Welcome to Refinancing Guide
Fha Refinance Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Refinancing
from:Most of us find ourselves taking out a loan at one time or another in our lives, whether it's for a home, a car or personal reasons. At the time we take out the loan, it's usually set for some many months with monthly payments due on a certain day. The amount of the monthly payments is based on the current interest rate we're charged on the principal balance we borrow. Often, during the term of the loan, we find ourselves refinancing the loan for one reason or another. The main reason why people do refinancing is usually for a better interest rate, specifically if the loan is a home mortgage. With a home mortgage loan, refinancing for a lower interest rate can make a substantial difference in the total balance of our loan.
Lower interest rates are the most common reason for refinancing mortgage loans, but they are not the only reason for refinancing. When banks lend money for the purchase of a home, they will usually only borrow up to 80% of the value of the home (known as equity). For instance, if a home is valued at $100,000, the maximum amount the bank will borrow is $80,000. As time passes, the balance of the loan decreases while the equity of the home increases. Often home owners need extra cash for remodeling or other personal reasons so they choose refinancing by using the equity of their home as collateral.
An example of this method of refinancing would be that same $100,000 home. After a couple of years, the loan balance may be down to $70,000 while the value of the home may have increased to $120,000. In this scenario, the bank will borrow up to 80% of the home's value, which would be $96,000. This amount is $26,000 more than the borrower owes on his mortgage so they are eligible for $26,000 cash out. Refinancing of home mortgage loans is very popular for this reason.
While home mortgage loans are the loans that are most often refinanced, refinancing is not limited to just mortgages. Many borrowers take out loans when they purchase a car. A lot of people like trading their cars off in a couple of years to get a newer model. Many times the first car loan is not paid off, so they do refinancing of their first car loan and add it to the new car loan. Another reason is for additional cash for personal reasons. As long as the collateral of the loan (car, etc.) is worth more than the balance of the loan, banks are more than happy to help with refinancing, if the payments have been made on time, of course.
Fha Refinance News
Self-Employed Are Frozen Out of Mortgages - Wall Street Journal
Self-Employed Are Frozen Out of Mortgages Wall Street Journal - That's because banks are relying heavily on loans guaranteed by Fannie and Freddie and the FHA, which have loan limits that vary by market from $417000 to ... |
Wolters Kluwer Financial Services Begins Development of Hope for ... - MarketWatch
Wolters Kluwer Financial Services Begins Development of Hope for ... MarketWatch - The H4H program was created by Congress to help borrowers at risk of default and foreclosure refinance into more affordable and sustainable loans. ... |
Columbia Bank is an Approved FHA Mortgage Lender - MarketWatch
 The Free Lance-Star | Columbia Bank is an Approved FHA Mortgage Lender MarketWatch - The ability to refinance a maximum of 95% of the equity in the home. Since 1934, the Federal Housing Administration (FHA), a US government agency, ... FHA sets limits on home mortgages |
Peter Boutell, Lending a Hand: Freddie Mac and Fannie Mae announce... - Santa Cruz Sentinel
Peter Boutell, Lending a Hand: Freddie Mac and Fannie Mae announce... Santa Cruz Sentinel, CA - One much anticipated feature of the bill was that the conforming limit and the FHA maximum loan amount were both raised to $729750 but only for the rest of ... |
Are You An Idiot To Keep Paying Your Mortgage? - NewsNet5.com
Are You An Idiot To Keep Paying Your Mortgage? NewsNet5.com, OH - The Federal Housing Administration is offering two programs to help homeowners get more-affordable mortgages, FHA Secure and Help for Homeowners. ... |