What is home mortgage refinancing? In simple definition, home mortgage refinancing is paying off an old mortgage and getting a new one. You can also define it as a new loan which substitutes an existing mortgage that is guaranteed by your same assets. Why would I want to pay off my old mortgage loan just to replace it with a new one? What will I benefit from this financial action? 1. Home mortgage refinancing can be very helpful to those with existing mortgage loans as acquiring such refinancing will provide the borrower with many benefits. 2. First of all, interest rate costs can be dramatically reduced. This can be done by the replacement of the original loan with the refinance mortgage loan that has a much lower interest rate. 3. If you get a new mortgage loan that has a much longer term, your payment obligations can be reduced. 4. If by any chance, your existing loan is one with a variable rate, the risks that go with it can be reduced if not totally eliminated by replacing it with a fixed interest rate mortgage loan. 5. Home mortgage refinancing can also be done to transform available equity of a property into quick cash that can be used for other expenses. It is also likely that a home mortgage refinancing will lower the already owed monthly payment on the mortgage loans. This can happen by changing the loan’s interest to a much lower rate or by extending the loan’s term thereby spreading the payments over the extended period of time. The cash that is saved can be utilized eventually to reduce your loan’s principal and consequently lowering your payments further. More Reasons to Consider Refinancing Mortgage Another reason why you might to consider refinancing mortgage is to lower whatever existing risks there are in an existing loan. Loans with adjustable rates actually have interest rates that fluctuate, meaning their values go up and down depending on a number of prime rates. By changing an adjustable rate mortgage loan (or Balloon loan) to a fixed rate mortgage loan, it eliminates the risk of increment of the interest rates and a stable conditioned refinance mortgage rate is achieved over time. If you have a debt with a high rate of interest, for example your credit card debt, such debt can be possibly refinanced with a loan having a lower interest rate, an example of which is a home mortgage loan. Another reason for considering home mortgage refinancing is to be able to utilize your improved credit report. For example if you have gotten a bad and undesirable loan because of a poor credit history, you might want to try bad credit home mortgage refinancing in case your credit rating has improved some time after you got your original mortgage loan. And most probably you are bound this time to enjoy a lower rate of interest and better loan term.
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What is the Best Mortgage Calculator for Home Equity Loans and Home Refinancing?I am searching for the best mortgage calculators. Interest Only calculators and simple home mortgage calculators and loan calculators. I used the ones at http://www.1mortgagecalculator.net/index2.php and they seem pretty good. Just looking for comparisons.
Your mortgage payment is wayt above what you can pay for a home, so you should sell the house. You need to know up front though, that by filing for a BK, you have just put yourself into a higher risk category for lenders – which would mean higher interest rates and probably not a 100% loan, right away.
If you filed the BK by yourself (without the husband) that is going to help him to get a mortgage by himself – he is the one working anyways, and you can always be added to the title even if not on the mortgage.
You don't need to necessarily wait until May to sell. Some Prepayment penalties are "hard" and some are "soft". Soft means that if you sell rather than refinance, the penalty may be waived – check your paperwork from the closing. If it is "hard", then waiting until it expires usually is the best option, but you can start selling before May, just not close on the escrow until after the PPP ends in that case.
You should definately start with a mortgage professional, this will give you an idea of how you'll need to structure a new home loan and what exactly you will likely be able to afford. Then, take that info to a Realtor who can assist in both selling your home, and in buying a new one. For the double transaction, you may be able to negotiate a smaller fee for the sale of your home – say 5% rather than 6%, but this would depend on state, specific market, and company that you find.
Best of luck. If you need some general info please feel free to use my website at http://www.fnmshome.com
Managing your finances is a complicated issue. For one, you have a mortgage and want to pay it off. Two, you want to have enough money saved for retirement. Both go hand to hand when managing your finances.
You say you have $143k left to pay on the mortgage. I'm assuming this doesn't include the interest portion of the payment. So you may need more than $143k to pay it all off. I don't know what retirement plan you have, but I'm guessing your $145k in your bank is your retirement money because that is alot of money to be sitting in a bank account. I wouldn't recommend using any of your retirement money to pay off your debt.
If you were my client, I would be examining your entire financial situation and make recommendations. I would need to know:
1) your age,
2) your financial goals (when you plan to retire? do you have young children? do you want to fund your kid's education? do you want to plan for a big vacation? do you want to pay off your debt?),
3) how much income you earn,
4) gather all financial documents and statements from you (your latest pay stub, mortgage documents, bank statements, any other financial statements such as 401(k) at work or mutual funds that you own, credit card statements, and any life insurance policies)
With all this information, I would be able to create the best financial plan for you that will help you pay off your mortgage and save even more money toward retirement and any other goals you may have.
If you decide to refinance, just make sure your loan does not get stretch back out to a 30 year loan. Always make sure the interest rate if fixed and not adjustable. I think the best company that can help you pay off your debt sooner with less money is Primerica Financial Services. They have this debt program called the SMART loan. I have seen it and its probably the best loan I ever seen because the loan aggressively attacks the principal amount (which is the money you owe) than a traditional mortgage. This saves the client over tens of thousands of dollars in interest payments and gets you out of debt very quickly. Unfortunately, only a small handful of people can qualify for it. If you go to them, they can explain how it works and also create a free financial plan for you.
Not through a bank. You will need to find an owner who will want to finance the property for you. These are risky deals so tread lightly.
Just a though, you say you "hate throwing my money away in renting situations". I have to ask, if you had stayed a renter, how much money would you have saved over the years? You would not have had a foreclosure on your record. Your credit would probably be in much better shape. The higher interest rates alone that you are going to pay because of the hit your credit has taken will cost quite a bit. How about the closing costs that were associated with the house? Was there any money you put towards the house? Repairs you made. this is all money lost because of a foreclosure.
I am not trying to knock you so please don't take it as a personal attack. I don't mean it that way at all. It's just that renting is not that bad of a thing. There are times when renting can be the financially sound thing to do. Just because you are paying a landlord does not immediately mean you are throwing money away. Especially if you save money during that time.
Good Luck!
Well I would never recommend bankrupcy to anyone..it's gotten much harder to file for it. But you're never going to pay those debts making $25,000 a year. All of your money is going to interest. I'm not an expert, but this is a bad situation. Even a second job probably won't help you. Talk to a financial counselor and see what they say.