Interest Rates Content Index - Page 8

Today on the Ilyce Glink Show, we discussed refinancing your mortgage, and how in my mind, a successful refinancing focuses on the refinancing trifecta:

1. Can you shorten the length of your mortgage term? Can you cut the term of the loan from 30 years to 15 years? Or, can you go from a 25-year…

Transferring home ownership between family members can be problematic. Often, family members help each other out with a signature or by putting their name on the mortgage. However, you need to consider more than just a quit claim deed to transfer a title. Who is responsible for mortgage payments? Whose credit score will be affected by thy home loan? What happens if someone passes away? Who will inherit the property?

Once you have started construction on a home and you have obtained a construction loan, the time comes when you must focus on obtaining permanent financing. Construction loans are short term loans. You'll need to refinance the construction loan with a standard loan. US Veterans have an additional choice when obtaining financing. They can obtain a Veteran's Administration loan or VA loan. While VA loans can be more expensive, VA loans can also be a great deal for those that may have lower credit scores or certain credit problems or want to obtain a larger mortgage on their home.

Many home sellers on the market are struggling to sell their first home before it's time to move into their new house. You may find yourself carrying two mortgages, or trying to pay off either a home equity line of credit (HELOC) or a primary mortgage. If you have good credit and are employed, you may be able to refinance one of the loans to reduce your monthly payments. If your second home is now your primary residence youre chances of refinancing that home are much better. Talk to local banks and credit unions to see if they can help refinance your second home mortgage.

At the recent meeting of the National Association of Real Estate Editors in Washington, D.C., James Lockhart, director of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, discussed how the housing market had changed from 2007 to 2009 and the strategy being used to stabilize the mortgage market. Read part of the speech here. [Link to Questions and Answers with James Lockhart.](http://www.thinkglink.com/article/2009/06/22/federal-housing-finance-agencys-james-lockhart-questions-and-answers)

What's the latest on streamline short sales, loan modifications, and loan refinancings? The Federal Housing Finance Agency's director James Lockhart took questions at the recent National Association of Real Estate Editors meeting about these topics, as well as FHFA's multi-family housing policy, Fannie Mae and Freddie Mac, principal loan forbearance vs. principal forgivemes, and whether the government will expand the loan-to-value ratio to permit refinancing.

How can you know when the housing market is recovering? The housing market crisis has to do with supply and demand being out of whack. At the moment (in 2009), there are too many sellers and not enough buyers. Fixing supply and demand is key, but there are many factors that go into supply and demand. The Appraisal Institute recently put out some factors that affect supply and demand and residential real estate. Recognizing these trends will help you understand when the housing market is recovering.

You know that the real estate market has hit bottom when buyers are starting to bid above the list price for homes. With the large number of homes on the real estate market, real estate investors and first time home buyers are looking at the best priced homes. At times, bidding wars arise and homes are sold above the list price. With the first time home buyer federal income tax credit of $8,000, quite a number of first time home buyers are out there looking.

Generally when people buy homes, they don't buy them on the basis of the number of square feet the home has. If the square footage of a home is important, the parties to that transaction need to make sure that they know and understand how the square footage of the home is computed and what happens if the numbers are wrong. Can you cancel a contract if the square footage is less than what is advertised? How difficult is it to cancel a contract? Can you get your money back?

What can you do when you need to sell your home fast? If you aren't using a real estate agent, you'll need to use grass roots marketing to gun the home sale process. For starters, you will need to talk to your neighbors, real estate agents and real estate brokers that work in the community. And, don't forget, to use the resources available on the internet.