Re: Question about refinancing

sandraskates · ‎06-26-2014

Many here have nicely addressed your refi issue.

I'd like to add that your County may reduce the property taxes on your house - if it hasn't already done so.

You may be able to ask for a County re-appraisal / re-assessment and if the value has gone down they may reduce the taxes to reflect that. Of course when the values tick up again - and in many places they already have - your property will be re-assessed and the taxes will go back up.

shoekitty · ‎03-10-2010

@hyacinth003

As I understand it (in California anyway) you need 15 to 20% equity in the home for a regular refinance now. Finance company wants to make sure if you default they can get their money back.

It was awful for so many homeowners here after the mortgage collapse in 2008. Those that had bought homes for 695,000 to 855.000 on our block now had homes worth 300,000 to 475.000. Bank wouldn't help. A few lost them.

Now, HARP can help most anyone I am told. Those that struggled through and were able to make it without foreclosure, were approved for loans in the last few years. They juggle numbers, give new mortgage pmts so the homeowner could afford to stay in home. There are many catches and loopholes in place so the loan company won't be taken advantage of. Things are spelled out better in the new truth in lending.

“sometimes you have to bite your upper lip and put sunglasses on”….Bob Dylan

151949 · ‎03-09-2010

First - when a home is refinanced or a home equity line is extended it is only for about 80% of the assessed value of the home. So - in the OP's example - if a house was worth $100,000 and the value dropped to $50,000 it may be conceivable the owners could refinance up to $40,000. When the value of a home drops it really only matters if the owners want to either sell it, or take out loans against it's value. There should be no reason you couldn't stay in it and continue to make the payments you agreed on when you bought the house. Just because assessed value drops doesn't mean the owners have lost any money as long as they keep the house.

flickerbulb · ‎03-09-2010

I am curious to know how you have come to know that your home's value has dropped 50%.

The housing market is rebounding. Home sales are up and new construction is in full force, at least in my area,

Did you look at the county tax assessment? If so, it is never based on the home's value.

They use a different formula for assessing taxes. Your mortgage may be for 100K, but the taxed value in your area may be 50K.. That is good, because you receive a lower tax bill at the end of the year.

In answer to your question, the home is reappraised and then financing is based on the appraisal. If you borrowed 100K, you still owe that but may get more favorable terms in years or percentage rate.

Nuttmeg · ‎03-09-2010

@151949 wrote:
First - when a home is refinanced or a home equity line is extended it is only for about 80% of the assessed value of the home. So - in the OP's example - if a house was worth $100,000 and the value dropped to $50,000 it may be conceivable the owners could refinance up to $40,000. When the value of a home drops it really only matters if the owners want to either sell it, or take out loans against it's value. There should be no reason you couldn't stay in it and continue to make the payments you agreed on when you bought the house. Just because assessed value drops doesn't mean the owners have lost any money as long as they keep the house.

This property may not regain its value. When this house sells the owner would have to bring cash to the closing.

151949 · ‎03-09-2010

@Nuttmeg wrote:
@151949 wrote:
First - when a home is refinanced or a home equity line is extended it is only for about 80% of the assessed value of the home. So - in the OP's example - if a house was worth $100,000 and the value dropped to $50,000 it may be conceivable the owners could refinance up to $40,000. When the value of a home drops it really only matters if the owners want to either sell it, or take out loans against it's value. There should be no reason you couldn't stay in it and continue to make the payments you agreed on when you bought the house. Just because assessed value drops doesn't mean the owners have lost any money as long as they keep the house.
This property may not regain its value. When this house sells the owner would have to bring cash to the closing.

So don't sell, just keep living there, and pay off the mortgage over the years. Not everyone moves all around. We stayed in our first home 28 years and had the mortgage paid off ten years before we moved.

151949 · ‎03-09-2010

A lot of people on this board seem to feel a house is not a place to live and raise a family and have a life. To many here it seems they look ata house as how much can I make off it. I don't see a house that way. To me, even if you make money from the sale of a home , you will still have closing costs on a new home , mover costs and you always have to put money into a new home to make it comfortable for your family. This really eats into your profits.I also just sim[ply hate moving.I lived in my last house for 28 years and will live inb the currant one until they put me in the nursing home. i don't look at my home and see $$$$$$, I look at it and see somewhere soft, cozy warm and safe and filled with love. if the value drops - it drops, so what? I'm not going anywhere.This is my home.