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Wells Fargo Refinance Article
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Mortgage Refinancing
from:Refinancing mortgage loans is becoming quite popular today with many homeowners. While years ago when you got a mortgage to buy a home, you usually paid on the same mortgage for years until it was paid off, a lot has changed since then. One reason why refinancing mortgage loans is so widely used is that there is a larger variety of types of mortgage loans available to home owners. Banks now offer refinancing mortgage loans, home equity loans, reverse mortgages and more. Debt consolidation is another reason many homeowners choose refinancing mortgage loans. Often they need additional cash for a vacation, wedding, medical bills or other personal expenses. Anytime you get a loan of a sizable amount, the bank requires the borrower to put up some collateral towards the loan. You're probably wondering where the extra collateral is coming from, since your home may be your only asset.
When a bank borrows money for the purchase of a home, for their own protection, they usually will only borrow up to 80% of the value of the home. They're not as concerned with the price of the home as they are the value of the home. In case of a foreclosure, it's the value of the home that will concern them. If you are buying a home that's valued at $100,000, they'll borrow up to $80,000 towards the purchase. As the years go by, the balance of the loan decreases while the value of your home increases. If you're considering refinancing your mortgage loan for extra cash, they'll do an appraisal on your home. If your home is now valued at $120,000, they'll borrow up to 80% of this amount, which is $96,000. If the balance of your mortgage is down to $70,000, you have $26,000 of extra equity on your home to borrow against or use as collateral. This is why many people choose refinancing mortgage loans as a way to pay off extra debts or get money for other expenses.
Refinancing mortgage loans is also used as a way to improve their credit scores and pay off other debts. By again using the equity in their home, they can redo their current mortgage and pay off debts at the same time, giving them less monthly payments. With less monthly payments, they are able to make the payments on time, thus improving their credit rating. Refinancing mortgage loans is used for debt consolidation more than any other reason.
When banks take applications for loans, they always run a credit report before giving the loan. The higher your credit score, the better interest rate you'll generally be offered from the bank. This is why it's important to make all your monthly payments on time. Some people that use refinancing mortgage loans as a means of getting out of debt find themselves paying a higher interest rate because their credit rating is worse when they originally took out their mortgage. Refinancing mortgage loans often gives couples a second chance to get ahead.
Wells Fargo Refinance News
Citigroup, Wells Fargo, GE Selling FDIC-Backed Debt (Update2) - Bloomberg
Dec. 2 (Bloomberg) -- Citigroup Inc. , the second-biggest U.S. bank by assets, Wells Fargo & Co. and GE Capital Corp. are among banks selling bonds backed by the U.S. government to take advantage of cheap funds to refinance debt. Citigroup sold $5.5 ...
Read more...Citigroup, Wells Fargo, GE Selling FDIC-Backed Debt (Update2) - Bloomberg
Dec. 2 (Bloomberg) -- Citigroup Inc. , the second-biggest U.S. bank by assets, Wells Fargo & Co. and GE Capital Corp. are among banks selling bonds backed by the U.S. government to take advantage of cheap funds to refinance debt. Citigroup sold $5.5 ...
Read more...FDIC-backed debt soars as banks cash in - Financial Times
US banks have rushed to sell bonds backed by the Federal Deposit Insurance Corp, taking this new type of debt issuance to more than $25bn in a week. Goldman Sachs, JPMorgan, Morgan Stanley and Bank of America have all raised billions of dollars by ...
Read more...US banks set mortgage bar too high for self-employed - The Australian
DESPITE recent moves to backstop the US mortgage market, the freeze on lending has not thawed for many self-employed people. Washington’s support in the sector has made it easier for many people with decent credit scores to get a loan, but for the ...
Read more...Mortgage freeze hard on self-employed - Rocky Mountain News
The government’s recent moves to backstop the mortgage market have made it easier for many people with decent credit scores to get a loan. But for many self-employed people — even those with pristine credit — the mortgage freeze has yet to thaw ...
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