Your Questions About Mortgage Refinancing Companies

Sandy asks…

If i just bought a house 4 months ago can i already refinance?

I just bought a house 4 months ago at 6.5%/30 fix through a FHA loan. Obviously rates have now nose dived, can i refinance with another company to take advantage of these lower rates- even if its not an FHA loan?

John answers:

FHA loans don’t have pre-pay penalties. You will need to do the math on all the fees for the loan however. One thing to consider is how long you plan to live there. If it’s a long time then it might be smart to grab a low rate. If only a few years then the difference in payment might not pay for the fees involved.

You can use a mortgage calculator like this one http://easyrentaltools.com/tutorials/mortgage-calculator-1.cfm
and see the difference in payments. Then just add it up. A good place to look at the fees involved is the closing statement you just did 4 months ago. Likely the loan related fees will be similar again.

Steven asks…

How can I change my mortgage company?

My mortgage was recently sold to a new company. Their services are poor and refused to give me a principle-reduction modification. I have a 30 yr fixed rate loan. I’m up-side-down so refinance may not be a choice. Is it still possible for me to get another loan servicing company?

John answers:

Not likely you will get another servicing company without refinancing.

Donna asks…

What company has a good reputation for mortgage refinancing in this market?

I’m in Wisconsin.

John answers:

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

http://best-mortgage-refinancing.com/

Here you can find the lowest interest rate in your area

Sandra asks…

How to get a mortgage while in chapter 13?

Just started chapter 13. Trustee objecting to negative equity in present home. Just looking at moving to a different home or telling the mortgage co. that the trustee is leaning towards returning the home and trying to get them to lower the interest rate. Anyone have an answer?

John answers:

You should be discussing this with your bankruptcy attorney, not looking for answers from anonymous total strangers on the Internet.

Your situation is complicated. For one thing, you cannot take out a mortgage (including refinancing, or selling and buying a different home) while in Ch 13 without your Ch 13 Trustee’s permission. But if the Trustee filed an Objection, it sounds like you don’t have a confirmed Plan yet and are in danger of losing your home.

If you surrender the home in Ch 13, chances are very good that you may need to rent for the duration of the Ch 13, and probably for a couple of years after you receive your discharge, before reputable mortgage companies will seriously consider lending to you again.

You need the in-person advice of your own experienced bankruptcy attorney. If you don’t have one yet, you need to get one a.s.a.p.

Mary asks…

Can someone sue a bank for giving a mortgage that the person cant afford?

My mother was given a mortgage witch is almost the same amount of her income is per year.Leaving her with a few thousand dollars a year to live on after she pays her mortgage payments.Can she sue the bank? I thought I’ve seen an article in yahoo news about this happening recently.

John answers:

How did this situation happen? Did your mother have a sudden loss of income? Anyone who wants a mortgage has to declare their income, and in most cases document their income. All lenders require this, because they usually don’t hold the mortgages, they sell them to investors, and the investors want the information so they will know their investment is sound.

This sounds like a bad situation, but I don’t think suing will work for you, and wouldn’t advise going into foreclosure unless there is absolutely no other choice.

The first thing I would try would be calling the bank and trying to work with them. Most reputable banks and mortgage companies will work with you if you’re having trouble meeting the payments – they want your money, not your home. If there isn’t a pre-payment penalty on the mortgage you might be able to refinance to a lower payment – with the current mortgage company or another reputable one.

In spite of all the news surrounding the mortgage business lately, if your mom has decent credit she should be able to get a good fixed rate mortgage, and hopefully she could get a payment that fits her budget better. If you want to research payments, try going to Quickenloans.com and using their mortgage calculators. That will give you an idea of what’s available to you.

I hope this helps.

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