Let's get to it...
Should you refinance? There are some homeowners who are on the fence, perhaps scared, in a jam, or have a ton of equity that isn't doing much for them. Those folks are the ones who really need to look at their options (pro & con) and make a decision. This could be a great time to take advantage of a market where interest rates are still pretty low. If not, it is usually a great time to make a plan for down the road.
Should you buy a home? If you are qualified, I don't see why not. It's a buyers market in a lot (if not most) areas. I'll put it like this; if you have money in the bank after you leave the closing table... it may not be a bad idea. If you don't, it's a risk that may not be in your favor.
Should you take out a second mortgage or line of credit? I don't see them often right now, hardly ever. Their availability is almost nill. If you are looking for one, a local bank may be your best bet. To answer the question, to pay off high interest debt and save you money that you won't in turn spend on something else... YES~! To do home improvements~ it may not be a bad idea. To supplement your income... find another job. No, seriously.
You want to sell your home in the worst way but probably won't get what you want out of it? Yup, this can be an issue. In hindsight, you overpaid and are now undervalued. Consult a trusted Realtor... period.
Is it a good time to invest in Real Estate? I'll get to that answer at the very end of this post.
How do I shop for a mortgage? It sounds somewhat odd, but how do you pick out your favorite vegetable? It's somewhat difficult and owns many variables. Folks want a low interest rate, no surprises, accountability, trust, and something that will benefit them now and down that road. That's just a guess; I have no hardened proof. Getting someone referred to you from family, friends, Realtors, attorneys, etc is a good place to start. But you want to know my other piece of advice which you can do on your own... read the blogosphere about mortgages. Not only will you get some insight on Mortgages, you'll get insight on the person. The latter is as important as the former.
I can't qualify to refinance, what now? - That depends on what you are looking to accomplish. If you wanted cash-out, to pay off your mortgage faster, lower your rate... most likely you can't refinance because you lack the equity or your credit doesn't qualify. If it is the former, you have little control in that area. If it is the latter, working with a Mortgage Professional who understands credit is a must. They should be able to lead you in the right direction. But, if your rate is going to adjust soon and you can't qualify to refinance, it's time to modify your loan. I will be writing a post about that upcoming. If you have immediate questions, contact me at my information below.
Are there any out of pocket fees if I refinance? Yes! A one-time non-negotiable and non-refundable fee to yours truly in the amount of one million dollars. Of course I'm kidding. All applicable closing costs can be rolled into the loan amount, providing you have the equity to do just that. The only out of pocket fee is the appraisal fee, a third party fee. On a single family home in Pennsylvania, I've seen that fee range from $300.00 to $400.00.
I want to buy a home, what's the first step? Find a Buyer's Realtor. They will represent you and you don't pay them a dime out of your pocket. The very next step will be to get pre-approved with a lender. Do some shopping on your own and maybe talk to a few lenders your Realtor suggests and has maybe worked with.
One final note that I'd like to point out. I've heard a lot of yells hype whispers from folks waiting to do anything (buy a home or refinancing) until the market 'comes back'. Ponder the following:
The best time to buy something is when nobody else wants it.
Other articles that may answer some Mortgage-Related questions:
Should I pay points?
How to help make sure your loan closes as fast as possible.
Simple but important tips regarding your Credit & Credit Score.
Buying a home in Pennsylvania.
Rehab Loans.
;)
;)
Parked and thinking about vegetables ;0