Are you thinking about refinancing your auto loan? Perhaps you purchased a car a few years ago when interest rates were higher. Or maybe you recently financed your car through a dealership, but now you've found a much better interest rate through your bank or credit union. It's possible that your credit has improved since you took out your auto loan, and you believe you could qualify for a better interest rate. Whatever your reason, refinancing your auto loan at today's low interest rates could save you a significant amount of money, and it's generally easy to do.
Refinancing your vehicle could potentially reduce your monthly payment, and save you money on your interest charges. For example, let's say that you purchased a car one year ago and your remaining loan balance is $25,000. Your current loan rate is 5.99% and your remaining loan term is 48 months. You decide to refinance your remaining balance and you qualify for a 2.99% loan rate. You'll reduce your monthly loan payment by approximately $34 per month (from $587 to $553), and save approximately $1,621 in interest charges over your remaining four-year loan term.
Of course, the lower the interest rate you can get, the more money you may be able to save. In general, getting the best interest rate will depend on the following factors:
- Your credit score. To get the best rate, you will probably need to have a top credit score.
- The age of your vehicle. Newer cars will generally qualify for lower rates. If your car is only a year or two old, you might even qualify for the same low rate that applies to new car purchases.
- The loan term. Generally, the shorter the term, the lower the rate.
What about refinancing costs? Refinancing costs for an auto loan are generally minimal--less than $100--because they're typically limited to title transfer fees or processing fees. But read your current loan documents--though it's not common, lenders occasionally charge prepayment penalties.
Because you pay more loan interest up front, you'll generally save more if you refinance toward the beginning of your loan, rather than toward the end. If you can afford it, one worthwhile strategy is to refinance into a shorter term than your existing loan term, because you'll save even more in interest charges. Alternatively, if your goal is to reduce your monthly payment as much as possible, you might refinance into a longer term. However, it may not be wise to extend the term of your loan, because even though your payment will be lower, you may end up paying a lot more in interest over the life of the loan.
Before you refinance your vehicle, do your homework by comparing interest rates and terms offered by various lenders, and find out if there's a minimum amount you must finance. Your first stop might be your current lender, who may be willing to refinance your vehicle at a lower interest rate to keep your business. While lenders will often refinance loans they already hold, special interest rates and conditions may apply. Another option is to apply for a loan at your current financial institution. You may receive a discount on the loan rate if you have direct deposit or a savings or checking account, or agree to pay your bill automatically or online.
Once you've selected a lender, you can often apply for a vehicle loan and complete the entire transaction online. To apply for a loan, you'll generally need the make, model, and year of your vehicle; the vehicle identification number; the current payoff and remaining term; and proof of insurance. And before signing any paperwork, make sure you read the loan contract and understand the terms of your new loan agreement.
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- 1 is it easier to refinance than purchase
- 2 VA Streamline Refinance (IRRRL Program) & VA Refinance Rates in 2017
- 2.0.1 The VA Streamline Refinance Must Improve Veteran’s Situation
- 2.0.2 Do lenders impose additional rules for VA streamlines?
- 2.0.3 Can I add or remove anyone from the mortgage with a VA Streamline?
- 2.0.4 Should I apply for a VA streamline with my current lender?
- 2.0.5 Can I refinance my VA loan with a new conventional loan?
- 2.0.6 Can the lender pay my closing costs instead of including them into the new loan?
- 2.0.7 How do I know if market rates are lower than my current rate?
- 2.0.8 Can I use a VA streamline to refinance another type of loan?
- 2.1 I’m Ready to Apply for a VA Streamline. What’s my Next Step?
- 3 is it easier to refinance than purchase
is it easier to refinance than purchase
Going through the comments, I guess there is an answer in the comments, and noboday has put it. So just putting up an answer.
The Black book value of 2004 Impala [highest trim model] is about $7000. Hence Banks will not lend you $12,000 secured loan on it.
Plus as you mentioned No Bank is allowing you to apply for a loan, Banks have their own policies and you cannot force them.
- Try getting a loan from friend / relative, if they agree to it, offer a rate of 6-7% to them, this may enable to you pay off the loan faster.
- Check if you are getting a personal loan at cheaper rate.
- See what is the best sale value you can get for your car . if its close to the loan, you can sell it off now and then buy another cheaper used car at lower interest rate.
VA Streamline Refinance (IRRRL Program) & VA Refinance Rates in 2017
Posted on: January 15, 2017
The VA streamline refinance is the quickest, cheapest, and most beneficial type of refinance for veterans who currently have a VA home loan. VA refinance rates are at historic lows. If you are interested in reducing your interest rate and monthly payment, it’s worthwhile to check current VA streamline rates.
The VA streamline is one of the only refinance programs available in 2017 that allow you to qualify without income or bank account verification. It’s available to those with less than perfect credit. It is one of today’s quickest and easiest refinance options.
The VA streamline helps veterans lower their mortgage rate and payments. When rates are low like they are now, veterans can refinance into a new loan based on today’s rates, and often reduce their monthly payment quickly and easily.
This loan type, also called the Interest Rate Reduction Refinancing Loan (IRRRL) eliminates many of the roadblocks that hold up applicants on other types of refinances. The VA Streamline is much easier because:
- No paystubs or W2s are required
- No bank statements are required
- No home appraisal is required
- There is no loan-to-value limitation because no appraisal or value is required.
- Underwater homes are eligible
- The required funding fee is lower than for VA purchase loans
- Closing costs can be wrapped into the new loan, meaning little or no out-of-pocket expenses
Why is this loan so easy to obtain? Homeowners with a VA loan are more likely to make payments on time if their payments are lower. It benefits everyone when veterans have affordable mortgage payments.
VA streamline refinance rates are at historic lows. Many Veterans who have purchased or refinanced a VA home loan in the past few years should check today’s VA rates to make sure they have the absolute lowest rate and monthly payment possible.
If you’re interested in a VA Streamline (IRRRL) you must currently have a VA loan. Your mortgage professional will pull a Prior Loan Validation from VA’s website to prove current VA loan status. There are some additional requirements.
In addition, you are required to have made on-time payments over the past year, with no more than one payment that was 30+ days late in the past 12 months. If you did have a late payment, say, 8 months ago, you may want to wait 4 months before applying.
The VA Streamline Refinance Must Improve Veteran’s Situation
The VA streamline has to put the borrower in a better financial situation. VA lenders may only approve streamline refinances that help the veteran.
The new payments on the VA streamline must be lower than your current payments. There are a few exceptions, like when you:
- Refinance an adjustable rate mortgage (ARM) to a fixed rate mortgage.
- Refinance into a shorter term
- Finance energy efficient improvements into the VA streamline
In all cases except for an ARM refinancing into a fixed rate, the interest rate must decrease.
To prove the benefit of the refinance, your lender will provide you with a form stating the interest rate and payment of your current loan compared to the rate and payment of the new loan. The form will also state how long it will take the refinance to pay for itself. For instance, if the refinance will cost you $3000 in closing costs, but you are saving $300 per month, you will make back the cost of the refinance in 10 months. Be sure to review this form to make sure you are receiving an adequate benefit from the refinance. Talk to one of our VA experts to determine your refinance payback time frame.
You must certify that you previously occupied the home that you are refinancing with a VA streamline. Those applying for a VA streamline are more likely to qualify if they currently live in the home.
There are still instances where you may still qualify if you don’t live in the home. For example, if you lived in the home, then relocated and rented it out, you still may be able to apply for a VA streamline. Speak with your lender for more information.
The VA funding fee is required on most purchase and refinance VA loans to defray the costs of the VA home loan program. In most cases, the VA Streamline funding fee is 0.50% of the new loan amount. This fee can be financed into the loan so that the veteran does not have to pay it at closing of the loan.
The fee is waived for veterans who are disabled due to service-related injuries. The VA makes this determination and provides it to the lender.
The 0.50% fee is much less than the 2.15% or 3.3% usually required for purchase or VA cash out refinance loans.
The VA streamline is not viewed as a subsequent use of your VA home loan benefit. You will not incur the 3.3% subsequent use fee because you used the VA streamline refinance program.
This loan does not use any of your VA home loan entitlement, nor do you have to prove remaining entitlement to obtain a VA streamline. Your remaining VA entitlement after purchase of the home, if any remains, does not change when you obtain a VA streamline.
As discussed previously, your VA loan term may decrease, for instance, from 30 years to 15 years. In this case, it’s OK that your payment increases.
You can also refinance a 15 year loan into a longer term loan. However, keep in mind that the most your loan term can increase is 10 years. So if you currently have a 15 year term, the longest loan you can refinance into will be 25 years.
Yes. The VA streamline does not require an appraisal, therefore no value is established for the property. The basis for the loan is the existing VA loan, not the current value of the property.
Do lenders impose additional rules for VA streamlines?
Yes. Often, lenders will impose “overlays,” which are additional guidelines on top of VA’s requirements. Each lender has the right to establish their own standards for lending on VA loans.
For instance, the VA does not require an appraisal or credit report. But almost all lenders require a credit report, and many require an appraisal for a VA streamline. If you are worried about the value of your home or the cost of the appraisal, find a lender who will complete the loan without an appraisal.
No. Your Certificate of Eligibility (COE) is needed for your VA home purchase, but not for a streamline. Since you already have a VA loan, most lenders will simply request a prior loan validation directly from VA’s website in lieu of a COE. If you have questions about your COE, contact us.
Can I add or remove anyone from the mortgage with a VA Streamline?
In some cases, parties can be added or removed. The general rule of thumb is that the veteran who was eligible for the original loan must remain on the loan. The exception is when a spouse and veteran are on the existing loan, and the veteran passes away. In this case, the spouse may be able to refinance with a VA streamline without the eligible veteran.
The payment is allowed to rise as a result of the VA streamline in some cases. In the very rare case that the new payment goes up 20% or more because of these features, the lender may ask for full income documentation. Usually the payment does not rise that dramatically because of the below factors:
Because fixed rate mortgage generally have higher interest rates than adjustable rate mortgages (ARMs), your payment may go up. But, often it is a good trade off to know that your payment won’t change over the life of the loan like it can with an ARM.
In some cases, your rate and payment may even go down if your ARM interest rate is higher than today’s low fixed rates.
The VA streamline allows you to refinance from a 30 year loan into a shorter term, such as a 15 year term. In this case, it’s OK for your payment to rise as long as your interest rate goes down. Since shorter term loans pay off faster, payments are bigger than loans with longer terms.
As an added benefit, the streamline refinance program allows home owners to finance up to $6000 in energy efficient improvements for their home. These improvements will save home owners money over time and are a great option for those who are interested in upgrading and adding value to their home. Some examples of energy-efficient items are programmable thermostats, insulation, solar heating, and caulking/weather stripping.
In some cases, the veteran may receive cash at closing of a VA streamline for reimbursement of energy-efficient items. Check with your lender for details.
Second mortgages on VA loans are fairly rare, since VA loans do not require a down payment, and therefore not enough equity exists to obtain a second mortgage.
In the case that there is a second, the new VA loan from a streamline can’t pay it off. A VA cash out loan would be required. Any additional loans on the property need to be “subordinated,” or put underneath on title, behind the new VA loan.
No. VA streamlines are meant only to pay off the existing loan and closing costs. The only exception is when a veteran prepays for energy-efficient improvements and needs to be reimbursed for actual costs.
Should I apply for a VA streamline with my current lender?
Although your original lender or current mortgage servicer might be able to do your VA streamline, it is not required. Any VA-approved lender can do your streamline, and it’s best to check with a few lenders to compare interest rates and fees.
No. HARP 2.0 is a refinance for loans owned by Fannie Mae or Freddie Mac. Fannie/Freddie do not own VA loans, so a HARP loan can’t refinance a VA loan.
Can I refinance my VA loan with a new conventional loan?
Yes, if you have enough equity and meet other qualification standards for conventional loans. If you have 20%+ equity in your home, it would be possible to open a new conventional mortgage without a funding fee or mortgage insurance, to refinance the current VA loan. This type of loan would require an appraisal and full income, asset, and credit underwriting.
Closing costs vary greatly from lender to lender. Borrowers should shop around to find the best interest rate and closing cost combination for them. There are certain closing costs the veteran can and cannot pay on a VA loan. For an in-depth look at closing costs, see our closing cost page. Generally, rules for VA streamline closing costs are the same as for purchase closing costs, except that the veteran may not finance more than two discount points (2%) into the new loan. Discount points are points paid to reduce the interest rate. For a closing cost quote based on your specific situation, contact a licenced VA lender.
Can the lender pay my closing costs instead of including them into the new loan?
In some, cases, the lender can give you a higher interest rate and pay your closing costs, and sometimes even your funding fee. The closing costs aren’t added to the loan amount; the lender pays them for you by using the excess profit from the loan. Usually this works best when rates are very low, or if you currently have a high interest rate. In these cases, you lower your rate substantially, despite the rate hike given to you to pay for fees.
For instance, if market rates are 4.0%, your lender might give you a 4.25% rate and pay all your closing costs. You still end up with a great rate, and don’t add much principle to the loan balance. This isn’t always an option, though, and often closing costs need to be wrapped into the new loan or paid in cash.
No payments can be skipped. Sometimes, depending on the closing date of the new loan, it appears that a payment has been missed because the previous or subsequent month’s interest was wrapped into the new loan. However, the VA does not condone this practice as a method to “skip” a payment. The VA lender should not coach the borrower to structure a refinance in this way.
How do I know if market rates are lower than my current rate?
The amount of money that you can save with a VA streamline refinance varies with the current VA interest rates that change based upon the normal market fluctuations. You should look at the current VA rates displayed on our site and match them against the rate you got when you initially got your VA loan. If the rate is lower than what you are currently paying, there’s a strong chance that you can save money with a VA streamline refinance loan.
Can I use a VA streamline to refinance another type of loan?
No. VA streamlines or for VA to VA refinances only. If you have a conventional, FHA, USDA, or other type of loan, you could possibly use a VA cash out refinance. You would need an appraisal, and income, asset, and credit documentation.
I’m Ready to Apply for a VA Streamline. What’s my Next Step?
Call (866) 240-3742 or simply complete our online form for a free, no obligation VA streamline rate quote. Rates are low and it’s a great time to lower your home payment.
Source of information on this page: VA Handbook
is it easier to refinance than purchase
In today’s real estate market, refinance loan rates are hovering at historical lows, with the average being in the 4% range. For millions of homeowners the potential savings on their home mortgage by refinancing into a new loan and securing a lower rate are extremely enticing. Who doesn’t want to save a couple hundred a month, or thousands of dollars over the life of the loan? Of course, there are times when you think you can get a great rate only to discover that your finances aren’t what you hoped or your home didn’t appraise for quite enough, and you’re stuck with a higher rate. Rather than dealing with this disappointment, here are a few things you can do to increase your chances of getting a better rate for your refinance. https://refinancey.com/wp-content/uploads/2016/01/Tricks-to-Improve-Your-Refinance-Rate.mp3 Using Your Resources to Compare Refinance Rates How to Hit the Jackpot by Lowering your Rate How are Homeowners Receiving Low Refinance Rates? Your Credit Score: Get Clear on Your Finances When you apply for a refinance to get lower refinance loan rates, the bank is going to want to know your entire financial situation. They need the ins and outs of your financial history, your assets, your credit report, your credit score, your job history, and more. It’s your job to make sure all of this is in place before you apply for a refinance. A good place to start is with your credit report. Contact the reporting agencies and get a report from each one so you know what is showing up on your history, and whether or not you can get anything off.
In the real estate market nearly all home loans are given through conventional lenders or those that have been approved by FHA. Conventional lenders follow the underwriting guidelines of Freddie Mac and Fannie Mae and they are not tied to the government programs. These underwriters are, however, subsidized by the government. FHA lenders follow the underwriting guidelines of the federal government and are much more lenient in their initial requirements for a homeowner to secure a loan or to refinance an existing loan. Between the two of them, they keep the real estate market functioning as it does today. As a homeowner, you’re probably thinking about refinancing, you may be wondering if you should have FHA refinance your mortgage. While this can be a great idea, there are some pros and cons that you should be aware of. https://refinancey.com/wp-content/uploads/2016/01/What-should-I-do-FHA-or-Conventional.mp3 The Secret to FHA No Costs Refinance Smart Steps to Take When Refinancing Your Loan What is a Conventional Refinance Conventional vs. FHA Requirements When you apply for a refinance through a conventional lender, you will have to meet the requirements that they have established for approval. Typically, lenders like you to have a really good credit score, in the 700 range at least but preferably higher. You also need to have a fairly low debt-to-income ratio, a stable job, and a good credit report. In addition to this, any asset you have will be marks in your favor. Each conventional lender has their own requirements that have to be met, but they are all fairly similar and they take the items mentioned above into account. If you are in.
For new homeowners, it is a step into the world of unknown territory after considering to refinance your mortgage. It can be quite jarring if you don’t know what they are doing. However, a good course of action from a good research plan will certainly make things easier. Find out why you should begin to refinance in the first place. Also, make sure that it’s a sensible decision. Here are a few things to keep in mind regarding your refinance method. https://refinancey.com/wp-content/uploads/2016/01/3-Steps-To-Help-You-Refinance-your-Mortgage.mp3 Did You Know Homeowners Can Still Refinance With No Equity? You’ll Never Believe How Easy It Is to Use a Refinance Calculator Smart Steps to Take When Refinancing Your Loan What Are Some Things to Consider in a Conventional Refinance? What’s the reason for refinancing your mortgage in the first place? Do you have a good relationship with your lender? This may determine how much you’ll have to pay in upfront closing costs. Some lenders will want you to put a 20% down payment. This is quite expensive for a new homeowner and this may take a serious bite out of your current livelihood. If you’re an adult that just graduated college, you may want to get to your student loans right away. It’ll take some time to pay a high down payment for a home. On another hand, a lender may want in between 5-10% upfront. This gives you a little breathing room to do other things. There are advantages to paying a large amount upfront. Pros and Cons of Choosing Federal Refinance Options Under FHA Guidelines Not only do you have new.
The real estate market is a huge player in the nation’s economy, which means that a lot of money funnels through it to individuals, businesses, and corporations. To help maintain this success, advertisements beckon you to buy a new home, take out a new loan, refinance the existing home, etc., this isn’t necessarily a bad thing. We all benefit from an economy that is flowing in as well as out. But the question is, should you listen to those advertisements and get a refinance? Is it worth it? They claim it will save you money, so will it? There is good and bad to a refinance, as there are with any major financial decision, and after learning a bit about the good and the bad, you’ll be better equipped to make the successful choice. https://refinancey.com/wp-content/uploads/2016/01/The-Good-and-the-Bad-When-Refinancing.mp3 Refinance Options – What Are Your Needs? Smart Steps to Take When Refinance Your Loan 4 Things to Consider Before You Refinance Your Mortgage Why You May Want to Refinance When you refinance a home you take out a new loan on an existing property. This new loan pays off the old loan and you are left with different terms. When you take out a new loan the power goes back into your hands to some degree, meaning you can adjust the terms you are dealing with rather than being stuck in the terms you already have. For example, your original loan has an interest rate of 5.5% and a 30-year-loan term. That’s not bad, but the current rate you can qualify for is 4.5% and you know you can afford a shorter loan term.
Did You Know Homeowners Can Still Refinance With No Equity?
A home purchase is typically done for two reasons. First, a place to live and second, an investment. Like any investment, this purchase can sometimes go the wrong direction, leaving the homeowner struggling to meet the demands of a debt that is more than the asset is worth. When you find yourself in this situation you may realize that a refinance can help solve the problem you are dealing with. Unfortunately, too many homeowners think a refinance isn’t a possibility for them because there is no equity. But here is a thought you might want to entertain, ‘Can I still refinance my home with no equity?’ This thought may be the key to getting you into a mortgage you can manage. 5 Key Points to Know about a HARP Loan 4 Things to Note Before Choosing the HARP Program HARP and HAMP After the real estate market had plummeted a few years ago, the government implemented multiple programs to help people who lost equity and who ended up in a mortgage that was worth more than the house. These programs are specifically for people who had the mortgage before the crash, and they have been a source of relief for thousands of homeowners. The first of these programs is HARP, which stands for the Home Affordable Refinance Program. When you ask yourself ‘can I refinance my home with no equity?’ The answer is yes; they may be able to if you qualify for HARP. The Home Affordable Refinance Program is specifically geared toward homeowners who do not have existing FHA mortgages. They also cannot be late on their payments.
Let’s Get Down to the Bottom of You’re Refinance Options
For most homeowners there comes a point during the life of their loan where they start to entertain the idea of a refinance. They may have noticed that the interest rates have dropped, or they’ve built up equity and are thinking of putting it to good use. The questions that should be asked before the refinance is, why are you refinancing, will it be beneficial, and what are my refinance options? While your loan officer and lender will be able to give you all the details of the refinance, here is a look at why people refinance and what options are available for them. Refinance Programs for Every Need Why are you refinancing? This is the first question you should ask yourself because it’s going to determine the refinance program that you pick. For most homeowners the reason they refinance will fall in one of these categories. They want to pull out the equity and use it for other investments or debt consolidation. They want to reduce the interest rate and/or the monthly mortgage payment. They want to adjust the loan terms, switching from and ARM to a fixed mortgage or altering the amount of time required to pay off the loan. They have family issues that must be dealt with. They are falling behind on their mortgage and want to alter it to make the burden easier to handle. Granted, these aren’t the only reasons people refinance, but they are the most common. So where do you fall in this list? By deciding what you need out of a refinance, you’ll be better equipped to choose the best.
You always want to come out on top after picking a refinance option you believe will help your situation. You want to get in a situation where you want to obtain the lowest refinance rates, but don’t incur so many other costs as a result. You may have needs such as stabilizing your mortgage to get back on better footing financially outside of your house obligations, or you may want to have the choice to utilizing equity to improve other sections of your life. In any case, here are a few ways homeowners are receiving lower rates. How to Hit the Jackpot by Lowering your Rate 5 Awesome FHA Refinance Options You Need to Know About What’s Your Motivation for Refinancing? We all have our individual reasons behind refinancing. Sometimes, this may not result in the lowest rates available but it will set us up for better financial stability down the line. You have to compromise a slightly higher refinance rate in order to get lower mortgage payments for a short period of time. However, you may find that this is the better solution to settle for a healthy medium. For example, if you were to apply for a federal streamline refinance, you may get the lowest refinance rate over an extended period of time that results in a higher mortgage balance. On the good side, you won’t have to wait a long time for your refinance request to be approved, unlike a conventional loan. Also, you won’t have to worry about a high level of credit or equity to go ahead with your plans. Look at the.
You’ll Never Believe How Easy It Is to Use a Refinance Calculator
In a hectic lifestyle, you always need a way to get things done a lot faster and more conveniently. FHA refinance calculator takes away all of the paperwork and confusion and puts forth all of the fees associated with a specific financial matter in one form. This is a great advantage because you can preview different refinance options presented by a number of lenders. You can utilize the calculator as a way of seeing what potential plans work for you. Here are some easy steps as you use the refinance calculator. Using a Refinance Calculator for Your FHA Loans Why Are Refinance Calculators Great For Your Mortgage? Why Should You Use a Refinance Loan Calculator? Using the Calculator Helps in Refinancing FHA Loans An established refinance company has a mortgage calculator on their website to punch in the fees to your financial plan. You need a good lender that will help you in the process of federal refinancing. Always be aware of all fees and how this will affect your financial situation. You shouldn’t depend on just your lender. Why not have one form and one system that’s efficient enough to take in all costs associated with a refinance choice? Remember, it’s not about working hard, but working smarter to save you time, energy, and money. Why hiring a financial adviser to handle all of this information when you can do it yourself? For those that are just considering federal loans, this would be a good way to view the difference in fees associated with a federal refinance plan and a conventional refinance. Find Plenty of.
If a survey was given to Americans on how they felt about Congress over the past several years, the results would most likely not be favorable. Whatever your affiliation may be, terms thrown around such as “a do nothing Congress” or “the worst Congress ever” cannot be limited to just one party. Anyone who continuously watches the news, reads news articles, or listens to it on the radio focuses on one theme; Americans are not happy with today’s government. This is not meant to say that everyone is unhappy about one particular topic and demand that the government should rectify it. This is meant to say that so many people have different things they value the most, so obviously the government cannot rectify everything. However, it is equally important to state that the government has put forth programs designed to help the needs of certain individuals. The Federal Housing Administration (FHA) has created programs for the purpose of providing types of loans that can help homeowners not only save money but keep their homes as well. There are options to choose from, keeping in mind that the process of acquiring a new loan or refinance may not be easy. It is important to learn what this program was designed for and then see when would be the best time to secure this type of mortgage. What People are Saying About FHA Refinance & HARP How Should I Refinance My Home Under FHA? Yippy, FHA is Going to Refinance my Home! What is an FHA No Cost Refinance? If homeowners feel embarrassed to question a lender about what an FHA.
The concept of FHA Home Affordable Refinance Program sounds quite believable due to the similarities of both FHA and HARP, but both are actually separate entities. HARP has nothing to do with federal loans, but rather comes from Sallie Mae and Freddie Mac loans. However, it is easy to see why some people may get confused with certain eligibility and regulations that are the same in each particular refinance service. Below are some key details of similarities and differences regarding both federal loans as well as a Home Affordable Refinance Program. For Many, the HARP Program Has Been Homeowners Saving Grace 4 Things to Note Before Choosing the HARP Program https://refinancey.com/wp-content/uploads/2015/11/What-People-are-Saying-About-FHA-Refinance.mp3 What is Home Affordable Refinance Program? First of all, you should know why HARP is beneficial. This was put forth during President Obama’s first term to help out homeowners who have a good mortgage record, but dwell in homes that are undervalued. The market crash of 2008 was the precursor to this type of program to help institute homeowners to cope with the tumbling rates. Eligibility for Home Affordable Refinancing requires your mortgage to have already been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. Additionally, you cannot have chosen this type of refinancing prior unless you refinanced a Fannie Mae loan under this program during March-May, 2009. Make sure your loan to value (LTV) ratio is greater than 80%. Most recently under the Desktop Underwriter Approval (DU), there are some companies that will allow you to refinance even at 150%. This is very different from most refinance companies who see you.
Owning a home is great! Although owning a mortgage… Not so much. The great news is that with a mortgage you can refinance and save thousands. Although before jumping into it ask yourself the question “Should I Refinance?”.
Read this great resource that’ll help you decide when it’s a good time or not a good time to refinance your home.
So what’s the difference between interest rate and APR? Well, it’s pretty simple really. Although understanding what makes up an APR (Annual Percentage Rate) can make a huge difference in your monthly mortgage payment.
The basics are straightforward. You get a lender to pay off your old loan, you have now re-financed your mortgage and start making payments to your new lender (hopefully lower payments). Although, what is your motivation? Lower your payment, payoff your mortgage early, take another borrower off the loan?
Yes it’s true! Closing costs in-deed do suck, so how can you know you’re not getting ripped off? Well, make sure to pay attention to the “Good Faith Estimate” when shopping for your mortgage.
That’s a good question, and everyone in the mortgage industry is asking the same question. Mortgage Insurance has taken a huge hit since the 2008 mortgage industry tank! Hopefully this article can help answer.