Tuesday, April 15

Tag: home refinancing

Can You Refinance a Mortgage With Bad Credit? | Mortgages and Advice
27Oct By adminNo Comments
Money

Can You Refinance a Mortgage With Bad Credit? | Mortgages and Advice

If your credit score is lackluster, you may worry that it could prevent you from refinancing your mortgage. Luckily, a refinance can be difficult but not impossible. Here's what you need to know about how to refinance your mortgage with bad credit.Options for Refinancing Your Mortgage With Bad CreditMortgage lenders typically look for a credit score of at least 620 to refinance conventional loans, but standards are more flexible with government-sponsored mortgages.Here are some options to explore for refinancing with bad credit. Eligibility usually depends on who owns your mortgage and whether you meet the requirements.FHA Rate-and-Term RefinanceYou may be able to do a rate-and-term FHA refinance with a credit score of 500 to 580, but those loans can be hard to access. That's because you ...
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Buy Now, Refi Later: 84% of Recent Homebuyers Plan on Refinancing | Mortgages and Advice
20Sep By adminNo Comments
Money

Buy Now, Refi Later: 84% of Recent Homebuyers Plan on Refinancing | Mortgages and Advice

Recent homebuyers have had to overcome a series of hurdles to navigate the housing market, from low resale inventory to high home prices. To make matters worse, the 30-year mortgage rate has held steady above 6% over the past year. On that last point, however, buyers were advised not to worry: They can always "buy now and refinance later" to a lower rate – and many are heeding that advice, according to a U.S. News survey.Between Sept. 1 and 7, U.S. News ran a nationwide survey of 1,200 Americans who had bought a home in the past year using a mortgage, conducted through PureSpectrum. We asked respondents a series of questions about their new home loans, including whether they plan to refinance, how low rates need to drop for them to refinance, and how they feel about taking out a mortgage ...
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What Is an Adjustable-Rate Mortgage? | Mortgages and Advice
15Sep By adminNo Comments
Money

What Is an Adjustable-Rate Mortgage? | Mortgages and Advice

An adjustable-rate mortgage, or ARM, is a type of home loan with an interest rate that can change over time, unlike a fixed interest rate, which stays the same during the life of the loan. ARMs typically come with lower initial interest rates than traditional fixed-rate mortgages, making them a popular way for homebuyers to save money when fixed rates are high.However, ARMs come with an inherent risk that the loan's monthly payment can increase when the rate adjusts. The Federal Reserve warns prospective ARM borrowers of "payment shock," which can occur if a loan's monthly payments rise sharply in a short amount of time. In fact, ARMs played a role in the 2008 housing crash, when many homeowners who couldn't afford their newly adjusted payments went into foreclosure.Despite their problema...
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How You Can Use Home Equity to Buy Another House | Mortgages and Advice
31Aug By adminNo Comments
Money

How You Can Use Home Equity to Buy Another House | Mortgages and Advice

Most of us are happy to own just one home. But others have an eye on buying a second home. Using the equity from the first home is one way to make that dream a reality.Many borrowers use equity to purchase a vacation home, rental property or second home. But before you do, it's important to weigh the pros and cons.What Is a Home Equity Loan?A home equity loan lets you borrow against the equity in your home. You may use the cash to pay off debt, fund a home renovation project or for another purpose.This type of loan typically comes with a fixed rate. You get the money as a lump sum and pay back the loan over time.A home equity loan can be an attractive option for folks who need to borrow. “Compared to other loan types, home equity loans or lines of credit frequently have lower interest rat...
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When Should You Refinance an Adjustable-Rate Mortgage? | Mortgages and Advice
25Jul By adminNo Comments
Money

When Should You Refinance an Adjustable-Rate Mortgage? | Mortgages and Advice

Climbing mortgage rates have renewed interest in adjustable-rate loans. These mortgages made up 12.8% of originations in October 2022, according to the Mortgage Bankers Association, after hovering at 3% for much of 2020 and 2021. They made up 6.3% of originations as of July 2023.While this type of mortgage can be appealing to homebuyers hoping to save some money upfront, it can cost more in the long run if you're not careful.If you have an ARM or you're thinking about getting one, you may want to consider refinancing it into a fixed-rate mortgage. Here's why and when to think about doing it.Why Are ARMs Attractive?Favorable short-term introductory rates can make ARMs an attractive option for some homebuyers.With a fixed-rate mortgage, your interest rate remains the same for the life of yo...
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