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Company Loan Type APR Est. Pmt.

Risks of refi

Posted on: 28th Jan, 2013 02:42 pm
Our mortgage company is offering us an opportunity to refi our loan with another lender. The new mortgage will be an FHA and the current lender is willing to take less than we currently owe. The interest rate is not terrific though. The question is should we accept this offer Andthen refi the lower amount again. What are the tax ramifications, the negative effect on our credit scores, and how long must we wait to refi again
hi brandy,

if the interest rate and the term period of the loan is getting reduced and if you can afford to make the payments, then you can go ahead with the deal. you should also note that you will be liable for paying the closing costs when you refinance the loan. so, you need to have that money in your savings.

feel free to ask if you've further queries.

sussane
Posted on: 28th Jan, 2013 07:55 pm
Welcome Brandy,

Well, do you have equity in your property? Unless you have equity in the property, you may not be able to refinance the loan. Even if you refinance, you will be liable to give money out of pocket.
Posted on: 29th Jan, 2013 07:50 pm
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