[知識] Refinancing

[nikko]

When Does Refinancing Really Pay?
Is a Refinancing a Good Deal if it Saves Money?
What Goes Into the Refinance Decision?
Does "No-Cost" Refinance Make Sense?
Should I Follow the APR on a Cash-Out Refi?
Does Refinancing at a Higher Rate Ever Make Sense?
Refinance With Current Lender?
Why Won't My Refinance Go Through?
Should I Consolidate, and How?
Does a Prior Refinance Affect This One?
Why is This Refinance 'Cash-Out'?
Should You Rescind Your Refinance?

[nikko]

To help you decide on the right time to refinance, you need to determine your break-even point. In other words, you need to know how long it will take for the money you save with your new mortgage to exceed the costs of acquiring it. Step 1: Subtract your new monthly payment from your old monthly payment to calculate the savings each month. or example:
Say you have $170,000 of principal remaining on a 30-year fixed-rate mortgage you took out 5 years ago at 8 percent:
Your current monthly payment is $1,312.

If you refinanced to a new 30-year mortgage at 6.5 percent:

Your new monthly payment would be $1,075.
$1,312 (Old monthly payment)
- $1,075 (New monthly payment)
= $237 (Savings per month)

http://www.lendingtree.com/smartborrower/Mortgage-Refinance/When-does-mortgage-refinancing-pay.aspx

In reality, a break-even analysis is more complicated. Nevertheless, a straight-line calculation gives you a reasonable estimate. One common rule of thumb is the 2-percent rule, which says that refinancing is a good deal if you can lower your mortgage interest rate by at least 2 percentage points. Other factors also ultimately affect your decision, such as how long you plan to continue living in the home. As mortgage rates go lower, this rule of thumb is less and less meaningful.

For a more complete analysis, you have to consider any loss of tax savings, as well as whether you invest the money you save each month from lower payments.

Step 2: Divide the closing costs of your new loan by the monthly savings to calculate your break-even point.

For example:
If the closing costs are $4,800:
$4,800 ÷ $237 = 20.25 months

So, according to this formula, you start to save on your mortgage refinancing in less than 21 months.

http://money.aol.com/basics/3canvas/_a/refinancingwhen-it-makes-sense/20050225134209990006

[nikko]

Whenever rates are low, refinancing tempts homeowners. Refinancing can make sense to lots of people who bought houses when rates were higher or who want to consolidate their bills. Not everyone would benefit from refinancing, though. Some homeowners with second mortgages, a lot of debt or trouble paying bills on time might find that they would pay more by refinancing than by sticking with the loan they already have.

http://www.bankrate.com/brm/news/mtg/20010105a.asp?prodtype=mtg&thisponsor=refi

Experts point out that none of this will exclude someone from refinancing entirely. Almost any borrower can find a willing lender. The devil is in the details: Borrowers with smudged credit or other problems -- "nonconforming" is the term used in the trade -- may find the rates they qualify for today are either higher than the rates they already have, or not low enough to make refinancing worthwhile. Refinancing might be a bad deal for a homeowner who has been paying the same mortgage for many years. If you have been paying for 20 years on a 30-year mortgage, refinancing for another 30 years might result in a lower monthly payment. But you would be making those payments for 30 more years instead of 10. The bottom line is that you have to look at the bottom line: figure out the costs of refinancing and compare those with your existing payment and calculate how long it would take to recoup the costs. If you don't plan to stay in the house to make it worthwhile, stick with your existing mortgage.

http://www.bankrate.com/brm/news/mtg/20010105a.asp?prodtype=mtg&thisponsor=refi

[nikko]

There are many reasons why people consider refinancing home mortgages, ranging from wanting to withdraw their cash in equity to reducing their interest rate to paying off credit card balances to lowering their payments. Some reasons are wise while others are not. Everyone has to review their own situation and decide what is best. But here are three good reasons when it would be ""wise."" To Get A Better Fixed Interest Rate

When people are ready to buy a house, they have to accept the interest rates that are available at the time. However, as time goes by, it may be possible to get a better interest rate. There is more than one reason why a substantially lower rate may now be available. If bad credit was a problem when the loan was issued but the credit history has now improved, then refinancing home mortgages would definitely be a wise decision. A bankruptcy in the past or simply poor payment history is enough to cause potential homebuyers to only qualify for a bad credit mortgage. But with consistent effort to turn things around, credit histories can go from bad to good, thus qualifying for a lower interest rate.

http://ezinearticles.com/?Three-Reasons-to-Consider-Refinancing-Home-Mortgages&id=345004

Consider the tax benefits - If you itemize your tax deductions, the interest you pay on you mortgage or a home equity loan may be deductible. Refinancing your mortgage and taking cash out or borrowing through a home equity loan or a second mortgage may provide the money to pay off higher rate loans, such as credit cards or auto loans, and provide a tax deduction as well.

http://www.alerusfinancial.com/Page.aspx?catID=2520

[nikko]

"No Cost" Refinancing refers to a type of financing whereby the borrower is not required to pay any of the normal closing costs associated with obtaining a new mortgage. There are always fees associated with obtaining a mortgage, Loan Origination, Appraisal, Credit Report, Attorney, Title fees, etc. These costs must be paid by someone. In the case of a "No Cost" refinance the lender will agree to pay these fees in exchange for charging the borrower a higher than normal rate of interest for the life of the loan. Depending upon the size of the new loan the additional rate of interest may range from .50% to 1.0% or more. The "No Cost" refinance may make sense if you only plan on keeping the mortgage for 1-2 years. Typically it makes more sense to pay the closing costs (or roll the costs back into the loan), and obtain the lower interest rate. You may want to obtain a Good Faith Estimate for both options then evaluate the total interest that will be paid over the time you plan on keeping the mortgage.

http://www.atlantamortgagegroup.com/NoCostRefinancing.htm

[nikko]

An APR or Annual Percentage Rate is a yearly amount that an individual has to pay for acquiring a loan or any other credit related expense. It is a numerical figure that is used to express the cost of credit. APR is a measure of interest charge that is a combination of interest rate and upfront credit fees. The primary function of APR allows people to compare loans and decide what loan will cost them the least. However, an APR may not be comparable with a second mortgage. The majority of cash-out refinances have rates above those of old mortgages. APR on cash-out refinances are relatively low, and payments on a new mortgage are compared by the standard of APR to the net loan amount that has to be paid upfront.

http://ezinearticles.com/?APR-On-Cash-Out-Refinancing&id=304213

You may reach the erroneous conclusion that the cash-out refinance is the better option of the two if the rate on your old mortgage is less than that on the second mortgage. The reason for this is that you would have neglected to take into account the loss of the lower rate. A good calculator can help you decide on the better option between a second mortgage and a cash-out refinance.

http://www.corlowdown.com/2006/07/apr_as_decision.html

[nikko]

In some cases, the move to a higher rate mortgage could make sense. More than a third of new applications in the current, struggling mortgage market are refinances. As rates continue to rise, most would think that refinancing just doesn?t add up. But under the right circumstances, refinancing to a higher rate may be a good move. One scenario for refinancing higher is if a person has an old mortgage and little left to pay off, but high interest credit bills or home renovations that are a necessity. In this case, the home's equity could be refinanced, bills could be consolidated, and monthly overhead would be cut even with a higher rate. The other reason to refinance at a higher rate is an adjustable rate mortgage. At the initial stage of an adjustable rate mortgage, the rate and payment are normally very low. After the first adjustment, however, the rate and payment can very drastically. If a loan has a three or five year fixed period, it would make sense to refinance to a higher rate prior to the fixed period expiring.

http://www.lendance.com/personal-finance/08-02-06.html

Adjustable Rate Mortgages

Adjustable rate mortgages have really grown in popularity. It is estimated that approximately half of the people who took out loans for homes have adjustable rate mortgages.

ARMs are most often chosen because of the benefit of low introductory rates. The only problem is that rates can rise unpredictably, causing monthly payments to rise, and possibly become unaffordable. For this reason alone, many people who want to sleep easier at night choose to refinance to a fixed rate, even if it is slightly higher.

Another reason to refinance out of an adjustable rate mortgage is a change of plans. Some people buy homes with the intention of selling them within a few years, but then have a change of heart and decide to stay. If you are in it for the long haul, a fixed rate mortgage may make more sense. Getting a Louisiana refinance loan now before interest rates rise any higher could save you money down the road.

Interest Only Loans

Interest only loans are another popular option for homebuyers, because it allows them to purchase more house than they may have otherwise been able to afford with a traditional loan. Unfortunately, once the interest only term has ended, payments can skyrocket. Refinancing out of the interest only loan before the term has ended, could save you from struggling with these high payments, and may prove to be worthwhile even if the interest rate on your new loan is a little bit higher.

http://ezinearticles.com/?Louisiana-Refinance-Loans---Why-Refinancing-to-a-Higher-Rate-is-a-Good-Idea&id=361604

[nikko]

For one thing, your lender may perceive you as a "slam dunk" and not be very motivated to offer you the most competitive rates. The major factor determining the best choice of lenders for you is your borrowing circumstances (residence type, credit worthiness, income, etc.), and that could very well have changed since you took out your original mortgage. Different lenders will modify their pricing (i.e. interest rate and fees) to different degrees depending on the same factors. That's why you should always shop around and be prepared with a list of your exact needs when you're calling lenders for refinance quotes. And remember, no one lender can offer the best deal in every situation.

Before you sign the papers on that great deal you found with a different lender, give your current lender one more chance to win you back. You may be the hottest number in town with offers from three different lenders. Or you might be a misunderstood misfit who has finally found a mortgage company that appreciates your finer qualities. Either way, you now have some leverage that you can use to negotiate a good deal from your first lender.

http://mortgage.fidelitylabs.com/articles/Refinance_bestrates_yourlender.shtml

It might be possible to renegotiate your mortgage at a lower interest rate with your current lender usually for a set fee. Renegotiating a mortgage is technically not refinancing, but it is an amendment to your existing mortgage. Although the interest rate may not be as low as the current refinancing rate, renegotiating can save you money because you pay no closing costs. If you can't renegotiate with your current lender, shop around and ask for a list of charges to compare interest rates and closing costs. Closing costs vary considerably, depending on factors such as the current mortgage market, lender policies, type of loan, and age of existing loan. The total charges of refinancing usually cost between 3% and 6% of the total amount of the mortgage.

http://www.ext.vt.edu/pubs/housing/nonumber/refinance.html

[nikko]

Chances are, you're probably thinking about refinancing your home. With rates this low, it's certainly a tempting proposition. And that's just the problem: You're hardly the only person with this thought in mind. It depends less on where your loan is processed than how. Increasingly, lenders these days are using automated underwriting programs to help them speed the process along. These computerized evaluation systems function as a sort of superstreamlining process -- digesting your application, credit and payment data, and spitting out a preliminary approval or denial within hours. "These programs may create a superbreed of loan officers, a one-man show," says Erick Wootton, processing manager at Nationwide Mortgage Services. "They can take an application, process it and submit it for underwriting, then come up with a pretty firm commitment to refinance within 24 hours."

Many lenders who sell their loans on the secondary market use automated underwriting systems developed in the past several years by Fannie Mae and Freddie Mac. Bonnie O'Dell, a spokeswoman for Fannie Mae, estimates that some 500 lenders nationwide, including Wachovia Mortgage and HomeSide Lending, use their system. In addition, some top lenders such as Citicorp and Norwest have their own systems that are similar to the ones used by Fannie and Freddie. If you want a quick turnaround on your refinance application, the key question you must ask is whether your lender can give you a preliminary approval within 24 hours. Keep in mind that you current lender will need some motivation to lower your interest rates to your satisfaction. Therefore use the online lending marketplaces to get free refinancing rate quotes from other lenders. Present these quotes to your current lender to negotiate lower rates.

http://66.102.7.104/search?q=cache:lfuNZw59ybkJ:portal-1.diginsite.com/content/smartmoney/content/refinancing.htm+Refinance+current+lender+problem+delay&hl=en&gl=us&ct=clnk&cd=8

http://www.bcpl.net/~ibcnet/refinance-questions.html

[nikko]

Have you been thinking about refinancing your mortgage to consolidate some of your debts? A refinancing, debt consolidation mortgage, has become a very popular way to bundle all of a person's payments and debts into one easy payment each month. This type of a loan has some great benefits

The top 3 benefits of refinancing your mortgage to consolidate your debts
Benefit #1 – You will only have one payment each month
Benefit #2 – You can usually save thousands of dollars by refinancing
Benefit #3 – You will no longer have these debts on your credit report

Refinancing to consolidate debts will completely eliminate the debts that you roll into your mortgage. This can drastically reduce your monthly payment and in the process clean up your credit report. Once you clean up your credit report by consolidating your debts your credit score will raise. Then, you can get a lower rate on new credit cards, loans, and even on your next refinance.

http://ezinearticles.com/?Refinancing,-Debt-Consolidation-Mortgage---Top-3-Benefits&id=364838

Here are some factors you should consider when deciding if consolidation is right for you.

Are your monthly payments manageable?
Too many monthly payments driving you crazy?
What are the interest rates on your loans?
How much are you willing to pay over the long term?
How many payments do you have left on your loans?

You should start by assessing your income, fixed (regular) expenses, and variable expenses to find a solution that meets your budget. After evaluating your budget, you should also consider your assets and other liabilities - to see if you can borrow against your home, 401k plan, or other assets to eliminate high interest debt. If you feel that you cannot solve your debt problems on your own, you should seek debt consolidation counseling, which is available for more comprehensive assistance.

http://www.loanconsolidation.ed.gov/borrower/bconsol.shtml
http://www.bills.com/debtconsolidation/

A mortgage consolidation & refinancing calculator will help you to decide whether or not it would be advantageous for you to consolidate a first and second mortgage and refinance into a single mortgage with a lower interest rate. Not only will the calculator calculate the monthly payment and net interest savings, but it will also calculate how many months it will take to break even on the closing costs.

http://www.mortgage-calc.com/mortgagerefinancing/mortgage_consolidation_refinancing_v1.html

[nikko]

You can refinance immediately. There is no waiting period. The new lender usually likes to see some sort of payment history on your current loan but you should still be able to refinance anyway, particularly if your credit is good. You may have to pay an application fee as well as the appropriate closing costs again. People refinance their existing loans for a number of reasons including obtaining a lower interest rate, to save on monthly payments and to change the term of the loan. People also choose to refinance if they want to switch from an adjustable rate to a fixed rate or to consolidate debt by refinancing for a higher loan amount and using the difference to pay off other debt. To see if it makes sense to refinance your loan, try to use a refinance calculator.

http://www.askmehelpdesk.com/real-estate/how-soon-can-you-refinance-after-escrow-18503.html

http://www.gmacmortgage.com/Resource_Center/FAQ/refinancing.html

With a true no closing cost loan, you can refinance for any incremental drop in your interest rate. Because there is absolutely no investment in upfront costs, the savings of refinancing are immediate. In a market where you believe rates may continue to fall, it makes sense to refinance at no cost. Should interest rates decline further, you can refinance again without having to recoup the closing costs. Some borrowers refinance every few years at no cost, while keeping their initial teaser rate in an Adjustable Rate Mortgage like a 3/1 ARM.

http://www.goodmortgage.com/special_no_closing_cost_refinances.htm

[nikko]

Different lenders have different views as to how they define a Cash Out Refinance. In general, with cash-out refinancing, you refinance your mortgage for more than you currently owe, then pocket the difference. A cash out refinance is simply a transaction that refinances an existing debt with a new debt and advances new funds to the consumer. You should look to the definition of a refinancing; equity loans may or may not be a cash out refinance; that would depend whether the equity loan is actually refinancing an existing equity loan. If it's not, then it would not meet the definition of a refinancing. Some lenders will consider cash out to be only physical cash given to the borrower (typically lenders that deal with troubled credit), while others will consider it any money above the current principle balance of the first mortgage. Programs and guidlines may vary for different cash out refinances and how they may affect rates and terms.

http://www.bankrate.com/brm/news/loan/20010824a.asp
http://www.bankersonline.com/lending/guru2006/gurus_ldng103006d.html
http://www.mortgagecatch22.com/cashout-definition

[nikko]

The Right of Rescission is a protection given to borrowers under the Truth in Lending Act. This right gives borrowers of certain types of loans the opportunity to cancel their loan within 3 business days of signing the loan documents and qualify to receive a full refund of any monies paid. In your rush to refinance your home or to take out a personal loan, using your home as collateral for the loan, you may have second thoughts or want more time to shop for other financing options. This act gives you extra time to carefully consider your new loan. Sometimes called a "cooling off" period, it allows you those 3 extra days to be certain the loan is exactly what you expected.

http://www.escrowhelp.com/articles/20020910.html

During this waiting period, your creditor should not take any action on your transaction. For example, the creditor should not give you the money from the loan, payoff your current mortgage, or if your are dealing with a home improvement loan, the contractor should not deliver any materials or start work.

http://www.goodmortgage.com/Mortgage_School/MS_rescission.htm

The rescission period does not apply to second homes, investment properties, nor to commercial properties. The rescission period ONLY applies to one's primary residence during a cash out refinance. It does not apply for a rate and term refinance if with which the original bank carries your loan or if a state agency is the creditor for the loan.

If you do decide to exercise your Right to Rescind, you are guaranteed by Federal Law to receive back any monies you paid out for the loan. This can include the appraisal fee, application fee, and credit fee. You should receive these monies within 20 days of the lender receiving this notification. If you have not received your money back then notify the Department of Housing and Urban Development.

http://www.lethesnp.com/can_i_waive_my_rescission_period.htm

It is possible to waive the right of rescission so you can get the money immediately, but only in emergencies. To stay out of trouble with regulators, your lender is unlikely to let you waive the right of rescission unless the loan officer is convinced that you truly have an emergency and you're not simply impatient. Examples of acceptable emergencies: your roof has blown off in a storm and you need a home equity loan right now to pay for a repair, or you need the money immediately to pay for a medical procedure.

http://www.bankrate.com/brm/news/loan/20040212a1.asp