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My mortgage payment is currently 4200 per month. I have two loans, one at 9.75 for 15 years and another at 6.75 for 30 years. I purchased my home in October 2006 (I know, I should’ve waited) and would like to refinance to make my mortgage payments more manageable. Can I refinance so early into my mortgage? Any ideas or suggestions would be greatly appreciated.
Yes you can. The first thing you need to do is make sure the loans you have right now do not have a prepayment penalty. You also have to take into consideration the market right now and how much value your home has appreciated since you bought it. You need to have your home appraised and make sure you have at least a 5% increase in value or the rates will stay around the same as you have them now. The only way that I can see in lowering your payment is by changing your mortgage into an option arm or by changing into interest only loans.
refinance. consolidate both loans into one loan. Somewhere, it appears the loan rep might have not been to ethical as one rate is 9.75 and the other is 6.75. Even w/ low fico score(poor credit), there are many mortgage programs available from 2% on up, depending on what you want to focus on. Lower payments now for extra cash for other investments…
Lenders normally require 12 months of seasoning before you can refinance. However, the lenders we work with don’t require any. You can do a no seasoning refinance and pull cash out using new appraised value anytime. It’s obvious that the purpose is to lower your payments. I’d consider the 5 year ARM fixed with a rate of 3.5%, which allows you to defer about 3% interest. Please check out for more info.
Impossible to answer. Different banks have different tolerance to risk exposure. Also depends on the type of business and how solid your busines plan is. In the case of a restaurant, you can forget anybody giving you more than 30k. Banks are even skittish about getting into restaurants for 50% never mind the 1000% leverage you are asking about. In existing businesses, the owner will carry all or part of the sale price as a loan in some cases. ( usually have to be desperate to sell which should be a warning sign.) Best way to find out is to go to your banks commercial loans officer and ask THEM. The very worst thing that can happen is that they say no.
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