Ok here is the situation.. going to try and make it as short as possible. My husband went to our mortgage company (Litton) to see about doing a refinance for a ,000 loan (to pay off a vehicle and some other bills). We have a lot of equity in our home, as it was a remodel. They referred him to Avelo for the refinance. Basically the interest rate will drop only half a percent, our monthly payments will be lower than our mortgage plus car payment right now, and everything is supposed to stay the same (as far as being a fixed rate with no prepayment penalty). There will be closing costs, I’m not exactly sure how much. The thing is, they want us to pay a 0 deposit for the inspection and other fees they incur in starting the process. I’m just not having a good feeling about all of it. What do you think, is this a smart move? Should we try for a home equity loan instead? We are really trying to get our monthly payments down. Also, he said he needs to lock in today, because of rates?
Here is a better solution: Both of you work a part time job of 15 hours per week and have the ENTIRE proceeds of that extra job go towards that ,000.

If I got a job, instead of taking classes online, I would be working to pay entirely for daycare. Just saying…
I didn’t have a good feeling about it anyway, thanks for the advice though. We technically don’t have to do anything, we are still able to make our monthly payments. Were just trying to make it easier on my husband month to month. Thanks!

Hi Everyone.
I have a substantial amount of equity in one of my homes, and am looking to purchase a second home sometime in the summer. I do not have money for a down payment, however, I do have more than enough for closing costs. I was wondering if it would be advantageous to take out equity on the one home for the 20% down payment on the second home. Do mortgage companies frown upon this action, or is it encouraged? Would I get advantageous interest rates in this case, or similar rates as to doing 100% financing? Just so you know, the home I am looking to purchase is a duplex, however, it will be a primary residence. I know interest rates are generally higher for duplexes. Just a thought I had, wanted to know if it would be worthwhile to leverage the one homes equity to purchase the new home.

Thanks!
Hi,
I’ve checked income levels, and we (to be more specific, the loan will be between me and my brother) will qualify for the loan at a 7% rate (assuming 28% front load). Also, when I say substantial amount of equity, I mean 100%, I own the home outright, and the down payment won’t come close to the 80% mark (more like 40%). Would it be better to get the loan on my current home before I finance? Or should I go to the lender, and ask them to evauluate both options.

Thanks for all of your help! Now I just have to sell the idea to my brother (he is a co-owner of the one home).

I want to do a cash out refinance on my mortgage in order to get a down payment for an income property. I have plenty of equity in my current mortgage. Where do I begin?
Do I do the refinance first and hope my bid on the income property is accepted? Do I put in a bid on the house first? Is there a way to roll some things together to avoid paying closing costs on the refinance and the new property purchase?
Is this just a bad idea all together?

I had 2 mortgages on the house. The first was an interest only fixed rate mortgage and the other was a home equity loan. At the time, the house was worth a lot more then I borrowed, so I had the ability to borrow quite a bit of equity on the house. That was then, this is now. Before everything in Florida crashed (that’s where the house or I should say Condo is located), I used the remaining balance on the home equity loan, which had a lower interest rate to pay off the first mortgage in full.
Now I am left with a home equity second loan only on the condo with a balance greater then the value. I want to give this condo to my sister. Is a home equity loan assumable? Can I just sign it over to her with minimal closing costs?

My home has a 7k loan on it My current payment with taxes, insurance, and PMI is 25. rate @ 6.75%
Goal is to remove PMI (been 6 years)

1st option: 6.125% 30yr fixed 60; 25-1260= 5 savings per mo.
K in closing costs 00/5=30 months to cover the closing costs

2nd option:
6.25% 30yr fixed; first 10 yrs is an int only loan.
10 for the first 10 yrs

3rd option: 5yr ARM 5.75%, int only for 5 yrs. Payment to be 39; I would refi in 5 yrs in this case
Savings in 5 yrs between 2nd and 3rd options: (10-39) x 5 yrs = 60

I plan to own the home for the next 10 yrs and plan to start renting it out at the end of the year. The broker made a good point about the int only loan in my case: The home is worth 5-310k – said there is enough equity that I don’t need to chip in on lowering the loan amount for safety in case the housing market dropped. Does paying on the principal for 2K to 3K per year seem that necessary in comparison with equity?

I have an relative that wants to leave her house and move to a different city. She is willing to transfer the house to my name in order for us to avoid paying the cost it takes when you close on a house.

She had the house for sometime now. She no longer has a mortgage on the house. The house is now worth 0,000. Of course, she wants her money back based on the value of the home.

In order for me to pay her back, I have to take out a mortgage. My question is that can she transfer title to my name first and I can then obtain a mortgage to pay her back to avoid closing costs. Or must we play the traditional role of buyer and seller.

Also, (If this can be done)-If the house is under my name and I take out the mortgage-would this be considered a "primary mortgage" which I can get a regular 30 year fix mortage or would it be considered a "home equity loan" which usually has a higher rate than a traditional 30 year fix?

The bank is offering a line of credit sale. I pay no fees, the bank is covering all closing costs, state taxes, appraisal fees and the first year annual fee. I can take out a line of credit on the equity of my house. The rate is prime minus 1/2.

What is in it for them? Could there be a hidden downside for me? What do you think?

I have a home equity line of credit at 9%; I see them advertised at 7.5%. Any ideas on how I might find a better rate without closing costs besides just calling around?

Hello, here’s the situation:
I currently have a mortgage of left of 9,000 at 6%. This is a 30 year mortgage, but I have been paying extra each month; and I am at around year 23. I also have a home equity loan of ,000 at 7.25%. I am planning on paying the 000 loan off in the next 5-6 years.
I went today to possibly refinance, she told me "Fixed rate at 5.75%, 30 years." I can either combine the two and pay that, or pay my ,000 at what I am paying right now; and just refi the 9,000. She is charging me 00 in closing costs. If I wait, and the rate drops after closing, I get charged 0 more to lower the rate.
Should I wait until the 30th when the Fed either cuts, keeps were they’re at, or raises rates? This way, I will not have to pay the 00 to get to that lower rate.
What do you think, please help me out. Any advice is appreciated. What impact will the rate cut have on my situation? Thank you! Tim

I am considering refinancing, but I am not really too sure yet. Is there any way that I could call my current lender and just negotiate a lower interest rate with them? This way I could possibly avoid all of the closing costs, etc that are associated with refinancing. Has anyone had any luck with this?

I have a 30yr fixed 4.93% interest on my 140k home, I currently owe 130k. My monthly mortgage is .116. If I refinance, according to several sources, I can lower my monthly bill to the 700-800 range. How is this possible if I would be refinancing at a higher interest rate, around 6%? With my fixed low rate, is there any reason besides a catastrophic event to refinance?
The 16 monthly payment includes all insurances and taxes. We did 100% financing, and had to come up with about 2k for closing costs. We’ve had this mortgage for 3 1/2 years.

I owe about 142,000 on my house. I got a quote to refinance and the closing costs are nearly 6,000! This is comparable to what the closing costs were when I initially purchased my home. Should it be this much to refinance the mortgage? (There are no problems with our credit, just a normal refinance for a lower rate)

I am refinancing my home this month from a 30 year 7.25 to 15 year 4.34 saving ,000 in interest. Problem is that any equity I had in the 3 years I’ve been paying, I’ll lose when I tie closing costs back in. My wife and I have excellent credit and no credit card debt (only student loan, home mortgage, and 2 car payments). Looking for about ,000. Should I go to a bank or put it on a couple cards??

we are refinancing a home for 100% to a new fixed rate, we just have enough equity closing costs. we are getting out of the BS Arm loan. I talked to a mortgage company they pulled my credit showed 671 and income and found my DTI to be at 55%. they then asked for my wife, she has a score of 598 but has a good income. he told me it should not make a diffrence. What type of rate should i expect for a fixed loan. Confused??? PMI too what is that and how much is it a month on a 181k loan. I would like to know these before meeting them tommrow,
thx

So if you refinance, you get a fixed amount upfront, whereas home equity line offers more flexibility, I get that. Any other differences?

In terms of interest, closing costs, max loan amounts, and speed with which the loan can be obtained? Also, is home equity loan and home equity line the same thing? WA state.

I see that home equity line of credit has a larger interest rate. However, if I were to take out a 2nd mortgage, are the rates the same as a first mortgage for that day?

Also, are there closing costs on a 2nd mortgage and are they relatively the same?

Why pay closing costs on a home equity loan if a home equity line can be obtained at a comparable fixed rate and tax deductable?
Am I missing something here?

My grandmother has aquired debt in total of ,000.This is mainly due to using credit cards and such to purchase fuel for her home, new oil tank, new furnace and several other necessities over the years.She is currently living on a fixed income of 1200. per month.Right now, creditors are harassing her left and right and she is struggling to pay the bills.I help, but I am not rich.There is only so much I can do. She is overwhelmed and the taxes are due on the house in January. I went to LendingTree.Com. and came up with a Home Equity Loan from Champion Mortgage.How safe is this?Is this the right thing for her?Any other options? They charged her to assess her home. Are their closing costs that must be paid before she receives money? Even if she doesn’t get approved? I would hate to see her lose her home. Please help!

So if you refinance, you get a fixed amount upfront, whereas home equity line offers more flexibility, I get that. Any other differences?

In terms of interest, closing costs, max loan amounts, and speed with which the loan can be obtained? Also, is home equity loan and home equity line the same thing? WA state.

Where can I obtain the lowest fees on closing cost when refinancing a mortgage? Also, why does conventional bank around the corner usually has one of the highest closing costs than a smaller mortgage company? Which mortgage company has the best deal and what is reasonable amount to pay on closing costs for an mortgage amount of 0K?