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Jacqueline Said:

questions about refinancing home mortgage? ?

We Answered:

Quit thinking "Monthly Payments". The banks want you to think that way. It is only a 6.25% interest rate if you pay it off in the first year of the loan. Sure your payment would lower but your balence on the house would not. Instead of paying the bill early, pay extra money on the principle. Your paying 90% interest on the monthy statements. Dont pay early, pay extra only to the principle. This wont lower your payments but it will lower the amount that you owe on the home.

Tyler Said:

What important points should I consider when refinancing my home mortgage?

We Answered:

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!

Joseph Said:

Refinancing home mortgage worthy?

We Answered:

Everyone refinance for different reason, not simply because they saw a commercial on TV about refinancing.

With your parents being laid off they might not qualify for a mortgage and be able to prove that they have sufficient income, unless they have stocks and bonds and other income producing securities.

There is a possibility that your parents might be qualified for a reverse mortgage. This is a mortgage for those seniors that are 62 and older, have enough equity in their homes to pay off the existing mortgages and other liens if there are any.

What remains after all is paid off goes to the homeowners. The only redeeming factor in this type loan that is underwritten by the federal government is they are not required to pay the loan back, by making monthly mortgage payments.

They also have the option to take the loan proceeds in one lump sum or to be paid out over a period of time until the funds are exhausted.

They may reside in the house until both die. After that if the relatives want to keep the house they must pay off the reverse mortgage by cash, a new loan or selling the house. If they don't want the house, then the investor that made the loan take over the house.

You should check with a mortgage banker/broker about this government sponsored program.

I hope this has been of some use to you, good luck.

"FIGHT ON"