say i have a 15 year mortgage with about 50k left on it, if i want to refinance to 30 years...can someone tell me how it works?
2007-01-16 15:30:37 · 9 answers · asked by waddle02 2 in Business & Finance ➔ Renting & Real Estate
do we get any money back? such as the difference of how much i have on the mortgage and the value of the house?
2007-01-16 15:41:25 · update #1
well say i refinance with 50k left on my current mortagage, but my house is worth twice that, would i get the left over money after all the fees?
2007-01-16 18:02:37 · update #2
Sure... take what you owe 50K add 2K-3K in closing costs, this gives you a loan amount of about 53K. As long as the home is worth at least 55K you should be OK. Your payment should be dramatically lower because you went from a 15yr term to a 30yr term. Do it now, because a lot of lenders these days will either charge more to do a loan under 50K or won't do it at all. Consider paying down some debt, within the loan, to increase the loan amount (a 6% mortgage rate is cheaper than most of your credit card rates). Also, now's a good time because rates are low because of the season. As soon as March hits, the rates will start going up and won't stop until the end of Oct.
2007-01-16 15:52:05 · answer #1 · answered by Alex G 1 · 0⤊ 0⤋
Hello,
The process is not that long ( a few weeks). Yes, you can get cash back when you refinance your home. The amount you get is based on how much equity you have built up in the home. (Value of the home minus(-) the Amount of Owed on Mortgage = Equity)
You can consolidate your bills and get cash back if you have enough equity built up in your house. You may still get lower monthly payments then you have now.
Your original mortgage will be paid off with the refinancing, along with any bills you want to consolidate.
Part of the process is to pull your credit.
Contact me if you would like a free no hassle analysis to refinance your home. I am a mortgage specialist and I work with hundreds of lenders for great credit and low credit.
maxxy11@yahoo.com
Subject Line: Home Mortgage
2007-01-19 08:15:11 · answer #2 · answered by maxxy11 1 · 0⤊ 0⤋
The only money you would get "back" would be any additional loans you'd like to take out. I do not know if they're roll that into your big loan or if they'd just refinance just like the people before me have explained and once that's done you could take out a home equity loan, that is you can borrow money against the equity on your house.
The simple answer is that NO you will not get money back. The only reason to refinance is to decrease your monthly payments if that's your goal. Once you've decreased your monthly payments, you do leave room in your monthly finances to be able to take out a loan against your equity if it's spare cash you're after.
Talk to a bank for concrete answers. Talk to a few, actually. The good ones would be happy to break it down for you and it would be most helpful if you'd tell them what your goal is so that they can tell you how to best achieve it.
2007-01-16 17:00:14 · answer #3 · answered by mickeymouse 2 · 0⤊ 0⤋
You apply for a loan to pay off your existing loan. The lender will run through an approval process similar to when you were approved for the original loan. You can just pay off the current loan and roll in any closing costs (rate and term refinance) or you can take additional cash out (cash out refinance). The lender may require an appraisal on your home. The rate you are granted on your new loan will be based on current market rates.
The cost for this loan will depend on what local costs are. Here in Michigan it's usually about $1200-$1500.
2007-01-16 15:37:24 · answer #4 · answered by mortgagelns 3 · 0⤊ 0⤋
Here is breakdown of your questions:
1. Your current mortgage of $50,000 will be paid off by a new lender (or new loan from the same lender) and NEW mortgage will exist in its place. This is essentially what refinancing means. Unless you want to pay the closing costs out of pocket, expect your loan balance to go up by a few thousand dollars.
2. Your home's value minus all mortgages equals your available equity - in other words, the amount of your home that you own free and clear.
2. RATE AND TERM REFINANCE = The old loan is replaced with a new loan of the SAME value (plus closing costs). No equity is used to take cash out.
3. CASH-OUT REFINANCE = In addition to replacing your old loan with one of equal value, extra cash is pulled out of your home. This results in a larger loan.
For example, if you want to take $50,000 cash-out, your new loan will be $100,000 (old loan plus cash-out)
Depending on how much cash-out you want and how big a payment you can afford, you may wish to consider mortgage progams that offer a longer term, say 40 years. My website has all sorts of information about this (no it is not a sales or application site) http://www.mortgagemystery.com/40-year-mortgage.html
You can contact me directly if you have additional questions or need assistance.
2007-01-20 09:20:49 · answer #5 · answered by robert_byrne 2 · 0⤊ 0⤋
It's pretty much identical to the application process that you went through when you bought the house initially. And almost as much paperwork to sign at closing. Your new loan pays off the old one and you start making payments again a month after you close.
2007-01-16 15:39:19 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
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2016-07-08 22:20:13 · answer #7 · answered by ? 3 · 0⤊ 0⤋
they will just extend out remainig amt to 30 yrs,thus lowering your payment but you will have to pay for fees and title ins.about 4k
2007-01-16 15:34:45 · answer #8 · answered by Anonymous · 0⤊ 1⤋
http://homerefinance1.blogspot.com has good information and links on refinancing a mortgage loan.
http://homerefinance1.blogspot.com
2007-01-18 00:08:06 · answer #9 · answered by Anonymous · 0⤊ 0⤋