i get mortgage offers to refinance our loan at lower monthly rate. Are they for more years or lower interest?

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  1. Reply
    May 14, 2011 at 12:30 am

    Lower monthly rate should be about a lower interest rate. However, in a refinance they could be talking about lower overall rate by consolidating your higher interest debt as well. Loan terms- or years- can vary from 5 years to now 45 years as the longest term I have seen. If you have equity in your home refinancing is generally a good idea in consolidating other debt as the accrued interest is tax deductable on a mortgage. If you have a rate higher than 6.5%, you could probably benefit from a lower rate even on your mortgage alone.

  2. Reply
    May 14, 2011 at 12:42 am

    Really, they don’t have the slightest clue as to what your current situation is. Direct mail is basically just a numbers game. It is also a game of designing the most intriguing marketing, and marketing that makes people think and do the same thing that you are doing right this very minute….thinking about it. I would love to see a copy of that. They must have did a great job.

    If you are looking to refinance the only way to know whether you can do any better is to give it a shot. If you would like more information on this, feel free to contact me at timothy.kazee@americanhm .com and I can help you out with that and we can see if refinancing would be a viable option for you. Talk to you soon!!!!

  3. Reply
    KS Chick
    May 14, 2011 at 1:42 am

    Lower rate, but sometimes they add on “points” (look it up)or it could be for a 3 or 5 year ARM (adjustible rate mortgage) that once it’s up you pay whatever the current rate is. Plus, you probably don’t want to refinance unless you can get about a point or more taken off (to cover new closing costs)

  4. Reply
    Chihuahua Mom
    May 14, 2011 at 2:18 am

    Bulk mailings are typically just a way to get you on the phone or in their office.

    If you feel you may benefit by a refinance you may want to investigate several loan products. Bare in mind a new loan will generally have new loan closing costs. You need to weigh the costs versus your new payment and estimate the time you anticipate keeping the home. Some folks do what is called rolling refinance. They continually refi seeking that magical new and better rate. However they don’t seem to realize the loan fees keep adding up and the amount needed to borrow also increases. This can be a vicious circle. Be wary.

  5. Reply
    oil field trash
    May 14, 2011 at 2:49 am

    Be careful. Sometimes the closing feeds for refinancing can be out of sight. Sometimes they try to roll these into the new mortgage. If you want to refinance, go to a bank or mortgage company of your choosing and see what is really available.

  6. Reply
    May 14, 2011 at 3:30 am

    It depends on the situation. Why don’t you get a free (don’t pay for it) credit and mortgage analysis and get some scenarios? You can get something that is a similar or lower rate (or higher if your credit has worsened since you purchased it). You can get interest-only loans, longer payment term loans, etc. I’m a mortgage banker (not a broker — you’ll pay through the nose in closing costs with brokers). Call me or email me if you want a free preapproval. pstang@1omni.com or 866-749-1515 x 280 Pat

  7. Reply
    May 14, 2011 at 3:31 am

    Usually direct mail have no idea what your situation is until you call them. If you refinance your house for a lower payment usually your whole mortgage term will start over (Another 30 more years of payment if you have a 30 yrs loan)
    And you have to watch out for some super low payment mortgage, those are called “option ARM or Pay Option” They give you a very low intro. rate (like 1% or 1.5% for 1 or 2 months) And then they will become adjustable to higher rate. But yet they ask you for payment not even enought to cover the interest, thus you own them more money than what you originally borrowed.

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