California Loans » Refinancing

Opt for short refinancing to save your home from foreclosure

admin — Tue, 25 May 2010 11:57:51 +0000

If you are unable to repay your mortgage and have already missed one or two payments, you can take advantage of short refinance loan and save your house from foreclosure.

What short refinance loan means

To save homeowners from getting their houses foreclosed, the HOPE For Homeowners (H4H) program was started by the government on October 1, 2008 and it will end on September 30, 2011. All the new mortgages are insured by the Federal Housing Administration (FHA). The maximum loan amount you will get is $ 550,440. Maximum loan to value on this loan is 105% of your home appraisal value.

You need to negotiate with your lender to refinance your existing loan. The new loan amount will be less than your outstanding loan balance and the shorted amount will be forgiven by your lender. You will have lower interest rate, better loan terms and conditions and you can convert your adjustable-rate mortgage to a fixed rate one.

Documents needed for short refinance

To get a short refinance loan, you need to furnish the following documents:

* W-2s of 2006-2007
* Salary stubs of last 30 days
* Tax returns of 2006-2007
* Bank statements of last 2 months
* Copy of homeowner’s insurance policy
* Copy of Social Security Card and ID
* 1st and 2nd current Mortgage statements
* Original 1st and 2nd mortgage note (what you signed at the time of closing)
* Most recent statements of any investment accounts (IRA, CD, pension, etc)
* Drivers’ license

Eligibility criteria for short refinancing

To be eligible to get a short refinance, you need to fulfill the following requirements:

* You should have a low FICO score, but, it should not be less than 500
* You will not have any savings or reserves
* You should be delinquent on your mortgage
* If there is any co-borrower, he will not live in your home
* Your mortgage property should be your primary residence
* Your current mortgage must be an adjustable-rate one
* You have not gone bankrupt within last 2 years
* Your current lender should have agreed to a principal write down
* Your mortgage must have originated before January, 2008
* Your net income is not more than $1,000,000
* Your mortgage payment must be more than 31% of your gross income

Your lender will also agree to a short refinance, than going for foreclosure, because, for the latter, the lender will need to bear a heavy cost towards processing and he will not receive any payments upto a year. Short refinance will also allow you to retain your home. So, you may take advantage of short refinancing loan, to save your home from foreclosure and ensure a safe shelter to your family members.

Are Refinancing Loans Worth Investing

admin — Tue, 12 May 2009 11:10:00 +0000

The biggest reason people choose to do refinancing loans is they feel that mortgage rate is to high and they can get a better rate. This is usually the case most of the time. Buyer beware before a refinancing loan you should note that more times than none the buyer ends up paying more and not less. This is due to the fact that banks and mortgages are in it for the money as will they are just wanting to do work for free. So they will charge you several different types of fees and this refinancing loan work can be complex.

When is a good time for anyone to look into refinancing loans? Well, this is an excellent question that people continue to ask everyday and look and search for answers from financial advisors, to there mortgage companies, and etc. The major rule of thumb for most refinancing loans are the following:

1. Are you planning to live that house for more than five years?
2. Not expecting a salary increase in the next five years or less?
3. By doing a refinance loan you will be going from a high interest rate to a much lower interest rate?

If you can honestly answer yes to all those questions than it would be a good match to look into refinancing loans at this point of your life. But you can not honestly answer ALL three of these questions than your seriously not the best candidate for refinancing loans. Your always more than welcome to look into for yourself, but again buyer beware and do not get sold on something that you do not fully understand.

Also, please note that homeowners that are not planning to stay in their current home situation for more than five years or might be promoted in a new job position with must higher salary. Than refinancing loans in most of these cases are not a wise choice, because you normally don’t get your money’s worth in this short amount of time when refinancing loans.

When researching refinance loans always make sure you completely know where and what every dollar your signing up for is going towards. There are in many refinancing loans that have what is called discount points which can very high expense when doing a refinance loan. Other things for buyer beware when looking for any type of refinance loans are all hidden costs, refinancing fees, out of pocket fees, private mortgage insurance, prepayment penalties, and will your mortgage be sold of and signed off.

Refinancing Home Loan

admin — Tue, 12 May 2009 11:06:23 +0000

If you have purchased a home only recently, then you are probably still paying off your mortgage every month. If you are in this situation, chances are that the high interest rates and high monthly payments have driven you to despair more often than not. It’s a common enough situation and many homeowners find themselves in the midst of it and feel that there is no way out other than to take the unpleasant path of giving up their home…or is there?

As it turns out, there is a way out of that bind, and refinancing your home loan just may offer you the best way to do it.
There are actually a number of very good reasons why you should consider refinancing your home loan. You may want to shorten the repayment term of your existing mortgage loan from 30 years to 20, 15, or even 10 years, for example, you may want to reduce the amount that you pay to the bank every month, or you may simply want to borrow some money for home improvements or whatever reason. These are all valid reasons for applying for a refinancing home loan, and these are what most people typically use them for. Considering that current mortgage rates are lower than they have been for years, applying for a refinancing home loan makes even more sense.

The first thing you have to do before you decide on a refinancing home loan company, is to get on the Internet and look into all the possible options that are available to you out there. There are literally hundreds of them, and many of them have different repayment terms, interest rates, and monthly rates, and these are all important factors to take into consideration when deciding on a specific company. Thankfully, the Internet has made this task much easier, and you can take advantage of the online calculators and pre approval application forms that many of these companies offer on their website.

What was once an arduous, back breaking task of poring through dozens of pages of forms, searching for the best possible deal, and probably involving the expense of hiring a broker to do the negotiations for you, has now been reduced to a few simple clicks. Be careful however: the extreme simplicity in the application for a refinancing home loan today has made a lot of people careless, and many have entered into an agreement without knowing all the potential implications of what they were getting into. Take the time to research each and every one of them carefully and read the fine print; there may be something there that you have missed. This little bit of effort will pay off in the long run when you don’t have to deal with any surprise hidden costs or miscellaneous fees that suddenly pop up down the line. Ask as many questions as you feel are necessary to fully understand every aspect of your refinancing home loan. Remember: it is your money we are talking about, and if you are not satisfied with the terms, walk away.

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