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Refinance mortgage with out closing costs in UT?

Queeny6411 20 August 20, 2015 at 06:20 AM
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My grandma recently asked me to help her get lower rates on both of her mortgages, but I have no experience or any idea how to go about helping her with that. Looking for advise on what to do & where to start.

She has 2 separate mortgages in UT.

The first property is a house, she currently pays 5.5% interest on that mortgage.

The second property is a condominium, she currently pays 6% interest on that mortgage. Unlike the first property, I'm 99% sure that she qualifies for H.A.R.P. but are fees waived with H.A.R.P. ?

She is disabled, and I'm just wanting to help her however I can. Any suggestions on where to start?

Thank you!

11 Comments

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#2
could she not pay off the mortgages


she should sell one and pay off the other and live off the income



http://finance.zacks.com/refinanc...-2801.html
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Last edited by narnaie August 20, 2015 at 07:30 PM
#3
Quote from narnaie View Post :
could she not pay off the mortgages


she should sell one and pay off the other and live off the income



http://finance.zacks.com/refinanc...-2801.html
If she can afford monthly payments there is little benefit in paying off. Paying off would be like deleveraging and that diminishes the upside substantially, unless she can't afford the servicing anymore that is.
The rates have been creeping up recently. The OP should check what rates she could be offered realistically as even 50 bpts reduction in APRs might not be enough to cover the refi costs.
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#4
Quote from narnaie View Post :
could she not pay off the mortgages


she should sell one and pay off the other and live off the income



http://finance.zacks.com/refinanc...-2801.html
The condo, she doesn't want to sell the condo because she would like to leave it to me in her will. This is the main reason why she was asking about the H.A.R.P. program because one day I will end up taking over payments.
The house, she would like to lower her interest rates and pay a lower monthly payment if possible.
It drives her crazy how much money goes towards interest every month. She struggles with mobility in that house and can't find the money to make her home fit her needs.
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#5
If you are refinancing to lower your interest rate, (and consequently your monthly payment), and are undecided about how long you plan to stay in that home, it wouldn't matter if it is a no closing cost loan or not. You are saving money from your current mortgage. And, in today's market, you don't know if your home value will go up or down in the future.
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#6
Quote from Davidwilson12 View Post :
If you are refinancing to lower your interest rate, (and consequently your monthly payment), and are undecided about how long you plan to stay in that home, it wouldn't matter if it is a no closing cost loan or not. You are saving money from your current mortgage. And, in today's market, you don't know if your home value will go up or down in the future.

So where would you recommend her refinancing? Would like to keep both property's, would like a smaller payment on the house payment, condo could stay where it's at.
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#7
How can any info be offered without knowing the numbers other than rolling the cost into the mortgage?
120k @ 5.5=681
120k @ 6=719
120k @ 4=573

As a guess, debt to income for granny is high? If she ends up at 4.7% 122k is 622

Throw in 2-4k in closing cost
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#8
Quote from stufine View Post :
How can any info be offered without knowing the numbers other than rolling the cost into the mortgage?
120k @ 5.5=681
120k @ 6=719
120k @ 4=573

As a guess, debt to income for granny is high? If she ends up at 4.7% 122k is 622

Throw in 2-4k in closing cost
I'm really new at mortgage lingo, not sure what your post means.. I'm sorry, I'm trying to learn though. What info do you need?
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#9
Bankrate.com has mortgage calculators, prices for refi and rates

HARP is a refi program that lets you refi up to 125% No special rates or closing cost for HARP users. They might call them special but there is no "set" limit on fees.

The ads you see on tv for quicken loans is just that, ads for refinance.

If credit is bad/low you will pay higher interest rates,fees or both

Use the calculators to see how much she could save. Then you need to find out what her credit score is and adjust the rates by that. If she is 720 or above, she should get the better rates.
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#10
i'm currently doing a refi with quickenloans. i originally started exploring the process with my existing mortgage servicer, but quicken was able to beat the rate by over a quarter point and set the term to match my existing term remaining, rather than pushing it back out to 30 years, with no closing costs and nothing rolled into the loan.
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#11
how did you get 0 cost?
They offer credit towards cost depending on the rate you pick.
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#12
there was a promo available, and we're not reaching for the absolute lowest rate available. our primary goal was to get rid of pmi on our current loan, and a lower rate was a bonus. i'm also a schwab bank customer, and they are servicing a different loan for us, but i'm not sure if it was anything in particular that allowed for it, or maybe i just happened to get lucky and catch a dip in rates that allowed me to capture a rate acceptable to me (just over 4%), with no cost.
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