Your Questions About Mortgage Refinancing Rates

George asks…

free mortgage quote rate refinance?

where can i SAFELY get refinance quotes online?

John answers:

You should get refinance quotes from multiple lenders at one time and avoid the pressure/sales pitch you will get if you call them one by one. There is a site that offers such a service, and I’ve listed it as a resource.

Basically, when you submit your information, the service will forward it to reputable lenders. The lenders who get your information will then contact you with a competitive loan program. Because they already know they are competing with several other lenders, more than likely they will offer you a competitive and honest rate.

Don’t agree to any of the loans, at least not yet. Listen to each loan officer and let him or her present the loan program to you, and then politely tell them you’ll get back to them within a few days.

After you have talked with each lender, you will be well educated on the loans currently available for your situation. Then, you can choose to work with one of those lenders, or you can take that information and approach a loan broker who can then compete against their loan programs and try to offer you a better rate.

John asks…

Mortgage rate?

My credit score is between 660 and 687. I need to refinace my current rate 7.35 adjustable mortgage. What kind of rate will I get.
Countrywide my current lender says I only qualify for a 8.75 rate because I had a bankraupcy in 1997 and I had two collections in 2003 due to my husbands illness and inability to work. He has since started to get Social Security and Retirement benefits.
I pay all my bills on time and pay more then the minimum on all of them including on my mortgage.
I can’t see why items from 3 yrs ago should still affect my credit since I have been making sure I pay everything beforeit is due and do not use more them 1/3 of my credit available.

John answers:

SHOP, SHOP, SHOP-until you find a deal that convinces YOU it is the best. Remember there’s more to it than just the rate.

1. Get a copy of your credit report and correct any errors.

2. Do what you can to get your score up-even 30-40 pts makes a difference.

3. Then shop til you drop for the best deal. On line lenders can save you a lot of time.

If you are in the market for a mortgage, home equity loan, or refinance get up to 4 FREE No Obligation Mortgage Rate Quotes at http://www.m-o-r-t-g-a-g-e-r-a-t-e.com

LEARN HOW you can save some serious money with
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Get details on a FREE HOME SECURITY SYSTEM http://www.h-o-m-e-s-e-c-u-r-i-t-y.com

Sharon asks…

Can I purchase a house from my wife to qualify for a favorable rate? ?

My wife purchased her house (10 years ago) before we were married (5 years ago). I sold mine and moved into hers. The mortgage is in her maiden name. The interest rate is 7%, with only about $100k left from a $300k mortgage. House is worth more than the $100k, so refinancing isn’t a problem.

I see that most banks are giving better rates for mortgages than refianances. Credit wise, I don’t need her to co-sign, and I’m positive spouses can have different assets, even if they share legal responsibility for them together.

Am I able to purchase the home from her to qualify for a preferred mortgage rate?

Please post the link to your reference source if you plan to answer. I need something more concrete than “I don’t think so”.

John answers:

Mortgages both refinance and purchases are based on the credit score of the individual that is refinancing or purchasing the property. The rates are about the same.

Most people refinance simply to get a lower interest rate loan, so I do not understand the statement that purchasing a property will yield a better interest rate as oppose to a refinance.

I have been in this business for a few years, this is the first I have heard of this, except that the borrowers credit score might have changed in a negative way.

You should find a local mortgage broker by looking in the telephone book. They will offer you the best rates possible based on your credit report and your credit score.

You may be interested in the best rate or a no fee mortgage. You have to decide which is best for you based on your financial situation presently.

You must ask the mortgage broker to explain each and every mortgage program you are qualified for. This includes the monthly payments, interest rate, any possible prepayment penalties and most important what this loan will cost you.

Your fees and points should be explained to you on a Good Faith Estimate (GFE). Once you have allowed a mortgage broker to take a mortgage application and run a credit report they should be able to issue you a GFE. Don’t get to excited about the first one, it might be a little off and the mortgage broker has a 3 day requirement to do this, so he might be just fulfilling the requirement.

Once you have your GFE now is the time to discuss what mortgage programs you are qualified for as well as discuss the points and fees you will be required to pay.

Keep a pleasant disposition, be open about what you want, make sure the mortgage broker understand your situation. Working with the mortgage broker will be a rewarding experience if you are both on the same page and know what each of you are looking for.

If there is something you don’t understand, ask and get a full explanation before you move on to another subject.

Sometimes low points and fees and low interest rates are not spoken in the same sentence. You have to come to an agreement about this.

Make sure you understand the tax benefits of paying points and fees up front as oppose to a no fee no points mortgage.

Just remember no one work for free, not even you, so be prepared to pay for your loan. You have to decide if you want to pay up front or during the mortgage monthly payments.

A no fee no points loan normally mean the broker will increase the interest rate to compensate for the mortgage expense. Make sure you understand this.

When signing the loan docs make sure these docs say the something you decided on as far as the interest rate, number of years the mortgage is for as well as other things you discussed about the mortgage you decided was best for you financially with the mortgage broker.

If the loan docs are not the same please don’t sign them. You are the one that will pay the monthly mortgage so make sure they say exactly what you discussed when you decided on the program

It is too late to blame someone else after the loan docs are signed, so this is your time to make sure that you agree with the loan docs.

Even if you sign the loan docs with a refinance you have a 3 day right of rescission. There will be a form in the loan docs that you sign the tell you to sign it and either fax the form to the title Company, escrow company or lender within three days if you change your mind.

If you just want to purchase the property with the hope that you will be getting a better rate you may do so. There are no laws that prevent that. There might be additional loan cost in you purchasing the home as oppose to simply refinancing the home.

I hope this has been of some use to you, good luck.

“FIGHT ON”

Robert asks…

second mortgage refinance?

Is there anyone out there that knows about refinanacing a second mortgage? Being a first time homebuyer we were duped into taking out a 13.5% second mortgage on our home. I cant find any info on refinancing this type of loan besides companies who cant be trusted. Any info would help.
to the smarty pants who wants to make comments about what i can can’t afford. you dont know what I can or can’t afford. the reality it my husband and i prob make more than the two of you combined! But it doesnt matter how much money you make if your credit score is low because we pay mostly with cash! And the way the loan was explained to us was NOT the way it turned out to be.

John answers:

You may have difficulty finding someone to refinance a second mortgage. You will probably have to do a complete refinance of the property. As long as your credit and income is good and the property appraises high enough, this is a good time to refinance as rates are at an all time low. Good Luck

Sandra asks…

Mortgage rate?

I am not putting any down payment on a home and am getting it fully financed. The broker quoted me 6.25% on it. Is this a decent rate?

Also, does anyone have any idea if rates are going to be dropping anytime soon? I heard a rumor that the Bond market was in an upwsing thereby causing mortgage interest rates to drop.
Oh yes, it is a fixed rate. I do not have the rate in writing but do have a preapproval letter from him.
It is also one loan with mortgage insurance as opposed to two loans at different interest rates.

John answers:

6.25% may be a good rate or even a GREAT rate depending on the type of loan you are qualifying for. There are a number of factors that determine your qualifying interest rate. These factors include your current credit score, purpose of the loan (purchase vs. Refinance), the loan size, and the % borrowed in relation to the value of the homes worth (LTV). In addition, the TYPE of loan can change the factors of your rate. Is this loan a FIXED RATE, ADJUSTABLE RATE (ARM), INTEREST ONLY, BALLOON, ETC? If your loan is 100% financed, with no money down, then this is an incrediable interest rate because you are financing the entire loan amount. In the eyes of a bank/mortgage lender you would be considered a high risk. The higher a risk you are then typically you can expect a higher rate (7, 8, 9%+). Also, make sure you ask if the broker LOCKED your rate, otherwise you are open to shifts in the market. Brokers may “table close” you as a customer. This means that they will tell you the day of your closing that you rate has suddenly gone UP! In many cases this is due to the greed of the broker becase they are paid by the bank for getting you to sign at higher rate. My suggestion is to do your research, work with a reputal lender, and try to visit with the broker in person.

As for rates dropping. The Federal Reserve is due to meet in March to discuss lowering the rate .25%, but that doesn’t mean the savings will be passed on to you.

Good luck!

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