Why refinance?
With the decline in interest rates, A house should, of course, to investigate the possible benefits of the refinancing, however, discuss the financial situation and its objectives of the loan before making a final decision. Do you want to reduce their monthly payments? Debt consolidation? To obtain cash for the purchase of much? Change your interest deduction cost the tax? Ask your bank to finance some cases, as you outline for a period of the loan, monthly payments, including interest payments will change. In the review of these scenarios will be more clear understanding of whether or not to refinancing costs you.

Is there a better time to refinance?
The old rule is that a person should be the rate of mortgage refinancing loans fell by more than 2% or lower than the current interest rate. However, refinancing may be a viable option, even if the difference is smaller. Moderately lower interest rates can still decorate their monthly payments. For example, the monthly payment of $ 100,000 in loans to 8.5 percent, or approximately 770 (excluding taxes and insurance). If the rate down to 7.5 percent, monthly payments in about 700 U.S. dollars or 70 U.S. dollars to save. Similarly, the importance of such savings depends on the overall financial situation, how long do you intend to remain at home, and so on

I would be if you plan to soon?
This is an important factor to be considered. Most of the lending institutions charge fees to refinance loans. If you are going to remain at home less than a few years, it may not be enough time to save more than in the previous month. For example, if you lower the transaction, and then pay 50 U.S. dollars a month's loan to receive 1000 U.S. dollars. This will require 20 months (U.S. $ 1,000 divided by 50 U.S. dollars) to recover costs at the beginning, and then you start realize savings. Some lenders offer "without incurring any cost" loans with higher interest rates, but there are no other costs. It depends on the attractiveness of these loans are charged with a current loan.

What you should consider refinancing?
One of the factors people do not always believe that the U.S. energy-saving mortgage may not always be the best choice for everyone. You have to have a good look to your own "financial personality" here. Remember that the deduction of interest mortgage. When you reduce your monthly payments may reduce the tax as well. Are you disciplined enough to invest their savings each month a new way, you can reduce the tax benefits will not be a problem?

What kind of fees should be paid?
It depends, but generally speaking, borrowing costs may include application fee, the cost of source (usually 1% of the loan amount), administrative fees, the cost of property insurance (settlement fees, title search, title insurance, handling / service charge, ask for write to the Secretary of the court). Your new bank will release its estimate of those charges in good faith, which is usually at the time of application or soon after. The sum of all costs in order to achieve 2-3% of the loan amount. If you do not have available cash to pay for costs associated with the loan, you can search for the lender to guarantee "without incurring any cost" loan. Not to be slightly higher interest rates and credit, to a discussion about the strengths and weaknesses of your credit. Also, if you have the first owners of the former U.S. policy is less than 10 (10) years, is entitled to the property insurance discounts. You will have to provide us with policy.

What is the point?
The cost of credits, which are to be paid to the bank in order to obtain mortgage loans, under certain conditions. I am equal to one percent of the loan amount. In other words, the point on the 100,000 U.S. dollars loan will be 1,000 dollars. The cost of discount points to lower interest rates for mortgages. Some people may pay one or more points in the front part of lenders in exchange for lower interest rates. Is a personal choice and rely on the person's financial situation, how long is the plan at home, and so on

When do I need to check with your company name?
Contact with them so long as it is reasonably sure the loan agreement and approval of the loan. Tell your bank at the time of application (or shortly later) Those who decide to conduct its closure. You may need to appoint a non-title companies to pay a deposit fee, which will be applied to the cost of closing time. This is the preferred contact with the company name, at least two weeks before the end of the month.

What is the name of the company needs?
~ Related to your property (address, etc.)
~ Name, phone number and account number for each open end mortgage
Social Security Number by all owners
Through the names and phone numbers for new loan
~ A copy of the prior owner of the policy, if less than 10 (10) years

Why do I need another title search?
Each lender required a commitment to ensuring that issued in their favor before closing. The information contained in this undertaking can only be a review and evaluation of documents in local land records. As a result, companies must be registered the names of each of these transactions. This allows them to the lender and a corresponding picture of all existing liens and mortgages, as well as the right of immovable property, taxes, and accurate information and evaluation.

If I have insurance, why I need to buy again?
When buying a house, may be paid by the lender and the name of the owner of an insurance policy. Your customers will continue in force, however, the current payment loans, refinancing, the new loan policies must be issued.

What will happen at the end?
Generally speaking, you can come to the office of the title company, signed by all new loan documents. You will need to show proper identification, as many of them are legal documents, which requires the recognition of notarization. Companies will be prepared and submitted to the company's name in all documents relevant to the new credit. You will be signing many of these same documents and forms you signed when you purchased your original home.

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A lot of people hear all types of stories about refinancing, some good and some bad. The bottom line is though, if you are vigilant and do some work, refinancing your home or condo mortgage can be a great thing. A proper refinance would have leave you with either a lump sum of cash from the equity you have been building in your house. Or, you could lower your monthly payments, while still owning the same property.

Often times, your first mortgage is a learning experience. You find out later how much this learning experience will cost you. You usually did not have the credit or cash flow you have now (assuming a few years of home ownership). When you got your first mortgage loan you probably figured it was a few points higher then the “regular” interest rate you have seen advertised. Today however, those 2 or 3 percentage points are likely to be all you need to be on the road to a successful mortgage refinance. The rule of thumb is that the refinanced loan rate should be 2-3% lower than your current mortgage rate. This will be enough of a savings that you will be able to either walk out of the refinancing with cash in hand (after all it is your cash that has been tied up in the increasing value of your home) or a lower monthly payment due to the new mortgage loan rate being a few percentage points lower than the mortgage loan rate you got out of. The second option I mentioned, the lower monthly payments, is basically starting again with a new mortgage, and using your improved credit score and cash flow you will be in for some savings every month on your mortgage. Make sure you are ready for mortgage refinancing by reading and doing as much research as possible. The mortgage lender wont be bending backwards to help you save money (and him lose more) you are on your own. The best you can do is be knowledgeable about mortgage and condo refinancing.

-M Petrone

Today is a special day. Instead of the usual asking price of $29.99 I am giving my ebook away for free to my readers. It has some great information on debt management. Problems and solutions are discussed all in this free ebook. I will not have this available for long so download and tell your friends where to get it while they can. Enjoy

Download here

It may be a good idea to refinance your current mortgage in search of a better mortgage loan rate. Just make sure you dont fall for the common mortgage loan refinancing mistakes many others have. The following article contains 9 common refinancing mistakes that are pretty commonplace, and how to avoid them when refinancing a mortgage.

Mistake #1
Not doing thorough research on lenders.

Most people are comfortable with their current bank or mortgage lender. This is a bad practice to become comfortable with. You should always shop around for the best rates. If you have a current mortgage lender you prefer you should still shop around and show them your offers and see if they will match, or better yet, beat it. Just like a big purchase, it pays to shop around. You will guarantee this way that you did get the best available mortgage refinancing rate you can. Also make sure to be aware that when you apply for the mortgage refinancing, even if its the same lender you currently use, you will need to re qualify for the loan.

Mistake #2
Know when you will start to break even after you refinance

When you decide its time to refinance your mortgage, I can almost promise you will have to pay closing costs. These costs could negate any or all savings you received through the refinancing, at least initially. Calculate the costs of the closing fees and your new refinanced mortgage rate and see when your break in period is. This is when you are done paying any closing costs that have been added in due to the refinancing.

Mistake #3
You have not received a Good Faith Estimate from your lender

Any potential mortgage lender should be able to provide you with something called a Good Faith Estimate. This is a estimate that covers the closing costs, any "hidden" fees, and any other fees associated with getting a mortgage refinance. This should be given to you within 3 business days but there is no reason your lender cant give you one earlier if you ask for it.

Mistake #4
The Assessed Value of Property should not be considered

The assessed value of property is determined by the local county tax assessor. Your loan amount will not be based on this assessors value. Your property will be valued using another approach called the, sales comparison approach, also known as the cost approach.

Mistake #5
Getting an appraisal for a home with low value

If you know that your home is not that valuable, you should not pay to have its value assessed. You should ask your mortgage lender to appraise your house for you using the AVM model (automated valuation model) this method uses other houses in the neighborhood to find a good average house price in any given area.

Mistake #6
Do not sign anything without properly reviewing it

Make sure to check, and double check all the loan documents before you sign them. Carefully, read all the terms and conditions of your possible loan before signing. If you can, ask for a copy of the loan documents a few days before the official signing so you can review them on your own time.

Mistake #7
Not providing the necessary documents in a timely manner.

Stop unnecessary delays in the closing process by having all the proper documents ready to submit when the lender asks you too. If you delay too long with this, the rates on your loan may go up by the time you are ready to sign.

Mistake #8
Not getting it in writing

Sure, there are trustworthy people in the mortgage lending industry, but surely when it comes to this much money, make sure everything is in writing. Often, your lender will give you an initial verbal agreement about your rates. Get him to put those on paper. If its not on paper, its not official.

Mistake #9
Using your heloc prior to refinancing

If you have taken out any kind of home equity loan of credit, for anything but home improvements or repairs, do not immediately apply for refinancing. You should wait at the minimum 6 months before approaching a mortgage lender about refinancing. This is the same as taking out more credit, and will be viewed as such when applying for the refinancing.

Making a mistake during the long refinancing process can cost you thousands of dollars, let alone time wasted. Make sure you do all the research you can before entering the mortgage refinancing world

-M Petrone

It is not at all uncommon to refinance a home or condo mortgage 1 time through the long mortgage period.This does not mean it makes sense for everyone though. Make sure you have a good understanding of home or condo mortgage refinancing, and are doing it for the correct reasons. The following topic covers 3 basic good reasons to consider refinancing your home.

Reason 1:

A lot of people, when applying for their first mortgage loan, did not have the best credit records, therefore, the usual course is an A.R.M. Loan (Adjust rate mortgage), which allows people with less then stellar credit, or down payment, or both, to get into a home or condo mortgage. It usually offers lower initial interest rates, and more often than not a low or no cost closing fee. After awhile though, that rate usually tends to go up and you have no control of how much your condo or home mortgage will be from month to month. If it gets too high, its a good sign it is time to refinance that mortgage into a standard 30 year fixed rate.

Reason 2:

A great thing about mortgage refinancing is that you could be lowering your monthly mortgage payments. There are a few methods of determining when the time for you is right to make the decision to refinance. Usually, if the current fixed rates are around 3% lower than your current mortgage rate, it is a great time to consider refinancing. The savings in those 3% points can reduce your monthly mortgage payment, and you are still borrowing the same amount of money as you were initially, just at a much better financing rate, therefore saving you out of pocket cash every month for the length of the mortgage. Also, another method is to extend your payment terms, say from 20 years to 25 years. This is not going to save you any money, but it will make the monthly mortgage payment smaller. Definitely only do this if you need to free up cash not only now but for a few years.

Reason 3:

Refinancing your condo or home mortgage to pay off other high interest debt you may have accumulated. This is a great way to put cash in your pocket and using it to pay off your debts that are higher than your mortgage loan interest rate is. That is usually everything you owe. Use it to pay off credit cards first as they usually have the highest interest rates, than your car note, than anything else you owe, starting with the highest APR (Annual percentage rate) first. Since at this point you have already accumulated these high interest debts. This is a great method to save long term money, using your current mortgage.

-M Petrone

What different types of mortgage finance loans are most typical?

The most popular, and often safest, mortgage financing option is a fixed rate mortgage. Basically, this means that the monthly mortgage payment will never fluctuate throughout the mortgages existence. This insures that even when the mortgage rates increase across the country, your rate will be locked in at what it was when you signed the mortgage. There is also another type of popular mortgage financing option. ARM (Adjustable Rate Mortgage) Loans. These loans are great when the housing market is doing well. You can often start off on a cheaper monthly term with an apr mortgage. There is a lot of risk though. As soon as the housing market looks to go a little south, your mortgage will instantly go up per month until the forecast is better.

Are there mortgage programs for first time lenders?

Yes, there are a good variety of mortgage financing options for first time homeowners. They are able to help with bad credit, and low down payments. They will work extra hard with you to get you your first home mortgage.

What will determine my monthly mortgage payment?

The amount you are borrowing for the mortgage, the amount you put down on the home, the current home mortgage interest rates, how long your mortgage is (usually 30 years), and payment schedule, along with your credit history, and amount of money in bank after downpayment, will all play a role in determining your mortgage financing rate.

What does the interest rate have to do with getting mortgage financing?

When there is a lower interest rate, you are able to borrow more cash, therefore getting a bigger mortgage, and pay less for it every month. Remember this does not apply to arm loans, which can vary from month to month. Make sure you are locked into a mortgage rate, and that it is locked in for the entire length of your mortgage.
How large of a down payment do I need?

Typically, try to put 20% down on the mortgage, although you can find mortgage lenders that will accept as little as 4% down. The more you put down the better it will be for you in the long run.

- M Petrone

Going through bankruptcy can seem rough enough, refinancing your home after going bankrupt is seen by most as even harder. Heres some good news though, just 6 months after declaring bankruptcy, there will be mortgage lenders out there who will work with you on refinancing a home or condo loan. More often than not, if you refinance now, even after a recent deceleration of bankruptcy, you can build your credit rating to a good healthy standing within 2 years. In this article, I discuss steps that will help you find the best mortgage refinancing lender you can, and build your credit score.

Getting ready to refinance

The moment you finalize the bankruptcy, you have about 6 months time to better your position in the mortgage refinancing game. Start by keeping any debts you have, that are in good standing, paid off. At this point, you cannont afford to have any other bad marks on your credit history. Next, pay off as many debts that are outstanding as you can. Instead of paying each a little, pay them off one at a time. Your credit score already has a negative mark from outstanding balances, so taking any of them away is a positive sign. If you have no credit cards, you should open one and make sure you pay it off in time. Even make payments a little bigger then the minimum. This is a good path to re establishing a positive credit history. Also, if you dont have one get a savings account, keep your checking account. Save cash, get rid of the non essentials and put all that extra cash into that savings account. Adding a savings account and having actual cash saved in there looks better for your refinancing application.

Doing proper research on lenders

When you think you are ready to refinance, make sure to scrutinize the potential mortgage lenders and rates. Use the net to compare loans, terms, rates, and fees according to your paticular refinancing position. In most cases, taking a very slightly higher mortgage loan rate is in general better than the lower rate with inflated fees. Also, you will probably have to work with a sub prime lender, as you have recently filied for bankruptcy. Usually their are associated fees worked into the mortgage rate that vary, but are typically a few percentage points above the going mortgage rates.

Picking the right refinancing option

If you are offered to take a part of your home or condo equity as cash, you should make sure that you need it for a major purchase. Otherwise, you are better off leaving it tied up in the homes value, therefore helping improve your credit. Once terms are established, you can submit your loan application through the mail or online. Mortgage rates vary, sometimes hour by hour, so by the time your application is reviewed, and accepted the rate may have slightly changed, but no matter what you will have to sign something and finalize the loan before it is approved.

After The Refinancing

If you completed your refinancing following these general ideas, you can count on an improved credit score in two years, all through refinancing your condo or mortgage loan. Be sure to add regularly to the savings and continue to make your payments as normal. In few years time you will be able to refinance again with a much improved credit score and the bankruptcy looming far behind you. Good luck.

-M Petrone
For more articles related to refinancing questions, please visit my blog at

Changing the terms of your current mortgage.

Quite often there two things that help you and your lender what loan is right for you. For instance, if you have a large sum of cash to put down on the refinanced mortgage, you may go for a 15 year mortgage with a nicer percentage rate, and therefore pay much less interest. Buyers who are short on cash though will often need a longer term home mortgage, with closing costs calculated into the payments so less cash is needed upfront.

To get out of your A.R.M. Loan

You thought you signed in for a deal when the ARM rate was way lower then average fixed rate loans, but you know better know. The moment you sign that ARM mortgage, that interest rate can skyrocket at anytime, leaving you with a huge condo or home mortgage to pay every month.

Just to save money every month on your mortgage payment

Rule of thumb for refinancing is to do it when the rate you can get is 2%-3% lower then the rate you are paying now. That is enough to cover the closing costs and save you cash every month on mortgage payments. With competition all over these days, mortgage lenders are very competitive with each other and often someone with good credit can get a really good rate if they look around a little bit.

To lower other debts you have.

You can refinance now at a much lower rate then credit cards, other other non mortgage debts apr is. By doing this you are freeing up more cash every month with an average 10% savings just by paying a lower financing rate.

-M Petrone
Refinancing FAQ & Advice

www.refinancingcondo.com - finally

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We finally moved the blog to our own servers. This should be great news for everyone. Thank You for growing with us and we hope you come back again. If you have any ideas or suggestions please contact me! Thanks again!
Refinancing FAQ & Advice

This couldn't be a better time for you if you are even considering getting a second mortgage on maybe a vacation condo, or possibly a condo for the kids.
A great reason to consider this now is the slumping housing market. You can now afford to live in desirable areas all around the country you would maybe not have been able to afford before. The second reason is that it will not only be useful now, but it is also an investment for the future. Back to basics here folks, buy low sell high.
One refinance later, a happy condo owner

Using equity you have accrued until now and using it to reinvest in a second property (namely a condo) is an amazing way to take advantage of some all time low finance rates. Combine that with some all time low home prices and you have the perfect investment opportunity. Also, interest on the loan has a good chance of being tax-deductible, so its probable you will enjoy tax benefits.
Condo living is a great lifestyle for many second home buyers. It allows you to pay a minimal amount of homeowners insurance, and maintenance fees, while enjoying all the benefits of actually being a unit owner. Enormous. So if you think or thought about getting a condo for other than main living purposes, now is the perfect time to buy.
-M Petrone
Refinancing FAQ & Advice

Question: Which type of mortgage is right for me?
Answer: Depending on your current financial situation, down payment amount, income, and debt there are a plethora of loan choices for you. I cant give specific types of loans unless you contact me through my blog (I will be more than happy to help) with your current situation. I can, however, almost guarantee you will get a condo or a home loan as long as your debt is not out of control compared to your income.

Question: What does A.P.R. Mean?
Answer: This acronym stands for Annual Percentage Rate. To sum it up the APR is the cost of the loan interest rate form. Theres always other costs and brokerage fees with getting a mortgage, these are taken into account when your lender gives your the APR. So that means the APR the mortgage company gives you is a little higher than what the loans true value is.

Question: Do interest rates change often?
Answer: It is not unheard of for home mortgage interest rates to change 3 or 4 times a day. Sometimes more. There are too many variables to accurately predict when the rates will be changing again. Things like the market, what kind of loan you seek, the reason for the loan, credit rating and other things you cant control, the market, the bonds market, the lenders position.

We can almost bet on it. The consistency of incoming calls coming into my office, from interested condo / home buyers asking “How hard is it these days to get a mortgage?”.
Truth be told, the only mortgages that are actually difficult to get are the old type sub prime loans. The old sub prime loans usually require amazing credit rating (especially these days, thanks Fannie and Freddie) as the lenders that do these types of loans are looking for minimal risk. But, for all practical purposes, do not be concerned with the old sub prime loans. Perfect credit ratings are not required, as long as you have more good credit history than bad, things should pretty easily fall into place.
The most important thing you can do besides reduce some debts is make sure the loan is set up in an appropriate way to help minimize the “big” things that may come up in anyones life (doctor bills, loss of job, bad economy, etc...) Loan underwriters do not have an exact formula they use to approve or deny mortgage applicants. They do however like hearing a plan of attack, so to speak, from you concerning costs, expenses that may come up in the future. Its basically convincing the loan officer that you can handle a “financial crisis” and still have a pretty sure fire way to make that monthly mortgage payment. This includes not having much debt, the more you have now the more you will have to pay later, on top of your new mortgage payment. Sometimes, if you go in to the lenders office prepared, the whole process can take only weeks if not less. If your not so prepared for the questions from the lender, or if you have large debts, you will no doubt have a much harder time getting a home or condo mortgage.
If one of your goals is to get a mortgage with the best rate and good terms (It should be) then you should without a doubt work on getting your credit score as high as possible before approaching any loan officers for a mortgage. Your debt reduction efforts will be taken into account and will save you money.
In all likeliness, this will be the most expensive purchase you ever made or will make in your life. So do some research on mortgages and make your purchase as easy and affordable as possible.
A little research and a some debt reduction will put you in a great place to get that mortgage!
-M Petrone
Condo refinancing expert
Why refinance

Refinancing a mortgage is a good way to take advantage of low interest rates, which will save you money. Specifically it is the process of taking out a new
mortgage, and using the money to close out or pay off a current mortgage. If you
refinance with a lower interest rate you'll reduce your monthly mortgage payment
even if your new mortgage is for the same amount as your current mortgage.
Obtaining a new mortgage involves costs of its own. If you choose to refinance. you need to weigh the monthly saving over your mortgage term (usually 30 years) over the cash you will most likely receive from refinancing.

Traditionally, the rule-of-thumb that's cited is that the
interest rate for your new mortgage should be about 2%-3% (percentage) points lower than your current mortgage. Lately there are a lot of no cost, or low cost refinancing options that may work for your personal situation. It is likely worth your while to refinance and obtain a refinancing plan that will save you money monthly.
Refinancing is a great way to get some cash out to do a complete renovation to your home. Folks will get refinancing right before they put the house up on sale on the market. One trend that is catching on is that folks will hire a home stager to increase the curb appeal of their home. A home stager will suggest tips on how to best fluff your house to get the best selling price. Fluff enough and potential home buyers will imagine your house looks better than it really is. I have heard of real life stories where this bachelor hired a home stager and he got an extra $50 000 for the sale of his condo downtown.

Terms You Will Want To Know

Reasons To Refinance

1. Save money on interest rates. If you obtained your

current mortgage when interest rates were considerably higher than they are

now, then refinancing makes sense. With a lower interest rate your monthly

mortgage payment is reduced.

2. Convert an adjustable-rate mortgage (ARM) to a

fixed-rate mortgage. You have an ARM and your nerves can't take it any more.

If interest rates are low, you may decide to choose the predictable monthly

payments of a fixed-rate mortgage.

3. Convert an adjustable-rate mortgage (ARM) to an ARM

with more desirable features or lower rates. You want an adjustable-rate

mortgage that offers better protection than your current loan and offers

significant savings. Even though the interest rates on ARMs fluctuate

with prevailing market rates, you may have one that's tagged to higher

indices-and carries a higher interest rate-than other ARMs currently


4. Build up equity faster.
If your financial resources

have improved since you obtained your mortgage, you may want to convert to a

mortgage with a shorter term-perhaps a 15-year mortgage instead of a 30-year


5. Convert equity to cash.
If you've held your mortgage

for a long time, you will have substantially
reduced the outstanding

principal on your loan. This means you'll be able
to finance a considerably

larger amount than you owe on your current mortgage.

Dollars & Sense

Home Equity Loan or (second Mortgage)

* fixed rate, generally tied to long-term interest rates.
* fixed repayment schedule, usually 10, 15 or 20 years
* higher rates than(heloc), in flexible repayment periods, entry fees
* lump sum of cash for one time need such as home remodeling, debt consolidation, or cash out

Home equity line of credit (HELOC)

* Monthly Variable rate, usually tied to the prime rate
* Payments to immediately; borrowing can ast five to 10 years Followed by repayment
* Interest rates can climb steeply within a few months; no cap adjustments
* Flexible or emergency borrowing to finance reoccurring expenses for education or health care

Glossary in terms:

What is(ARM) Adjustable rate mortgage?

The interest rate adjusts monthly or every 3, 6,Or 12 months over a 30 year
term. The disadvantage here is thatYou need to watch out for interest rates
rising substantially an unexpectedly depending on the market
conditions. This type of rate Is suitable for homebuyers that would

like to live in their home for a very short period of time, and can only pay
the lowest possible Monthly payments. Don't forget if you are a new home buyer to learn how much you can save in interest by credit repair calculator and improve your credit score. As well, you will want to run a free credit report before getting quotes on home loans.

Source:Consumer Reports - May 2005

Lenders lately have tightened up mortgage approvals (which I think is far too late, this should have been occurring from the start) and have almost overnight went back to the strict qualifying standards that were once in place.
With these new tactics being enacted, it is hard then ever to get a mortgage on a condo that is going to be rented, as opposed to the owner living in the residence. The reasons for this vary from lender to lender but are typically attributed to a few things. Usually these days the mortgage lender will want a guarantee from the condo complex that it is around 65% OWNER occupied. That means if your getting a mortgage on a condo to rent, in order for that mortgage to be approved, your condo complex must have the actual owner of the individual condo living in 65% of the total condos in the complex. The thinking from the lenders standpoint is this, renters, even long term dedicated ones, do not have any true vested interest in the property, like an owner would. They also know that living in a complex with all owners who are concerned about their property and that surrounding it, will add to the value of the condo in the long run. That is the reason that some condo associations have limits to how many rental units at any given time are allowed in the complex. When buying a condo make sure to know that exact figure of non owner occupied units in the complex. This will make your decision, as well as the banks, a lot easier.
-M Petrone
Refinancing FAQ and Advice


QUESTION: Our ARM is expiring within about 9 months, we still maybe a few grand more than our condo is worth. We have a good credit rating (775) and about $5 thousand in the savings, along with NO credit card debt. Currently our lender wont refinance us due to our high LTV, they want an LTV about 80%. Which lender should I use? Does President Bush's new FHA plan help me at all? Do I even qualify?

ANSWER:It is good to have money to spend on closing costs. That will tip the bank most often to push your refinancing through. Try Chase.I know they do refinancing with 100% FTV. AS for President Bush's plan, as of yet it is offered at only a few banks, but you can find it if you look at enough lenders.

-M Petrone
Why refinance

A few first time mortgage tips.

Posted by Why Refinance | 5:57 PM | 0 comments »

You have finally made it. You are ready to purchase your first home. You did all the math and are ready to own a condo or perhaps a house. Heres some good ideas to start with before entering your first home purchase.

First Things First: Pay off any debt you can.Its an easy thing to forget when your trying to save as much cash as you can for a down payment. You will be inclined to use credit for more things in an effort to save cash. A better way to go about would actually be paying off some debt, and having as few debts as possible when applying for a home mortgage. Even if that may mean that your down payment is a little smaller, it may help in the long run. Due to the fact that most credit card debt is costly, therefore limiting your ability to save. Credit cards nationwide hold an average APR of around 13% or more than twice the amount of a standard rate home mortgage. Second, the more credit card debt you have the less you can borrow. Mortgage lenders are very reluctant to allow someones living expenses (credit card payments, any loans, insurance, mortgage, and taxes) to exceed 40% of their gross income.

How much are you really able to afford?
The answer to that question is focused on 2 main components. How much of a down payment you have, and haw much you are able to borrow. Typically, mortgage payments (as well as taxes and insurance on your home or condo) should not exceed 25% of your total gross income. Next, you must figure out how much of a down payment you can put down. You must make sure that you don't leave yourself broke putting every penny you have in the down payment. Expenses will arise and you are responsible to fix them as the home or condo owner. There is no more landlord to call.

The different types of mortgage loans available.
Now you must decide which home loan is right for you. For the most part, a typical buyer with steady income and good credit can put as little as 3%-5% total down payment. These loans have become more and more accepted in the industry as banks typically are able to cover the cost of home loans valued at under $370,000. On an average loan with a house costing around $180,ooo putting 3%-5% down would result in a higher monthly mortgage of about $58 per month.

The more money you can put down on your new home or condo mortgage, the more loan options, almost always with better rates, are available to you. The more money you put down, the more secure the lender feels in signing off on your mortgage loan, it basically means you have more to lose should you lose your house or condo.

-M Petrone

When your looking around and are ready to refinance your home or condo mortgage, you are bound to see a fair number of advertisements for mortgage company's offering “No Cost”, “Free”, Or more recently “Reduced Cost For Condo Mortgages”. Now somewhere deep down you have to ask yourself, “Why would this be free here and cost good money somewhere else?” Heres a few tips to look for, regardless of there “No cost” offer, to ensure you get the best deal when refinancing your condo or home.

Why do some company's advertise “No cost refinancing”? Why do other mortgage lenders have a very low flat price? Why do yet other lenders have a % based price? They make up for the “Deal” their offering you with a hyperinflated rate or get you into an a.r.m. Loan on your condo or house. They will make whatever the other companies charge plus more with these crazy high rates. So simply put. The low cost or free mortgage and condo services are not to be trusted.

The industry standard for condo and mortgage refinancing is the mortgage company usually takes a sum of .5%-.75% of your mortgage rate as there commission. For the most part, a company offering “No cost” or other gimmick offers usually tack on an additional fee for their commission ranging from another .5% to .75%. That means for you the condo or homeowner your refinancing will cost you more every single month for typically 30 years. Which is a lot of money in the long run.

Deceptive home refinancing techniques like this are used everywhere in the USA. They are easily found and spotted. There is no free anything in the refinancing industry. The only thing you can do is be smart going into it.

-M Petrone


Typically when applying for a mortgage loan, you quickly find out how many types of information you will need to provide. To begin with, you will need proof of income, checking or savings account information that goes back as much as 3 months to verify someone did not borrow you the down payment just for the looks, you will also need to provide tax returns. Also, you will need to bring a copy of the deposit that you gave to your realtor when you decide you found the perfect condo or home to finance. Almost all the time, the bank will send an appraiser out to the property your looking to finance, they also send an inspector out to make sure there is no significant costly damage that will need to be repaired within the first few months/years of your mortgage. You will also need to provide proof of home owner or condo owners insurance once the loan is approved.

Meanwhile, in the time between applying for either financing or refinancing you should not use any credit sources. Do not get anything financed or refinanced while the loan is awaiting approval. Refinancing loans are pretty strict and may take a few weeks to months depending on your personal financial situation. To receive refinancing in some instances you must pay off an old debt or two in order to turn that corner so the bank will refinance.

When your refinancing approval goes through it is all down hill from there. Meeting the bank and the realtor one more time is needed before closing on the house or condo. Make sure to bring your downpayment with you and anything else your realtor or banker asked you to bring in. Remember after the closing goes through the property taxes are now in your name, including any back taxes that were due on that property. You now will be the official condo or home owner!

-M Petrone

Most people use refinancing to take advantage of lower interest rates that may be available now but were not available when they took out a mortgage on their condo. More to the point, it is going through the procedure of taking out a second mortgage, and turning around and using that cash to close, or pay off a current mortgage.

If you are lucky enough to refinance your condo with a lower interest rate then when your first got the mortgage then your monthly payments should be lower, even if your new mortgage on your condo is for the same amount than your old one. Before you start the refinancing process, you need to weigh the savings of a lower monthly payment with the costs associated with refinancing.

Usually, the rule on refinancing a condo is that the interest rate of the new mortgage should be -2% (about two percent lower) than your current mortgage. These days there are tons of no cost refinancing options available. Overall it is probably likely that should you decide to refinance your condo, you will be saving money (by obtaining a better interest rate)

Condo refinancing is a good opportunity to gather a quick large sum of cash. You can use this cash to upgrade your condo and increase its future value even more. Probably, your condo has also risen in value, that will be taken into account in the second mortgage. That means good news for your with the new refinancing!

Things to know before starting the refinancing process:

Know YOUR reasons to Refinance

1. Most likely a condo mortgage rate is lower now than it was when you bought. Refinancing will put cash in your pocket, with a lower interest rate your monthly condo mortgage payment is smaller.

2. Obtain a Fixed rate mortgage instead of the A.R.M. (adjustable rate mortgage) you have now.

3. Obtain a A.R.M. for your condo with better terms than the one you are in now.

4. Fast way to grow equity. Just by refinancing your condo

5. Turn equity into cash. With the new smaller interest rate you receive through refinancing on your condo you will most likely have a good sum of built up cash coming to you!

-M. Petrone

Condominium Refinancing Expert

If you're planning to buy a condo or refinancing your condo you might sense the mortgage credit and mortgage refinancing squeeze.

Due to the results of the huge investors like Fannie Mae and Freddie Mac including the new stiffer restrictions by mortgage insurers for condos, being able to refinance your condos mortgage seems to be tougher than one might have thought.

Starting May 1st one of the biggest private mortgage insurers will not cover refinancing condos or new buyers of condos in countless ZIP code areas around the country that have seen a "decline" in mortgage credit and market conditions.

Even if the market was at its healthiest a condo buyer will need to put a minimum of 10 percent down payment. Mortgage insurers would also reject and condo applications if more than 30 percent of the owners of the condo are investors.

Those condo buyers that have a 20 percent down payment would not feel the affects of the mortgage insurers cutbacks. Mortgage insures will continue to refinance mortgages and continue to take applications for condo buyers that have at lest 10 percent.

Huge mortgage refinancing lenders have issued new guidelines that make it tougher for mortgage refinancing lenders to make loans available to buy condos or refinance mortgages.

To insure these guidelines for condo buying or refinancing are followed loan officers now need to take into account the number of condo owners are late on fees, their legal information, the amount of commercial space available and percentage of investors that are owners of condos.

Smaller lenders find these new guidelines for condo buying and mortgage refinancing unfair. The complain that smaller insures due not have the man power to carry the extra work to help mortgage refinancing and condo buying.

Loan officers are required before approving applications for mortgage refinancing or condo buyers to confirm that minimum 10 percent of the condos budget is available for "capital expenditures and deferred maintenance." Some lenders feel that many loan officers would not approve applications for mortgage refinancing or condo buyers if they see that less than 10 percent of the "budget" is available in non physical items even if it includes insurance.

The bigger mortgage lenders say that although mortgage refinancing and condo buying applications are going to be more difficult because of all the extra paper work including the extra man power needed is going to be difficult it is necessary because of the decline in condo and homes around the country.

President of Family Choice Mortgage Corp a Connecticut based business has said that in these difficult times in the economy potential condo buyers and people who would like to have their mortgage refinanced many will hear that they can not be accepted as qualified buyers until all of the paper work is submitted and qualifies. Some condo buyers and people that want to have their mortgage refinanced even with good credit and equity may find the process difficult.

Some private mortgage lenders are now refusing to approve condo units in the same condo project after a certain percent to help restrict their exposure to any losses.

President Of Equitable Mortgage Corp., Bruce Calabrese has said that even he would have trouble refinancing his mortgages on his two condos even though he is in the business.

-M Petrone

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Posted by Why Refinance | 2:38 PM

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