Mortgage

How To Know When To Refinance Your Mortgage | Jabar Post Indonesia

How To Know When To Refinance Your Mortgage | Jabar Post Indonesia/a> – This time JabarPost.Net will discuss about Mortgage.

The following is How To Know When To Refinance Your Mortgage. And for those of you who want to find a similar explanation, you can search in the Mortgage category

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How To Know When To Refinance Your Mortgage | Jabar Post Indonesia

A mortgage loan or, simply, mortgage (/ˈmɔːrɡɪdʒ/) is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property (“foreclosure” or “repossession”) to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning “death pledge” and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure.[1] A mortgage can also be described as “a borrower giving consideration in the form of a collateral for a benefit (loan)”.

Mortgage borrowers can be individuals mortgaging their home or they can be businesses mortgaging commercial property (for example, their own business premises, residential property let to tenants, or an investment portfolio). The lender will typically be a financial institution, such as a bank, credit union or building society, depending on the country concerned, and the loan arrangements can be made either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably. The lender’s rights over the secured property take priority over the borrower’s other creditors, which means that if the borrower becomes bankrupt or insolvent, the other creditors will only be repaid the debts owed to them from a sale of the secured property if the mortgage lender is repaid in full first.

In many jurisdictions, it is normal for home purchases to be funded by a mortgage loan. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets for mortgages have developed. Mortgages can either be funded through the banking sector (that is, through short-term deposits) or through the capital markets through a process called “securitization”, which converts pools of mortgages into fungible bonds that can be sold to investors in small denominations.



Andrea asks Dave when he thinks it makes sense to refinance a mortgage.

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26 Comments

  1. I remember hearing Dave Ramsey laugh about the idea of rates going down just a year ago. I can't wait to see the look on his face when we go negative interest rates in the United States from terrible monetary policy of the baby boomer generation.

  2. Should I refi to pull money out to pay school loan?
    I have a 15 yr loan but refinancing would be at a lower interest then I currently have. 45k in school loans.

  3. I'm having a hard time wrapping my head around a 15 year vs a 30 year which you can make extra towards (to pay off faster). I understand the % will be better but you have so much more flexibility on a 30 year. Also a 15 year in an area like Seattle is VERY steep. 20% down is $100k+ everywhere you look.

  4. Shameless plug for a mortgage company Dave. Why is VA bad?? Well, if there is a funding fee, yes that needs factored in but cost are less and if the Veteran gets disability then there is NO funding fee. In that scenario, VA is the best loan. You have loyal followers. Please don't make blanket statements about avoiding certain types of loans, especially VA. Also, telling people rates are at 3.25% is misleading. That rate is likely available at only loan amounts at or above $200,000 with 780 scores. Rates change by loan amount, equity and credit score. Misleading information like this will make people believe there is only one rate . Just not true. Why didn't you ask if she would get rid of PMI? Or get significant reduction in PMI. That should be a consideration. Also I take issue on the worthiness of refinancing calculation you did. He should be taking the difference in payment from what you have now to what you will have and divided into the cost. The number of months that you get will tell you how long it will take for you to eventually start benefiting from the loan. Using a blanket 1% of the loan amount really doesn't have meaning. What the difference in payment is what really has the meaning of how much you're saving and when you actually start saving it. I like you Dave and you have a lot of good info but this one was just off the mark.

  5. Can anyone give me advice? We bought our home in August 2017 with a 4.75% interest rate, loan amount $198,500 (home price 205k w/ 6500 down) We also got a mortgage certificate credit that gives us a 20% tax credit for(yes credit not deduction)for the life of the loan, which we would lose if we refinance. We have great credit (790) and no credit card debt, no car payment, and $130/month student loan payment. We have paid an extra amount each month so our loan balance is sitting at $189k. We also dont currently pay PMI and our payment including $224/month for escrow is $1261/month. I think we would get the lowest rates, but I'm not sure what the lowest rates are (seems like around 3.4%?), and if the savings would be worth it. Also, our home value has increased $35,000-40,000 based on our market, if that matters. Any help is appreciated 😊

  6. I bought a home in San Diego in Dec 2018 – 30 year mortgage, 5.35% rate, 20% down; we bought the house for $510k. The refi rates today are around 3.5 – 4%, but there's chatter that the Fed will lower the fed funds rate at their Sept/Dec meetings, with more cutting to be done in the new year. I'm not even considering a refi until early 2020. My advice is to hang back until then, pay off credit card debt, improve your credit so you can bolster your application.

  7. I had a 30 year 3.8% interest rate. Yesterday I called the mortgage company and now we have a 25 year 3.3% interest rate! Woot woot. I asked about doing a 15 year however our interest rate was lower doing the 25 year. So we are just going to pay extra on our mortgage to pay it off in 15.

  8. I'm at 4.125% on a 30 year with 160k balance – but paying $200/month extra on principal so I'm about 2.5 years ahead of the amortization schedule. I think a 15 year fixed may be worth looking into…

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