A reader asked me about refinancing a mortgage. I gave him my usual spiel about getting a no cost refinance, stepping down the ladder, etc. I also gave him the short list of lenders I shop from: First IB, NMA, and AmeriSave. He came back to me saying he couldn’t get a no cost refi […]
Who Should Default On Their Mortgage
My first issue of The Atlantic magazine hasn’t come yet. I also subscribed to The Atlantic Business RSS feed. The online articles are free to everyone, not just print magazine subscribers. I read Why Shouldn’t People Just Default? and So When Should You Default on Your Mortgage? by Megan McArdle. Ms. McArdle is against strategically […]
The Best Way to Lose Your Home
If you read finance related discussion boards and blogs, you must have read discussion on a confession in New York Times by a financial planner about how he lost his home in the real estate bubble in Las Vegas. How a Financial Pro Lost His House – New York Times Long story short, the financial […]
Student Loan vs Mortgage
News came that outstanding student loans will top $1 trillion this year. The Obama administration recently announced some tinkering on the edges to help lower the interest on student loans. Some say student loans have become a burden that could place a drag on the economy. How did student loans become such a large problem? […]
A High Credit Score Is Not Necessary for the Best Loan Rate
My mortgage refinance is almost done. I will sign the docs this week. Long story short, I’m refinancing from a 15-year fixed at 3.75% to a 5/1 ARM at 2.625% with a negative $900 closing cost. It’s a great rate. Getting paid to do it makes it even better. As part of the disclosure, the […]
Mortgage Refinance: Don’t Overlook Adjustable Rate Mortgages (ARMs)
The mortgage rates dropped again. I’m refinancing my mortgage again. It’s amazing it hasn’t been even a year since I did it last time. The rates were low last year because of the anticipation for QE2. Once QE2 started, rates went up. Now rates are low again. Why? I don’t know. Maybe the market is […]
Vote for New Mortgage Disclosure Form Design
The new Consumer Finance Protection Bureau is asking the public to vote on two draft designs for the mortgage disclosure form. The goal is to make it easier for the borrower to understand the loan terms. They call it "Know What You Owe." The new form, when it’s finalized, will replace the current Good Faith […]
A Finance Professor Writes About Prepaying Mortgage
The following was written by a finance professor at a major university, who shall remain unnamed until the said professor comes out to claim ownership. It was published yesterday by a blog run by several well known university professors. I’m quoting the full text because it was disowned by the blog that published it. A […]
Mortgage Refinance and Resetting the Clock
Today’s installment on mortgage refinance appears as a guest post on My Money Blog. The conclusion: "Don’t let the fear for resetting the clock stop you from refinancing to a lower rate." I’ve been reading My Money Blog since 2006. It offers a good combination of deals and practical approaches to personal finance. If you […]
FirstIB Mortgage Refinance Review
My mortgage refinance with First Internet Bank of Indiana ("First IB") is done. The new loan paid off the old loan. All done. I thought I would update the progress as it moved along but it went so uneventful there wasn’t much to update. Here’s the timeline: Day Activity 1 Submitted application online. Didn’t get […]
Mortgage Refinance: Before and After Closing
After an appraisal is done, an underwriter will review the documents. Chances are the loan will be approved and I will be asked to pick a date for closing. It’s almost done. Pick the Best Day of the Week for Closing Does it make a difference which day you close the refi besides the convenience […]
Mortgage Refinance: What If Rate Drops After You Lock?
The Fed announced that it’s prepared to provide additional easing if needed. The bond market responded positively, which brought down the mortgage rate, again. If you are doing a mortgage refinance, and you already locked your rate and fees, what do you do if you see the rate and fees drop after you lock? There […]