don1862 asked:


I get mortgage brokers calling to refinance my high rate ARM even though I actually have a 5.5% fixed rate. My credit card company keeps asking me to increase my limit and they keep sending checks in the mail to write against the credit card. (which I always shred).

LINDSEY

b.wtfdik asked:


The current ~$700Billion plan looks a lot like Government is bailing out its buddies in BIG BUSINESS, and nothing will ever trickle down to the common U.S. Citizen. To turn that around use the leftover ~$300Billion Bush Administration bail-out plus President Elect Obama’s $825Billion to pay the Mortgage industry (the cost of processing the loan) to alter an process every U.S. Citizens primary residence mortgage decreasing it by ~20% and refinance that amount at the current Fed bank-to-bank trading rate. Banks are writing down all these mortgages/loans anyway because of decreasing values. Yes, these institution have some medicine to take, but there are hard times ahead, and the majority (U.S. Citizens) need to feel support.

The majority of U.S. Citizens upside-down in their mortgages are more likely to see value in making payments rather than just giving their house keys to the bank and vacating, which will wash-out home values, equity, and personal wealth in our Nation with catastrophic effect. This will allow every U.S. Citizen, in our Nations consumer economy, a long-term (30-year mortgage term!) solution to add breathing room in the upcoming years of this global economic downturn. The beneficiaries are the U.S. Citizen that then trickles up to U.S. Retailers, U.S. Banks, and Wall-Street.

This provides relief to ALL U.S. Citizens, even Us that made conservative decisions knowing what we could afford, while also restructuring recent mortgages of those duped by the greedy practices of this decade. The majority of mortgages will still get paid, banks can maintain cash flow, homeowner mortgage vs. home value evens, right-sides up, or equity is built. If the U.S. Citizen losses their house it’s a good bet they will walk away from Credit Card debt and any other outstanding loans. Then what will happen to the Financial industry and all the $400billion in tax-payer money that’s already been handed to them to do with as they please?

This isn’t about the American public seeing immediate benefit (i.e. one-time stimulus check), but as a longer term (~30 year mortgage term!) solution to stimulating our consumer (~62%!) economy. It also shows that Government is supporting real people, not just big business. I think if You do the math You will find that the cost of writing these loans, which is consumed by the leftover ~$300Billion Bush Administration bail-out plus President Elect Obama’s $825B stimulus package, doesn’t compare to the cost to Financial institutions, and the U.S. Tax-payer swallowing ~10% (or greater) National home foreclosures. What will Financial institutions do with all these assumed homes and property that are now worth 30-50% less than their original cost to them? Will Government, I mean the U.S. Tax-Payer, buy them? Restoring consumer confidence is what the focus is here. How does getting 9 financial institutions to start loaning money to ultra qualified people that don’t need a loan, compare to ~130,000,000 homeowners across 50 states having a few hundred extra dollars a month, for the next 30 years, to do with how they see fit?
Excellent response Jeff T, but if the U.S. is trying to support homeonwnership, which is a massive staple of our 62% consumer economy, when the next avalanche of foreclosures hit what will happen to personal wealth in all classes in the U.S. Remember the original question dealt with if the Government couldn’t do nothing, would it have been better to give the money back to the people in the form of refinanced 20% decreased mortgages very low interest rates so 10’s of millions of families would opt to keep paying their mortgages (and other debta) rather than just walk away to let the remaining tax paying nation to bail them out. And then what about after the next wave, then the next? As foreclosed homes flood the market and the nations wealth is swept away, and more an more credit is lost, and more and more banks board their doors, who will be left to bail them out? How can this chain of events be stopped? We must bring more minds to the table to discuss this!

ALPHONSO

Melissa Kellett asked:


It is possible to get all the finance you need to make home improvements by refinancing your home loan with a Cash-Out Refinance Mortgage Loan. If there is sufficient equity on your home you will be able to get all the money needed to pay for the materials and professional fees with a quick and hassle free approval process.

Financing through cash out refinance loan is a cheap source of funds that can provide you with additional benefits like a reduction on the interest rate you pay for your current mortgage or a reduction on the loan installments you pay every month and thus reducing your overall debt exposure. This can also increase your credit score because your income/debt ratio will improve too.

How Does It Work?

If you have a mortgage on your home and you have paid already some installments or if your property’s value has increased, you probably have some equity on your home. This equity is an excellent source of inexpensive funds. But instead of using a home equity loan you can request a cash-out refinance loan.

A cash-out refinance loan is basically like a regular refinance loan, only you request a larger amount than your outstanding mortgage loan. The main portion of the loan is used to repay your previous mortgage and with the extra cash you can do whatever you want. In this case, you can use the money to make home improvements. The extra money obtained is part of your new mortgage and thus it is under the same loan terms.

The above implies that you will be getting incredibly cheap financing for your home improvements by taking advantage of the equity on your home. But, that’s not the whole deal, by refinancing your mortgage you can get several other benefits that make these transactions worthwhile.

Benefits

By refinancing you can get lower interest rates, longer repayment programs and thus, smaller loan installments. This can really improve your credit stance even if your overall debt increases. This is due to the fact that even if you owe more money, your income will suffer less because your debt will be spread over a longer period and with lower interests. The result of these variables is a considerably lower debt exposure.

Moreover, home improvements will raise your property’s value, providing you with more equity on your home and a new source of credit. In the long run, you will be increasing your ability to get finance while saving money at the same time. If timing, loan term, interest rate and other variables are chosen correctly home improvement’s costs can almost be null due to being compensated by the gains they will provide.

Last, but not least, your credit score will eventually reflect these changes and soon enough will raise to show that your debt exposure has decreased, that the value of your assets has increased and that your income/spending ratio has improved on the income side thus providing you with the ability to cope with new and larger loan installments.



MONROE

jawsnu7 asked:


I would like to refinance my house and I have some negative or bad credit issues. Can anyone recommend a good Mortgage company that can do both (Refinance and Credit Repair? )
Good advice appreciated.

NOEL

Magaroni asked:


We have about $30k in equity on our home, and currently have a 30 yr fixed at 6.9%. I’m not sure if refinancing will help or hurt us. My student loans are at 7.22, but I only owe another $3500, and my auto is 1.9% and I owe about $6500. I thought about paying those off with the cash from the refi - is that a bad idea since the auto loan is at a lower rate? I thought since the mortgage interest is a tax right off and the auto loan isnt…?

If we aren’t sure how long we’ll be in this house, is refi a bad idea?

I’m pretty confused about this - any help would be greatly appreciated.

LEON

CarolNV asked:


Refinancing mortgage is not an easy decision, when is the best time to refinance ?

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