2006-12-07 11:11:00 · 7 answers · asked by drinabeana 1 in Business & Finance ➔ Renting & Real Estate
I bought a house one year ago and ran into financial problems; I put the house on the market sold it and got myself out of a bad situation before it got really BAD
2006-12-07 11:15:01 · answer #1 · answered by gallagher g 4 · 2⤊ 0⤋
Be careful whatever you do... You may be able to save in the short term, but will it pay off in the long term? For example, say you have a 30 year loan and you refinance to a 40 year loan to get less expensive payments. Now you will pay 10 additional years in interest payments. Also, when refinancing you still pay closing costs, so add that into your calculations. Be wary of people that promise you a deal that sounds too good to be true. It probably is.
You have only owned your house for 6 months. Not sure how much you put down, but I assume you have not made a huge dent in the principle. While interest rates are pretty low, will it indeed payoff in your particular case? It might, and I hope you get what you are seeking. I am just telling you from experience that I see many people do rash things with there house in tough times. You certainly do not want to lose it or put yourself into a worse spot and lose your home.
Is there anything else you can cut out to reduce your monthly bills? Such as, eating out, cell phone, car payments, etc. Do you expect your financial problems to end? Can you justify the costs of refinancing and will it pay off?
I sincerely wish you the best of luck!
2006-12-07 11:26:23 · answer #2 · answered by BlankProfile 3 · 0⤊ 0⤋
It depends why you are refinancing. If it is to clear credit card debt that you will run back up. Then it is not a good idea.
It depends what you your current mortgage is and what your future mortgage is going to be. If you are going from a fixed to an ARM, it is bad idea. If your rate is going up it is most likely a bad idea.
You probably want to ask yourself if it is a quick fix to a long term problem. Will you have to refinance in again in 2 years?
If you are getting into a good conventional loan and you will be able to get yourself financially stable (for the long run), then maybe it is the best option. Otherwise, it may be prolonging the inevitable, or worse, making your financial situation impossible in the future.
In my experience it is rare that this is the best option, but you gave very little to go on. My advice would be to make refinancing an option only if it is a long term fix to your financial situation.
2006-12-07 12:14:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You need to talk to mortgage company and see if you can refinance without penalty or cause. I you are allowed, you should be able to use the appraisal because it was only six months ago and would check into that to save you an appraisal fee. If you have the equity you might consider a second mortgage or home equity line to get you out of financial problems.
2006-12-07 11:26:31 · answer #4 · answered by Melissa 2 · 0⤊ 0⤋
IF your payments are going up because you got suckered into one of those ARMs and can now get a stable 15, 20 or 30 year fixed . . . YES
If you have a fixed & are considering an ARM with a teaser rate that will lower your payments for 6 months then sink you into bankruptcy . . . NO
Sorry, but your question was wayyyy vague, no specifics.
2006-12-07 11:22:20 · answer #5 · answered by kate 7 · 2⤊ 1⤋
Why are you in trouble now just after six months? did you get suckered in to a ARM loan? If you are having trouble due to the home at the very least i would not go back to that agent.
2006-12-07 13:06:22 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I was always taught, if there is at least a one point difference in the mortgage per cent rate, it is good to refinance...Especially when you have financial difficulties...
2006-12-07 11:16:20 · answer #7 · answered by Anonymous · 1⤊ 1⤋