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08-01-2007, 01:33 PM #1dnawalkerGuest
Here is a list of questions to ask prospective lenders about the loans they are providing:
I have read about choosing an upfront mortgage broker as your lender. Here is more information on it. Usually, it cuts down on the deceptive practices that go on in the mortgage industry.
08-02-2007, 08:13 AM #2Anggie ThompsonGuest
I work at a law firm and we do real estate and refinances. From experience, I would highly recommend going to a BANK, not a broker. Brokers charge lots of fees, making your closing costs very high. They also use lenders that we have never heard of. Getting payoffs are very difficult if you need to refinance again. Just this week, we have gotten listserv messages stating thatseveral lenders that these brokers use are going belly-up; therefore putting people's mortgages(homes!) on the line. I apologize if I have offended any brokers out there.
Fight Breast cancer......no one should die from it
08-02-2007, 08:59 AM #3
08-02-2007, 09:52 AM #4armstrcaGuest
Or instead of using a bank - find a loan officer (online) from a mortgage company
I work at a law firm and we do real estate and refinances. From experience, I would highly recommend going to a BANK, not a broker.
08-02-2007, 02:54 PM #firstname.lastname@example.org>Guest
Be careful with the online companies. A
co-worker sold a house to some folks who started out using a site like that –
they’re not based in the
The guy, “Prince,” spoke terrible English, the underwriting was
handled in Canada
and it was going to take 6-8 weeks to close. The buyers ended up using a
08-02-2007, 08:25 PM #6La-Taja LovicksGuest
I am a first time homebuyer in my home for 2years. What is the difference between refinancing and getting a home equity loan, and what are some pros and cons of each?
08-03-2007, 10:02 AM #7armstrcaGuest
Refinancing is what it says (getting another 30 yr loan on the balance - with a lower interest rate, which replaces your current mortgage). A home equity loan (HEL) is getting a loan on the difference in what you owe and what your home is worth - not worth it in my opinion if you live in Texas (or any other state) where you homestead your house (meaning they cannot take it away from you if you file bankrupsy on unsecured debt) cause now part of that debt is secured by by your house and if you default on that loan - they can take your house from you. If you have recently refinanced, you have no equity built up to get a HEL.
Refi is good if you are only 5 or so years into your mortgage - not good if you are 20 years into it - the interest is all paid off and you are mainly paying on the principal.
BTW - in the future - pls remember to snip all the sigs for the people on digest or read from the web - they wil thank you.
08-03-2007, 11:42 AM #8HerleanGuest
Getting a home equity loan means that you are taking out the value of your equity at a particular interest rate and then repaying the loan. Instead of the bank giving you the money, for example, you are getting the money out of your house. If you miss payments, they can and will foreclose on your home, take it from you. Refinancing is a way to "re-do" your home loan. If you started out with a 30 year, fixed rate loan with interest of 12% say, and now, your credit has improved and you want to get a lower interest rate, say 7%, you can go and apply to refinance the loan. If approved, you get the lower interest rate and thus, lower home payments. There are many different combinations of loans out there, but all in essence, lower your payment. That is why most people do it. The money you are no longer paying on your mortgage, you are free to use for whatever else you choose. That is simplified, but covers it. Herlean