Re: Refi question

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Posted by Janie on September 24, 2004 at 09:50:06:

In Reply to: Refi question posted by Ang on September 24, 2004 at 08:54:21:

Get your calculator out and do the numbers. Add what you have paid thus far on the interest only.

Then add the numbers of what you will until you fulfill the terms of loan and are able to refinance without prepayment penalty.

Then add the two amounts. Then compare it to the cost of the prepayment penalty and refinance.

And yes, lenders will refinance without much equity, but to get a conventional loan, you typically need the 80 percent loan to value.

Is there a way you can apply extra funds toward the principle every month? Are the home values increasing in your area?

: I was wondering if there are any companies that refi people without any equity in their home. Our mortgage is $430...probably worth about $460. Right now we are stuck in an awful mortgage (a deal with the DEVIL-AMERIQUEST). Payment is $3200/month. All of it goes to interest only, so we are never going to get equity. Is this a hopeless situation?

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Comments:

: 
: Get your calculator out and do the numbers.  Add what you have paid thus far on the interest only.

: Then add the numbers of what you will until you fulfill the terms of loan and are able to refinance without prepayment penalty.

: Then add the two amounts.  Then compare it to the cost of the prepayment penalty and refinance.

: And yes, lenders will refinance without much equity, but to get a conventional loan, you typically need the 80 percent loan to value.

: Is there a way you can apply extra funds toward the principle every month?  Are the home values increasing in your area?



: 
: : I was wondering if there are any companies that refi people without any equity in their home.  Our mortgage is $430...probably worth about $460.  Right now we are stuck in an awful mortgage (a deal with the DEVIL-AMERIQUEST).  Payment is $3200/month.  All of it goes to interest only, so we are never going to get equity.  Is this a hopeless situation?


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