Question by tigersfan2222: Just purchased a home, and mortgage broker said we could refinance in 30 days. I need to know how that works?
We need about ,000 to pay off some bills. I want to either get cash to pay off bills, or for all my bills to be combined in one payment along with my mortgage payment. Is that possible? Do they go on how much your home is worth? thanks for any help..
Best answer:
Answer by Jennifer M
Some lenders go by the appraised value but many go by the purchase price that you purchased the home (since it was so recent that you purchased) Did you purchase with 100% financing? Then you will need to find the lenders that go by the appraised value. Since it sounds like this is your primary residence it may be easier to do.
If you guys were satisfied with what the broker did the first time around go back to him since he suggested it he may know of a lender. Shop it around so you know you are getting a good deal. Make sure to tell the lenders you just purchased when getting a prequal – it will make a difference to what programs you qualify for. You may want to consider a fixed rate second mortgage – the rate may be a little higher than a home equity loan but at least you know its not going to change on you. I may be able to help if you are in Florida.
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Get your house appraised from an independant appraiser asap, then find a new mortgate broker who will acually walk you through the steps, not one that leaves so many questions in your mind. A refi can actually take less than 2 weeks if the appraiser is on the ball. Btw, appraisals are good for 6 months if you decide not to refi for a while longer.
Good Luck
Your home is worth the purchase price. If you put $$$ down then that is how much equity you have in the home. If you are at 100% LTV you can’t do much. Check around for lenders that will give you a loan based upon the appraised value (as it is higher than the purchase price), but if you are at 100% LTV your appraised value will not be too much higher than the purchase price.
Be wary of lenders who say they can get you more than your home is worth. Those are subprime loans and they have caused much of the recent mortgage troubles.
Please whatever you do .. do not take out any funny loans that could jeopordize your home… If you have good enough credit to buy a home you probably have good enough credit to apply for a credit card… I suggest applying for a new credit card (shop around for a low interest card.. advanta is good) and put it all on the card then just pay off that one card.. please if you have halfway decent credit dont ever use your home as a pledge for security .. I cant tell you how many people are going into foreclosure over the same type of thing.. also if you decide to sell your home .. you will have very little equity and you may have to ask for a higher sales price than other homes in your market which could prevent you from selling in a timely manner..
I hope this helps in some way.. if you have any other questions feel free to contact me
http://www.MetroHomeRealty.com
1. I really don’t think you can refi directly after a purchase like that. (30 days?) unless you got a hard money loan to buy it.
2. If you do have a short term loan and you go to cash out refi right now, it’s certainly going to cost $10,000 after all is said and done to do it. You’ve already paid costs to purchase and now you’re going to pay costs again.
Doesn’t sound like you all this cashing out is worth it to me. If you have enough equity, just get a no-cost HELOC (line of credit) or something like that.
your home would have to have appreciated 10K, or you put down 10K when you bought the home, or you bought the home for 10K under value.
You’ll defintiely want the bills to be paid through the loan, and not cash in hand. Tendency to use money for other purposes will arise!! Plus your Debt-to-Income (DTI) Ratio will decrease.
http://www.americanhm.comscott.tilghman
My website, if interested. Thx.
Scott Tilghman
Is it the same broker you used when you bought the home? Just make sure he/she is trustworthy and knows what they are doing! Have you read the fine print on your current mortgage…like are there any prepayment penalties or other fees. You should also consider the fees that the refinancing may cost you, espeically since you probably just paid at least a few thousand for closing costs! Make sure to check all your options first! Like you may perfer a line of credit or home equity loan instead.
FIND A NEW BROKER.
The only thing you should consider is possibly a 2nd mortgage or line of credit.
A full refinance will cost you as much or more than your closing costs when you purchased the home. Your broker is simply trying to milk you dry.
Some banks, not many, will allow you to use a higher appraised value right after purchase. Many will hold your “value” at the actual purchase price, regardless of what it appraised for, for 1 year.
Considering the average refinance would cost $6-8000 (including the escrow account), your home would need to appraise for $15-20K above what you just paid for the home. I doubt it’s really worth that much, or that you could sell it for that much, not for a few years at least. So if this broker can get an appraiser to give you the value you need to do this refi, plan on being upside-down on the home for the next 3-5 years. Not a good place to be.
A 2nd mortgage will likely have no closing costs. That alone will save you thousands. And it will prevent your broker from getting paid twice off you in 2 months.
And to anyone else reading this: If your broker says “don’t worry, we’ll just refinance you in 1 month or 6 months”, find a new broker. All they’re trying to do is get themselves more money.
May be I Can Help You:
Just try:
http://www.proloanz.com/Mortgage_Refinancing.htm
http://www.mortgagerefinancingatlowrate.com/Mortgage-Refinancing.asp
http://www.topamericanmortgage.com/debt-consolidation-loans.asp
http://www.apply4less.com/mortgage_refinance.htm
these website links will definetly help you in solving your mortgage refinancing problems.