Refinancing explained Refinancing is when a homeowner gets a new mortgage loan to replace their current loan. The new loan should help them save money or meet another financial goal. For example, most people refinance to lower their interest rates and reduce their mortgage payments, often saving...
Here are some of the pros and cons you should weigh when considering refinancing: Pro: You could lower your monthly payment. Once of the obvious benefits of refinancing your mortgage is that you could secure a lower interest rate that would, in turn, lower your monthly payment. Pro: You...
A reverse mortgage is advisable for people who have retired, or are in need of additional cash flow to meet their living expenses, but have no means of generating income. In order to qualify for a reverse mortgage, certain criteria must be met. The minimum age of the property owner must ...
Besides selling the home, you can close out a reverse mortgage with a lump sum or series of cash payments, by refinancing it into a HELOC or other home equity product or by transferring ownership to the lender, with what's known as a "deed in lieu of foreclosure." Reverse mortgage requi...
Mortgage insurance premiums (MIP)– There is a 2 percent initial MIP due at closing, as well as an annual MIP equal to 0.5 percent of the outstanding loan balance. The MIP can be financed into the loan. Origination fee– To process your HECM loan, lenders charge the greater of $2,500...
In fact many don’t realize that because it is a reverse mortgage, a payment can be made to offset the interest that accrues on the loan. While it’s not required, it is certainly an option a homeowner has – whether they want to pay anything at all, no matter how large or small,...
Dr. Kareem TannousReal Estate & Mortgage Broker at Alliance Realty & Financial Services, Inc. Jeff JohnsonOwner of Simple Homebuyers AboutChristopher Boston Christopher Boston is a Senior Manager of Content Strategy and SEO at MoneyGeek. For over half a decade, they have crafted hundreds of artic...
Recasting can lower the amount of interest the borrower will pay over the life of the loan if a sufficiently large principal payment is made, reducing both the interest and principal remaining on the loan's new monthly payments. Mortgage Recast vs. Refinancing ...
Why mortgage refinancing is still worth pursuing Rates have risen from these historic lows, and no one knows when (or if) they will ever return. However, it's important to note that refinancing a mortgage loan can still be a wise financial decision today. After all, while mortgage rates ...
Mortgage insurance premiums (MIP) –There is a 2 percent initial MIP due at closing, as well as an annual MIP equal to 0.5 percent of the outstanding loan balance. The MIP can be financed into the loan. Origination fee –To process your HECM loan, lenders charge the greater of $2,500...