Refinance questions

Jenny, there are a lot of things to consider with a refi, especially since you've recently completed one. Generally, the "rule of thumb" is that you have to cut at least 1/2 to 3/4 of a percent of your rate to make it "pay" to refinance, because of the costs involved. Depending on precisely how long it's been, you may be able to use the same appraisal and only have to update your title search (rather than have a whole new one pulled), especially if you use the same lender. However, the parameters vary from one lender to another, so don't take my word as hard-and-fast "gospel". The other thing to consider is the value to *you*--is it worth paying the closing costs again, etc? I think if you're considering funding an adoption with this resource, half that decision is already made for you. However, I would urge you to talk with at least one lender to get all the facts.

If you're looking to cash our equity to pay for your adoption, but refinancing doesn't make sense, think about an equity line. There are great rates, and it may well be worth it. Kelley

I am a mortgage loan officer - pm if you wish with your specifics and I can give you some figures - I probably couldn't do your loan as my company is not licensed in every state - but could steer you in the right direction. Best Bumpkin p.s. I'd need to know how much your mortgage payment and balance is, what you bought the house for and what you think the value is now

We refinanced our primary residence and ended up having to pay PMI because our home had depreciated in value. If i had to do it all over again I think an equity line is a good option instead. If you just moved in and can get one of these without having to go thru the hassle of refi - i would go for it. We had an interest rate of over 7 so when we refinanced at 5.25 - it made it worthwhile for us (our payment is the same after taking money out and PMI). My husband and myself are self employed so we had to do a stated income loan. It is doable but can be a "nightmare" to say the least..... Take care! Christina

I want to thank all of you have have replied to my question!! My dh and I have enough saved for homestudy, bcis and other fees like documents and notary's etc. Hopefully my next post will be that we have chosen an agency and have a referral!!! blessings to all, Jennybeth

Hey, Jenny - I would definitely talk with a loan officer OR someone at your bank -- remember, just talking to a refinance person - they might be wanting to get the $ to refinance and not give you the best bottom line (I am sure most people are reputable and honest, but some people aren't -- so I wouldn't rely on information from just one person). We are in this boat -- we just refinanced within the last year, to lower our payments. We ALSO took out something like an equity loan (I guess) in order to only re-borrow (the new mortgage) 80% of the property value, and, thus, eliminate PMI. The payment on the equity line plus our new mortgage payment is still $150 less than we were paying. My dh is a stickler for details, so he really did a cost-analysis of the transaction before refinancing, also figuring how long it would be before we should buy a new house and not "lose" money on refinancing costs (just a year, I think). Anyway, we are glad we got the equity line, or whatever, because we figured we can just pay that off $1000 at a time, and the "loan" remains open so that we can just write a check off of it for part of adoption costs. Again, talk to a loan officer or accountant, but for us, I think the equity line or a straightforward, unsecured loan will work best (of course, my husband is SOOOO frugal, he will probably want to save up most of the money before spending any. For instance, he just got his annual bonus, and instead of putting it in the "adoption fund," he paid off one of the cars. He is the miser/practical number cruncher that balances out my urge to spend, so it all works out in the end!) Good luck. I think there are actually a lot of options out there. I believe MBNA offers an adoption loan that has reasonable interest rates. Also - make sure you review your taxes and that you actually pay in $10, 000 or a good chunk of that per year if you are counting on getting a lump some from the adoption tax credit to pay back a loan. I've seen on the boards that some people take this for granted (often because adoption agencies present this credit information without giving them a real view of their own circumstances), and they are disappointed or angry when they see that they don't even pay that much taxes each year, and barely get anything back. This is probably not your situation, but just wanted to put that out there. D.

Since we're talking about financing I just wanted to throw out there that most banks will give you a loan for an adoption even if they don't have a specific "adoption loan." If you still need some more ideas.....see if your employer offers an adoption benefit, apply for grants (usually once your homestudy is complete), or do a fundraiser. You can do anything from recycling ink cartridges in your office to a parents' night out with 20 kids! Good luck with your adoption plans!! Angie Weldy [url]http://www.affordingadoption.com[/url] ...helping to make adoption an affordable option for every family!