mortgage

FAQs about mortgage refinancing

You have mortgage questions, and we have answers.

Bankrate senior mortgage reporter Holden Lewis recently answered borrower questions about home loans during a live chat on Boston.com. Bankrate is publishing the highlights of that Q&A session.

In part one, Lewis tackled questions about timing a refinance, how unemployment impacts the chances of getting a home loan, and whether homeowners can challenge the results of an appraisal.

Following are answers to five additional questions:

Find the best mortgage rates
Bankrate can help you find the lowest available mortgage rate.

Should I tap my 401(k) to pay the mortgage?

Question I have two mortgages (a primary and second). My equity on the home has gone down in the last couple of years -- I have paid down $65,000 of my original loan, but the house is still worth less than what I owe.

I can pay off my second loan by taking a 401(k) loan, but I'm not sure if this is the right thing to do.
-- Ram

Answer Consult a financial planner on that one. I doubt a planner would think it's wise to borrow from your 401(k) to pay off a second lien. But maybe there are other issues to consider. I kind of doubt it, though.

Why borrow against your retirement savings to pay off a second lienholder of an asset whose value is declining?

Will lenders court an underwater borrower?

Question I'm looking to do a HARP refi. I have heard that because it's a Fannie Mae loan, I don't necessarily have to go with my existing lender. How and where do I go to shop rates? Are lenders generally reluctant to pick up another loan that's underwater?
-- Audrey

 

advertisement

Answer You could try looking at the rate tables at Bankrate.com. Or, ask friends, family and co-workers for referrals to lenders. When you rate-shop during a short period (two or six weeks, I believe, depending on the lender), all of your mortgage inquiries are lumped together as one inquiry for credit-scoring purposes.

Yes, lenders seem reluctant to pick up underwater HARP refis. But sometimes they do it.

Show Bankrate's community sharing policy
          Connect with us
advertisement
MORTGAGE & REAL ESTATE NEWSLETTER

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.

Blog

Polyana da Costa

Mortgage servicers get better

Consumers are more satisfied with the service they are getting from their mortgage servicers this year, according to a recent survey.  ... Read more

advertisement
Partner Center
advertisement

Connect with us