Question by steve h: Am refinancing. What terms should i look for (and look out for) in choosing a mortgage?
Am reaching a balloon payment and need to refinance about 50% of the home’s value. I’m 50. I like the idea of securing a 30 fixed because I think it best insulates me from the potential downsides our economic short-to-medium term prospects. More specifically, how do I keep a failing banking system from dragging my home down with it?
Answer by Reena
Don’t worry about the failing banking system dragging your mortgage down… Whoever buys the portfolio from the bank becomes the new owner of your mortgage…. Most of the time you don’t even send the check anywhere else..
Worry about getting the house refinanced. Worry about having enough equity in the house to get a refi done. Worry about finding a lender willing to do it. You are 50 years old and intend to pay the mortgage until you are 80? You may be optimistic… the lenders aren’t.
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