Are You Considering Re-Financing?
Homeowners who are considering re-financing their home may have a wealth of options available to them. However, these same homeowners may find themselves feeling overwhelmed by this wealth of options. This process doesnt have to be so difficult though. Homeowners can greatly assist themselves in the process by taking a few simple steps. First the homeowner should determine his refinancing goals. Next the homeowner should consult with a re-financing expert and finally the homeowner should be aware that re-financing is not always the best solution.
Determine Your Goals for Re-Financing
The first step in any re-financing process should be for the homeowner to determine his goals and why he is considering re-financing. There are many different answers to this question and none of the answers are necessarily right or wrong. The most important thing is that the homeowner is making a decision which helps him achieve his financial goals. While there are no right or wrong answer to why re-financing should be considered there are, however, certain reasons for re-financing which are very common. These reasons include:
* Reducing monthly mortgage payments
* Consolidating existing debts
* Reducing the amount of interest paid over the course of the loan
* Repaying the loan quicker
* Gaining equity quicker
Although the reasons listed above are not the only reason homeowners might consider re-financing, they are some of the most popular reasons. They are included in this article for the purpose of getting the reader thinking. The reader may find their mortgage re-financing strategy fits into one of the above goals or they may have a completely different reason for wanting to re-finance. The reason for wanting to re-finance is not as important as determining this reason. This is because a homeowner, or even a financial advisor, will have a difficult time determining the best re-financing option for a homeowner if he does not know the goals of the homeowner.
Consult with a Re-Financing Expert
Once a homeowner has figured out why they want to re-finance, the homeowner should consider meeting with a re-financing expert to determine the best refinancing strategy. This will likely be a strategy which is financially sound but is also still geared to meeting the needs of the homeowner.
Homeowners who feel as though they are particularly well versed in the subject of re-financing might consider skipping the option of consulting with a re-financing expert. However, this is not recommended because even the most educated homeowner may not be aware of the newest re-financing options being offered by lenders.
While not understanding all the options may not seem like a big deal, it can have a significant impact. Homeowners may not even be aware of mistakes they are making but they may here of friends who re-financed under similar conditions and receive more favorable terms. Hearing these scenarios can be quite disheartening for some homeowners especially if they could have saved considerably more while re-financing.
Consider Not Re-Financing as a Viable Option
Homeowners who are considering re-financing may realize the importance of evaluating a number of different re-financing options to determine which option is best but these same homeowners may not realize they should also carefully consider not re-financing as an option. This is often referred to as the do nothing option because it refers to the conditions which will exist if the homeowner does not make a change in their mortgage situation.
For each re-financing option considered, the homeowner should determine the estimated monthly payment, amount of interest paid during the course of the loan, year in which the loan will be fully repaid and the amount of time the homeowner will have to remain in the home to recoup closing costs associated with re-financing. Homeowners should also determine these values for the current mortgage. This can be very helpful for comparison purposes. Homeowners can compare these results and often the best option is quite clear from these numeric calculations. However, if the analysis does not yield a clear cut answer, the homeowner may have to evaluate secondary characteristics to make the best possible decision.
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How to finance a new Mustang with bad credit and low down?Any ideas? I make good money, nearly 3-4 thousand dollars a month. But I'm self employed and have collections because of past medicals. Does Ford Motor finance people like me? I talk to dealers here and they try to take 3-4 thousand down to switch me to a 2002 escort.
May 16th, 2009 at 3:16 pm
Contract salary can be usable, depending on how long we are able to verify continuance there of, or establish expected length of employment, some loan programs you can utilize bank statements fro 12 months and they will determine income from your deposits over that period of time. In your case, if you are going full time you should be fine, sounds like hogwash if you are told different.
Email me and we can look at your refi options free, no obl. jimbobmrjim@yahoo
May 16th, 2009 at 3:46 pm
No real options here. Look at it from the bank's point of view: their risk HAS increased over the nine months of your loan because the house had decreased in value and their coverage is less than when they made the original loan. They don't want to reduce your interest rate for increased risk.
May 16th, 2009 at 9:08 pm
A F/A is generally better at investing (you hope). In refi a mortgage, you can talk directly to lenders and they will run scenarios on what costs and savings might be for your situation.
F/A can charge either a fee for service or commission on transaction but not both. In this case it would be a fee for service- advice.
Just go directly to lends and get written quotes.
May 17th, 2009 at 11:56 pm
Short Sales the bank has all the control, they will set the price and terms. The bank may if your lucky delay the auction for a short sale but don't hold your breathe. Most auctions recover most of the debt on the properties now days as there are so many who go to the auctions anymore and are properly prepared to purchase. Save what you can, possibly get private money loan.
May 18th, 2009 at 7:48 pm
You may be considered a first time home buyer again if you don't home a home for a period of time. Many states offer first time home buyer programs. Often times, these programs consider a first time buyer someone that hasn't owned a home in the past three years (or a certain specified timeframe that the state uses as a guideline).
So, it may be worth checking into what grants and assistance are offered in your state. Check out the site below for more details.
Good luck!
May 18th, 2009 at 11:28 pm
You haven't given us enough numbers to work with. If half of your income (almost $600) goes to the car then you better not commit to a lease! No more than 1/3 should go towards rent. Check the classifieds for garage apartments owned by individuals, you can find good deals and not be stuck with freaks living all around you.
WHY is your insurance so high? I have full coverage for less than $85 per month.
May 19th, 2009 at 2:20 am
Although you may not be on the note, for various reasons, you may still be on the title.. this would especially be true if you never quit-claimed the home to him as part of the divorce proceedings. Although MANY divorce decrees have specific language in them which can give effect to setting a home to another party, its usually good practice to have one party quit-claim the home to the other, usually simultaneous with refinancing.
If you're not on the current note, then I would consult with a general practice attorney to make sure that the reason they are naming you as a defendant is as I mentioned above. The attorney you had in the divorce can also probably answer this question.
IF, and ONLY IF, the reason you're named in the foreclosure is because you're on the title, and not the note, you probably have little to worry about. You have no real interest in the house, its just an administrative function.. BUT, to procect yourself, take the legal paperwork to an attorney licensed in your state. For a referral, contact your local or state bar association.
May 19th, 2009 at 9:33 pm
You broke your loan agreement when you missed payments. Even though you caught up, it doesn't change broken contract. See if lien holder will work with you, but it sound like they have already made their decision. The bad news is that if they sell it at auction and don't recover the full amount you owed, you will still owe the remainder. EXAMPLE: $5000 owed, car sells for $4000 at auction, you still owe $1000 for a car you don't have. The creditor can garnishee your wages or seize your property to pay off dept.
May 19th, 2009 at 10:58 pm
While my normal answer on this forum is to find an attorney that specializes in real estate law, that isn't where I would go first in this case.
Your first stop should be the attorney that handled your divorce, as this sounds like a mortgage holder that is simply putting every name they can find on the foreclosure.
Have the lawyer read over the documents, paying special attention to the dates on your ex-husband's mortgage, and looking for anywhere that you could be considered liable.
Divorce attorneys are pretty good at straightening out financial messes, and this isn't really a real estate question unless your name is either on the deed or on the mortgage.
One other possibility would be if your ex took out the mortgage before your divorce was final. That could possibly get a bit sticky, depending on the laws in your state.
Even there, however, the divorce lawyer is the person that has the expertise to know how to handle it, and your lawyer already has much of the background information.