Can someone explain refinancing to me, When do you refinance and what is a good interest rate?
144379
When the interest rate changes downward and you have a loan that you pay a higher rate is the only time to consider it simply to save money.\n\nThe problem is that you have to pay loan origination fees, and possibly points (if you are paying points then the rate really wasn't lower like you thought). So there is some rate that gets eaten just to break even. I don't have any exact numbers, but what you do is take the fees and compare to the monthly income stream that makes the loan different. \n\nIt is very important to take into account the extra payments at the end of the loan. If you only owe for 27 years on your 30 year loan and you get a new 30 year loan then you have 3 extra years of payments. These are way out there and so the interest rate drops the value in todays dollars, but you still need to take it into account.\n\nUsing a financial calculator or spreadsheet you can then calculate the interest rate you would in effect be getting on the "refinancing investment" you are considering. If the rate is high enough to be better than any other option you could spend your money on (opportunity cost) then refinance. \n\nSometimes you can add these new fees to the loan and you owe more, so be sure that you don't do this without realizing it (add it into the spreadsheet calculations). In fact this is sometimes actually the main reason to do it.\n\nIf you own a rental property that has appreciated in value you can refinance it with a new loan for the specific purpose of getting the money out. You will have a higher amount owed and therefore a higher monthly payment, but presumably the income has gone up and can support the higher payments. Then as the expert real estate investor you can earn a much higher rate with your new cash or you just wanted some income without being taxed. Either way its a cool thing to do. \n\nTax free money for equity, gotta love it.
529046
I know that 15K looks like a lot, but what you should consider, kind of along the lines of the longer response below is your time line for the home.  If you are going to live in the home for a long time then you might want to check out a lower rate.  You can always check with a mortgage broker whom can run the rates and tell you how much you can save... I used a site called http://www.rezponze.com when I refinanced my home and got 3 different quotes that I could compare.  Ended up saving a boat load when I did it. I listed a few other sites that you can see rates live as well below. \n\nI would say that right now probably isn't the best time with interest rates rising.  I would probably wait it out till August who knows what the economy might be like then.  Best of luck...
692607
You have to crunch the numbers. There are calulators all over the net. Enter "refinance calculators" into Google.
1064299
I agree with Realestatelawyer on this one.  There would be a clause in your mortgage that would not allow it to go any higher than 9.875%.  As far ARMS being dangerous????  That is just not true.  They are only dangerous for the dumb witted person that has no idea what they have gotten themselves into.  Use them right and they will be your best friends.\n\nI would ride out the 5.875%.  Maybe add some extra payments onto the mortgage this year as well.  I doubt that rates with be anything like they were in the next two years, but we never know what could happen.\n\nGood luck with that.  If you still are considering refinancing, feel free to contact me and I could help you out with that.  You can contact me at timothy.kazee@americanhm .com.  Have a great night!
431671
Basically your bank will loan you money based on the value of your property. There are loan ratios so lets say they have a 10% ratio (I think thats normal although others demand more or less depending on the area). That would mean you can borrow up to 90% of the value of the house. If the house is 100K you could borrow 90K. Now if you only owe 50K because you bought it a a few years back and it has gone up in value then your bank will lend you up to the 90K (or an extra 40K) for you to do whatever you want with. Its a cheap way to finance debt for purchasing things like cars, holidays, extensions...than using a credit card or personal loan BUT it means you are putting those things under your home loan and if you dont or cant pay then they reposses your home. You would start by going to your bank and having the home valued by a professional they recognise to see how much you could borrow. A good bank will pay for this service for you as long as you take out a loan with them. You generally set up a new loan (which means a new fee) and then your back to normal. Your home loan repayments will go up but they should be able to calculate these for you so you know what to expect. Remember interest rates are on the rise so factor that in. Happy spending.
1033541
Definitly go with a fixed rate first mortgage..\n\nAs the other responses tell you, you will simply borrowing against your property that you own free and clear. It will be considered just a new first mortgage (refinance). \n\nYou definitely do not want a Home Equity Line of Credit..even though every LARGE bank in america tries to advertise and SELL these loans, they are a bad move for any borrower. Not only are they bad for your credit, you will have a much higher interest rate.. Banks try to SELL them to people because they make much more money on a equity line of credit..\n\nI would also advise that you work with a nationwide lender that has a portfolio of investors. The reason i say that is becasue if a loan consultant can shop your loan for you among their many investors, you will get the best possible loan program for yourself. What i mean by that is you will get lower fee's, lower rates, and faster service...\n\nMy name is Jason Fry, and I am a loan officer with Providential Bancorp, a nationwide mortgage lender. I'd be happy to assist you in a refinance, or at least be able to let you know exactly what YOU QUALIFY FOR. You can then make a more informed, and educated decision whether it would be the right move for you. \n\nFeel free to give me a call at 312-264-6448, or \nyou can email me at Jasonf@providential.com.\n\nThank You,\n\nJason Fry\nProvidential Bancorp
15075
Something you do not want!\n\nAjustable Rate Mortgage...this percentage interest on your mortgage will change based on a percentage over the goverment's T-Bill, which changes for inflation throughout the year. If interest rates are VERY high, say over 8-9%, you may wish to get a low Adjustable Rate with the idea that it will go down in the future and you can then refinance a fixed rate at that time...or...if you are making little money now and need a low payment but are certain that you will be able to afford a higher payment in the future. These often have maximums that they can go up per year, but eventually they are going to give you a much higher finance charge and interest paid over the length of the loan. \n\nA low fixed rate is preferable if you plan to make payments for the lenght of the 15 or 30 year loan and don't want to pay a lot of interest ;)
17919
A fixed rate mortgage is much as it sounds.  The rate you pay is predetermined and will not change over the course of the mortgage.  An adjustable, variable or floating rate mortgage will change overtime depending on the preset arrangments.  If you think that interest rates will stay the same or go up, then a fixed rate mortgage is the way to go.  Otherwise a variable rate is good because your rate will go down as interest rates fall.  Recently when interest rates hit their lows, people ran out to refinance at fixed rates.  It was a good idea to lock in those low rates because who knows when we will see that again.
689415
You cannot consolidate less than 2 loans - that is what consolidate means - putting together 2 or more loans.\n\nAs for refinancing - restating your terms to a lower interest rate - usually they will not do it for less than $5,000.  Even with the interest rate increases, you should not see much of a difference with your loan amount being so low.  \n\nIf you do not have other higher interest rate items, just work on paying it off faster.  If not, your student loan is probably the least.
575082
I would say you are at a right place, because i just read your question. I am loan officer and specialized in helping people with the worst credit they can have. So feel free to write me at refinance@inbox.com\nI am sure, i will try to get you the best possible rate which you qualify for.
579198
i would have to say no, rates are going to rise for some time, i would fix a good rate then when rates come down refinace at the lower rate and lock it in. only good time for an arm is when rates are really high so you catch the downward trend.
860805
the interest would be the same if you got the same interest rate, because the loan would be the same just divided. besides you would probably have to pay closing fees again, also new loan fees.\nif you want to pay your loan off faster increase your payment, most of the first 5 years of payment goes to interest, by increasing you payment by $5.00 a month you would pay off much faster. by paying  half you payment twice a month it would also pay off faster.\nI just noticed that you have an adjustable rate mortgage, historically mortgage companies raise the rates as fast as they are allowed to according to the contract, a fixed rate at a half percent more would be much safer, and you need to check to see if there is a prepayment penalty, that is pretty standard.
608479
As a branch manager for a direct lender/brokerage, I would stay away from the 2/28 at this time.  We may have more rate hikes, hindering you from refinancing in 2 years due to whats called payment shock!  It is a risky loan at this time as nobody knows if rates will decrease. You will be fine to refinance in 2 years; at the going rate at that time.. The 2 year fixed is a way for that loan officer to earn income off of you two times.  It may not be the best program for you after seeing your hesitance.  Email me at ryan.wood@truelend.com for other options.
1013897
Open your mind set beyond the last 4 years when interest rates were super low.  They are STILL low to people who have had mortgages 10-15 years ago when rates were 10%, 15% and even 20%.\n\nOnly people getting mortgages within the last several years think rates are high now.  Explain to them the long term history of interest rates.\n\nFind people with HELOC's and convert them to Fixed rate loans.\n\nAs mentioned previously, there are many people with 2/28 and other ARMS that are going to want to convert to a fixed rate.\n\nAttend a few Real Estate Investing group meetings.  There are always people investing in Real Estate.  Be there when they need you.  Don't start out being pushy, just get to know them and be there often.
139549
your rate is 2.25 plus the treasurey index at the time of your adjustment. (yearly, every six months, etc.) I am a mortgage broker if you need to refi email me, I can answer all your questions.
623592
You are paying approximately 12.5% interest.  I do not understand what type of loan this is (mortgage, auto, personal, etc.) but this is a pretty high interest rate.  I would discuss refinancing it with someone.
1124425
the rate that it could adjust to is posted in your note! read your note. You need to refi this note to a fixed rate. With that start rate you must have had some credit issues. Start the process today. I am a loan officer in TN only>