your existing loan and opening a new one with the same lender incur higher fees higher than what can save in the prevailing rate. Available your options that’s the key.

You have to find the best mortgage lender. You do this through burning as much period as you can. There’s no different. Take note that obtaining the first lender that comes to your way can cost you more than what you have got bargained for.

Each refinancing deal has somebody’s commission built into all of them. That’s a painful fact, but it won’t be a competent industry if not for these commissions. The best thing to accomplish in this case is to find the actual mortgage lender that is allows you to get what you are worthy of lowest rate feasible. But that’s not all. You might also need to consider the final cost. Compare closing cost (including price) when shopping for the best lender.

Once you’ve found your lender, bargain prior to making a deal. Again, you need to want it and you have to be able to demand for it. A great lender should be able to style a mortgage loan that fits your own need but not con you by injecting invisible fees all over your loan. It’s your right to say ‘no’ if you feel uncomfortable with the deal.

There are exemptions to the rule, however. You cannot get the best rate or even the lowest possible rate if you have a bad credit score and when you have used up your main equity. Problems with credit charge cards may be clear in writing, but if the real cause of this problem is your inability to handle your finances nicely, then, refinancing is not any assurance that your difficulty will be solved. Additionally, if you plan to move from your home in the near future, it truly doesn’t make sense to be able to refinance.

Refinancing might seem to be a wise transfer at the moment, but don’t forget in which rates are not the only thing that matters. Since you are extending your loan, evaluate your existing standing well. In case you are confident to take this, then take the transfer and get the rate that you deserve.

Comments: 67

  1. Etta February 5, 2013 at 11:48 am Reply

    The same week my husband looked into a balance transfer credit card I started an application for a mortgage refinance to get rid of some credit card debt. My husband was turned down for the credit card now he is worried about the mortgage finance. We have had our mortgage with the same bank for 11 years. WIll there be a problem with the refinance? Like I said they alreaqdy saw our credit bureau reports and they were fine.

  2. Kip March 1, 2013 at 4:22 pm Reply

    I am pretty sure it is deductible when you a buying a home; just want to know if it is deductible when refinancing as it will impact the earn back time of the refinancing costs.

  3. Dortha April 11, 2013 at 1:21 am Reply

    I just heard about mortgage refinancing and i would like to know what its benefits are

  4. Allen April 22, 2013 at 8:26 am Reply

    Want to buy a house with a personal line of credit(House is only $15,000). Do not qualify for mortgage loan yet, since just starting new job. I think our bank will be more than willing to give us line of credit, but wondering if I can then(when I do qualify for mortgage loan) finance/refinance it to a mortgage loan? Hope that makes sense!

  5. Joelle May 4, 2013 at 12:48 pm Reply

    There is a lot of talk about mortgage modifications, refinancing and new mortgage rules, but most info is so basic that everyone just keeps repeating the stuff already known. Can anyone suggest a place with more advanced and very specific articles stating the facts with references back to the primary sources?

  6. Berneice May 5, 2013 at 8:55 am Reply

    I have a part time job in telemarketing in mortgage refinance. The script I have are very cheesy. Can someone please share a better script for me please? Something that will interest the customers. I do cold calls and warm market. Other information on techniques or strategies will be greatly appreciate also.

    Need money to feed a hungry baby..

  7. Leilani May 6, 2013 at 7:39 am Reply

    I want to refinance my previous house because we moved to another state and own another house. The previous house is qualified for second home mortgage for refinance. And, I do have the money to pay for the second home mortgage. But, could I rent out the house that has second home mortgage on it? Renting will help keep the house warm in the winter of New England.

  8. Hung May 6, 2013 at 11:41 am Reply

    current house payment is 650. What’s better financially, paying an extra 500 per month on our 30 year mortgage or refinancing to a 10 year mortgage and paying 1150 per month? We are 3 years into our 30 year mortgage.
    the 30 year has 5.75%… and i used current rates for the 10 year.

  9. Marlyn May 6, 2013 at 5:46 pm Reply

    What can the president do to help other homeowners to get their mortgage refinanced. The banks refused to work with us because our home values are declined. I have been paying my mortgage on time every month, never default, just want a fixed rate, for three years I have been constantly contacting my bank to refinance, never get a positive result.

  10. Noah May 7, 2013 at 5:14 pm Reply

    I am working with my original lender to refinance my house, but I’m curious as to what advantages I have of looking somewhere else. Can the rates be lower from one lender to another or does the market pretty much make it the same for all?

  11. Lanny May 8, 2013 at 4:59 am Reply

    Is the mortgage refinancing market a strong or weak right now? Fill me in on your thoughts. If you could, please tell me if you are in mortgage refinancing business or not. Thanks , The more responses the better.

  12. Antione May 8, 2013 at 5:15 pm Reply

    Where can I find the lowest interest rate for a mortgage refinance in Arizona? I would like to be able to look for it online.

  13. Digna May 11, 2013 at 9:15 pm Reply

    If I want to get 2 or 3 offers for a mortgage refinance, do I have to get 2 or 3 appraisals? Or can I get just one, and use that for all 3 banks?

  14. Jona May 11, 2013 at 9:16 pm Reply

    I am curious what equity percentage is required these days for a mortgage refinance or new home purchase. Also, if anyone has refinanced through ING lately, please share your experience.

  15. Tiffanie May 11, 2013 at 9:18 pm Reply

    We have very good credit (my husband and I are each 750+), and need to refinance our home. When we purchased, my husband was newly self-employed and had to get a no-doc loan, so it isn’t a very good loan to have. There are so many radio commercials and other ads for mortgage refinancing. How do we pick one? We thought about the or Any advice?

  16. Arletha May 12, 2013 at 2:25 am Reply

    Have you used CashCall for mortgage refinance?
    I looked at CashCall advertisement with very low mortgage rate and no closing cost. Their website is also showing same info. I saw a lot of complaint about CashCall for their personal loan business practices; I want to find out peoples experience about their mortgage business practice. Is there any hidden surprise?
    Thank you!

  17. Kip May 14, 2013 at 10:03 am Reply

    I just signed paperwork for a mortgage refinance and the last day of recission is today. This morning the lender emailed and asked me for a copy of the note for another mortgage I have on a rental property. This mortgage was recently financed to a lower monthly payment. I told them about this a month ago and they were okay with it. Why would they be asking for the note now, after the closing?
    The debt went up, but only for the closing costs. That was it.

  18. Oswaldo May 19, 2013 at 5:57 pm Reply

    loan modification, mortgage refinance, home mortgage refinance

  19. Terrance May 22, 2013 at 6:46 am Reply

    Interest rates going up makes bond prices go down, but Ginnie Mae funds will be investing new money in those higher rates, won’t they?

    If rates go up, won’t mortgage refinances (at lower rates) decline?

  20. Charolette May 23, 2013 at 6:13 pm Reply

    I have a high interest rate mortgage, but I am current on it. I owe about 90% of the value. Since the gov’t is offering a mortgage refinance plan to lower the rates, maybe I should not make payments for 90 days?

  21. Porter June 1, 2013 at 1:13 am Reply

    Okay, I have been divorced for about 2 years now. In the seperation agreement, my ex agreed to sell our house ( that both our names are under the mortgage ) or refinance it within 3 years. With only a year left, I have a sinking feeling that he will not sell/refinance in time. What should I do if this happens? Since he signed court paperwork agreeing to sell/refinance within 3 years, do I need a lawyer? Attorney? Any help would be appreciated, thanks!

  22. Tawanda June 1, 2013 at 10:46 pm Reply

    I’m planning to relocate, but current owe a mortgage for $50k. I also have a bankruptcy on my record thats a couple of years old. I’d like to find new home in the state I choose to live in. Would I be able to get a second mortgage or refinance my current home in order to pay for a new one?

  23. Lorenzo June 7, 2013 at 7:02 am Reply

    We completed our mortgage refinance papers and mailed them to the broker. Another company has offered to beat that rate by a substantial amount and without any hidden fees. Are we obligated to pay the broker/dealer the $750 application fee. We just overnighted the papers and they have not even received them.

  24. Bryan June 22, 2013 at 7:22 am Reply

    Hello all,
    i ‘d like to know how to best use mortgage refinance, and usually for what reasons people refinance. Also does refinance ultimately cost more? I don’t need to lower my monthly payment, so I don’t have any clear purpose in mind. It is just that I have heard a lot of different views on refinance. I hope to get some insights and analysis from you out there. Thank you.

  25. Lavon June 23, 2013 at 5:38 am Reply

    I see there is a new program coming out for people that are upside down in their mortgages to refinance.
    It looks like it is only for people that have FHA or FMA loans. Is it possible to refinance a home from Conventional to a FHA loan? Even if I owe more than the home is worth at today’s values.
    So there is no way I can refinance an underwater loan to a cheaper interest rate?

  26. Alexa June 25, 2013 at 10:53 pm Reply

    I am closing on a house in May 2013 and am using the FHA 203k full loan to buy a home that needs serious (but easy) repairs and needs updating. Because it is FHA, I will be paying the UFMIP and will be rolling it into the loan. In 3-4 months once renovations are complete, I will be refinancing into a conventional loan because:

    1. The APR and terms are better and I easily qualify
    2. The monthly PMI on a conventional loan will be only .9% at worst (but likely .52% with my LTV ratio of 90) and FHA MIP is a standard 1.3% with LTV <95.
    3. If I do happen to have monthly PMI with conventional refinance, I will not be stuck paying it for the life of the loan like I would be if I kept FHA or refinanced into another FHA loan. A sarcastic thank you to the new FHA rules effective 4/1/13.

    I understand the tax rules change from year to year, but does anyone know that if I purchase a FHA mortgage AND refinance into a conventional in 2013, if the UFMIP can be itemized for my 2013 taxes in full? If I am correct, current tax laws only allow you to write off 1/30 of the actual UFMIP amount per year because it is rolled into and technically paid down over a 30 year loan. But that is set to expire at the end of 2013 anyway, so I would lose out on that deduction if I stayed with FHA unless the laws are extended.

    Thank you!!!

  27. Oswaldo June 27, 2013 at 2:57 pm Reply

    I have a high credit score (760), and was approved for my bank’s best rate. The refinancing process is taking awhile, and I would like to get a better rewards card than what I have. Would it be a bad idea to apply for a new credit card before the refinancing closes?

  28. Catarina July 10, 2013 at 6:53 am Reply

    We live in Ontario! We need an appraisal to re-finance our mortgage, and are unsure of what they look at on the property and what they base the value of the house on. Any tips would be appreciated!

  29. Tristan July 22, 2013 at 9:11 pm Reply

    I was coerced into taking a home equity loan along with a mortgage refinance four years ago. The max on the loan was 15,000, of which we spent around 9,000. Since the time we did this, the monthly payments have continued to climb because of the high interest rate, and late fees. The loan has been maxed out for several months. In February we turned the account over to a credit counseling agency we are using. Today I received a summons that will account for nearly 20,000. I have never had a late mortgage payment; can I end up losing my house because of the home equity loan?

  30. Katharina July 23, 2013 at 10:26 pm Reply

    I divorced last year. He was suppose to remove my name from the mortgage by refinancing it. My name was never on the deed. He started the refinancing process and canceled it because he would have to have a survey and appraisal. What can I do. I want to buy house of my own and I can’t with my name still on this loan. What if any can the mortgage company do?

  31. Luis July 29, 2013 at 12:27 am Reply

    I’m trying to find out if you can see a second mortgage or refinance on a tax record.

  32. Joella July 29, 2013 at 11:14 pm Reply

    Mortgage of about $95,000 for 15 years. Does about $3000 closing costs plus $1100 origination fee sound about right in South Carolina? This is with the same company that we already have mortgage with. I thought it would be cheaper to use same company. Note: attorneys must handle closing in SC, so that adds a few hundred bucks

  33. Serina July 30, 2013 at 11:01 am Reply

    I am a soon to be college grad that is currently interviewing with Wells Fargo to become a Credit Manager in the Chicago land area. Is the mortgage refinancing market a strong place to start a career right now? Fill me in on your thoughts. If you could, please tell me if you are in mortgage refinancing business or not. Thanks , The more responses the better.

  34. Hillary August 6, 2013 at 11:34 am Reply

    Can he help revive the housing market? How does the Fed implement monetary policy to manage the economy? Did the REFI (Mortgage Refinancing) Boom help the economic recovery?

  35. Pat September 18, 2013 at 12:16 pm Reply

    I am a loan officer for a mortgage company refinancing one of my clients. He is stating his income as he is self-employed. One of the conditions required by the lender is a 4506-T tax form. I forwarded it to my client, but he is hesitant to submit this form in fears of being audited by the IRS? What is the likelyhood of this actually happening and what would need to happen for the IRS to take such drastic measures? Otherwise I’m not sure why this is a requirement from the lender…
    Of course I haven’t been a loan officer for very long…if I had been in the industry for many years, I doubt I would be coming to Yahoo Answers to obtain smarmy replies from know-it-alls. But hey, you were all in the same boat at one point in your careers, right?

  36. Erik October 27, 2013 at 2:23 am Reply

    I just want to find out basic info about getting a mortgage, refinancing, home loans, fannie Mae, etc? Is there a place like a ? website or something? FHA? South Bay?

  37. August December 18, 2013 at 7:57 am Reply

    My brother helped me buying the house off. Now I need to finance the house to pay him back. Will this be considered a new mortgage, a refinancing or an equity loan (since they have different interest rates…)

  38. Delorse December 21, 2013 at 1:22 pm Reply

    I am working with my original lender to refinance my house, but I’m curious as to what advantages I have of looking somewhere else. Can the rates be lower from one lender to another or does the market pretty much make it the same for all?

  39. Indira December 23, 2013 at 7:29 am Reply

    home loan modification vs mortgage refinancing, are they the same thing?

  40. Jacki December 23, 2013 at 7:49 am Reply

    I have a mortgage that I am refinancing with another lender (and getting some cash out of the refinancing).

    $3600 is currently held in the escrow account for the existing mortgage with the existing lender. Property taxes are due in a few months. The settlement statement for the new mortgage, which will pay off the old loan, shows that I owe around $3600 for accrued property taxes, and so that $3600 will be deducted from the loan proceeds (not transferred from the old escrow account).

    So when the refinancing occurs, there will be $3600 in the old escrow account, plus a new payment of $3600 for a new escrow account, resulting in $7200 to pay property taxes. I’ll be shorted by $3600.

    The payoff statement from the existing lender states that “amounts held in escrow will be disbursed in accordance with federal law”. So I assume that I’ll have the $3600 sent to me from the existing lender.

    Is that the case? Will I get a $3600 check soon from the old lender? What federal law governs this? (I’d like to check it.)

    Thank you!

  41. Shena December 23, 2013 at 7:52 am Reply

    I have a high credit score (760), and was approved for my bank’s best rate. The refinancing process is taking awhile, and I would like to get a better rewards card than what I have. Would it be a bad idea to apply for a new credit card before the refinancing closes?

  42. Jillian February 1, 2014 at 11:46 pm Reply

    We are looking to combine our first and second mortgage on our home. current first approx. $80,000 current second approx $60,000 house value @ $165,000 would also like to have a little cusion in the bank. With less than perfect credit who is our best choice of lender

  43. Saundra February 2, 2014 at 10:11 am Reply

    Is there anyone who would know about this?.. and what do I need to do about acquiring this refinancing? any help would be appreciated
    First of all Ms Angie.. I am paying the taxes the lien was issued because I had sub par reprensentation.. when I was trying to the taxes PAID… so before you judge and shoot off at the mouth.., ask a few more questions

  44. Tristan February 2, 2014 at 10:29 am Reply

    is this a bad thing to do? how long should you wait before refinancing? and how does it lower your payment?

  45. Mary February 2, 2014 at 1:30 pm Reply

    based off of the most common outlook for the housing and financial markets, are mortgage and refinance rates going to decrease?

  46. Wilfred February 21, 2014 at 12:38 am Reply

    I’m trying to get my stepmom to refinance but she said her co worker and some other people told her that when they tried to refinance, they went to banks but they all said that “Sure you can refinance but you have to come back in five years and do it all over again and pay refinancing charges/closingcosts/etc fees”.

    I’m thinking they were telling my stepmom about ARM rates or something to the likes of that. But FIXED rates are guaranteed Locked-In, right? Unchangeable, right?

  47. Scotty February 21, 2014 at 5:11 am Reply

    I came across this question and have little idea has to how to structure it to solve the answers. Any help and comment will be greatly appreciated. Thank you 🙂

    Imagine you took out a mortgage in year 2000. The mortgage was for $600,000 (this is what they call a jumbo loan) at a 6% (fixed) interest rate for a 30 year loan. As you are no doubt aware, interest rates have fallen across the board and so have mortgage rates. Imagine this rate came down to 5% in 2010. Now, as always, we need to lay out an objective in answering the question. Let us stipulate that the objective of the individual is to minimize the sum total of interest payments. Answer the three questions below showing your calculations.
    1. Does it make sense for the individual to refinance (exactly 10 years after the initial mortgage was taken out)?

    2. What is the break-even interest rate? That is, at what interest rate would this individual be indifferent between refinancing and not refinancing?

    3. What other considerations might individuals take into account in the real world (other than minimizing interest payments)?

  48. Denis February 21, 2014 at 1:41 pm Reply

    When you refinance your home with another mortgage company then the one you have know, who lets them know you’ve gone with another mortgage company? Are there penelties? We are in a sliding rate and are trying to get into a fixed rate. thanks!

  49. Lashaunda February 21, 2014 at 6:23 pm Reply

    I bought several houses in my time and therefore thought I was an “expert” on getting a good mortgage. Now I’m looking for a straight answer on the best refinance rate, and a mortgage broker says pricing on loans includes factors that “were not there even one year ago”, such as: FICO score, loan to value, loan amount, occupancy, etc.” Can a mortgage rate vary according to my FICO score (or would I just be rejected if my score is too low)? What’s going on? Why is it so hard to get a mortgage rate out of a broker or a web site?

    btw, I have great credit, 80% equity, live in the house, and want to re-fi $117k, in NC.

  50. Reanna February 21, 2014 at 6:24 pm Reply

    Is there anyone out there that knows about refinanacing a second mortgage? Being a first time homebuyer we were duped into taking out a 13.5% second mortgage on our home. I cant find any info on refinancing this type of loan besides companies who cant be trusted. Any info would help.
    to the smarty pants who wants to make comments about what i can can’t afford. you dont know what I can or can’t afford. the reality it my husband and i prob make more than the two of you combined! But it doesnt matter how much money you make if your credit score is low because we pay mostly with cash! And the way the loan was explained to us was NOT the way it turned out to be.

  51. Franchesca February 21, 2014 at 6:37 pm Reply

    A recent divorce forces the need to refinance my mortgage. I am considering the FHA streamline refinance loan but I am not sure of all the details. I need to know if I can borrow more then I currently owe on my existing mortgage with this program. I have some other debts that need to be paid off with the equity i have built up in the home.

    I purchased the home in 2009 for $110,000, still owe $107,000 (it was a HUD home and I had instant equity after closing).

    The home is actually worth about $140,000 – $145,000, so in theory; I have about $33,000 – $38,000 in equity.

    So my question is this: Can i borrow the full amount of what the house is actually worth or can i only borrow what I currently owe?

  52. Jayne February 21, 2014 at 11:16 pm Reply

    Hi All,
    I have a 5 yrs term mortgage that I got 2 years ago for a 4-plex I purchased. Last month I contacted an appraiser who appraised the property. Based on the appraisal the property is worth around 100K more than purchased. This means I can apply for refinancing and potentially take out some equity from the house.

    The mortgage is with excellent conditions – good interest. I got it through a mortgage broker with a big bank in Canada.
    I have 2 options for the purpose of refinancing: either contact the bank who provided the mortgage directly OR apply through a mortgage broker who can decide to work with different banks.
    The problem with going with a mortgage broker is that he already told me the new conditions will be worse than current conditions I have. If the current bank approved my refinancing application it would be with the same or better conditions! On the other hand, if I go with the current bank am I not taking a RISK THAT IF THEY DO NOT AGREE to refinance the property because I do not meet their criterias (I am self employed now), then they will also NOT automatically renew my mortgage in 3 years when term is over!? Note: if I do not contact them now, then my understanding is that the bank will automatically renew my mortgage since that is the law in Canada: as long as you pay all your mortgage payments on time, the mortgage is renewed automatically without the need to re-apply/go through the application process again!
    I’m just not sure if I contact them now for refinancing and fail, that they will not keep record of my new ‘bad’ information (i.e. self employed, less stable, etc. whatever caused them not to approve me) and NOT automatically renew my mortgage when the term is over!



  53. Bertram February 21, 2014 at 11:16 pm Reply

    I’ve heard from a friend that Obama came up with a new plan, anyone know what that is or about? Whats the right way to go to lower my payments without having to refinance? Thanks

  54. Adeline February 22, 2014 at 2:24 am Reply

    I’m two years into a 5 year ARM with an interest rate of 4.375%. I’m worried that interest rates will just keep climbing and that I’ll suffer for it in the long run if I don’t refinance. I do have a 2% cap per year after the fifth year. The rate could get to above 11% total if I don’t refinance. However, I just cringe at the thought of refinancing at a HIGHER rate, even though it may be better in the long run.
    Just to clarify, the ARM is fixed for 5 years (but can go up 2% a year after that) and I’m considering refinancing into a 30-year fixed loan, even though the rate will be higher.

  55. Nicolas February 22, 2014 at 4:36 am Reply

    I need to know if this a good time to refinance an existing home mortgage. I purchased a home in san antonio in may 2009 at 6%. What are the best banks who would offer me low refinancing rates?

  56. Cristopher February 22, 2014 at 4:36 am Reply

    if you are going to refinance to a lower interest rate. how much lower should the rate be for it to be worth your while.currently 6.5

  57. Elizebeth February 22, 2014 at 4:36 am Reply

    My mortgage payment is currently 4200 per month. I have two loans, one at 9.75 for 15 years and another at 6.75 for 30 years. I purchased my home in October 2006 (I know, I should’ve waited) and would like to refinance to make my mortgage payments more manageable. Can I refinance so early into my mortgage? Any ideas or suggestions would be greatly appreciated.

  58. Dell February 22, 2014 at 4:46 am Reply

    John and Jane each own 50% of a piece of property. That property has a mortgage. About 10 years go by and John is now taking all the responsibility for taking care of the property; other than being listed on the deed, Jane is not involved at all. John refinances the mortgage without Jane’s participation. Is Jane liable for that new mortgage? Or is Jane’s financial responsibility basically paid off when the first mortgage was paid off by the refinance? Or could Jane have been put on the new mortgage without her knowledge or consent?

  59. Lesley March 9, 2014 at 7:11 pm Reply

    I was in an accident and got behind on my mortgage. I was able to get countrywide to refinance my mortgage and roll my past due amount back into the note. A month after I refinanced I found out that my note was sold to bank of america. My new mortgage payment was suppose to take affect in May. BOA is not recognizing my refinance. They say that it may take up to 3 more months for them to approve the refinance. Now I’m worried that they are going to foreclose on my house. They are taking my payments but not cashing the checks. Is this legal for BOA not to recognize my refinance?

  60. Sara March 16, 2014 at 1:15 am Reply

    Would it be worth refinancing a home loan to get a lower rate? We could decrease the rate from 6.5 to 5.5 but it would add $12,000 to my current loan amount. It would remain a 30 year fixed. We’d also get to skip two months of payments (which is actually added into the loan, not really “skipped”); but it’s still money in hand. The current mortgage is less than a year old. Would the refinance be worth it?
    I forgot to say, there are no prepayment penalties. And the added money to the mortgage will make the mortgage more than the house is currently worth (though that may change eventually…hope I hope).

  61. Xiao May 1, 2014 at 11:00 pm Reply

    Is it better to try and refinance with your current mortgage company or go out to another company and refinance? Does it really matter, will it be the same percentage rates anyways?

  62. Benedict May 28, 2014 at 9:11 pm Reply

    Is there any length of time for refinancing a home that you just purchased?

  63. Odis June 16, 2014 at 3:18 am Reply

    I am running into some hard times and want to refinance my mortgage is this the best way to save some money or should I wait I have only had my house for a year and need to save money somewhere any suggestions

  64. Cleopatra June 19, 2014 at 2:45 am Reply

    We have lived in our house for 3.5 years and plan to purchase a new home in 1.5-2 years. Our mortgage is 6.25 30 year fixed. We took on a 2nd mortgage about a year ago to pay off debt. Now we want to refinance and roll the two together with our existing car loans and credit card, so we can fix any credit problems, make payments easily, etc. so it will be easier to buy the next house. The new rate being offerred is 6.95%. Our mortgage payments will be $400 more, but we will be saving an additional $400 in monthly payments. We figure our credit will improve greatly. We were worried about paying down a credit card “over 30 years”, but the refinancing co. reasoned that we will only have this “bigger” mortgage payment and interest rate for the next couple of years; it’s the mortgage for the new house we need to be concerned about. (And by doing this, we will improve our credit and chances for a better mortgage next time.)

    Hope that’s enough info. for detailed info on pitfalls of refi.
    Thanks for the replies so far. Here’s more info:

    Mortgage: 180K
    2nd: 30K 15 year fixed at 9%
    Credit cards: 8K at 21%
    Auto loan: 7K at 8%
    Home value: approx. $255K (conservative).
    Mortgage payments + current loans = 2400/month.
    Refi payment would be 2000, incl. closing costs, taxes, insurance, etc.

    We could pay off credit cards by the time we want to move, using bonuses, etc. but right now it is hard to make payments on time.

    P.S. I can’t do the math figuring the percentages over time, etc. I am just awful at it and my head is already spinning!

  65. Collette June 23, 2014 at 9:28 am Reply

    Are refinancing and mortgage rates different? Also, is refinancing closing cost higher than mortgage closing when buying new home. I bought a home 10yrs-Fixed-ARM in June’07 at 6.25 and now the rates are 5.75. I will save $200 per-month if I get 5.75. Should I refinance? Advise please. I have good credit.

  66. Laci June 24, 2014 at 10:17 am Reply

    I lost my job and was out of work for seven months. I got behind on my mortage payments and am on a pay plan at the bank.
    Will they let me refinance? I only owned the home for about two years?
    What is reconfirming your loan mean? Please help!

  67. Willard June 24, 2014 at 1:23 pm Reply

    – Just for my own info.

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