Suggestions for refinancing a home

[OCsun]

If you have recently refinanced your home and have recommendations or suggestions, regarding what I should look out for or who I should consult with, I can use some guidance.

Thanks

[retiredguy123]

Just shop around and get the lowest rate possible. But, don't get a reverse mortgage. They are a ripoff.

[redwitch]

Quicken Loans does a good job and their no cost loans are truly no cost. (Of course, your interest rate will probably be higher with a no cost/fee loan.) when getting a quote, find out when they can lock in a quoted interest rate, the fee for a relock if rates drop or it doesn’t close in time. You’ll get an estimated closing cost sheet. It should be pretty close to final costs, except for pro-rated amounts (taxes, insurance, any annual fees). Sometimes you can negotiate some of these fees, such as document preparation fees, but don’t count on it.

The worst part of refinancing is the constant calls for more documents. Royal pain but all part of the process.

[John_W]

Just shop around and get the lowest rate possible. But, don't get a reverse mortgage. They are a ripoff.

A reverse mortgage is really not what the OP would want or need. However, how are you ripped off with a reverse mortgage from possibly the hometown Citizens First Bank if you know what you're getting before you go in? What if a person has no heirs, owns their home, short on cash or their income is not enough and have maybe 15 or more years to live. What is the alternative, a equity loan that has payments? Did you know you can purchase a home with a reverse mortgage. Say you have $150K in cash and want to buy in TV, you know that amount won't get you anything, but with $150K you can purchase a $250K home with a reverse mortgage and never make a payment unlike a conventional loan.

Reverse Mortgages (https://www.citizensfb.com/reverse-mortgages.htm)

[retiredguy123]

I am not an expert on reverse mortgages. However, they are very strongly pushed by advertising primarily because of the high upfront fees and interest rates. And, yes, you can buy a $250k house with $150k and get a reverse mortgage. However, if you need to move out of the house due to health issues, the lender will require that the house be sold, and you could end up losing much or your money. I think it is a better option to buy the house with a conventional 80 percent loan, and use the remaining cash to make the monthly payments. That is, assuming you can qualify for a conventional loan. Another option is to rent. Just my opinion.

[John_W]

I am not an expert on reverse mortgages. However, they are very strongly pushed by advertising primarily because of the high upfront fees and interest rates. And, yes, you can buy a $250k house with $150k and get a reverse mortgage. However, if you need to move out of the house due to health issues, the lender will require that the house be sold, and you could end up losing much or your money. I think it is a better option to buy the house with a conventional 80 percent loan, and use the remaining cash to make the monthly payments. That is, assuming you can qualify for a conventional loan. Another option is to rent. Just my opinion.

I have a reverse mortgage on a CYV appraised this year for $237K at the time of the loan in April, my upfront fees were $9,000. All that does is it's deducted from the amount you can withdraw. That's it, there is money I have readily available that doesn't cost me a thing and all I have to worry about is $9,000 if I ever want to move.

The part about moving out of a home because of sickness, what are the options. Most I know are very expensive, nursing homes, assisted living homes, etc. Even independent living places like Sumter Place start at $3500 a month. My mother was in a nursing home, it cost $6600 a month. That's $75,000 a year. I think I'll try and stay healthy, go to the gym, not eat too much, and watch my weight, and stay in my home which is free and it provides money whenever I need it.