Mortgage question...for lower monthly payments?

Question

we just got a house last year in oct...anyways i was wondering if it's ture that u can still look for diff. company and change? if so how does that work?

Answer 1

Good answers here (except for that first one).

One thing to keep in mind is that there are transaction costs and fees involved in refinancing. Sometimes they'll be buried into the rates, or into the points you pay. But the costs will be several percent of the total amount financed/refinanced. So it may not make economic sense to refinance so soon. That's something you'll have to analyze and compare.

You may run into some other difficulties refinancing so soon--issues regarding "seasoning," for example.

And, depending on how much you put down on the loan in October, you may not have enough equity to refinance. That's particularly true if you're in an area where home prices have declined. For example, if you put 10% down on a $100,000 property, you put $10,000 down...you owe $90,000. However, what if the value of the property has declined to $95,000? Now you only have $5,000 of equity in the property because you still owe $90,000. Mortgages have gotten tougher, not easier, to get, and while a lender might have been willing, last fall, to give you a 90% mortgage, that same lender (or another) might not be willing to give you a 95% mortgage.

So, you may run into some problems. But it's certainly worth looking into. Work with a good mortgage broker.

Good luck.

Answer 2

The first answer is a scam...stay away.

Yes, you can always shop around when you want to refinance.  You can't just change companies...you need to go through the whole process of a closing.

Answer 3

You can refinance a mortgage at any time.  You shop around to see who has the lowest rate.  The taxes and insurance on your house stay the same, but the principal and interest could be lower.

When you refinance, you have to pay closing costs again.  That could be a few thousand dollars.  If the amount you save is big enough, it could be worth spending the money now, because you'd end up saving in the long run.  If you'd only save $10 a month, it wouldn't be worth it.

If you just got a mortgage last October, it's kinda doubtful that it would be worth it for you.  Rates have actually gone up a little since then.  However, it can't hurt to look.

Answer 4

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Answer 5

You mean refinancing your property for the new , lower interest rate? Yes , you can do this- check with the mortgage broker if current interest rate is lower ,then what you have right now, how much your payment will go down, how much are the closing costs and if you qualify, then make a decision if it is worthy for you. Don't be afraid to ask the question- even if you thing it is stupid- ask them any way and make informed  costumer decision .Good Luck.

Answer 6

If sounds like you want to refinance your loan.  In your case, you  want to pay off your current loan and get another one to lower your monthly payment.  This called a no-cash out refinance.  Yes, you can do this.  

It’s important to understand the costs and fees you’ll have to pay for refinancing and how long it will take you to recover those costs.

Closing costs on a refinance generally range from 3% to 5% of your loan amount. The amount will vary depending on such things as the number of points you pay, the closing agent that you use, and the amount to be deposited into an escrow account.

Because you’re applying for a new loan, you may have to pay many of the same fees associated with the original purchase of your home, including:

    * Origination fee - A fee to help cover the operational costs of processing the loan. It may be expressed as a percentage of the loan. You may choose a higher interest rate and not pay an origination fee.

    * Appraisal fee - A fee for an independent written opinion that identifies the property's market value.

    * Credit report - A document summarizing your history of repaying debts. A credit report is required for all mortgage loans.

    * Title search and insurance - covers the cost of examining the public record to confirm your ownership of the property and provides insurance to lenders of real estate that you have clear title to the property.

    * Legal fees - Fees paid to the attorney or company that conducts the closing.

    * Prepayment penalties - This means that if you pay off your existing mortgage earlier than the terms stated in the contract, you may be required to pay an additional amount. Check your mortgage documents to see if your mortgage contains a prepayment penalty.

You can contact any lender to refinance.  You do NOT have to use your current lender.  Good luck!