How to Know If You Need Mortgage Refinance in Toronto
With refinancing, you are taking out a second mortgage on an asset that's already been
mortgaged in the past and one which you are still in the process of paying off. Refinancing may give you the means to access readily available cash, but this is not
reason enough to take out a second mortgage. For refinancing to work to your advantage, you need to be aware of how it works and which situations best require
it.
Why a Mortgage Refinance Loan in Toronto May Not Work
Refinancing is not always the solution to your financial problems. The situations below
are just a few examples of when refinancing might not be the best action you can take.
Low Current Market Value
If the current market value of your
mortgaged asset is lower than the amount it has been assessed for your existing mortgage, a mortgage refinance loan will only serve as a bigger financial setback.
Because of its reduced value, you might not be able to qualify for the best mortgage refinance rates. This is especially true if you're also determined to refinance up to
eighty percent of the current market value of your property.
Existing Long-Term Loan
If your existing mortgage has a loan term of thirty years and
you've already paid off a third or more than half of it, refinancing with a new 30-year mortgage might not be the best deal for you. After all, you've already reached the
latter stage of your existing loan. You'll only need a comparatively shorter period of time to pay it off completely. A new mortgage refinance loan in Toronto, on the
other hand, will require you to start all over again and possibly make do with higher interest rates.
Inadequate Home Equity
Mortgage refinance loans
work better if you've only used a small part of your home's equity. If, on the other hand, you've already used up ninety percent or more of your home's equity then
mortgage providers are unlikely to give you the best refinance quotes. In these instances, they'll have to consider the worst case scenario: if you end up being
unable to pay them off, they won't be able to recoup their money immediately. The privileges for reimbursement will be first awarded to the creditors before them and
after that, there's probably little enough money remaining for them.
The Different Forms of Mortgage Refinance in Toronto
Now, if none of the situations
above applies to you then you're probably in a position to take advantage of mortgage refinancing. There are different ways to obtain refinancing. Take your time
exploring your options so that you won't end up making the wrong choice.
Cash Out Refinancing
For a cash out mortgage refinance loan, you're
actually borrowing a bigger loan and you're naturally using up a greater portion of your home's equity. Your second mortgage will give you enough money not just to
pay off your existing loan but leave extra cash for you to spend or save.
Rate and Term Refinancing
This type of mortgage refinance loan lets you get
rid of your existing loan and start off with a new one either with improved interest rates or with a shorter or longer loan term, depending on your needs.
Low
Credit Refinancing
Lastly, low credit refinancing is available for people with low credit scores. Your second mortgage, however, will come with higher interest
rates. If you push through with it and prove yourself to be a consistent payer, this could help repair your credit and make you eligible for better rates in the near future.
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can anybody help me reach a solution to this problem?
Hello Lauren,
My 1st mortgage is approve for a modification 1st mortgage final papers has been sign and notorized. My monthly payment before the modification was $1397 now it?s down to $1097 a month; I?m supposed to start paying that amount on the 1st of February. My main concern is the 2nd mortgage: $78000 a 9.7% for 15 years with my ?Credit Union?. A weekly payroll deduction of $209 or $836 a month. I tried to reason with the credit union, I even send them a copy of my first mortgage modification, ?NOTHING?.I explain my situation to them ?NOTHING?. When my wife was she used to pay the utilities while I was paying the mortgage. Now, I?m the only one paying all the bills , the ones that I can pay that is .Can anyone help or give me some positive feedback please?
What is b/c ?
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Avoiding Foreclosure when your not at fault?
Bank "A" refinances my house, and misplaces my first three monthly payments, carrying me 90 days late for a year. I dispute and send receipts and proof numerous times. Bank "A" is seized by government, and after 3 months, the Mortgage is given to Bank "B". I continue to make payments as scheduled and on time, but now Bank "B" says I am 90 days late also. I show them my receipts, and they say, "If your disputing your history, stop making payments until we straighten it all out. I then receive notice from Bank "B" that they intend to foreclose unless I pay them 20k. Another division of Bank "B" then offers to make a Mortgage Modification loan of 20k to bring me current, which includes me paying for the first three payments again. The Modification loan is interest free, but it is tacked onto my current loan raising my payments about $100 per month over length of the loan.
It seems the easy thing to do is take the Modification Loan and come current and then try and refinance under better terms...but am I accepting the fact they lost 3 payments that I made, or can I still dispute this legally? Do I have other/better options? Do I hire a lawyer and continue to dispute, hoping for a day in court eventually? Whom do I look to for expert advice when funds are limited. I am currently serving in the Army (over 21 years now) and also wonder if there is some type of Veteran Assistance? Any assistance would be greatly appreciated. Thanks for your time and input.
Quick Facts:
I live in Newport News, Virginia in the house in dispute. This house is my primary (and only) residence. My wife and three children live with me. My Home of Record is Florida. I do have the option to retire from the Army, or continue to serve 5 more years. Thanks again.
As Gorkbark was gracious enough to suggest "This sounds bogus because no bank would advise you to stop making payments until they straighten it all out" I might add that actually its the law. While a mortgage is under dispute the borrower has the right to stop payment. Now I don't know if the law is local or Federal, but the bank did refer to it when I was told to stop paying.
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Are home re-fi & equity loans valid if my wife forged my name? Who pays off these loans?
My wife forged my name on home refinance and equity loans. I did not benefit from these loans. She used the money to buy and maintain other properties on which she also forged my name. Are these loans still valid or are they canceled because the loan contracts were fraudulently obtained? Who makes good on these fraudulent loans that the bank gave money for? A notary was also involved.
She hid this from me for 6 years because she collected all of our mail and I would hand her a check each month with the mortgage payment for a $480K loan, which was validly obtained with my signature. A re-fi loan of $600K and equity loans were forged.. Last year, 2010, she said that she could not pay the bills anymore. That is when I saw the $714K mortgage. Copies of the loan docs at the county clerks office had my forged signature. The house is foreclosed. I am retired and living on pensions and did not qualify for a loan modification.. I notified the bank's fraud dept and they are investigating. Today, I received a possible monthly mortgage modification, which I can handle, based on the $714K loans with my forged signatures. It looks like I have a choice of either pursuing the fraudulent loan claims or accepting a new mortgage with affordable monthly payments. Which I chose depends on the answers to the following questions.
Question: Are the loans with my forged signatures valid and do I have to pay them?
Question: If I accept the new $714K mortgage, are the forged loans forgotten?
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