Friday, November 20, 2009
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This past week I got an email asking, Rich, "How long do I have to wait before I can refinance again? I was told a year." Not so. As long as you don’t have a prepayment penalty on your current loan, there is no rule that establishes such a limit. When home prices were rising, it was the practice of lenders not to reappraise a property on which you had refinanced within the last 12 months. That may be where the notion of a one-year waiting period came from. That’s not happening in today's market, because with prices being soft, lenders want a current appraisal. Now, The only waiting period might be 6 months if you try to refinance with the same broker who did your previous loan, because they would have to pay back their commission that the bank paid them because the bank wasn’t able to really make any money off your loan in the first few months that they began to service it. So the Bottom line: There is no required waiting period on a refinance . If your rate is .50% higher than what you see current rates are right now below
me, you want to give me a call to see if I can help you to get a lower rate with possibly no costs at all.
Even Academy Award winners are suffering from financial stress this recession. Actor Nicolas Cage lost two homes in New Orleans worth a total of $6.8 million in a foreclosure auction last week. Cage owed $5.5 million in mortgage payments and over $150,000 to the city in real estate taxes.
Every year around this time, millions of seniors take money out of their individual retirement accounts, even if they don't need it to pay the bills. They do this because IRA owners who are 70½ or older are ordinarily required to withdraw a minimum amount from their IRAs every year or face stiff penalties. Late last year, Congress approved legislation that waived the minimum withdrawal requirement for 2009. Deferring a withdrawal in 2009 will enable your IRA to continue to benefit from this year's stock market rebound. And skipping a distribution means you'll have less taxable income when you file your taxes next year.
That’s your news this week. Remember I’m here to answer your mortgage questions or help you save money when it comes time to buy or refinance your home.