Refinancing refers to the replacement of an existing debt obligation with a debt obligation bearing different terms. The most common consumer refinancing is for a home mortgage.

The quick answer on refinance timing is that you are not required to wait any period of time before refinancing your current mortgage. However, most home owners do wait until they have some equity in their homes before refinancing. LTV, of the proposed loan. This ratio compares the amount of the loan you are trying to obtain to the current value of your home.

You should contact several potential lenders to discuss the loan terms they can offer you on a refinance loan. After speaking with several lenders, you should be able to determine whether or not a refinance loan is a financially viable option for you. Another problem encountered by many borrowers trying to refinance their home loans are early refinance penalties charged by their current lenders. These penalties can be quite costly, and can easily make a refinance loan too expensive to save you money over your previous loan. There are other things to consider other than rate, that matter: 1. If you are, then thats fine. The costs though, would be rolled into the mortgage, therfore, you would need to recalculate your payment based off of the new balance. You may also want to ask about buying the rate down to a lower rate.

Remember to use the rule of calculating how loang it will take you to recoup that cost to determine if it is worth it or not. If not, then I would recommend not escrowing and putting the money into savings or a CD every month and earn the interest on it. Only by speaking with a mortgage expert and discussing the terms that are available to you. THATS when its time to refi. In either case, if youre planning on moving in 2 years, then youre better off not refinancing. One last option is refinancing to consolidate debts as well. They cant change the terms of your loan without refinancing. They have already sold your loan.

No bank is rich enough to use their own money. They would have the ablility to do a 1 time deferment of payments. Say you were going to go 2 down, say I need you to defer this months payment, and the next 2 or 3. They could put them as a ballon at the end of your 15 or 30 years. For them to consider you would have to be perfect in your payments and do it before you go late. If the person says no we dont do that, keep calling. Every bank has a deferment department. You can call 10 times and get 9 nos you just need 1 to say yes.

The issue is, your payment will adjust according to the market. Your loan is probably owned by a foreign government or a hedge fund.

They cant change the Note, even if they wanted too. It will adjust according to the note, and the bank cant do anything to help you, other then to refinance it. HUD is working on something, but you have to understand this isnt HUDS problem. They didnt insure your loan. All they could do is refinance it as well.

They are working on it, but dont expect it to be anytime soon. They are trying to make it soon but its the government. They are trying to set it up so FHA could refinance these loans. They are already in talks to do this. Everybody is hoping sooner then later. Here is an article that explains what HUD and the Government are working on doing. You will just have to hang on as long as you can. Try for the Deferment if you can, they would rather have you do that then foreclose. But as I said they wont, and cant modify your note or terms. ARM, which works like a fixed rate loan for the first five years and an adjustable rate loan for the remainder of the term. ARMs usually have annual and lifetime caps to prevent the interest rate from changing too quickly or too much. Bankers want to lend money at prevailing interest rates and thus fixed rate mortgages present a dilemma due to their long terms. When a bank issues a 30 year fixed rate mortgage, it commits its money for 30 years, knowing full well that prevailing rates will change.

If prevailing rates go up, the bank looses, as it charging less than prevailing rates. If interest rates go down enough, any borrower who can will refinance with another bank at the then prevailing rate. To discourage refinancing, banks charge closing costs and prepayment penalties. However, if prevailing rates go down enough, even these additional costs will not discourage borrowers. Borrowers can unilaterally refinance their loans, but banks cannot force borrowers to do so, and this asymmetry puts banks at a disadvantage. Banks offer ARMs as a way of correcting the imbalance caused by the borrowers ability to refinance.

One way to think of an ARM is as a fixed rate loan that is automatically refinanced every year at the prevailing interest rate. Since banks prefer writing ARMs over fixed rate loans, they offer discounts to entice borrowers into taking ARMs.

Since ARMs disempower borrowers, a borrower must carefully consider the decision to take an ARM rather than a fixed rate loan. When the prevailing rate is high by historical standards and almost certain to drop, an ARM is a good choice. The borrower benefits from the subsequent drop in the prevailing rate without having to incur the costs of refinancing.