When Should You Refinance Your Mortgage? There are two primary reasons to refinance a mortgage: to get a more desirable rate and terms or to extract cash from the home’s equity. Both of these reasons can of course also be fulfilled!
Rate-and-term refinancing
Rate-and-term refinancing pays off one loan with the proceeds from the new loan, using the same property as collateral. This type of loan allows you to take advantage of lower interest rates or shorten the term of your mortgage to build equity faster. Rate-and-term refinancing refers to a myriad of strategies, including switching from an ARM to a fixed or vice versa. For example, if you have an ARM that is set to adjust upward in a few months, you can refinance into a fixed-rate mortgage. Or if you have a fixed-rate loan and you know you will move in two or three years, you could refinance into a lower-rate 3/1 hybrid ARM.
Cash-out refinancing
Cash-out refinancing leaves you with additional cash above the amount needed to pay off your existing mortgage, closing costs, points and any mortgage liens. You may use the additional cash for any purpose.
For example, say you bought your house for $150,000 a few years ago and borrowed $120,000. Now the house has an appraised value of $250,000 and you owe $110,000. With a cash-out refinance, you could get a mortgage for $150,000. You would pay off the $110,000 you owe and pocket the $40,000 difference, minus closing costs.
Ohio Mortgage Bankers Association
To learn more about Ohio Mortgage options you can check with the Ohio Mortgage Bankers Association, founded in 1961. OMBA is a statewide organization devoted exclusively to the field of residential and commercial real estate finance. OMBA’s membership comprises mortgage originators and servicers, as well as investors, and a wide variety of mortgage industry-related firms. Mortgage banking firms engage directly in originating, selling, and servicing real estate investment portfolios.
Members of OMBA include mortgage bankers, mortgage brokers, banks, mortgage insurance companies, attorneys, credit unions, saving & loans associations etcetera.
OMBA is dedicated to the maintenance of a strong housing, residential and commercial, real estate finance system. This involves support for a strong economy; a public-private partnership for the production and maintenance of single and multi family home ownership opportunities; a strong secondary mortgage credit delivery system; equitable tax laws; suitable shelter for low income families and the disadvantaged; housing opportunities for the nation’s veterans; appropriate environmental measures; and fair and equitable bankruptcy laws.
OMBA consists of 145 member companies which represent approximately 80% of the mortgage lending business in the State of Ohio.
Keith George
http://www.articlesbase.com/mortgage-articles/ohio-mortgage-loans-and-financing-64734.html
Comments
What can I do to recoup my money from Chase Bank?
After injured my back, I tried to reduce my expense and have a little emergency money on the side for unexpected expenses by refinance my mortgage. Chase was the mortgage holder and refered me to their finance group in Ohio. The loan officer Mathew… quoted 4.5% but when I received the GFE, it was 4.75%, I asked him why and he said that it was the APR. I refered him to my family and friend members. My sister asked him to to confirm the 4.75% rate is the APR in writing, he did not do that so she told me. I called him, he was evading and when I told him to cancel the loan application he told me I had to pay the $750 loan application even when Chase had not sent me any documents.
Recently I just discovered that Chase use my money in the impound acct to pay for a full year inflated price home onwer insurance policy to one of their affiliated insurance company. Even their employee was disgusted enough to disclose the info to me.
File a claim in Small Claims Court. Do a search on "How to file a claim in small claims court" and find the rules for your state.
Don’t let them get away with this. They are a bunch of thieves.
This website might also be of interest:
http://www.chase-sucks.com/
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