I refinced my home before recission.?

Question

I dont have a great deal of knowledge on the recission that is going on. However, i just refinanced my home to 6.5% apr. and i wonder if i can get a lower Apr because of the recission?

Thanks in advance.

Answer 1

you can get a lower rate....by going elsewhere.
you cant rescind and ask for a lower rate.

once you rescind...then you have to go elsewhere.

mortgage rates are around 6.125%....if you have pretty good equity and a good score.

Answer 2

Mortgage rates are based on various indices. Some are based on the 10-year treasury rates, some on the LIBOR index, etc. And, these rates are not necessarily tied to whether the economy is in a recession or inflation.

If the rates go down, you might be able to pick up a better rate. But, 6.5% is pretty good. Some companies might offer a lower rate right now. But, they will require more loan generation fees (points) up front to give you the lower rate.

The average life expectancy of a mortgage is 5 years (before it is refinanced or the property is sold). So, if a loan company says it will give you 5.5% instead of 6.5%, they will probably charge you 3 or more points to get that rate. On a $500,000 home, that would be $15,000 up front to reduce your payments about $320 a month (this is usually rolled into the loan balance). That means it would take 47 months - or just under 4 years - for you to break even and start realizing the difference between staying at 6.5% versus refinancing at 5.5% and 3 points.

In the mean time, the mortgage company has invested your $15,000 and will have made more than that $15,000 over the first 5 years of the loan. But, if the loan is refinanced or paid off (home is sold) before that 4 year break-even point, they still keep the $15,000 and you would have been better off staying at 6.5%.

Answer 3

I was allowed to drink a little a home before I was 18. I did all my irresponsible drinking around 16 and by the time I was 18, I had a sensible boyfriend (now my husband) who wasn't into that so I didn't drink much. I think it all depends on the person. If the kid is generally sensible then this approach might work - I was pretty good as a kid, just had a short wild phase. But if the kid is generally a little less sensible, they might just see drinking at home as a way to start drinking earlier. It also depends on how the parents promote it. If the parents aren't getting drunk at home all the time and drink sensibly then there is much better chance the kids will be a sensible drinker. Of course, that all goes out the window when they turn 18 and get together with their irresponsible friends. I think the Mediterranean approach works in Europe because they have a different and indeed better, mentality about alcohol and drinking. They drink wine socially and aren't always getting drunk and displaying that behaviour to their kids.

Answer 4

President Bush have implemented an FHA refinance program called "FHASecure". To qualify, borrowers must meet 5 criteria:
1) History of timely mortgage payments before their adjustable rate increased
2) Rate will re-set between June 2005 and December 2009
3) 3% equity in home or 3% cash
4) Sustained employment history
5) Income must meet qualifying guidelines
I found interesting information about your answer & the best options here. (mortgage opportunitty refinancing )
http://all-mortgage-calculators.blogspot.com/2007/06/mortgage-opportunitty-financing-and.html
Good luck!