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When you lock in your rate you are protecting yourself from a rate increase that could not only make your paymen(s) higher but could even change underwriting decisions. So locking your rate benefits you and everyone else involved in the transaction (Seller etc.) because your file will be processed and go through underwriting. Most lenders get preferred
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Cross colateralization means that one 'account' can draw from another 'account' based on pre set peremeters. In the mortgage industry I know of a good example we are using right now. For a construction loan or purchase loan we can use equity in the home you own now, and loan you up to 100% of the value needed (purchase price or construction cost total
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This is an interesting question in this market. The reason I say that is because the downpayment requirements and loan programs available today are so consistent from one lender to another, that incurring a refinance cost immediately after buying a home is usually not a prudent investment of your capital. If you insist on refinancing then here are some
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This question is a tough one. Not because I am a lender and I want you to pay all my fees , but because fees from one lender to the next will vary quite a bit. Some may be negotiable and some may not. In some cases you will pay no fees, but pay more in rate OR be required to open an account at their bank. So I feel the best way to answer this question
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This is a more common occurance nowadays, however there is hope. The first question I wonder about is why you want to refinance. Since you are not getting cash out I assume you want a lower rate or need to get out of an ARM loan. If you have time to wait then your value should recover in the next year or two as the market recovers in general and you
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A wage garnishment usually represents an outstanding judgment for a past due account in which you are legally obligated to pay. In many cases your credit score will be affected to the point where borrowing money would be difficult at best. However, even with a satisfactory credit score the financing available today requires that you have no outstanding
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Well in regards to the PMI only, if you can avoid (paying PMI) it then that is a good thing. Also you may get a lower rate on your mortgage, especially in this market with 20% down. The real math starts when you look at your overall financial picture, and factor in whether or not your PMI is going to be tax deductable . It is also a good idea to factor
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Even if they were able to make it happen and thats a big IF, they face many issues as a result. If they are planning on buying another home fairly soon, then they are going to end up doing one of two things: move out of the existing home into the new home and a.) rent it out or b.) sell it. If they rent it out within the first 12 months they (especially
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I have to clarify a few things about my answer up front. I see this question and I think to myself that it is really about pre-payment penalties ....since the interest only feature on a loan will not (by itself) stop you from refinancing. Therefore I will discuss pre payment penalties then move on to interest only loan features. Pre-payment penalties
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The 30 year Treasury and the 10 years treasury are only similar (to Mortgage Backed Securities ) in that they are long term fixed rate securities. In this case backed by the treasury, whereas mortgage Backed Securities are, well, backed by mortgages. They both work in similar ways as far as value is concerned. Long term fixed rates are good when we