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Personal Finance & Money Stack Exchange

Questions tagged [refinance]

for questions that relate to refinancing of debt. A country tag should also be included when asking about refinancing.

Refinancing may refer to the replacement of an existing debt obligation with a debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.

Refinancing - From Wikipedia

229 questions
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Why would a lender care who paid off a debt during a refinance evaluation?

We have a family member who had their father cosign a student loan for them that was recently paid off post their credit check on the father who is attempting to refinance their mortgage. The lender is asking for verification of who actually paid…
jxramos
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Put my student loan in parents’ second mortgage - help?

I fear I did something stupid. I graduated in 2017 with a bunch of student debt that my parents held on my behalf (~$130k). One misunderstanding led to another and somehow we ended up refinancing the student loan with a mortgage on my parent’s…
smartButNotSavvy
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What is the incentive for a bank to refinance a mortgage at a lower rate?

I can't figure out why banks would actively try to get their customers to refinance their mortgage at a lower interest rate. And to be absolutely clear, I am talking about a bank refinancing a loan at their own bank (Wells Fargo refinancing a loan…
guidoism
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Is "odd days interest" really a thing in a mortgage refinance?

I've got a question on closing costs for a mortgage refinance. For whatever it may be worth, this is a FHA streamline refi. One of the closing costs is "odd days interest". This was explained as follows: If the loan closes on Aug 1st, and funds on…
Patches
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Etiquette around loan refinance - decision is going to cost first broker a lot of commission

We are in the process of doing a refinance. However, we just took out the original mortgage loan recently. The new loan is 3/8 of a point better than the original loan and we are going to save a lot of money in interest payments. I learned recently…
Esta Close
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Do I need my own attorney during mortgage refinancing?

I'm refinancing my mortgage with a well-known lender. I assume the lender's attorney will review the closing documents. I know the documents are pretty standard, but still wondering if I need to hire my own lawyer too. If you have refinanced your…
Fijoy Vadakkumpadan
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Mortgage refinancing fees

I'm about to refinance my home from a 6% 30 year to a roughly 3.5% 15 year. I am going through a local non-bank third party company. He quoted me a fee of 2.5% for the refinance. I haven't refinanced a mortgage in a long time. Is this reasonable (in…
Randy Minder
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Why don't companies buy back their own (cut-price) debt?

A thought occurred to me today. Glencore's debt is trading at about 70% of face-value. If you're Glencore, what's to stop you buying that debt yourself and pocketing the difference? In particular, are there actual rules against doing so? or is it…
Kaz
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Want to refinance: 7-year ARM, 30-year fixed, or 15-year fixed?

We want to refinance; currently at 6% on a 30-year fixed. We are unsure how long we will be in the house but assuming at this time we will want to move within 7 to 10 years. We are offered a 3.75% variable (7-year ARM) with low closing costs. We…
Wendy McGoldrick
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4 answers

Buy house now, refinance later

I am interested in buying a home as soon as possible, but I'm concerned about the high interest rates - 6.7% as of October 2022. Someone told me to just buy a new home now, accept a high mortgage, and re-finance later when rates are lower. Is this…
blue_ego
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Does it make sense to "save" for college by paying off my mortgage?

Assumptions (using round numbers): Two children start college in 12 and 15 years. Currently saving $400/month in a college savings fund earning ~2%. (Some in a taxable account, some in a Coverdell.) $150k mortgage at 4% with a $1k/mo payment and 18…
bstpierre
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Refinancing immediately after closing on a house purchase

I recently purchased a new home as a primary residence with a 4.375% 30 year fixed mortgage. I discovered, a little too late in the process, that I could find rates significantly lower elsewhere -- roughly 3.875%. If I refinance from 4.375% to…
Elliot B.
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Pros and Cons of Interest Only Loans

I currently have a home with an FHA loan which require me to make mortgage insurance payments for the next 4 years. I am considering a refinance and have came across the idea of interest only mortgages. What are the advantages and disadvantages of…
Antarr Byrd
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Should I be concerned about a loan refinance offer that adds $1000 to my loan in exchange for $1000 in cash?

I am in the process of trying to refinance an auto loan. I got 4.69% a year ago and should be able to do better now. The loan balance is about $13,000. I called to refi through the same company and she informed me I would either have to pay a $299…
Esteban
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Close to retirement & we may move within 7 years. Should we re-finance our mortgage, or not?

We want to refinance; currently at 6.75% on a 30-year fixed. We are unsure how long we will be in the house but assuming at this time we will want to move within 7 years. I am looking to retire in 3 years. We have a relatively low mortgage ( 130k…
FAT
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