[HLS]

[quote=paramount]I’m looking at the Refinance Program, although according to the Fannie Mae web site the refinance rates are currently 5.16%.

As for myself, I’m already at 5.1% fixed 30 years.

Still, resetting my loan back to 30 years will reduce my payments….

I just want to break close to even (monthly) when I rent out our house.

In California 105% LTV won’t be that helpful I suspect[/quote]

There is not “one” interest rate that applies to every loan across the board. There is a matrix table with pricing hits for credit score and LTV.

For those that qualify and plan on being in their home for at least 3 years, the best thing to do is to get into a 4.50% fixed rate.
It will save thousands in the long run.

Most people, including mortgage “professionals”. do not know how to figure or explain the cost benefit of refinancing into a lower rate.

Dividing the total cost by the monthly savings is what 99.99% do, but it isn’t correct.

The fact is that every single person with a rate above 4.50% is wasting money with their current payment every month. The higher the current rate, the more they are wasting.
Whether or not it makes sense to refi is a different matter.

Also, nobody has to stick to a 30 YR amortization. You can create your own term by adjusting your payment.

The 4.50% 30 YR fixed is available on rental properties also, but most people are too shortsighted to see the longterm guaranteed benefit.

It amazes me how foolish most people are with their mortgage decisions, but then I come in contact with other “mortgage professionals” that they are asking for advice and understand why…

[HLS]

[quote=paramount]I’m looking at the Refinance Program, although according to the Fannie Mae web site the refinance rates are currently 5.16%.

As for myself, I’m already at 5.1% fixed 30 years.

Still, resetting my loan back to 30 years will reduce my payments….

I just want to break close to even (monthly) when I rent out our house.

In California 105% LTV won’t be that helpful I suspect[/quote]

There is not “one” interest rate that applies to every loan across the board. There is a matrix table with pricing hits for credit score and LTV.

For those that qualify and plan on being in their home for at least 3 years, the best thing to do is to get into a 4.50% fixed rate.
It will save thousands in the long run.

Most people, including mortgage “professionals”. do not know how to figure or explain the cost benefit of refinancing into a lower rate.

Dividing the total cost by the monthly savings is what 99.99% do, but it isn’t correct.

The fact is that every single person with a rate above 4.50% is wasting money with their current payment every month. The higher the current rate, the more they are wasting.
Whether or not it makes sense to refi is a different matter.

Also, nobody has to stick to a 30 YR amortization. You can create your own term by adjusting your payment.

The 4.50% 30 YR fixed is available on rental properties also, but most people are too shortsighted to see the longterm guaranteed benefit.

It amazes me how foolish most people are with their mortgage decisions, but then I come in contact with other “mortgage professionals” that they are asking for advice and understand why…

[HLS]

[quote=urbanrealtor]Sheldon,
Has it occurred to you that the programs can be abbreviated “HAR” and “HAM”?

Just sayin’

Dan[/quote]

Urban,, I have already named them HARM and SHAM..
Looking into the face of socialism, something had to be done. I have thought about it and truly believe that if they would done this 12-24 months ago, “we” would would not have thrown trillions of dollars away in bailouts.

They are kicking the can down the road, making future generations responsible for this mess.
The ones that should be screaming the loudest have not been born yet…. HLS

[HLS]

[quote=urbanrealtor]Sheldon,
Has it occurred to you that the programs can be abbreviated “HAR” and “HAM”?

Just sayin’

Dan[/quote]

Urban,, I have already named them HARM and SHAM..
Looking into the face of socialism, something had to be done. I have thought about it and truly believe that if they would done this 12-24 months ago, “we” would would not have thrown trillions of dollars away in bailouts.

They are kicking the can down the road, making future generations responsible for this mess.
The ones that should be screaming the loudest have not been born yet…. HLS

[HLS]

[quote=urbanrealtor]Sheldon,
Has it occurred to you that the programs can be abbreviated “HAR” and “HAM”?

Just sayin’

Dan[/quote]

Urban,, I have already named them HARM and SHAM..
Looking into the face of socialism, something had to be done. I have thought about it and truly believe that if they would done this 12-24 months ago, “we” would would not have thrown trillions of dollars away in bailouts.

They are kicking the can down the road, making future generations responsible for this mess.
The ones that should be screaming the loudest have not been born yet…. HLS

[HLS]

[quote=urbanrealtor]Sheldon,
Has it occurred to you that the programs can be abbreviated “HAR” and “HAM”?

Just sayin’

Dan[/quote]

Urban,, I have already named them HARM and SHAM..
Looking into the face of socialism, something had to be done. I have thought about it and truly believe that if they would done this 12-24 months ago, “we” would would not have thrown trillions of dollars away in bailouts.

They are kicking the can down the road, making future generations responsible for this mess.
The ones that should be screaming the loudest have not been born yet…. HLS

[HLS]

[quote=urbanrealtor]Sheldon,
Has it occurred to you that the programs can be abbreviated “HAR” and “HAM”?

Just sayin’

Dan[/quote]

Urban,, I have already named them HARM and SHAM..
Looking into the face of socialism, something had to be done. I have thought about it and truly believe that if they would done this 12-24 months ago, “we” would would not have thrown trillions of dollars away in bailouts.

They are kicking the can down the road, making future generations responsible for this mess.
The ones that should be screaming the loudest have not been born yet…. HLS

[HLS]

[quote=AN]HLS, let me get this straight, they’re now letting us refi up to 105% LTV? If this rumor becomes reality.[/quote]

AN,, not just yet,,,

This is not a rumor. It is in the works.
It will allow some people to refinance across the country into a lower payment, allowing them to keep their (overpriced stucco box) house.

The exact terms, fees and rates have not been announced yet. Nothing is expected until early April, and it’s subject to change.

Welcome to OBAMAnation where nobody has to accept reality, just keep on pretending because it’s good for the economy.

I am totally against this program, even though I do stand to profit from it.
It will allow people to stay in their homes, even if the home is worth less that what they are financing.

For many people, the lower payment will be cheaper than renting on an after tax basis.
Because they need a place to live, it is the answer for many people.

Even without equity, they have a place to live. I call it renting with a tax deduction, except there is no landlord to call when something breaks.

The govt had to do something, and this program is probably the most intelligent thing that they have done in the last 24 months. It isn’t going to have an up front cost of hundreds of billions of dollars that went in to the hands of criminals and speculators.

Once this program kicks in, Chapter 2 will be kicking it up to 125% LTV. Chapter 3 will be 150% LTV. It will keep some people from walking away if the payments are affordable, regardless of what the house is worth.
For years people have made payments on cars that weren’t worth what they owed. Is there really a difference ? If there was a tax deduction on auto interest, people would drive more expensive cars.
I expect this to happen soon.

I’m against it because it keeps prices artificially high, but that is exactly what the govt wants. It punishes responsible people who have waited to buy.

I’m expecting another refi boom.
We need to wait and see what the rates and terms are, and if there are any gotcha’s… HLS

[HLS]

[quote=AN]HLS, let me get this straight, they’re now letting us refi up to 105% LTV? If this rumor becomes reality.[/quote]

AN,, not just yet,,,

This is not a rumor. It is in the works.
It will allow some people to refinance across the country into a lower payment, allowing them to keep their (overpriced stucco box) house.

The exact terms, fees and rates have not been announced yet. Nothing is expected until early April, and it’s subject to change.

Welcome to OBAMAnation where nobody has to accept reality, just keep on pretending because it’s good for the economy.

I am totally against this program, even though I do stand to profit from it.
It will allow people to stay in their homes, even if the home is worth less that what they are financing.

For many people, the lower payment will be cheaper than renting on an after tax basis.
Because they need a place to live, it is the answer for many people.

Even without equity, they have a place to live. I call it renting with a tax deduction, except there is no landlord to call when something breaks.

The govt had to do something, and this program is probably the most intelligent thing that they have done in the last 24 months. It isn’t going to have an up front cost of hundreds of billions of dollars that went in to the hands of criminals and speculators.

Once this program kicks in, Chapter 2 will be kicking it up to 125% LTV. Chapter 3 will be 150% LTV. It will keep some people from walking away if the payments are affordable, regardless of what the house is worth.
For years people have made payments on cars that weren’t worth what they owed. Is there really a difference ? If there was a tax deduction on auto interest, people would drive more expensive cars.
I expect this to happen soon.

I’m against it because it keeps prices artificially high, but that is exactly what the govt wants. It punishes responsible people who have waited to buy.

I’m expecting another refi boom.
We need to wait and see what the rates and terms are, and if there are any gotcha’s… HLS

[HLS]

[quote=AN]HLS, let me get this straight, they’re now letting us refi up to 105% LTV? If this rumor becomes reality.[/quote]

AN,, not just yet,,,

This is not a rumor. It is in the works.
It will allow some people to refinance across the country into a lower payment, allowing them to keep their (overpriced stucco box) house.

The exact terms, fees and rates have not been announced yet. Nothing is expected until early April, and it’s subject to change.

Welcome to OBAMAnation where nobody has to accept reality, just keep on pretending because it’s good for the economy.

I am totally against this program, even though I do stand to profit from it.
It will allow people to stay in their homes, even if the home is worth less that what they are financing.

For many people, the lower payment will be cheaper than renting on an after tax basis.
Because they need a place to live, it is the answer for many people.

Even without equity, they have a place to live. I call it renting with a tax deduction, except there is no landlord to call when something breaks.

The govt had to do something, and this program is probably the most intelligent thing that they have done in the last 24 months. It isn’t going to have an up front cost of hundreds of billions of dollars that went in to the hands of criminals and speculators.

Once this program kicks in, Chapter 2 will be kicking it up to 125% LTV. Chapter 3 will be 150% LTV. It will keep some people from walking away if the payments are affordable, regardless of what the house is worth.
For years people have made payments on cars that weren’t worth what they owed. Is there really a difference ? If there was a tax deduction on auto interest, people would drive more expensive cars.
I expect this to happen soon.

I’m against it because it keeps prices artificially high, but that is exactly what the govt wants. It punishes responsible people who have waited to buy.

I’m expecting another refi boom.
We need to wait and see what the rates and terms are, and if there are any gotcha’s… HLS

[HLS]

[quote=AN]HLS, let me get this straight, they’re now letting us refi up to 105% LTV? If this rumor becomes reality.[/quote]

AN,, not just yet,,,

This is not a rumor. It is in the works.
It will allow some people to refinance across the country into a lower payment, allowing them to keep their (overpriced stucco box) house.

The exact terms, fees and rates have not been announced yet. Nothing is expected until early April, and it’s subject to change.

Welcome to OBAMAnation where nobody has to accept reality, just keep on pretending because it’s good for the economy.

I am totally against this program, even though I do stand to profit from it.
It will allow people to stay in their homes, even if the home is worth less that what they are financing.

For many people, the lower payment will be cheaper than renting on an after tax basis.
Because they need a place to live, it is the answer for many people.

Even without equity, they have a place to live. I call it renting with a tax deduction, except there is no landlord to call when something breaks.

The govt had to do something, and this program is probably the most intelligent thing that they have done in the last 24 months. It isn’t going to have an up front cost of hundreds of billions of dollars that went in to the hands of criminals and speculators.

Once this program kicks in, Chapter 2 will be kicking it up to 125% LTV. Chapter 3 will be 150% LTV. It will keep some people from walking away if the payments are affordable, regardless of what the house is worth.
For years people have made payments on cars that weren’t worth what they owed. Is there really a difference ? If there was a tax deduction on auto interest, people would drive more expensive cars.
I expect this to happen soon.

I’m against it because it keeps prices artificially high, but that is exactly what the govt wants. It punishes responsible people who have waited to buy.

I’m expecting another refi boom.
We need to wait and see what the rates and terms are, and if there are any gotcha’s… HLS

[HLS]

[quote=AN]HLS, let me get this straight, they’re now letting us refi up to 105% LTV? If this rumor becomes reality.[/quote]

AN,, not just yet,,,

This is not a rumor. It is in the works.
It will allow some people to refinance across the country into a lower payment, allowing them to keep their (overpriced stucco box) house.

The exact terms, fees and rates have not been announced yet. Nothing is expected until early April, and it’s subject to change.

Welcome to OBAMAnation where nobody has to accept reality, just keep on pretending because it’s good for the economy.

I am totally against this program, even though I do stand to profit from it.
It will allow people to stay in their homes, even if the home is worth less that what they are financing.

For many people, the lower payment will be cheaper than renting on an after tax basis.
Because they need a place to live, it is the answer for many people.

Even without equity, they have a place to live. I call it renting with a tax deduction, except there is no landlord to call when something breaks.

The govt had to do something, and this program is probably the most intelligent thing that they have done in the last 24 months. It isn’t going to have an up front cost of hundreds of billions of dollars that went in to the hands of criminals and speculators.

Once this program kicks in, Chapter 2 will be kicking it up to 125% LTV. Chapter 3 will be 150% LTV. It will keep some people from walking away if the payments are affordable, regardless of what the house is worth.
For years people have made payments on cars that weren’t worth what they owed. Is there really a difference ? If there was a tax deduction on auto interest, people would drive more expensive cars.
I expect this to happen soon.

I’m against it because it keeps prices artificially high, but that is exactly what the govt wants. It punishes responsible people who have waited to buy.

I’m expecting another refi boom.
We need to wait and see what the rates and terms are, and if there are any gotcha’s… HLS

[HLS]

I still tell people that foreclosure is their solution, not their problem….

Most don’t want to hear it,, they don’t want to lose their (overpriced stucco box) house…

At least a refi will help some, maybe not around here, but it’s a nationwide program not designed to save CA…

Now, how many will bleed their 401K’s to get down to 105% LTV, throwing good money after bad….

At least a lower payment is possible now.
Welcome to OBAMAnation….

[HLS]

I still tell people that foreclosure is their solution, not their problem….

Most don’t want to hear it,, they don’t want to lose their (overpriced stucco box) house…

At least a refi will help some, maybe not around here, but it’s a nationwide program not designed to save CA…

Now, how many will bleed their 401K’s to get down to 105% LTV, throwing good money after bad….

At least a lower payment is possible now.
Welcome to OBAMAnation….

[HLS]

I still tell people that foreclosure is their solution, not their problem….

Most don’t want to hear it,, they don’t want to lose their (overpriced stucco box) house…

At least a refi will help some, maybe not around here, but it’s a nationwide program not designed to save CA…

Now, how many will bleed their 401K’s to get down to 105% LTV, throwing good money after bad….

At least a lower payment is possible now.
Welcome to OBAMAnation….

[Author]

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