I'm looking for important tips as I'm about to refinance. I would like to know what should I pay attention to when choosing a financial institution.
2007-06-10 05:46:32 · 4 answers · asked by Peter_33 2 in Business & Finance ➔ Renting & Real Estate
Keep in mind that there is a difference between a refi and a line of credit.
01) Go refi so that you only have one payment.
02) Do not include more then 90% of the value of your home.
03) You want at lest a 10% area of equity in case you have to get out of the house.
04) Most refi do not have an escrow so you have to pay your own taxes
05) Only get a Fixed Rate and I wouldn't go over 7%. Try and stay around 6 - 6.5%. You may even hold off. Some are saying that mortgage rate are going to fall again since housing is down.
06) Do NOT do one of those 125% loans major mistake. So are those interest only loans like through Quik** Loans!
07) If your in the city sometimes banks will offer like a penny loan. They will wave all the upfront fees if you buy a home in the city limits.
08) If you are real inexperienced all your local tech/buss. college. They will usually put you in touch with someone that will talk with you for free. Like there local scores officer...see link below.
Good Luck!
2007-06-10 20:24:18 · answer #1 · answered by s7lmb 3 · 0⤊ 0⤋
In this day and age I would stay away from any adjustable mortgage, that is causing the biggest problem in the housing industry right now, sudden increase becoming unaffordable. Do not leave yourself in a position in which you have no equity left that can only harm you in the long run. The charges as in points, if you go beyond the 80% rule you will need PMI insurance which also adds additional costs to the mortgage. If your credit is good I would go with a local bank, if it is not I would reconsider such a move right now as in you could end up in deeper trouble.
2007-06-10 07:26:03 · answer #2 · answered by Pengy 7 · 0⤊ 0⤋
Before you get too excited about this, you have to decide whether this is going to pencil out. You may be facing substantial penalties for refinancing, and each refinance has fees that you money in closing costs. Whether the fees, minus any savings you receive with a lower interest rate, spread over the amount of time you plan on staying in this house are the calculations you need to make.
2016-05-21 07:41:18 · answer #3 · answered by ? 3 · 0⤊ 0⤋
closing costs, rates, and no prepayment penalties.
how long do you plan to stay (fixed vs variable rate)
choose a direct lender for quick funding
2007-06-10 05:55:50 · answer #4 · answered by pops 6 · 0⤊ 0⤋