Refinance Your Home Loan

Which is Better? Loan Modification or Refinance?

Which is Better for My Situation? Loan Modification or Refinance? If you're currently facing a situation where you are not sure if you're going to lose your home you probably want to know your options before defaulting on the mortgage. You may have heard of the terms refinance and loan modification but really not understand the differences and which would work best in your situation. There is a difference between these two routes; one is more permanent and one is a temporary fix. One of the first things you need to do is contact your lender and let them know that you [...]

Pros and Cons to the 15-Year Mortgage

Pros and Cons to the 15-Year Mortgage

Whether you are considering a 15-year mortgage as a first-time loan or as a refinance, there are pros and cons to the setup. Let's first talk about a brand-new mortgage. Let's say you are considering a $300,000 loan and a 30-year mortgage. This loan will be amortized over the 30 years, which means you will start off paying higher interest first and more and more principal as the loan matures. Most lenders will give you a lower rate if you choose a 15-year mortgage over a 30-year mortgage but the benefits may not outweigh the interest rate savings. For instance, let's assume [...]

How to Do a Cash-Out Refinance on a Rental

You have a rental property. You don't want to give it up but you do want to refinance it because rates are low and you may have purchased the property when rates were high. Or, you're just looking to pull some money out of the rental property to either improve that home or maybe your primary residence. Whatever the reason, there are some tricks to refinancing a rental property. If your rental property has increased and equity over the last few years you might want to pull some of that money out for a variety of reasons. Maybe you want [...]

Should I Refinance Before Rates Go too High?

If you are among the nearly 87 million homeowners in the United States, at some point, you've probably thought about refinancing unless you've just moved into your new home. Refinancing does a lot of different things, and it all depends on why you are refinancing. If you purchased your home back in 2007 or 2008, it might be time to take a different look at your home loan. You might consider pulling some money out for home improvement, sending a kid to college, changing your terms or lowering your monthly payment. Refinances are still very popular. Over 7 million or [...]

How to Get Rid of Mortgage Insurance or a 2nd Mortgage

As values have gone up over the past couple of years it might be a good time to look into eliminating your mortgage insurance. If you purchased a home through an FHA loan or other type of mortgage that required mortgage insurance because of a low to zero down payment, the mortgage insurance will not automatically drop off and will carry on the life of the loan. These mortgage insurance premiums can range in price depending on the loan and length. The FHA upfront premium is 1.75% of the loan and is usually rolled into your monthly mortgage payment. [...]

Mortgage Insurance Reductions - More People Can Afford a Home

Mortgage Insurance Reductions – More People Can Afford a Home

It's a great time to refinance, and I'm not just saying that. The proof is in the pudding. Refinances rose 7% in January according to the Mortgage Bankers Association. Mortgage applications increased by 29% the first couple of weeks in January. This is primarily due to the FHA's newest rules to cut mortgage insurance premiums. They recently cut their insurance premiums for the first time in two years. FHA insurance premiums went down from .85% to .60%. Why does this matter? Because those that could previously not afford an FHA mortgage can now afford that. Mortgage insurance has been a added deficit for many [...]

Refinancing After Mortgage Modification

Refinancing after a mortgage modification is something we get asked about quite frequently. Those that have had a modification to their mortgage have usually done so because they've proven to the lender they've gone through a financial hardship and can no longer make the monthly mortgage payment but still want to keep the home. Lenders usually don't approve modifications unless you have a good chance of repaying the debt under modified terms. Sometimes that modified term could be a refinance permanently or a short-term refinance or modification to the monthly mortgage payment until you can get back on your [...]

The 4 Biggest Refinance Questions

You've heard about refinancing, you've seen Joe and Mary down the street pull out $20,000 for a kitchen remodel, which you know they didn't have in the bank and you're wondering if refinancing is a good option for you? As a loan officer, I've heard just about every question out there and these seem to be the four biggest. #1. How does refinancing actually work? Refinancing is not a modification of your existing loan but a completely new loan with new terms. If you took out a 30-year mortgage five years ago on your home and now you want to refinance to [...]

When Does Refinancing Make Sense?

If you're considering a refinance you're probably doing your research beforehand, hence why you may have stumbled across this post. Refinancing a home loan can be a great idea for many reasons, pulling money out for remodels, lowering payments, or decreasing terms.  Refinancing too often is probably not the best idea because it's just not worth it and you may have a pre-payment penalty. However, if it's been at least 3-5 years since you obtained the original mortgage or a refinance, you may want to look into the possibility of a refinance and if it makes sense. Let's think about [...]

10 Reasons Homeownership Is Better Than Renting

No Closing Cost Refinance

No Closing Cost Refinance When refinancing property that you already own, do you still have to pay closing costs?   You might think, since I already own the property why do I have to pay closing costs like when I purchased a new property?   Each time you get a new loan on your property, you still have to go through the approval process to verify that you are able to repay that loan.  (Exceptions: FHA streamlines and VA IRRRL) As you go through the process of getting approved, there are dozens of people involved that take your loan from point A (initial application) to [...]

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