Refinance Mortgage

running downhill on my mortgage and don’t want to start over

Is there a balance on he line of credit? If so, and it is a 2nd behind your primary mortgage, then yes, you can refinance it by opening up a new home equity line or with a home equity loan. I have done that before. There is no need to pay off the 1st mortgage when refinancing a 2nd with a new 2nd.

Have an equity on the house (both husband and I are in our 60’s). Now that mortgage rates are so low would it be better to refinance at a fixed rate or keep my variable equity and just put extra money towards the principal. Would love to get out of this financial problem as quickly as possible (before retirement)

I would get the rate fixed now if I were you
I ama a mortgage banker in TN

You should call a lender or fill out an application online. You should also think of the reasons your considering doing it such as home improvement, debt consolidation or just getting a better rate. A loan consultant can help you put everything you’re considering into perspective and give you real options to choose from to better your situation.

I generally know that I would try to find a bank or lending place that will offer me a lower rate than I currently have, but was wondering how to make sure the new terms are to my advantage. For example, my realtor helped me go over my mortgage materials originally and do not want to agree to something that isn’t a good idea, i.e., hidden fees.

You should find you a mortgage broker from your telephone book, unless you can get a referral from a friend or neighbor.

He will complete a loan application for you, this will not take a short time so pull up your comfortable chair get your favorite beverage and allow him to complete the application either over the telephone, by faxing the application to you,or you going to his office.

He will need the following items to get started

#1 Six months bankstatements from each bank you are currently doing business with as well as any statements from your 401k plan from your job.

#2. One month of pay stubs from each job and anyone else on the mortgage

#3 2 years of federal income taxes along with the W-2s

Once the application is complete he will run a credit report which will tell him your credit scores. Your credit scores will tell him the type loan programs you are qualified for, to include the interest rate.

He will issue you a good faith estimate (GFE) outlining all the fees, points and other cost of the loan. If you have a problem go over each charge item by item, take notes. Some or most of these fees are not the mortgage broker’s fees.

You have escrow fees, title fees, appraisal, credit report cost and other items that you will be charged, but he can explain each one to you.

You should outline to him why you are getting refinance, what you plan to do with the money from the refinance.

Prior to getting your loan docs and the closing of the loan your mortgage broker might ask for additional information or documentation, just get it or tell him what he needs to know this is common so don’t get all tense and go on a binge.

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

"FIGHT ON’

I refinanced 2 weeks before American Home Mortgage declared bankruptcy. They still owe me my escrow money (a new escrow account was created at closing with the new company). Is the escrow money legally mine and protected from the company’s bankruptcy, or can the company default on paying it back? Thanks!
The AHM mortgage was paid off and my new mortgage and new escrow are already in effect with my new company. The procedure was the AHM escrow was to be refunded to us and we already have a new escrow in place. While waiting for the AHM escrow to be refunded to us, AHM declared bankruptcy. Is the escrow money legally mine? Continuing to make payments is not the issue–we are already paying mortgage payments and already set up a new escrow with the new company.

it is yours; now as to whether they kept it separate [in a client trust account like they should have] …

tough to guess

might depend on state law in your state … you’ll have to google that for yourself.

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it is almost certain sure that the refi was recorded the same day or the next day … you can check on this at the usual place, possibly online [land records ... just put your real name in].

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one thing’s for sure … your regular monthly payment is still due at the address you were told. someone will be taking care of that and they’ll follow up if the money doesn’t show up.

GL