Homeowners are finding it tougher to refinance, and it won't get any easier. Many borrowers have chosen adjustable rate loans over the past 5 years or so. The majority of those loans have been interest only and negative amortizing optional payment programs, which makes it even more difficult.
The greatest issues to watch out for are: possible prepayment penalties and whether or not you have had an erosion of equity with so many markets declining in value. if either one of those is a part of your loan scenario, you may not be able to refinance when your loan adjusts to the current rates. Unfortunately for many, you may have an increase in your house payment of more than...
25 to 35% (OUCH!). Most families can not absorb that without hardship and even financial ruin.
Refinancing is limited to no more than 95% of the value of your home. If you now owe more than 95% of the value, you will likely be stuck!! In addition, any refinance with the loan-to-value over 90% carries with it an adjustment in rate of up to 1/4% higher than a loan under 90% of the value. Just be careful and shop the heck out of your refi! Good Luck!
Thank you. Just trying to help folks out there that are being taken advantage of. It has gotten uglier and uglier out there and people don't always realize they are the ones that have options and how to go about protecting themselves from the unscrupulous lenders out there. Keep watching!
Posted by: Ron | February 12, 2007 at 02:32 PM
yes, you can be on title without being on the loan. Simple process through a title co typically, and usually under $100 cost. I would suggest being on title for 6 mos or so to refi, as chain-of-title is becoming a greater issue with all the lender/investors (that has been caused by all the 'house-flipping' that went on by investors in the last 2 or 3 years). Good luck and let me know if you need anything else! R
Posted by: Ron | February 12, 2007 at 02:27 PM
When I got remarried, we (my new wife & I) refinanced our house in her name. Can I put my name on the title without being on the mortgage. After that how long do I have to wait before we refinance?
Posted by: Rich | February 12, 2007 at 04:24 AM