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Hector Said:

Does refinancing our home make sense?

We Answered:

If you plan on selling the house in 5 years or later then it makes sense to go ahead and do the refinance now. You will be lowering your payments by $100 or $6000 over the next 5 years.

The information that is missing from this equation is the cost of the loan. What is your current principle? What will be your principle on the new loan? $6000 - the difference in your principle will tell you if it is a good idea. If this is a positive number, then you come out ahead. If this is a negative number, then you are actually losing money.

Also note, if you sell your house before 5 years, then this calculation will change. If you end up selling in 1-2 years then this will probably be a bad thing.

As far as tax benefits and penalties, there are none, just the standard tax deduction for Mortgage insurance. As far as your credit score, it may negatively affect your credit score if they have to pull your credit report again. Anytime your credit report is pulled for credit or loan purposes it is flagged. Since this will be for a home loan it will not be a major red flag, but it will pop up on the credit report as a credit inquirery.

Joy Said:

With an FHA loan, I am required to turn in the reimbursement for homeowners insurance?

We Answered:

Once you get the refund, you will most likely be contacted at some later date regarding an escrow shortage. Since FHA loans must be escrowed, you will need to pay back into the escrow account at some point. Bottom line, don't spend the refund.

Lonnie Said:

Do you Liberals support finanical reform?

We Answered:

The LAST thing we need is more money being funneled into the private sector. We've already got a wealth disparity comparable to Cambodia. Tax the wealthy, they can handle it. Don't tax the poor, they need to feed their children too.

Sergio Said:

Concerned about mortgage fees?

We Answered:

Everything sounds about right.
That appraisal fee is a bit high - I only paid $300 - not FHA loan.

May I recommend a couple books from your library? (or bookstore)
Home Buying for Dummies and Mortgages for Dummies
These yellow books are not for dummies - very good books.
You'd be surprised how well stocked your library will be on these.

One concern: I don't see a home inspection fee on there.
Never consider buying a home without a good home inspection.
You never know if a roof is about to cave in, the foundation is about to slip off, you have termites, mold, if the plumbing is about to corrode, if you have asbestos, or if the electrical is about to cach on fire...

Bradley Said:

maximum housing expenses? help please?

We Answered:

Hi Alexa,
We can't answer that because you didn't give the percent given in your book. Take the percent given and multiply it times the monthly net. If you're not using a calculator, watch your decimal places.