What to Do in 2010: Banking, Loans, and Credit Cards CBS MoneyWatch.com
Mortgage rates are at historic lows — 5.07 percent for a 30-year fixed — and home buyers will be able to snag a special tax credit until July. So early 2010 will be a prime time to refinance your mortgage or apply for a new home loan. But credit card issuers will continue turning the screws on customers in 2010, raising rates and hiking or inventing fees. Because the credit card law taking effect in February will restrict lenders from punishing riskier customers, many good-citizen cardholders will be told to pay more.
The nine best strategies for borrowing in 2010:
1. Refinance your mortgageLow mortgage rates will make refinancing tempting as the year begins, especially if you have an adjustable-rate mortgage resetting in 2010 or 2011. Many mortgage analysts think rates are as low as they’ll ever be. So the longer you wait, the more you risk the low-interest window shutting. Just remember the advice of MoneyWatch Editor-at-Large Jill Schlesinger: Don’t refinance if you don’t expect to stay in the home long enough to recoup the closing costs. Skittish lenders will be quick to reject applicants who seem too risky, so be sure you have what it takes to get approved for a refinancing . For example, your mortgage costs shouldn’t total more than 29 percent of your income.
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How much money do you have to pay for closing cost when you refinance home loan? ?
I would like to refinance my house to get lower rate. My loan is 200,000. I m a first time homeowner, my current rate is 6.5 %. I ve own my home for about a couple of months, my credit is good, not excellent. I would like to know a ball park on paying closing cost. Also is the closing cost money i need to come up with?
2%
unfortunately the national average is 3 1/2 % closing costs
and yes all no closing cost loans are charging a Higher rate to use that yield spread to cover closing costs for you!
Will WAMU really refinance your home with no closing cost or is that a lie?
I'm a loan officer and lately I've heard that Washington Mutual will do your home loan with no closing cost and the will use your old appraisal. Is this true or are there closing cost when it's all said and done?
they will use the old appraisal if it's a rate/term refi or if DU waives it.....streamline Refi
anyone can do NO CLOSING COSTS...if the going rate is 6.125% with closing costs....they will charge 6.75% no closing costs. they raise the rates by at least 0.5%
nothing in life is for free
You can read the whole story at the supplied URL.
http://www.iht.com/articles/ap/2007/11/01/business/NA-FIN-US-Subprime-Mortgages-Scandal.php?WT.mc_id=rssap_business
Nothing is free, ask questions, use a broker. Everything has to be disclosed with a broker.
Great Western gave me my first mortgage on a house when I was in college over 40 years ago. I decided to buy a house and rent out bedrooms to my fellow students rather than pay rent.
It was one of the best decisions that I have made in my life.
Great Western gave me a mortgage when no other lender would. I worked my way through college and was self employed most of the time.
No lender and no REALTOR even wanted to talk to me. But Great Western did.
I bought that house directly from the seller who was selling the house without a REALTOR.
That house was the best investment that I ever made in my life.
I paid $15,000 for that house back in 1967
I recently had that house appraised at $860,000.
I see one of the responders posted an issue of inflated appraisals.
I agree that is a problem with all lenders, not just Washington Mutual.
The way that I see it, it is your job as a purchaser to protect your interests.
One way that I do that is that I hire my own appraiser when I am purchasing a property. I make the sale contingent on my apprasal, not the lender's appraisal.
I also hire a real estate attorney who writes the language that makes that work. The language of the standard real estate contracts is not sufficient to make that work. You need a good real estate attorney to write that language for you and more importantly enforce that language in the event of a dispute.
Invariably my appraiser is lower than the lender's appraiser.
I give the seller two choices. That is the seller may either reduce his selling price to the value determined by my appraiser or I withdraw my offer and buy another property.
The seller is to agree to sign instructions to the title company directing the title company to return my deposit to me. If the seller fails to sign those instructions, and some sellers do, then I have my atorney notify the seller that he can be fined for unreasonably refusing to direct the title company to return my deposit to me and also under the terms of my contract the seller will be liable to pay my attorny fees as well if he fails to sighn documents directing the title company to return my deposit.
I have never had a seller continue to refuse to sign after he was contacted by my attorney and my attorney has explained the terms of the contract including the special language that my attorney added to the standard contract.
Essentially my experience with Washington Mutual is that they are one of the most honest lenders out there, however I do agree that they should increase the quality of their appraisers.
However I also think that you should do like me and hire your own appraiser to protect your interests. Then the issue of the lender's appraiser becomes irrelevant.
Nurses don't work for free.
Firemen don't work for free.
The guy on the phone at Wamu does not work for free.
He also doesnt have to be licensed as he works for a corporation.....he probably doesnt want to be called a loan officer...he's likely referred to as Production Staff.
If they can get you to go with a higher rate and a bigger loan........they will get paid more. As long as they produce they get a small base pay and commission based on total loan amount volume in the month.
Read up on whats going on with WaMu.
http://www.bloomberg.com/apps/news?pid=20601206&sid=aFSwsh_NlJYk&refer=realestate
what is the average closing cost on rental home refinance 65000?
It depends on a few things for example - the bank you use - and even the day of the month that you close on. You should get a Good Faith Estimate from your lender within a week or less. This will show your estimated closing clost / payments etc.
What is the average cost of closing on a home refinance loan and why is it so high? I being charged $6500!?
My credit rating is 581, is this why??
Closing costs vary greatly by lender. There are some that are fixed figures, but the rest is tied to the loan amount.
Shop around a bit, ask for a truth in lending good faith estimate of closing costs. And don't stop there. Ask about transaction fees, pre-payment penalties, late fees - anything that could also cost you money down the line.
Make sure you are comparing apples to apples before you sign on the line.
You have the bank charges, and these can vary from zero to 2% of the loan.
Then you have "prepaid" items, including interest to the end of the month, and the amount they want to hold in the escrow account to pay your taxes and insurance when due; these can be several thousand dollars, but that's still your money, even after closing.
Then you have the attorney fees, including the title search and title insurance, and filing in the Land Records, and probably plus the cost for the closer to send the docs back in the overnight mail.
Your credit score impacts the loan availability and the interest rate, it doesn't impact the closing costs so much.
Do you have to pay any closing costs when you refinance your home?
I've been in my home for about a year, and with the fed cutting interest rates I've been thinking about trying to consolidate my two loans into one low interest mortgage. I've got 25% through Chase at 8.75% and the remaining 75% through Wells Fargo at 6.25%. I'm thinking about refinancing, but am wondering if I'd have to pay closing costs again. Does anybody know about the process involved? Thanks.
Yes, you have to pay closing costs REGARDLESS of what they tell you.
You'll either pay it in a rate hit, out-of-pocket, or they will roll it into the mortgage...but it will be there.
You will get a Good Faith Estimate and a TIL, just like you did with your original loan that will spell out the terms.
Here is the rule of thumb:
1. Make sure that you are beating your interest rate by a minimum of 1%.
3. Check for a prepayment penalty first.
3. Make sure that your monthly savings outpace the closing costs to 'recoop' in no more than 36 months, or it's not worth it.
For example, if your combined monthly payment is $1,000 per month, and your NEW mortgage payment will be $850 per month, and let's say your total closing costs are $3,000...you take the $3,000 and divide by the $150 per month savings...the figure that pops up on your calculator should be 36 or less.
Make sure you are also, planning on being in the home for longer than the number of months that pops up on the calculator...or else you have refinanced for nothing, and it's just money flushed down the toilet.
Secondly, the fed rate cuts have nothing to do with long term mortgage interest rates and will not affect them.
Lastly, the answer to your question is yes, you would have to pay closing costs again unless you do a "no cost refi", in which case your rate would be higher than if you payed for closing.
I would suggest that your first step in your decision making process would be to get an evaluation of the value of your home. If my suspicions are correct, you may not be in a position to refi anyway.
Can a veteran get help with closing costs to refinance a home mortgage loan?
Try this, Its good
http://mortgagerefinancingatlowrate.blogspot.com/
Check with your current lender. They might be able to save you some closing costs. Also look at www.va.gov It'll redirect you to a loan section that is worth reading.
Closing Costs - What charges can be deducted from closing costs when refinancing a home mortgage?
Not sure what you mean. Do you mean, what costs are deductible on your income tax at the end of the year? Sad answer is, practically nothing. If something is clearly identified as 'points', then you can deduct a pro-rated amount over the life of the mortgage - for example, 1/30 of them each year for a 30-year mortgage. Interest is always deductible; that will show up on a 1098 mailed to you by the mortgage holder. But all that other stuff, the application fees, title fees, escrow costs, etc is not deductible.
look in general refinancing should cost the average borrower 3% max the average is 4.5% processing fees and underwritting fees are on all loans in one way or anouther!
find the best rate! this will save you the most money overall.
www.directlendingplanet.com
The only thing deductible would be the "points" (if any) and, as it is on a refinance and not a purchase, you must spread those points out over the life of loan.
I would like to refinance my home with no fees or closing costs.?
I currently am unhappy with my mortgage company and would like to refinance. I was wondering if there was a way for me to refinance and not have to pay closing costs or any extra fees? I want to keep a fixed rate, I currently have a rate of 6.5%. I do not want a higher rate or have to roll closing costs into my payment. I just want to be able to refinance somewhere different and not have to pay anything extra. I was wondering if this was at all possible :)
Hey James –
6.5% is a bit high for the current market. Currently, 30 year fixed rates are right around 6.125% for 0 points. Since I don’t know much about your particular situation, it’s really difficult for me to gauge if a refinance would make sense for you.
You’ll really need to speak with a banker who will ask you questions about income, assets, credit and your current loan and property. There’s never any obligation for a banker to go over numbers for you and a good one will tell you when it makes sense and when it doesn’t.
Keep in mind that rates change daily and you should never accept any pre-payment penalties.
I'm including a link for today's interest rates. If you’ve got more questions, I’m always available!! Best of luck!
Divorce; refinance buy-out and closing costs.?
My husband and I have divorced. We have agreed that he will remain in our home, refinancing; paying off the existing loan and buying me out with 50% of the equity. To start with the independent appraisal seems low and he is asking that I pay 50% of the closing cost to refinance. He is the one keeping the home, should I be required to pay 50% of the closing cost, my 'share' being a few thousand dollars?
If you are able you should get three appraisals and go for the average of them. Since it is a divorce situation you will be lucky if he pays at all! I would pay half of the costs just to be done with him. Btw, "equity" is defined as what the free market will pay for the house minus what you owe.
No bank will relieve you of your liability for the mortgage - attorney or no attorney
Zillow is not a reliable place to check appraisals
Why are there closing costs when refinancing a home loan(other than a bank fee to process the loan)?
I think it is something that was put in by lawyers so they could earn more money. They all want to get their piece of the pie.
closing cost home no refinance - News
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When is it time to refinance your mortgage? - St. George Daily Spectrum When is it time to refinance your mortgage? Points on refinancing are deductible over the life of the new loan. The total closing costs when refinancing can easily run 4 to 5 percent of the loan |
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Saving the old homestead - Glens Falls Post-Star Saving the old homestead To refinance a home that's worth less than the mortgage or without equity, a homeowner has to make another down payment in addition to the other closing and |
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Mortgage Fraud: A Scourge of the 21st Century? - Insurance News Net (press release) Mortgage Fraud: A Scourge of the 21st Century? Additionally, appraisals may be falsified to increase the amount of the loan, particularly in refinance and cash back loans. There are a number of more |
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Why are so many homeowners upside down? - Macon Telegraph Why are so many homeowners upside down? Even though borrowers had to pay closing costs again, those costs could be rolled into the new loan so there was no out-of-pocket expense. |
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4 Ways to Land a Refinancing Deal For example, a homeowner with a $250000 mortgage and $4000 in closing costs would have to live in her home for about four-and-a-half years to recoup her |
