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Dave Said:

What are the advantages/disadvantages of converting lenders' fees to points when refinancing a mortgage?

We Answered:

Advantage: Less cash to have up front at closing- a good thing to some and depending on the situation might be feasible.

Disadvantage: You are paying interest on an amount that really isn't part of the loan and while many can't come up with 'extra' cash, seems silly to borrow lenders fees and THEN pay interest on top of it. Try to find the cash and don't put them/roll them into the loan.

Wesley Said:

Mortgage Refinancing Process?

We Answered:

There is nothing to stop your current lender from foreclosing. Just because you are trying to refi there is no guarantee that it will close.
Since you say you have received calls and letters from your current lender, but ask if you should call them, perhaps you don't understand how this whole process works. You owe them money! You should have called them months ago, as soon as you knew that you weren't going to be able to make your payments. Call them immediately and beg them to put your loan in forbearance.
By the way, good luck finding a lender who will give you a new mortgage with two missed payments in the last few months. You would be better off borrowing enough money to get current and then start making your payments on time.

Ian Said:

Why do I need a lawyer involved to switch mortgage lenders?

We Answered:

You are signing a promissory note, obligating yourself to the payment terms defined in the agreement. The note will detail all of the parties' rights, responsibilities, and recourse in the event of dispute or default, and it probably grants the lender both lien and foreclosure rights. The note will almost certainly be a form document drafted by the lender, meaning that the terms presented in the initial draft will likely favor the lender. i.e. If something goes wrong, the lender is protected, you are not.

The real question here is "why wouldn't you have a lawyer involved?" The de minimis amount of money you might spend on an attorney to ensure that your interests are protected is well worth it.

Douglas Said:

What mortgage lenders still offer an "option ARM"?

We Answered:

Some lenders still have them, but they're nearly impossible to qualify for these days. Your finances have to be superb in order to qualify for that product.