Refinance Mortgage

I currently owe 60000.00 on my original mortgage loan and 25000.00 on my home equity loan the 2 are from different financial institutions.My home was used of course as collateral for the equity loan,what happens to my house if im current on the mortgage but maybe defaulting soon on the equity loan???

The home equity loan or 2nd mortgage can initiate a foreclosure and you could lose your home.

Some options are:

1. try to refinance
2. sell your home – if there would not be enough from the sale to pay back the loans, you should find a Realtor experienced in short sales
3. some people rent out a room for extra income to help get through difficult financial times

Im looking to buy a house that needs a good amount of work. I dont have extra money to pay for the remodeling. But I have read that i can possibly get some sort of home improvement mortgage that will give me extra money to fix up the house. Rather than buying the house and then having to get a reappraisal and then a home equity loan.

Yes. That is true. It’s called an FHA 203 K loan. The costs of repairs and rehab can be included in the mortgage amount. It is a HUD loan available through local banks and lenders.

There are many details. The link below provides an overview.

If you are looking to buy in a rural area, or if you are in certain parts of the city, there are other programs to help you also, including Neighborhood Block Grants. You can find more information at your local Neighborhood Housing Authority office.

Try this, Its good

http://mortgagerefinancingatlowrate.blogspot.com/

For example, we are buiding a home for $300,000. We need a loan for $200,000 and our land is worth about $30,000. Do we receive "credit" for a clear lien – making the loan amount actually $170,000?

-owning the lot, paid for is like having 30,000 in a savings account–it is an asset you own..if you need 200 K for a mortgage, then you must be able to qualify for a mtg of that amt.–owning the land does not reduce the amt needed to build the house– remember, the most important thing is to be able to qualify for a mtg of $ 200 K by having good credit, other assets, like savings or stocks or bonds and are you building the home yourself-will it be worth 100K more than your cost to build it?? that will be help-full– since it will give you 100 K equity in the home and make a 200 K mtg easier to obtain if you have 100K equity in the home- talk to a mtg broker or a savings & loan in your area to get some answers !! good luck to you..

I am trying to contact First Time Homebuyers! What do you like from a Real Estate agent or Lender?

Quicken Loans. They do all the work.

I know that if a person already has an FHA loan, they may refinance using the FHA Streamline process. If a person currently has a conventional mortgage loan, can they refinance using FHA? If posible, can you please provide me the resource where I can read this information. Only if that’s not to much trouble. I looked on the HUD website but locating that particular information was far to cumbersome. Thank you

yes you can but the correct answer is…you can financing a FHA mortgage, but ONLY up to 95% loan to value for refi’s cashouts, and it depends on the COUNTY limits…not the state limits. They have county limits….not state limits.

Streamline FHA refinance is for those who dont plan on taking money out, but those who just want a lower rate.

I am planning to buy a home and wanted to know why everyone thinks that home mortgage loan is tax beneficial.

Example:-
If we are paying around $15,000 a year in interest+property taxes and in tax refund( 15% tax bracket) we get back around $2K-3K and we are happy.

Its like paying government $100 and getting back $15 and we are happy with that.

Correct me if I am wrong

You’re partially wrong.

If you pay $15,000 a year in interest and property taxes AND you are in the 15% tax bracket, you get to reduce that $15k from your income. This means you will pay $2,250 less in federal income taxes. So in other words, you are paying $15k to save $2k. It’s not good business sense, but it’s better than not saving anything…but that’s not the entire story…it gets worse.

You only get to deduct the $15k IF AND ONLY IF you itemize your deductions (instead of taking the standard deduction). If you are married, your standard deduction is $11,400 ($5,700 if you are single).

Since you are paying $15k in interest/taxes, you get to deduct an extra $3,600 than you otherwise would have been entitled to anyway. Therefore, your net tax benefit really isn’t $2,250. It’s only $540 (15% of $3,600).

But wait…it gets worse…

You are only paying $15k in interest/property taxes the FIRST YEAR of the mortgage. Keep in mind that part of your mortgage payment goes to principle. While your payment each year will be the same, the amount going towards principle and the amount going towards interest will change. Eventually, that $15k payment each year will only be a few thousand worth of interest…at which point there is ZERO tax benefit.