I have been living in my home for over a year now. To get into my home I did a 5/1 ARM and a HELOC and paid 5% of my home in cash. I did the HELOC so I didn't have to pay the PMI, thinking that I wouldn't be paying more and get back more on my taxes. Well, as you may have noticed, the housing market is in really rough shape. I'm still doing OK on my HELOC, but would like to consolidate my two loans into one loan. I have excellent credit and pay my mortgage early. I guess I'm what you could call a "no risk loan". My questions are, which company would be good for a loan and how do I go about consolidating my 5/1 ARM and HELOC into one mortgage, say a 30 year fixed. Thanks.
2007-11-08 06:35:38 · 7 answers · asked by Snuggles123 4 in Business & Finance ➔ Renting & Real Estate
Allow me to add a few things. I am not doing one of those shady sub prime loans that are causing half of this country to give up their homes in foreclosure. In addition, I am not going to email a mortgage broker that I've never met. I would need credentials or come from a large firm. Also, due to the fact I live in a townhouse complex, I know that the surrounding homes have been sold for less than I bought my home for, so the value of my home has dropped but only an average of 5k.
2007-11-08 06:44:47 · update #1
You will end up having to pay PMI, as you don't have but the five percent equity you originally paid down. You would be undoing what you already did, and PMI on a 95% LTV is high. Leave it alone for awhile and hopefully your house will increase in value to permit you to get a thirty year fixed rate without PMI. You have another four years to evaluate your situation.
2007-11-08 06:44:05 · answer #1 · answered by H. A 4 · 4⤊ 0⤋
You got two loans to avoid the PMI that is charged on a loan that is over 80% LTV. In certain cases and with the proper income there has been a law passed that makes PMI tax deductable for certain home owners.
Check with your tax consultant to find out if you qualify for this tax deduction.
Also Sub-prime loans help lots of people and are not shady. You just have to read the loan docs to determine if you can pay for any adjustments that might arise.
The other thing about sub-prime is that a few of the clients requested and got a stated income loan, where you don't have to prove your income with documentation. They knew before they signed the loan docs they could not make the mortgage payments.
If you have a mortgage that need refinancing that is below $417,000 you might try a FHA loan.
The best way to see if you are qualified for a refinance is to look in your local telephone book, call one of the mortgage brokers that indicate they can do government loans.
You will need to complete a mortgage application so this mortgage broker can run a credit check and see what mortgage programs you are qualified for.
Even though you will need additional documentation to complete any mortgage you will need these to start the process. You will need these items for each person that is on the mortgage.
#1 2 years of w-2 forms from your employer
#2 W-2 forms covering one month
#3 2 years of your federal income tax returns.
Once this has been done, you and the morgage broker sit down and go over the mortgage programs you are qualified for.
At this setting you should be able to find out the loan amount, the interest rate. as well as the terms of the loan. You will also find out the cost of the loan. This is the points and fees as well as escrow, title and any insurance cost that will be associated with the new mortgage.
You should ask any questions about any mortgage progrgam you are qualified for. This the time to avoid any potential future problems.
The other time to avoid any potential problems is when you sign your loan docs. If what you have discussed with this mortgage broker is not what is on the loan docs, you have a problem, call the mortgage broker and resolve them now.
It is too late to resolve any problems once the loan docs have been signed, because everyone concerned would have thought you were intelligent enough to read and understand what you have just signed.
The only redeeming factor is since this is a refinance you have a 3 day right of recision. That is you can change your mind and nullify the loan within three days of signing. There will be a document give to you that you can fax into the mortgage company, you can call escrow or the title company to cancel the mortgage, without penalty.
Don't be fooled by the no fee, no points loan. Sometimes it is better to pay the points and fees as these are tax deductable over the life of the loan.
Getting a no points no fee loan normally increase the interest rate to cover these expenses. No one works for free. You wouldn't so why would others.
You should again check with your tax consultant for information concerning this deduction.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-11-08 07:55:46 · answer #2 · answered by loanmasterone 7 · 0⤊ 1⤋
Your best bet is to get with an FHA approved lender. Most of your larger lenders, such as Countrywide, Wachovia, Chase, etc...all are FHA approved, and are all around the same costs. Just look them up on line for the local retail branch nearest you. The problem you will have is, the money you save from combining your two payments may be soaked up by now having to pay PMI, or in the case of FHA, MIP, both of which are mortgage insurance, since you will be over 80% loan to value now. I would consult, not only the retail banks above, but a Mortgage Broker to see who does give you the best deal.
Good luck.
2007-11-08 23:29:49 · answer #3 · answered by Anonymous · 1⤊ 0⤋
they're ideal in that it somewhat is generic practice. There are regularly lenders that get carry of mortgages and there are lenders that service mortgages. the acquisition employer is the employer you close up with; the employer you may make your first cost to. They get carry of the underwriting and shutting expenses, yet do no longer choose for the complication of servicing the own loan. They then sell it to a lender that amenities loans. That employer will service the own loan and assemble the interest and any applicabe costs (alongside with previous due costs, and so on). All of it rather is finished based on the companies skills and desires; some companies get carry of and not service, some do no longer get carry of yet service.
2016-10-15 12:08:41 · answer #4 · answered by ? 4 · 0⤊ 0⤋
refinancing will be the only way to consolidate both loans....try to get a lender paid pmi product ....or FHA.
you also may want to know if the value of your home has dropped.....this can severly affect your decisions.
5k isnt a huge difference .....but it is if your house is worth 100k...then that will be 5% of your LTV
2007-11-08 06:41:46 · answer #5 · answered by Anonymous · 1⤊ 0⤋
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!
2007-11-10 05:15:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
with the help offered on this site. http://homeloaninformation.notlong.com
2007-11-09 08:37:33 · answer #7 · answered by Mr. Fitness 2 · 0⤊ 0⤋