Why is Obama and the Banks pushing refinance?
Why is President Obama pushing to have home owners refinance their homes now? Who is the real winner in this one. Let me tell you that if you are refinancing your home now you are allowing the banks to get the profit and not you!!
Empire Mortgage Corporation was formed in 1994 when the housing market was already going sour. I saw many people in the late 1980's struggling and losing their homes. I had to learn about how banks finance homes and why so many went into foreclosure. For 16 years I had my own brokerage and educated home owners on what they needed to do to get the very best deal . . . and I gave them all a great deal. Are we doing a repeat or what?
If you refinance you will pay high closing costs. Yes you may get a better interest rate, but if you are 10 years into your loan why would you want to go back to 30 years. You see refinancing is not the answer. Banks are pushing for you to do that and they are not giving you the real interest rate but approximately .25% over the interest rate. Rates now are down to 4.78% and 5.25%. Fifteen year rates are at approximately 4.5%. But when you add another 10 years to that rate you are losing money.
You are better off to modify the loan. Yes, I said modify your loan. Banks don't want to do that because they will lose money on those modifications. You see when you modify you do not lose years on your loan. You do not have to do title work again. You do not have to pay for an appraisal.
You do not have to pay lots of high closing costs. You will pay a fee but it will be much smaller than if you refinanced. You will not have to qualify again. You can have medical collections and it will not stop them from giving you a modification. So why wouldn't you want to modify your loan. Makes sense to me.
Any questions please feel free to email me at tips@myblogempiretouch.com
Empire Mortgage Corporation was formed in 1994 when the housing market was already going sour. I saw many people in the late 1980's struggling and losing their homes. I had to learn about how banks finance homes and why so many went into foreclosure. For 16 years I had my own brokerage and educated home owners on what they needed to do to get the very best deal . . . and I gave them all a great deal. Are we doing a repeat or what?
If you refinance you will pay high closing costs. Yes you may get a better interest rate, but if you are 10 years into your loan why would you want to go back to 30 years. You see refinancing is not the answer. Banks are pushing for you to do that and they are not giving you the real interest rate but approximately .25% over the interest rate. Rates now are down to 4.78% and 5.25%. Fifteen year rates are at approximately 4.5%. But when you add another 10 years to that rate you are losing money.
You are better off to modify the loan. Yes, I said modify your loan. Banks don't want to do that because they will lose money on those modifications. You see when you modify you do not lose years on your loan. You do not have to do title work again. You do not have to pay for an appraisal.
You do not have to pay lots of high closing costs. You will pay a fee but it will be much smaller than if you refinanced. You will not have to qualify again. You can have medical collections and it will not stop them from giving you a modification. So why wouldn't you want to modify your loan. Makes sense to me.
Any questions please feel free to email me at tips@myblogempiretouch.com
Posted by Empiretouch at 1/7/2010 8:26 PM 
Categories: Refinance or Modify
Tags: refinance affordable affordablemodification
Categories: Refinance or Modify
Tags: refinance affordable affordablemodification
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