Your Questions About Mortgage Refinancing

Mandy asks…

Can a person on the title but not the mortgage stop me from refinancing?

I have a loan contract with a person on the title (individual property grant deed) in which the contract for the loan “shall continue until the property is sold”. Even though I am not selling the property, I have offered a buyout amount for his 10% share and he is threatening to block any refinancing unless I meet his demand for a buyout amount. We differ on the appraisal amount of the property. My appraiser was approved by my lender and is a Certified Residential Real Estate Appraiser in California and I have no idea if or what type of appraiser he used. Can he do this even if he is not and will not be on the original mortgage or the refinanced mortgage? Would it be better to rescind the offer and just wait to pay him when I sell at a later date? Please let me know if you have any ideas on how to handle this situation.

John answers:

Yes. The person on the title can block your attempt to refinance.

You can wait to sell, but he will have the same veto power over any contract offer as well.

Charles asks…

Where do I find current information about mortgage modification, refinancing, and new mortgage rules?

There is a lot of talk about mortgage modifications, refinancing and new mortgage rules, but most info is so basic that everyone just keeps repeating the stuff already known. Can anyone suggest a place with more advanced and very specific articles stating the facts with references back to the primary sources?

John answers:

If you are looking for the best mortgage refinancing site, try this site

Here you can find the lowest interest rate in your area

William asks…

Is Upfront Mortgage Insurance paid at a mortgage refinancing deductible from income taxes?

I am pretty sure it is deductible when you a buying a home; just want to know if it is deductible when refinancing as it will impact the earn back time of the refinancing costs.

John answers:

I provided a link below… And I think the answer is there. Not sure the deduction works for a re-fi. But if it does, pretty sure you would have to amortize it for the duration of the mortgage.

John asks…

Has anybody applied for a mortgage refinancing to consolidate credit cards?

And if you had, did the mortgage people had to issue themselves the checks to the credit cards or you did? Thanks.

John answers:

If you are looking for the best mortgage refinancing site, try this site

Here you can find the lowest interest rate in your area

Lizzie asks…

Would it be better to pay large lump sum to current mortgage before refinancing?

Currently looking at refinancing home, but can’t decide if it would be better to add additional monies to current mortgage to lower amount to be refinanced, or refinance and put that sum onto new mortgage.

John answers:

It depends on your reasoning for refinancing. Are you trying to get a lower monthly payment? Save more money in the long run by lowering your interest rate? Trying to get cash back to pay off some debts? I’ve been working in mortgage for over a year and I’ve seen a ton of scenarios, especially now with the rates being so low.

If you currently have an interest rate that is more than one full percentage point higher than the current rates, you MIGHT want to consider refinancing. Instead of puting a lump sum of money towards the current mortgage, use it as a down-payment on the new refinance.

Check out a local credit union if you have one. They are not-for-profit. That means, they DO make profits so that they can function as a business and offer more products, but that is not the focus of the institution. If I were to refinance with my credit union there would be an origination fee that is 1% of the loan amount. This fee covers the labor that it takes for the mortgage department to create your loan. The rest of the fees are paid out to contract providers such as appraisers and title companies.

Also, most credit unions will not charge any fees to pay off your mortgage early. If you have an extra $50/month that you could apply towards principal, you could pay your mortgage off so much sooner. With a $165,000 house, paying $225 extra towards principle every month take a 30 year mortgage and pays it off in 15 years!

Ask around for Good Faith Estimates. This is non-commital and the institutions have to provide the fees that they charge and what they are for. Compare them and see if the closing costs are worth it for you.

If you owe less than $50,000 I would encourage you to look into the rates for a Home Equity LOAN. They are usually 15 year fixed loans (different than a line of credit which has a variable rate) and have lower interest rates than a mortgage loan. You also wouldn’t have all of the closing costs associated with a regular refinance.

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