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Should you pay off a small lien on your house by refinancing or pay exorbitant interest until it is fulfilled?
Wiki User
∙ 15y ago
If you need to refinance to consolidate high interest credit card debt, reduce payments, etc..you should consider refinancing to pay off the lien in the refinance. If the interest on the lien is ridiculous, refinancing may be a good idea. If you can handle the lien with all of your other expenses, then continue to pay as you are. The refinance process generally takes 21 days total with my company. If you would like a free, no-obligation assessment of your situation, Answer To clarify: We purchased the house 2 years ago for $64,000, and it is worth $80-90,000 now. We financed 100% and have 2 loans, one for $50,000 ARM which just went up to 8.99%. It is LIBOR+6.375, so it's pretty much always going to be terrible. The other for $11.500, @11.25% fixed, 15 years. We got these sucky interest rates because I financed under my name only, and my name had 2 cars with short payment history, no home-buying history, and 3 overextended credit cards, and we did non-income disclosure because my debt-income was like 85%. Obviously we need to refinance at some point. I was looking at rates last night, and at a "high" rate with no points (6.25% fixed) I could refinance for $75,000, still have 20% equity in the home, pay off the lien, still have money to remodel or save, AND my house payment would be nearly $150 lower. We fell behind last year on our HOA and the lien is $2000. However, the credit cards are in better shape, I now have 5 years of payment history on 2 cars, and they have both been paid off in the past 4 months. I also have the good payment history on the 2 house loans. We are starting to pay on the lien. Since I've lowered my debt-income ratio significantly, AND due to the raise in home prices, I'm confident that I can get interest rates lower than the ones I have. Significantly lower. Right? In addition, if we maintained 20% equity in the home, that also lowers the risk for the bank, and therefore our rate. Right? Which scenario sounds better at this point? Pay the lien off over a year's time, paying $150 extra on the house each month, then refinance, or.. Refinance, SAVE the extra $150 AND the money I would be paying on the lien, and use some of the "cash out" to pay down CCs even further? Is the lien going to negatively affect the refinancing process, and how much? Will it affect our chances for approval, our interest rate? Thanks for your help. And BTW your number has been disconnected.
Wiki User
∙ 15y ago
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What are the steps I should take during a bankruptcy refinancing?
You should make sure that you understand what the interest rate is of the loan you are refinancing. Also make sure you understand the risks involved.
How does one start the process of refinancing their loan on their home mortgage?
Before refinancing your home, one should consider if refinancing is the right option for them. Refinancing is intended mainly to lower one's interest rate. However, there are some things to be considered when doing this. Refinancing pays off the current loan and creates a new loan at a lower interest rate. Before doing this, the homeowner should know if their current mortgage has a prepayment penalty clause. This means that if they pay the current mortgage early they will have to pay a fine or penalty. This might make refinancing not worth it.
Are the interest rates low enough that I would benefit from refinancing my car loan which is currently 6.5%?
Yes, the interest rates low enough that you would benefit from refinancing your car loan which is currently 6.5%. You can read more at ptmoney.com/2010/03/04/should-i-refinance-my-mortgage/
What are some things to keep in mind when refinancing a car?
There are a few things that one can keep in mind when refinancing a car. One of the key components of any car dealership transaction is the rate of interest, as well as the state of one's financial credit when refinancing a car. Another thing would be the length of the loan when refinancing a car. These are some of the things that one should keep in mind when refinancing a car.
How do you convert a variable interest rate to fixed?
If you want a variable interest rate to fixed, refinancing your home would be the way you can accomplish this. Variable rate also known as an adjustable rate mortgage should be refinanced before your interest rate adjust.
How do I go about refinancing my mortgage?
Refinancing is something you should research to make sure it will benefit you. The best thing to do is talk to you lender to see if you will benefit from refinancing.
First home buyer should wait how long before refinancing?
First home buyer should wait how long before refinancing?
Spend Less By Refinancing Auto Loans?
One of the biggest pieces of debt many people have to pay off is the auto loan they took out to pay for their vehicle. Many people may be unhappy with the terms of their current loan. Thankfully you can change the terms of the loan to get a better deal through refinancing. First, you should determine whether or not you really want to refinance. The benefit you can get out of refinancing is being able to pay off your auto loan at a much reduced rate compared to the current terms of the loan. In exchange for the difference in interest rate, the lender receives the title to the vehicle. If you wish to lower the interest rate significantly on your loan, refinancing may be a good option for you. Secondly, you will need to find the best refinance rate by comparing the refinancing options offered by different lenders. You will need to shop around a bit to find the best rate available. However, you should also try to first improve your credit score. Your credit score and credit history will be a large factor in determining what kind of interest rate you are offered as part of a refinancing.
What are some of the risks and benefits to refinancing one's car loan?
One should weigh out the risks and benefits of refinancing a car loan before making a decision. Some of the benefits of refinancing could include better interest rates, lower payments, and an improved credit score. Some of the risks may include extending the length of the car loan and incurring penalties for paying the original loan off early.
Where should you go for a bank when doing home refinancing rates?
Bank of america is the best options when shopping for the best home refinancing rates. They have more locations than another bank in america, making accessibility easier and they can also offer very competitive interest rates due to their ownership in numerous smaller banks.
How can one begin to refinance a loan rate?
Refinancing a loan is a way to lower one's interest rate and monthly loan repayment, but it isn't always a good idea. One should speak to a loan officer for advice on if one should refinance.
When You Should Use A Refinance Calculator?
Many consumers struggle with knowing the best time for them to refinance their loans. Using a refinance calculator about every six months can help you decide if refinancing is in your best interest. It is a good idea to refinance a mortgage or auto loan if the interest rate you will be charged is significantly lower than your current rate. Refinancing helps to lower your monthly payment, but people are often charged fees when they refinance, so it should not be done unless the payment will be significantly lower after any fees are paid.
