Home mortgage Refinance options

Home Mortgage Refinance

Q. I was late with a mortgage payment and was told I would have to wait a year from the date of the late payment to refinance my home loan. I'm in my second year of a 3.5 percent adjustable-rate mortgage. My credit score is about 690, and I have no other late payments. I wanted to refinance to pull out cash to pay bills and finish a renovation on my home.

I've been told that cashing out equity is difficult these days and that one late mortgage payment is not helping my situation. I'm working diligently to pay down bills, but I'm exhausted, and at this pace it would take three to five years — or more — to pay down my bills. Besides the obvious (cut up the credit cards, which I haven't used in months), any advice?

A. If you have a 3.5 percent interest rate now, you probably won't find a much better rate around, and refinancing will likely cost you.

It seems that you want to refinance not to get a better interest rate but to get cash out of your home.

Based on what you've told us, it seems unlikely that you'll find a lender willing to refinance your loan, given your relatively recent late payment on your home loan. It is that very loan that lenders want to see paid on time, every time.

Second, if you were able to do a cash-out refinance, it might only be at an interest rate higher than what you have right now. While interest rates remain low, we're not sure if your credit score — which is fine, but not great — will get you a better rate, or even one as good as what you have.

Obtaining a higher rate means you're paying more — perhaps a lot more — over the long run. You've already chosen an adjustable-rate loan to get a lower rate. You didn't indicate the term you chose, but you'll benefit from that low rate for the initial fixed-rate term you wanted, perhaps as long as seven more years. That's not something to just throw away.

If you are able to get a cash-out refinance, you'll wind up paying more each month (if you're able to get the same rate) and something above that if the interest rate is higher.

You're right that cash-out refinances are hard to get these days. You should speak with several mortgage lenders and mortgage brokers in your area to get more information about options available to you.

Don't give your Social Security number to every lender. Pull a copy of your credit history from AnnualCreditReport.com and show that to the lender. That's enough information for them to have a frank discussion with you about your options.

Finally, you indicated that home values have gone up. If you have less than 30 percent equity, you probably won't get too far with most lenders. If you do have substantial equity in the home, your ability to refinance or even obtain an equity line of credit will be easier. Again, you will need to discuss all of these items with a loan specialist.


Owe More Than Your Home is Worth? Learn About Options for Homeowners with Underwater Mortgages.
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Own 2 homes with mortgages- looking for ideas

2012-02-25 10:12:37 by The_Nation

So we own two homes and I'm curious about options for refinancing /consolidating etc
I've used the same mortgage broker for years and he's always been great but figured I'd post this and see what kinds of ideas CL could come up with
On our primary home we have 490k balance on a 15 year 4.75 % fixed loan - home has about 250k in equity conservatively (might be 300?)
On our 2nd home we have a 440k balance with a 5/1 ARM at 3.95% with about 140-150k in equity
For the second home our options were limited because of the timing (total mortgage mkt meltdown point ~1

Protect Homeownership and Crack Down on Mortgage

2008-05-13 13:54:06 by Titania

Obama will crack down on fraudulent brokers and lenders. He will also make sure homebuyers have honest and complete information about their mortgage options, and he will give a tax credit to all middle-class homeowners.
Create a Universal Mortgage Credit: Obama will create a 10 percent universal mortgage credit to provide homeowners who do not itemize tax relief. This credit will provide an average of $500 to 10 million homeowners, the majority of whom earn less than $50,000 per year.
Ensure More Accountability in the Subprime Mortgage Industry: Obama has been closely monitoring the subprime mortgage situation for years, and introduced comprehensive legislation over a year ago to fight mortgage fraud and protect consumers against abusive lending practices

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Mortgage Interest Deduction Saves Middle Class Taxpayers All Of $51/Month  — Forbes
A household making $45,000 in 2012 could expect to buy a home priced 2.7 percent higher than they would have without the mortgage interest deduction.

Dec. 23, 2013 Enrollment Required for Jan. 1, 2014 ACA Coverage  — Peninsula Pulse
A: Under the ACA, exchange plans and many others must provide certain types of preventive screenings and shots free, before an individual's deductible is met (and without charging a co-payment or co-insurance).

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Despite the increasing interest, the Obama administration late Thursday rolled out yet another revision to the Affordable Care Act.

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