gregorygarver.com

[NotaPlayer]

Any refinancing tips for first-time homeowners?*I do not want to pay points.**What can I expect to pay for closing cost/other fees?***I do not have a car loan****Any penalties for prepayment to be aware of?*****Should I request for a "Good Faith" estimate and a "Truth in Lending" statement.******Is getting an estimate online with current lender a good idea?******What should I be aware of when sitting down with or talking on the phone with an agent regarding refinancing.******Any other documents or other things to be aware of?*******I live in California. My lender's rates are good. Is NOW a good time to refinance? I have the resources available to refinance but would like to know if I should wait it out. I understand that the real estate market in CA is not very attractive, especially in certain counties. All advice and opinions welcome.

[Tom]

Typically everyone pays points and typically there is always a prepayment penalty. You should never have to request a Good faith estimate and a truth and lending statement because by law the loan officer must provide this to you before closing. We can help you with financing we are affiliated with hundereds of lenders including FHA lenders. FHA home loans have many advantages for the first time home buyer including,•Minimal Down Payment and Closing Costs.•Down payment less than 3% of Sales Price •Gift for down payment and closing costs allowed. •No reserves or required. •FHA regulated closing costs. •Seller can credit up to 6% of sales price towards buyers costs. •Easier Credit Qualifying Guidelines such as: •No minimum FICO score or credit score requirements. •FHA will allow a home purchase 2 years after a Bankruptcy. •FHA will allow a home purchase 3 years after a Foreclosure

[Gregorio]

TO REFINANCE OR NOT? THAT IS THE QUESTIONWhen you refinance your mortgage, you usually pay off your original mortgage and sign a new loan. With a new loan, you again pay most of the same costs you paid to get your original mortgage. These costs may include settlement costs, discount points, and other fees. You also may be charged a penalty for paying off your original loan early, although some states prohibit this. The total expense for refinancing a mortgage depends on the interest rate, number of points, and other costs required to obtain a loan. To obtain the lowest rate offered, most mortgage companies will charge several points, and the total cost can run between three and six percent of the total amount you borrow. For example, on a $100,000 mortgage, the company might charge you between $3,000 and $6,000. However, some companies may offer zero points at a higher interest rate, which may significantly reduce your initial costs, although your payments may be somewhat higher. PAYING POINTS FOR A LOWER RATEIn refinancing, a mortgage company usually offers a range of interest rates at different amounts of points. A point equals one percent of the loan amount. For example, three points on a $100,000 mortgage loan would add $3,000 to the refinancing charges.Analyzing various interest rates and associated points may save you money. As a rule of thumb, however, each point adds about one eighth to one quarter of one percent to the interest rate the mortgage company is offering. Generally, the lower the interest rate on the loan, the more points the lending institution will charge. Some companies offer refinancing with no points, but generally charge higher interest rates. To decide what combination of rate and points is best for you, balance the amount you can pay up front with the amount you can pay monthly. The less time that you keep the loan, the more expensive points become. If you plan to stay in your house for a long time, then it may be worthwhile to pay additional points to obtain a lower interest rate. Some companies may offer to finance the points so that you do not have to pay them up front. This means that the points will be added to your loan balance, and you will pay a finance charge on them. Although this may enable you to get the financing, keep in mind that it also will increase the amount of your monthly payments. HOW TO DECIDETraditionally, the decision on whether or not to refinance has usually meant balancing the savings of a lower monthly payment against the costs of refinancing.In recent years, companies have introduced "no cost" and low cost refinancing packages that minimize or completely eliminate the out-of-pocket expenses of refinancing. (These refinancing packages compensate with a higher interest rate, or by including some of the costs in the amount that is financed.)For the refinancing to make sense, the interest rate for your new mortgage must be about 2 percentage points below the rate of your current mortgage. However, with the newer low and no cost refinancing programs, it can be worth your while to refinance to obtain a smaller reduction in interest rates. An important factor to consider is how long you expect to stay in your home. If you plan to move in a few years, the month-to-month savings may never add up to the costs that are involved in a refinancing.REFINANCE CONSIDERATIONSKeep in mind several issues when you are making your decision: 1. First, even a small rate cut can pay off quickly. That’s because you can easily find mortgage companies willing to waive routine refinancing charges such as application, appraisal and legal fees (which can add up to $1,500 to $3,000). Of course, in exchange for low or no up front costs, you’ll have to be willing to accept a rate that’s somewhat higher than the prevailing rock bottom. 2. Second, if you are planning to stay in your home for at least three to five years, it may make sense to pay "points" (a point equals 1% of the loan amount) and closing costs to get the lowest available rate. 3. And third, you can avoid laying out cash and still get a low rate by adding the points and closing costs to your new mortgage. This does not necessarily mean youll be shouldering a lot of debt. If you’ve had your current mortgage for at least three years, you’ve probably reduced your balance by several thousand dollars. You may be able to tack your closing costs onto your new loan and still end up with a mortgage that’s smaller than your original loan -- plus, of course, a lower rate and lower monthly payment. DOING IT AGAIN! Even if you have previously refinanced, it may make sense to do so again. The Joneses (not their real names) from Kirkland, WA refinanced twice within three months in 1998. In October, they trimmed the rate on their 30-year fixed mortgage by a full point -- from 9.13% to 8.13% -- for a monthly savings of $63. Plus, because home prices in their area had boosted their home equity, they were able to stop paying private mortgage insurance that cost them $120 a month. To exploit the continued decline in rates, the Joneses refinanced again in December. Their new 30-year fixed mortgage is at 7.375%, cutting another $55 off their monthly bill. Since the couple had chosen a no-cost refinancing each time, their total out of pocket expenses came to just $400 in appraisal fees. By the time you read this, they will already have recouped their up front costs. SHOULD YOU REFINANCE, OR NOT?Remember your goals. The Joneses had very specific goals for refinancing. As their family grew, their goal was to build a cash emergency fund. Another important point to consider in a second refinancing is the potential tax-write-off: When you pay points to refinance, you must deduct the amount over the life of the loan, usually 30 years. But when you refinance a second time, all of the points that have not yet been deducted from the first refinancing can be written off in a lump sum.

[curiousgeorge]

The sooner you refinance the better. The amount of equity you have in your home is a large factor when it comes to refinancing. Equity is the current value of your home, minus what you owe. With real estate prices dropping in many areas in CA, waiting will likely reduce your equity, making it more difficult to refinance.Online estimates are generally a good idea. The best thing you can do is shop around. With the real estate market as it is today, brokers and lenders are hungry for work. Get quotes from several brokers and pick the best deal.By comparing offers, you'll be able to see what kind of fees brokers/lenders are charging you. Also, by comparing offers you'll be able to weed out the unscrupulous brokers who don't offer you the lowest interest rate possible. Some brokers do this because the banks reward them with an additional fee.Some places to check out:http://lendingtree.com - get up to four competing offershttp://finfo.com - they've partnered with a couple of brokerages to offer competitive quotesAlso check with your current lender and make sure you tell everyone that you're shopping around for the best deal. That should encourage everyone to offer the best deal available.Best of luck!

[matzael]

Because home values seem to be dropping in California, it probably makes sense to look into your options now while you have the most equity possible. You've got a lot of good questions, I'll try and address most of them in no particular order. Just match up the number of astericks to your questions.**Closing costs vary wildy between lenders and will depend on your loan amount. Make sure to compare the top section of your Good Faith Estimate in particular as this is where most lender specific fees are located.****Pre-payment penalties also depend on the programs you're offered, the better rate programs don't tend to have these, but this is an excellent question to ask the brokers or bankers you apply with.*****You should absolutely request the Good Faith Estimate and Truth in Lending documents. They'll be provided by law anyhow, but that is exactly what you want to compare when you compare loan quotes. They're the only place where you'll see all the costs and be able to accurately compare anything.******You want to look for anything that shows terms that were not explained to you. At the actual closing these usually take the form of additional riders to the loan agreement. Things like pre-payment penalties or any adjustable periods need to be explained and agreed to before you see them.*****It sure is a good idea to get a quote from your current lender. Nothing says they'll have the best deal for you, but it's a great place to start.*Why not? A lot of people feel this way towards points, but consider this first. Typically the more points you pay the lower your interest rate. You're looking for a 30 year fixed rate so I'm assuming you're going to be with this mortgage for 30 years. For long term mortgages you typically want to buy the rate down as low as the bank will let you. You should save much more in interest over the course of 30 years than the points cost you now. The less time you have the mortgage the less it makes sense to pay for the lower interest rate, but if you're going to be in the home more than 5-10 years it almost always is cheaper.******Documents depend on the loan you apply for. Typical documents needed are your last months worth of paystubs, copies of your last 2 years W-2's or possibly a copy of your last couple years complete tax forms and statements from any savings accounts you have for the last month.*****A lot of lenders or brokers use different numbers when quoting payments on your new loan, ask for details. For example; what the loan amount they're using is, how much they're estimating your taxes and insurance at, what are the total in closing costs they're assuming etc. Don't just get the rate and the payment and think that's all you need to know.Just make sure that no one pressures you out of comparing a few different offers before you make a decision. Good luck on your new loan!