When rates fall steadily, refinancing may make sense even if you have done so once already. Bob and Michelle Barbo of Kirkland, WA refinanced twice within three months in 1998. In October, they trimmed the rate on their 30-year fixed mortgage by a full point -- from 9.13% to 8.13% -- for a monthly savings of $63. Plus, because home prices in their area had boosted their home equity, they were able to stop paying private mortgage insurance that cost them $120 a month.
To exploit continued decline in rates, the Barbos refinanced again in December. Their new 30-year fixed mortgage is at 7.375%, lopping another $55 off their monthly bill. Since the couple had chosen a no cost refinancing each time, their total out of pocket expenses came to just $400 in appraisal fees. So by the time you read this, they will already have recouped their up front costs. "Now we can use the savings to build up a cash emergency fund," says Bob.
If you are considering a second refinancing, don't overlook this potential tax write off: When you pay points to refinance, you must deduct the amount over the life of the loan, usually 30 years. But when you refinance a second time, all of the points that have not yet been deducted from the first refinancing can be written off in a lump sum. Say you refinanced to a 30-year mortgage in 1993 and paid $3,000 in points. By now, you would have written off roughly $500. If you refinance again this year, you could deduct the remaining $2,500 on your 1998 tax return. For a homeowner in the 28% tax bracket, that works out to a savings of $700 -- enough to offset some or all of your costs this time around.
http://rws.mortgage101.com/templateroot/articles/Refinance.asp?ArticleID=1120&pvlid=22684&
Monday, July 30, 2007
Refinance Considerations
When you're making your decision, there are several things to keep in mind.
If your current interest rate is significantly higher than today's lowest rates, you may be able to roll your loan costs into the loan and still get a lower rate than you have today, thereby reducing your interest payments and saving money immediately.
Second, if you are planning to stay in your home for at least three to five years, it may make sense to pay "points" (a point equals 1% of the loan amount) and closing costs to get the lowest available rate.
And third, you can avoid laying out cash and still get a low rate by adding the points and closing costs to your new mortgage. Does that mean shouldering a lot of extra debt? Not necessarily. If you've had your current mortgage for at least three years, you've probably reduced your balance by several thousand dollars. So you may be able to tack your closing costs onto your new loan and still end up with a mortgage that's smaller than your original one -- plus, of course, a lower rate and lower monthly payment.
http://rws.mortgage101.com/templateroot/articles/Refinance.asp?ArticleID=1121&pvlid=22684&
If your current interest rate is significantly higher than today's lowest rates, you may be able to roll your loan costs into the loan and still get a lower rate than you have today, thereby reducing your interest payments and saving money immediately.
Second, if you are planning to stay in your home for at least three to five years, it may make sense to pay "points" (a point equals 1% of the loan amount) and closing costs to get the lowest available rate.
And third, you can avoid laying out cash and still get a low rate by adding the points and closing costs to your new mortgage. Does that mean shouldering a lot of extra debt? Not necessarily. If you've had your current mortgage for at least three years, you've probably reduced your balance by several thousand dollars. So you may be able to tack your closing costs onto your new loan and still end up with a mortgage that's smaller than your original one -- plus, of course, a lower rate and lower monthly payment.
http://rws.mortgage101.com/templateroot/articles/Refinance.asp?ArticleID=1121&pvlid=22684&
Thursday, July 26, 2007
Boost your Home's Equity with a Mortgage Refinance
Refinancing to a shorter term of payments or a lower rate of interest can be a great way to give the equity in your home a boost. Your money will work harder where it really makes a difference. Instead of simply paying a lender for the convenience of borrowing, you'll actually pay yourself in the form of real estate equity.
Surefire ways to generate "refinance equity"
The following three ideas can help you generate equity in your home:
1. If you have an interest-only mortgage, your payments do nothing to chip away at your mortgage principal. By picking a mortgage refinance that allows you to pay off principal, you'll automatically begin to build mortgage equity over time. Many experts recommend a mortgage refinance for interest-only borrowers as a method of getting out of debt and into equity.
2. Even if you have a traditional fixed rate 30-year mortgage, you can refinance to a shorter term to pay less interest and accumulate more equity. For example, if you have a fixed-rate 30-year loan, you can shorten the life of the loan to 10 or 20 years. By paying interest based on 10 years of borrowing instead of 30, you'll save two decades' worth of interest payments. And you contribute sooner-and more substantially-to paying off the principal.
3. If you're currently paying off an older mortgage that carries a higher rate of interest, you can refinance to a lower rate and wind up saving many thousands of dollars during the life of the loan. This is one of the more straightforward ways to make a mortgage refinance work for you to generate equity.
You can always create equity by directly paying off a chunk of the principal on your loan; but for most of us, that isn't a practical solution. A much easier and pragmatic approach may be to look at your various refinance options. A good mortgage refinance will still fit your budget, but allow you to contribute more of your monthly payment to paying off principal, and less to merely servicing your outstanding debt.
http://www.mortgageloan.com/boost-your-homes-equity-with-mortgage-refinance
Surefire ways to generate "refinance equity"
The following three ideas can help you generate equity in your home:
1. If you have an interest-only mortgage, your payments do nothing to chip away at your mortgage principal. By picking a mortgage refinance that allows you to pay off principal, you'll automatically begin to build mortgage equity over time. Many experts recommend a mortgage refinance for interest-only borrowers as a method of getting out of debt and into equity.
2. Even if you have a traditional fixed rate 30-year mortgage, you can refinance to a shorter term to pay less interest and accumulate more equity. For example, if you have a fixed-rate 30-year loan, you can shorten the life of the loan to 10 or 20 years. By paying interest based on 10 years of borrowing instead of 30, you'll save two decades' worth of interest payments. And you contribute sooner-and more substantially-to paying off the principal.
3. If you're currently paying off an older mortgage that carries a higher rate of interest, you can refinance to a lower rate and wind up saving many thousands of dollars during the life of the loan. This is one of the more straightforward ways to make a mortgage refinance work for you to generate equity.
You can always create equity by directly paying off a chunk of the principal on your loan; but for most of us, that isn't a practical solution. A much easier and pragmatic approach may be to look at your various refinance options. A good mortgage refinance will still fit your budget, but allow you to contribute more of your monthly payment to paying off principal, and less to merely servicing your outstanding debt.
http://www.mortgageloan.com/boost-your-homes-equity-with-mortgage-refinance
Avoid Common Mortgage Mistakes
Ignorance isn't bliss when it comes to mortgages-it's costly. The mortgage world is indeed complex; but it will be more overwhelming if you stumble through the refinance process without a clue. Here are some simple tried and true mortgage fundamentals that can get you get a solid home loan.
Put a home mortgage at the top of your shopping list. This rule applies more to homebuyers than consumers planning a refinance. Before you start shopping for a home, shop for a mortgage. Get pre-qualified for a loan. This will tell you just how much house you can afford, and allow you to avoid being tempted by a home that's out of your price range.
Don't spend too much, and don't spend too little. Life is a balancing act, and refinancing a mortgage is no different. It would be foolish to spend too much of your monthly income on a bloated house payment. Conversely, you're probably borrowing too little if you pour all your money into a down payment. Keep some money liquid for future expenses. Otherwise, you may wind up pulling that equity back out in the form of a home equity loan if you ever become strapped for cash.
Ask plenty of questions from a trusted lender. This is a two-part tip. First, ask friends and family for referrals on trustworthy lenders. Second, when you've got your list narrowed to a few reputable ones, take the time to understand every facet of the loan proposal. Be careful to avoid any interest-only mortgages or adjustable-rate mortgages (ARMs) unless you truly understand how they work. Check all the costs, and make sure that you're clear on exactly what you're spending.
These simple tips are just the tip of the iceberg when it comes to a mortgage refinance. Even if you don't become an expert, a little knowledge can go a long way toward helping you find the right mortgage.
http://www.mortgageloan.com/avoid-common-mortgage-mistakes
Mortgage Refinance - Tax Deductions and Points
By paying a little more in upfront closing costs, you may save significant amounts of money on long-term interest. As an added bonus, the IRS lets you claim the points as a deduction. However, homeowners should know that points paid on purchases and points paid on a mortgage refinancing are treated differently
Homeowners hesitant to spend money on long-term interest often pay points on their mortgages. (A point is an interest charge paid upfront when you close your loan. It equals 1 percent of the total loan amount.) But such hesitancy is not always necessary, because when points are paid, it usually results in lowering your mortgage interest rate.
The IRS has blessed homeowners by letting them deduct points on their taxes. However, there's a subtle difference between the amount deductible on a mortgage refinance versus the amount you can claim on a traditional home mortgage.
Refinancing taxes made easy
When you purchase your home, you'll jump for joy knowing that the points you'll pay are deductible in the tax-year in which you made the buy. For example, if you paid one point on the origination fee of your brand new $350,000 house, you'll have a hefty $3,500 tax deduction to write-off when April 15th comes around.
It's a different ballgame, however, when you refinance your mortgage. In the above case, if the same homeowner refinances his mortgage after two years, the deduction for the amount he paid in points will be amortized over the course of the loan. If he refinances and pays 2 points on a new $300,000 loan, his tax deduction of $6,000 under the refinancing scenario-(2 percent x $300,000)-would be amortized over 30 years (the term of the new loan). The math in this case ($6,000/30) results in a tax deduction of $200 per year for 30 years.
The silver lining
Don't let this IRS stipulation rain on your tax break parade. Uncle Sam won't make you wait 30 years to claim the entire deduction. If you decide to refinance again, or if you sell the house, you can write-off the unclaimed portion of the deduction. In the above example, if the homeowner decides to sell his house after only two years after refinancing his mortgage, he can claim the remaining $5,600, since he had deducted only two years at $200 on his taxes.
Paying points on a home loan can be a great move for people who don't plan on moving. Just be aware that the tax deduction on a mortgage refinance won't be as immediate as a purchase loan. One way or the other, though, you'll get the deduction. As is usually the case with most things monetary, it's just a matter of time.
http://www.mortgageloan.com/mortgage-refinance-tax-deductions-points
The 2 Percent Refinance Rule - Fact or Fiction?
Here's a look at when the 2 percent refinance rule is fact, and when it's fiction.
The long-held belief that you should never refinance unless your rate will drop by 2 percent has been passed down by generations of homeowners. Unfortunately, it amounts to the financial equivalent of an old wives' tale. Between the times when the rule was created and now, there have been millions of dollars foolishly squandered on interest payments by people who may have benefited by a mortgage refinancing.
The long-held belief that you should never refinance unless your rate will drop by 2 percent has been passed down by generations of homeowners. Unfortunately, it amounts to the financial equivalent of an old wives' tale. Between the times when the rule was created and now, there have been millions of dollars foolishly squandered on interest payments by people who may have benefited by a mortgage refinancing.
Sound logic, faulty application
The intent of the 2 percent rule is good. Basically, the original advice was that you shouldn't refinance unless you can recoup your closing costs, including the appraisal costs, title insurance, and the rest of the laundry list of fees that accompany a mortgage refinance. The 2 percent rule assumes that it takes two years to do so.
However, this reasoning doesn't apply to people who plan on staying in a house longer than two years. Remember, the idea behind the rule is that you want to recoup your closing costs. Let's say the differential between current rates and your loan rate is less than 2 percent. It might still make sense to refinance if it takes four years, for example, to recoup your closing costs. The key is that you stay in your home at least four years, if not longer.
Apply the intent, not the law
Ultimately, when you consider a home refinancing, you should factor in the length of time you plan on staying in the house. If it takes 15 years to recoup your closing costs, you may want to hold off on the loan, considering that most people move approximately every five years.
You should also consider whether or not you might need to tap your equity for upcoming expenses. For example, if you're going to send your kids to college in the next three or four years and have little or no savings to pay for it, refinancing right now might not make sense. You may want to wait and see if you'll need to tap into your equity for a higher education. At that point, you could pick another type of loan (an adjustable-rate mortgage with a low teaser rate, for example), to get a palatable interest rate.
If you're considering a mortgage refinance, use the 2 percent rule as a guide, not as a hard and fast rule. Take into consideration the length of time you plan to be in your home. Be realistic and use common sense when determining when, and if, you should refinance.
http://www.mortgageloan.com/2-percent-refinance-rule
Combine Two Mortgages into One Through Refinancing
Many homeowners have taken advantage of the equity in their homes to acquire second mortgages in the form of home equity loans or home equity lines of credit. In some cases, a secondary loan has helped them avoid closing costs, private mortgage insurance, or higher rates charged to jumbo loans. And sometimes, using an equity-based loan allowed them to fund a home improvement project, finance the purchase of a car or swimming pool, pay off credit cards, or help pay year-end taxes in a convenient and easy fashion. But if your loans carry higher than necessary interest rates, it may be a good idea to do a mortgage refinance and simplify your financial life with a single, low-interest rate mortgage.
Refinancing can help!
Although financial advisors may admonish you not to put all your eggs into one basket, when it comes to consolidation of outstanding obligations, most would agree that one basket to encompass all your loose ends is the preferred way to go. With interest rates still hovering near record-setting lows, there's no time like the present for homeowners to take out a single low-interest rate mortgage, in order to dispense with any higher-interest loans you may have on your books.
Save money through a mortgage refinance
The interest you can save by securing an attractively priced fixed-rate mortgage will lower your monthly payments and also cut substantial amounts of interest off the life of your loan. By tallying up the long-term costs of a first and second loan, and then subtracting the cost of a single mortgage obtained through refinancing, you can get a clear picture of your potential savings. In most cases, you can save an astonishing amount of money, which will more than pay for the incidental expenses incurred through refinance charges. Plus, they may be tax deductible.
It's a great idea to simplify your life by combining two mortgages into one. Then, you can save the multi-tasking for your office.
http://www.mortgageloan.com/combine-two-mortgages-refinancing
Refinancing? Know Your New Vantage Score
For lenders and borrowers alike, there are few criteria in the refinancing process as scrutinized as a credit score. FICO is a system that pools credit data from the credit bureaus Experian, TransUnion and Equifax, and produces a numerical grade that indicates your worthiness as a borrower. A FICO score is based on factors that include current debt load, payment history, credit currently in use, length of credit history, and any types of new credit.
http://www.mortgageloan.com/refinancing-vantage-score
The irony is that this method of evaluating your credit worthiness sometimes produces more questions than it answers. While the rule of thumb is that anything in the 720s and above is a good score, a lower number lacks definition and may confuse a lender.
The new VantageScore, which is offered by all three of the credit union agencies, does offer some relief to this quandary. It still uses the same evaluation factors as a FICO score. But along with a lower price tag (one free report per year, and additional viewings at $5.95), it offers some notable differences.
Advantages of the VantageScore
Overall, the VantageScore's evaluating guidelines are the same as FICO scores; too much debt with poor payment history will result in higher scores for consumers. However, the new system provides greater definition of what the numbers mean, which is potentially helpful for borrowers who want to refinance their mortgages, but whose FICO scores are considered too high.
Improved Definitions: Now, instead of a raw score, VantageScore assigns a letter grade. The raw numbers range from 0 to 900, and letter grades are assigned for each hundred-point increment. For example, a score of 800-900 would equal an "A."
The scores also include some real-world applications. A VantageScore report tells you how increased debts could affect your credit evaluation. If you're in the market for a mortgage refinance, you may learn that it's worthwhile to forego that shopping spree at the mall.
Easier for Subprime Borrowers: It can be rough going for borrowers who have little or no credit history and are interested in mortgage refinancing. Generally, these people score low on FICO and are relegated to loans with higher interest rates. The VantageScore claims to provide a more accurate assessment of the credit-worthiness of these individuals-potentially paving the way for better rates.
Keep in mind that both a VantageScore and a FICO score are just one piece in the lender's assessment of you. Many times, there are legitimate explanations to poor credit histories, and lenders may take these into account. If you'd like an invaluable tool for refinancing, and some help finding a good rate, check our your VantageScore. It may give you a big advantage.
http://www.mortgageloan.com/refinancing-vantage-score
Monday, July 23, 2007
Mortgage Loan Tips For First Time Borrowers
One of the most confusing parts of buying a home is the mortgage loan portion. Financing is confusing and knowing what you need to apply for or what you would qualify for is difficult to know. Because of that too many homebuyers rely on their lender to recommend a mortgage to them and help them through the process. However, this is not always the best idea because the lender doesn't have your best interests at heart but rather the bank's best interest at heart. So, consider the following tips before you apply for a mortgage loan. They just might help you get the loan that is best for you!
Tip #1 Credit Report
Your credit report is what most lenders look at heavily to decide whether you are approved for a loan or not. If your credit score is high then you will likely be approved and have a low interest rate. If your score is low you may be denied or else be offered an extremely high interest rate. So, since your credit report plays such a huge role in whether or not you are approved you should know what is in your report before you ever apply. Many times there is information in your credit report that is incorrect and that will negatively impact whether you are approved or not. If there is negative information in your report you should have it corrected before you ever apply for a mortgage loan. Making sure your credit report has all correct information will make sure you get the best mortgage loan and interest rate offer possible. If you are applying with your spouse then check their report as well to make sure theirs is correct as well.
Tip #2 Make Changes
Now that you know whether there are mistakes on your credit report or not you can start making changes. You will have to report errors to the credit bureau that is reporting the errors to have them corrected. It may take some time so be patient and don't apply for a mortgage loan until the errors are corrected.
Tip #3 Raise Your Credit Score
You will also want to take the opportunity to review your credit score while you are looking at your report. Doing so will show you what you need to do in order to increase your score. If you see late payments, credit cards over the limit and you are using almost all of your credit then you know you have some room to increase your score. Start paying your bills on time, reduce your overall credit to debt ratio, and don't apply for more credit. Doing this will gradually improve your credit score and within a few months you will see a big difference. Once your score is up you should apply for your mortgage loan. This will increase your odds of being approved and more than likely get you a better interest rate as well.
1mortgagesuk is a good resource site to learn all the aspects of mortgages,bad credit mortgages,remortgages, Secured loans as well as a mortgage calculator is also available for you to calculate your monthly mortgage payments.
http://ezinearticles.com/?Mortgage-Loan-Tips-For-First-Time-Borrowers&id=650848
Tip #1 Credit Report
Your credit report is what most lenders look at heavily to decide whether you are approved for a loan or not. If your credit score is high then you will likely be approved and have a low interest rate. If your score is low you may be denied or else be offered an extremely high interest rate. So, since your credit report plays such a huge role in whether or not you are approved you should know what is in your report before you ever apply. Many times there is information in your credit report that is incorrect and that will negatively impact whether you are approved or not. If there is negative information in your report you should have it corrected before you ever apply for a mortgage loan. Making sure your credit report has all correct information will make sure you get the best mortgage loan and interest rate offer possible. If you are applying with your spouse then check their report as well to make sure theirs is correct as well.
Tip #2 Make Changes
Now that you know whether there are mistakes on your credit report or not you can start making changes. You will have to report errors to the credit bureau that is reporting the errors to have them corrected. It may take some time so be patient and don't apply for a mortgage loan until the errors are corrected.
Tip #3 Raise Your Credit Score
You will also want to take the opportunity to review your credit score while you are looking at your report. Doing so will show you what you need to do in order to increase your score. If you see late payments, credit cards over the limit and you are using almost all of your credit then you know you have some room to increase your score. Start paying your bills on time, reduce your overall credit to debt ratio, and don't apply for more credit. Doing this will gradually improve your credit score and within a few months you will see a big difference. Once your score is up you should apply for your mortgage loan. This will increase your odds of being approved and more than likely get you a better interest rate as well.
1mortgagesuk is a good resource site to learn all the aspects of mortgages,bad credit mortgages,remortgages, Secured loans as well as a mortgage calculator is also available for you to calculate your monthly mortgage payments.
http://ezinearticles.com/?Mortgage-Loan-Tips-For-First-Time-Borrowers&id=650848
Friday, July 20, 2007
Plenty Of Mortgage Lenders To Choose From
If you are looking for a mortgage for your home you may find that there are dozens of mortgage lenders to choose from. The days of being forced to apply for a mortgage from one of only a small selection of high-street banks has been firmly relegated to the history books.
Whether you are looking to purchase or remortgage a property you should find that there are many different mortgage lenders willing to do business with you no matter what your employment status or credit history.
These days, mortgage lenders range from high-street banks to smaller mortgage lenders and packagers that specialise in specific areas of lending such as buy-to-let mortgages and adverse credit mortgages.
Specialist mortgage lenders have cropped up in many different niche markets over the past few years in order to satisfy the various needs of borrowers in today’s society. In modern times, there is a vast array of borrowers who require non-conforming mortgage products due to adverse credit histories and irregular working patterns.
Furthermore, specialist buy-to-let mortgage lenders have emerged that concentrate solely on the needs of property investors. Investing in property has become a popular business venture for individuals to become involved in so the need for expert buy-to-let mortgage lenders is apparent.
If you are looking to buy a property or remortgage your existing home, or buy-to-let property portfolio, it may be wise to speak to an independent mortgage broker to help sort through the thousands of mortgage products available from the dozens of mortgage lenders on the market today.
Independent mortgage brokers have specialist software that can scan the entire mortgage market and help you choose the right mortgage lenders for your individual circumstances.
The right mortgage advice can help you save money over the term of the mortgage, whether it is for a buy-to-let property or your own home. Choosing the right mortgage products and mortgage lenders is vital to ensure you don’t pay more interest or fees than necessary.
If the sheer size and scope of the mortgage market is too much for you to bear, contact an independent mortgage adviser for expert and impartial advice on which mortgage lenders are right for you.
UKMortgageSource provides up-to-date information on Mortgage Lenders
http://ezinearticles.com/?Plenty-Of-Mortgage-Lenders-To-Choose-From&id=648744
Whether you are looking to purchase or remortgage a property you should find that there are many different mortgage lenders willing to do business with you no matter what your employment status or credit history.
These days, mortgage lenders range from high-street banks to smaller mortgage lenders and packagers that specialise in specific areas of lending such as buy-to-let mortgages and adverse credit mortgages.
Specialist mortgage lenders have cropped up in many different niche markets over the past few years in order to satisfy the various needs of borrowers in today’s society. In modern times, there is a vast array of borrowers who require non-conforming mortgage products due to adverse credit histories and irregular working patterns.
Furthermore, specialist buy-to-let mortgage lenders have emerged that concentrate solely on the needs of property investors. Investing in property has become a popular business venture for individuals to become involved in so the need for expert buy-to-let mortgage lenders is apparent.
If you are looking to buy a property or remortgage your existing home, or buy-to-let property portfolio, it may be wise to speak to an independent mortgage broker to help sort through the thousands of mortgage products available from the dozens of mortgage lenders on the market today.
Independent mortgage brokers have specialist software that can scan the entire mortgage market and help you choose the right mortgage lenders for your individual circumstances.
The right mortgage advice can help you save money over the term of the mortgage, whether it is for a buy-to-let property or your own home. Choosing the right mortgage products and mortgage lenders is vital to ensure you don’t pay more interest or fees than necessary.
If the sheer size and scope of the mortgage market is too much for you to bear, contact an independent mortgage adviser for expert and impartial advice on which mortgage lenders are right for you.
UKMortgageSource provides up-to-date information on Mortgage Lenders
http://ezinearticles.com/?Plenty-Of-Mortgage-Lenders-To-Choose-From&id=648744
Points or No Points? A Good Mortgage Calculator Can Help
In order to get a lower monthly payment lenders will give the borrower the opportunity to pay an up front fee which lowers the interest rate thus, paying less on their month to month housing note.
A good online mortgage calculator will do all the computation and analysis for you but we’ll explain it for you below….
Here’s how it works:
The up front fee is called “points”. You typically pay 1% of the amount borrowed for each point:
Let’s illustrate:
If the amount borrowed was $100,000 then 1 point would cost you $1000 ( $100,000 x 1%) This in turn will lower, or "buy down" your interest rate by .25%. For example, if you only qualify for a 6.75% mortgage rate on a $100,000 loan, paying your broker $1000.00 up front can reduce the rate to 6.5%.
Determining if this is a wise move finacially for your family depends on a few factors, mainly the length of time you are planning on staying in the home. Again, a good online mortgage calculator will compare the loan with and with out points. (The online mortgage calculator will ask you for principal, interest rate and number of points)
In another example borrowing $100,000 for 30 years at 6.75% with no points would result in a payment of $648 monthly ( Principal and interest only… no tax or insurance in this example)
The same loan but charging the borrower 2 points :
- drops the interest rate to 6.25%
- lowers the monthly payment to $615.00 monthly
- save $11,880 in total interest repayment
The above scenario makes sense if you plan on stayng in the home for at least 5 years ( break even point).
Again a good online mortgage calculator will clearly let you compare a loan with points and without points so you can determine:
- total interest saved
- How many years break even
Break Even Point …Huh?
The break even point is the number of years it takes to re-coup the expense of paying for the points upfront. To get a financial benefit from buying down your interest rate by purchasing points you need to stay in your house until after the total of the monthly savings realized is greater than the total amount of cash dished out on points.
To Illustrate...
The cost for 2 points above was $2000. Each month you save 33 bucks because you lowered your interest rate. So… $2000/$33 = 125 ( payments or months) which is about 5 years
After about 5 years you’ve paid back all the cost of the points which now gives you the opportunity to avoid $11,880 in interest had you not purchased points.
So, points are not always bad if you want to lower your interest rate, It really depends on how long you plan on staying in your home and how much cash you have at the time of closing.
For 15 years Leslie Collins has been helping all types of borrowers get the loan information they need to make the best home buying decision . Please visit the easy to use mortgage calculator before you talk to banks or loan officers. Also see our easy online mortgage application safe, secure and takes about 2 minutes!
http://ezinearticles.com/?Points-or-No-Points?-A-Good-Mortgage-Calculator-Can-Help&id=646366
A good online mortgage calculator will do all the computation and analysis for you but we’ll explain it for you below….
Here’s how it works:
The up front fee is called “points”. You typically pay 1% of the amount borrowed for each point:
Let’s illustrate:
If the amount borrowed was $100,000 then 1 point would cost you $1000 ( $100,000 x 1%) This in turn will lower, or "buy down" your interest rate by .25%. For example, if you only qualify for a 6.75% mortgage rate on a $100,000 loan, paying your broker $1000.00 up front can reduce the rate to 6.5%.
Determining if this is a wise move finacially for your family depends on a few factors, mainly the length of time you are planning on staying in the home. Again, a good online mortgage calculator will compare the loan with and with out points. (The online mortgage calculator will ask you for principal, interest rate and number of points)
In another example borrowing $100,000 for 30 years at 6.75% with no points would result in a payment of $648 monthly ( Principal and interest only… no tax or insurance in this example)
The same loan but charging the borrower 2 points :
- drops the interest rate to 6.25%
- lowers the monthly payment to $615.00 monthly
- save $11,880 in total interest repayment
The above scenario makes sense if you plan on stayng in the home for at least 5 years ( break even point).
Again a good online mortgage calculator will clearly let you compare a loan with points and without points so you can determine:
- total interest saved
- How many years break even
Break Even Point …Huh?
The break even point is the number of years it takes to re-coup the expense of paying for the points upfront. To get a financial benefit from buying down your interest rate by purchasing points you need to stay in your house until after the total of the monthly savings realized is greater than the total amount of cash dished out on points.
To Illustrate...
The cost for 2 points above was $2000. Each month you save 33 bucks because you lowered your interest rate. So… $2000/$33 = 125 ( payments or months) which is about 5 years
After about 5 years you’ve paid back all the cost of the points which now gives you the opportunity to avoid $11,880 in interest had you not purchased points.
So, points are not always bad if you want to lower your interest rate, It really depends on how long you plan on staying in your home and how much cash you have at the time of closing.
For 15 years Leslie Collins has been helping all types of borrowers get the loan information they need to make the best home buying decision . Please visit the easy to use mortgage calculator before you talk to banks or loan officers. Also see our easy online mortgage application safe, secure and takes about 2 minutes!
http://ezinearticles.com/?Points-or-No-Points?-A-Good-Mortgage-Calculator-Can-Help&id=646366
Home Mortgage Loan - Finding A Good One
Finding the home mortgage loan that is right for you may be just a few mouse clicks away for you. Yes, the internet has berthed a large selection of competitive mortgage loan companies like E-Loan and others. You can do a quick search on one of the popular search engines to find these companies offing very competitive rates.
The best thing about a home mortgage loan today is that the market is so competitive that you can find a great rate with low fees relatively easy. The only question left is how to pay off the mortgage in a timely manner.
The best strategy to take once you have secured the home mortgage loan that suits you best is to pay a little extra each month. It is important to make sure that there are no extra hidden fees before you take out your home mortgage loan. You want to be able to add extra to the payment each month and pay down on your principle.
The main reason that people fail to stick with a solid plan of paying lump sums or extra money each and every month is that it takes some time to start seeing the results take effect. Once you get into your plan about five years you will start making some ground up. At ten years you can really start eating up chunks of your principle and pay off your home mortgage loan.
Before you decide on which home mortgage loan to get you should talk to a few different companies to make sure that the customer service is what you would expect it to be. Remember, you will have this home mortgage loan for a few years so make sure that it is with a company that you want to deal with for awhile.
For more Home Mortgage information try visiting http://home-mortgage-view.com a website that specializes in providing helpful home mortgage tips, advice and resources to include Home Mortgage Loan and more.
http://ezinearticles.com/?Home-Mortgage-Loan---Finding-A-Good-One&id=645892
The best thing about a home mortgage loan today is that the market is so competitive that you can find a great rate with low fees relatively easy. The only question left is how to pay off the mortgage in a timely manner.
The best strategy to take once you have secured the home mortgage loan that suits you best is to pay a little extra each month. It is important to make sure that there are no extra hidden fees before you take out your home mortgage loan. You want to be able to add extra to the payment each month and pay down on your principle.
The main reason that people fail to stick with a solid plan of paying lump sums or extra money each and every month is that it takes some time to start seeing the results take effect. Once you get into your plan about five years you will start making some ground up. At ten years you can really start eating up chunks of your principle and pay off your home mortgage loan.
Before you decide on which home mortgage loan to get you should talk to a few different companies to make sure that the customer service is what you would expect it to be. Remember, you will have this home mortgage loan for a few years so make sure that it is with a company that you want to deal with for awhile.
For more Home Mortgage information try visiting http://home-mortgage-view.com a website that specializes in providing helpful home mortgage tips, advice and resources to include Home Mortgage Loan and more.
http://ezinearticles.com/?Home-Mortgage-Loan---Finding-A-Good-One&id=645892
Thursday, July 19, 2007
Refinance A FHA Mortgage Loan
Refinance FHA mortgage loans are attained by homeowners from lenders for the purpose of refinancing current mortgages. FHA was instituted by the federal government to provide qualified buyers with affordable housing financing options. This refinancing is insured by the FHA, which limits the lender's risk and therefore makes it easier for individuals to obtain.
If already involved with the Federal Housing Administration, then one of these streamline loans could be an excellent program. Refinance FHA mortgage loans offer interest rate reductions without much of the hassle and paperwork that typically accompanies home mortgages. The income and credit qualifications are usually easier to meet than those required for conventional lenders. Yet, the rates for the Federal Housing Administration are still competitive. Even if one has never been involved with the FHA, to refinance a FHA mortgage loan through them is an option worth considering.
The benefits to refinance a FHA mortgage loan are numerous. Many people like knowing that they can own 100 percent of their homes sooner if they refinance. Other homeowners want a little extra cash in their checking accounts each month and use this to lower their monthly payments. Many people apply for these in order to cash out some of the equity they have accrued during the years that they have been paying on their home. This equity can be used for home improvements, vacations, debt consolidations, or practically anything else.
In order to be successful when applying to refinance a FHA mortgage loan, homeowners should carefully research lenders. It is important to be familiar with the lingo of the refinancing world in order to adequately compare the various packages. Be aware of terminology such as, "fixed" and "variable" interest rates, closing costs, equity, settlement fees, and points. Determining what program is best for the situation depends upon how these variables figure into the unique package.
Searches can be performed online when looking to refinance a FHA mortgage loan and many sites have mortgage calculators available. These tools are used to help determine the best refinancing scenario for the situation. Some homeowners consider only the minimum monthly payment to determine the best deal. However, experts advise keeping both short-term and long-term goals in mind when considering refinancing. For example, is saving an extra $100 a month now, worth paying out $10,000 or more in extra interest payments? This could be the scenario if the new refinance term is a longer term than what's left on the current mortgage agreement.
Applying for this loan can be a very wise decision if the conditions are right. God wants us to be good stewards of all he has entrusted to us, and this includes our houses. In order to do this we need to be wise in our undertakings. "If any of you lacks wisdom, he should ask God who gives generously to all without finding fault, and it will be given to him." (James1:5) Research refinance FHA mortgage loans, learn all of the terminology, speak with mortgage lenders, ask questions, and, of course, pray for God's guidance.
http://www.christianet.com/refinancemortgage/refinancefhamortgageloans.htm
If already involved with the Federal Housing Administration, then one of these streamline loans could be an excellent program. Refinance FHA mortgage loans offer interest rate reductions without much of the hassle and paperwork that typically accompanies home mortgages. The income and credit qualifications are usually easier to meet than those required for conventional lenders. Yet, the rates for the Federal Housing Administration are still competitive. Even if one has never been involved with the FHA, to refinance a FHA mortgage loan through them is an option worth considering.
The benefits to refinance a FHA mortgage loan are numerous. Many people like knowing that they can own 100 percent of their homes sooner if they refinance. Other homeowners want a little extra cash in their checking accounts each month and use this to lower their monthly payments. Many people apply for these in order to cash out some of the equity they have accrued during the years that they have been paying on their home. This equity can be used for home improvements, vacations, debt consolidations, or practically anything else.
In order to be successful when applying to refinance a FHA mortgage loan, homeowners should carefully research lenders. It is important to be familiar with the lingo of the refinancing world in order to adequately compare the various packages. Be aware of terminology such as, "fixed" and "variable" interest rates, closing costs, equity, settlement fees, and points. Determining what program is best for the situation depends upon how these variables figure into the unique package.
Searches can be performed online when looking to refinance a FHA mortgage loan and many sites have mortgage calculators available. These tools are used to help determine the best refinancing scenario for the situation. Some homeowners consider only the minimum monthly payment to determine the best deal. However, experts advise keeping both short-term and long-term goals in mind when considering refinancing. For example, is saving an extra $100 a month now, worth paying out $10,000 or more in extra interest payments? This could be the scenario if the new refinance term is a longer term than what's left on the current mortgage agreement.
Applying for this loan can be a very wise decision if the conditions are right. God wants us to be good stewards of all he has entrusted to us, and this includes our houses. In order to do this we need to be wise in our undertakings. "If any of you lacks wisdom, he should ask God who gives generously to all without finding fault, and it will be given to him." (James1:5) Research refinance FHA mortgage loans, learn all of the terminology, speak with mortgage lenders, ask questions, and, of course, pray for God's guidance.
http://www.christianet.com/refinancemortgage/refinancefhamortgageloans.htm
Refinancing A Second Mortgage
Refinancing a second mortgage can help a homeowner when extra money is needed or a reduction in monthly payments is desired. People have different reasons, but most agree that saving money in interest and freeing up monthly cash are the primary goals to be reached for their efforts. If considering this type of financing, it is important to analyze the time and cost factors, as not every one who refinances saves money. While a homeowner may be familiar with financing multiple times, refinancing a second mortgage may differ somewhat. This is simply is a mortgage taken in addition to an existing loan, against the equity that has been built up in the house.
While a first home loan is typically 15-30 years long, with payments scheduled so that the balance is paid off at the end of the term, another loan will usually have higher interest rates and shorter terms. Therefore, it is conducive for a homeowner to consider refinancing a second mortgage when the interest rates dip so that they can get lower monthly payments in addition to saving money on interest over the life of the balance. Getting financing again can be a way of reworking a home loan in order to obtain more favorable terms. There are various reasons for considering this option. Some people may want to pay off their current financing at a lower interest rate. Others may want to shorten the life of the balance for their home financing, which helps them save money on interest payments over the repayment term. In addition, it can help lower the monthly payments, or enable one to "cash out" with sufficient equity, to pay off other debt, such as credit cards or car balances.
Researching options on the Internet, or with a lending office at a local financing institution is recommended. This can be done to determine whether refinancing a second mortgage is a good choice for an individual situation or circumstance. Not only will several lending companies be willing to give the additional information along with a free quote, but also there are many free financial tools online, including calculators to help figure the new payments with a lower interest rate. Remembering that the balance must be paid back and that it is not free money is important. "When thou vowest a vow unto God, defer not to pay it; for he hath no pleasure in fools: pay that which thou has vowed" (Ecclesiastes 5:4-5). Before proceeding, make sure it will actually save money. If qualifying for an interest rate that is at least 2% lower than a current rate, the borrower will probably save money. However, still figure in the closing costs and application fees as well as any other additional costs, such as title insurance or an appraisal to be sure.
http://www.christianet.com/refinancemortgage/refinancingasecondmortgage.htm
While a first home loan is typically 15-30 years long, with payments scheduled so that the balance is paid off at the end of the term, another loan will usually have higher interest rates and shorter terms. Therefore, it is conducive for a homeowner to consider refinancing a second mortgage when the interest rates dip so that they can get lower monthly payments in addition to saving money on interest over the life of the balance. Getting financing again can be a way of reworking a home loan in order to obtain more favorable terms. There are various reasons for considering this option. Some people may want to pay off their current financing at a lower interest rate. Others may want to shorten the life of the balance for their home financing, which helps them save money on interest payments over the repayment term. In addition, it can help lower the monthly payments, or enable one to "cash out" with sufficient equity, to pay off other debt, such as credit cards or car balances.
Researching options on the Internet, or with a lending office at a local financing institution is recommended. This can be done to determine whether refinancing a second mortgage is a good choice for an individual situation or circumstance. Not only will several lending companies be willing to give the additional information along with a free quote, but also there are many free financial tools online, including calculators to help figure the new payments with a lower interest rate. Remembering that the balance must be paid back and that it is not free money is important. "When thou vowest a vow unto God, defer not to pay it; for he hath no pleasure in fools: pay that which thou has vowed" (Ecclesiastes 5:4-5). Before proceeding, make sure it will actually save money. If qualifying for an interest rate that is at least 2% lower than a current rate, the borrower will probably save money. However, still figure in the closing costs and application fees as well as any other additional costs, such as title insurance or an appraisal to be sure.
http://www.christianet.com/refinancemortgage/refinancingasecondmortgage.htm
Wednesday, July 18, 2007
Credit Refinancing
With bad credit refinancing, those who have less than perfect financial scores and ratings can still get their mortgages or accumulated loans refinanced for savings. Even those who have bad credit can turn over a loan to get better terms and perhaps even shorten the length of the loan. These programs can be obtained from a number of sources or lending agencies, that offer those with poor credit funding at a slightly higher interest rate than the current prime rate. There are costs involved with a refinance, but these costs can be lower for those who have better credit ratings. The Internet can prove to be a good place to research these lenders. When a borrower looks over a website that interests him, he should investigate the costs and terms for using the lender's service. Then he should compare these costs, rates, and terms with the ones he has with his current loan, to see if the new rates are any better over the long run.
Those with a less-than-perfect financial score can have hope; a poor financial history will not keep them from being able to refinance some of their debt, but it may take some time to apply to various lenders. However, the interest rate on a bad credit refinancing loan can be as much as 6 percent higher than loans being offered on the market. But this higher interest rate may still be lower than the one on the current loan, saving the borrower money on a monthly basis. Also, these loans can be used to consolidate current unsecured debt, such as credit cards. If the percentage rate or interest rate on these cards is high, then the borrower may consider consolidating this unsecured debt with a refinanced loan. Even when paying a higher interest rate than those who have good financial history pay, interest on credit card consolidation can cost less than the accumulated interest on credit cards. Bad credit refinancing can be a positive step in getting spending under control and reducing debt. And if the borrower pays the new loan in a timely manner for two or more years, he can then refinance again, at an even lower rate.
The Internet offers many articles and tips that can explain the benefits of refinancing. There are also brokerage firms listed on the Internet that offer several lending agencies that can fit a borrower's individual financial needs. By using a broker listed on the Worldwide Web, the borrower can save the time he would have taken by calling lenders or visiting their offices in person. When a borrower investigates bad credit refinancing, he must be sure that he completely understands the terms set forth by any contract. But no financial adviser can help a person straighten out bad spending habits. Only God can change the heart. Psalm 73:28 tells us, "It is good for me to draw near to God: I have put my trust in the Lord God, that I may declare all thy works." It is good policy to seek advice from those who are familiar with financial matters, but only after seeking God's advice first
http://www.christianet.com/refinancing/badcreditrefinancing.htm
Those with a less-than-perfect financial score can have hope; a poor financial history will not keep them from being able to refinance some of their debt, but it may take some time to apply to various lenders. However, the interest rate on a bad credit refinancing loan can be as much as 6 percent higher than loans being offered on the market. But this higher interest rate may still be lower than the one on the current loan, saving the borrower money on a monthly basis. Also, these loans can be used to consolidate current unsecured debt, such as credit cards. If the percentage rate or interest rate on these cards is high, then the borrower may consider consolidating this unsecured debt with a refinanced loan. Even when paying a higher interest rate than those who have good financial history pay, interest on credit card consolidation can cost less than the accumulated interest on credit cards. Bad credit refinancing can be a positive step in getting spending under control and reducing debt. And if the borrower pays the new loan in a timely manner for two or more years, he can then refinance again, at an even lower rate.
The Internet offers many articles and tips that can explain the benefits of refinancing. There are also brokerage firms listed on the Internet that offer several lending agencies that can fit a borrower's individual financial needs. By using a broker listed on the Worldwide Web, the borrower can save the time he would have taken by calling lenders or visiting their offices in person. When a borrower investigates bad credit refinancing, he must be sure that he completely understands the terms set forth by any contract. But no financial adviser can help a person straighten out bad spending habits. Only God can change the heart. Psalm 73:28 tells us, "It is good for me to draw near to God: I have put my trust in the Lord God, that I may declare all thy works." It is good policy to seek advice from those who are familiar with financial matters, but only after seeking God's advice first
http://www.christianet.com/refinancing/badcreditrefinancing.htm
Refinance Your Private Student Loans
Refinance your private student loans now and lock in to the lowest interest rate in years in order to benefit with significant savings on education money. Over the course of undergraduate or graduate degree programs, students can amass huge debts in order to get the education they need to enter a chosen field. Recognizing that a college graduate generally receives up to 80% more lifetime earnings that a high school graduate, parents and student alike are willing to invest in the future through education money. By the time graduation rolls around, many students have of necessity borrowed lots of money to defray education costs. You may have just graduated and would like to refinance in order to drop interest rates and monthly payments.
Borrowing money is a necessary part of student financial aid that must be repaid with interest to the lender. There are Stafford loans, both subsidized and unsubsidized, that are offered through the Federal government for those who meet the criteria. Personal loans can also be assumed as well as private education loans offered through banks and lending institutions. Many of these loans can be refinanced and consolidated for easier payoff. These sources provide easy, quick and effective answers on how to refinance your private student loans. "He that gathereth in summer is a wise son: but he that sleepeth in harvest is a son that causeth shame." (Proverbs 10:5)
Anyone can receive approval relatively easily, but it is important to find the best deal. Many lending companies require no credit checks and very little if any fees to refinance your private student loans. It is easy because there is no lengthy, government application process. Your private student loans can be refinanced to consolidate all money owed into one, unsecured loan. There is no risk to home equity or other assets because collateral is not required. If you choose this option, you can reduce your overall repayment obligation sometimes as high as 50% or more.
It is also well worth it for the convenience of one monthly payment. In order to refinance your private student loans, some lenders require a certain debt minimum and require you to have entered repayment or be within the grace period of the loan. It is very easy to apply online and receive approval for your private student loans. There are lending sources ready to answer all your questions and set up the loan program that suits your personal needs.
http://www.christianet.com/refinancing/refinanceyourprivatestudentloans.htm
Borrowing money is a necessary part of student financial aid that must be repaid with interest to the lender. There are Stafford loans, both subsidized and unsubsidized, that are offered through the Federal government for those who meet the criteria. Personal loans can also be assumed as well as private education loans offered through banks and lending institutions. Many of these loans can be refinanced and consolidated for easier payoff. These sources provide easy, quick and effective answers on how to refinance your private student loans. "He that gathereth in summer is a wise son: but he that sleepeth in harvest is a son that causeth shame." (Proverbs 10:5)
Anyone can receive approval relatively easily, but it is important to find the best deal. Many lending companies require no credit checks and very little if any fees to refinance your private student loans. It is easy because there is no lengthy, government application process. Your private student loans can be refinanced to consolidate all money owed into one, unsecured loan. There is no risk to home equity or other assets because collateral is not required. If you choose this option, you can reduce your overall repayment obligation sometimes as high as 50% or more.
It is also well worth it for the convenience of one monthly payment. In order to refinance your private student loans, some lenders require a certain debt minimum and require you to have entered repayment or be within the grace period of the loan. It is very easy to apply online and receive approval for your private student loans. There are lending sources ready to answer all your questions and set up the loan program that suits your personal needs.
http://www.christianet.com/refinancing/refinanceyourprivatestudentloans.htm
Refinancing A Real Estate Investment
Refinancing a real estate investment offers a consumer the opportunity to receive a lower rate of interest on payments toward a home, building, or other property. This can be one of the easiest or most tedious processes for a homeowner to pursue. Either way, the outcome will be worth the effort because money will be saved. Taking the time to refinance does not have to be a big ordeal but it will, no doubt, produce big results for the individual.
The purpose of refinancing is to lower the interest rate in order to lower monthly payments and, on the whole, the entire loan. This allows homeowners or investors more freedom to either make lower minimum monthly payments or continue to make the same payments while taking years off the time they would have had to pay. When paying an existing mortgage for a decade or more, a few years can mean a lot. Refinancing a real estate investment can never be a bad thing. In fact, it is a financial strategy that proves to be very smart.
When looking to go through the process of refinancing, a person must take into consideration the lender they would like to refinance with. Many times the homeowner will decide to go with the existing lender, perhaps the bank. By going with an existing lender, the homeowner will be able to maintain relationships that already exist, providing the essential element of trust. Some homeowners may be uneasy about refinancing a real estate investment at first. Like anyone looking to take a loan, the consumer must be able to trust the lender. In this situation, a consumer would hope the lender would be able to find the lowest percentage rate and make a seamless transition. However, this is not always the case.
In some cases, the existing lender can not provide the lowest interest rate because of a number of factors. When this occurs, the homeowner may wish to explore other lenders. If a lender is found with a lower interest rate, the application process may start all over again. Since the individual does not have an existing loan with this lender, all of the information about finances, credit history and personal information will need to be provided as well as another application and perhaps application fees. In the end, if the interest rate is much lower than the other estimates, it may be worth the trouble to continue to pursue refinancing a real estate investment. Bottom line, people must remember to live within their means. God has given His people the ability to make money and Christians should learn to spend and save wisely. "But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he swear unto thy fathers, as it is this day." (Deuteronomy 8:18)
http://www.christianet.com/refinancing/refinancingrealestateinvestment.htm
Refinancing With Really Bad Credit
Refinancing with really bad credit is not an uncommon option for those who have suffered severe financial setbacks through personal or business tragedies. Many mortgage lenders and brokers are experienced in working with potential borrowers who have less than a perfect financial history. These types of loans are definitely not equivalent to the typical mortgage refinances extended to the usual consumer. Mortgage lenders that specialize in helping borrowers who have a less-than-perfect financial history know the risks of taking on a borrower of this type. Smart lenders also cover their risks as well as possible, which always means that the borrower will pay more for a refinance loan of this sort. Sub prime refinance loans are extended to those who may have experienced even the worst of financial circumstances such as bankruptcy. In spite of a bad history, refinancing with really bad credit can be accomplished if the consumer is willing to work through several aspects of loan issues. Understanding that their past puts these borrowers at an automatic deficit for loans, lenders first determine how bad a consumer's credit is becomes the first issue to lenders past is.
All lenders specializing in sub prime refinance loans have varying requirements when qualifying for their loans. Some analyze their client's ratings based on a grading scale much like an academic setting such as A, B, C, D, etc. Others use scores by FICO and other institutions that rate consumers between a 400 to 800 score, with 400 being the worst score and 800 the best score a consumer can receive. Lenders that allow refinancing with really bad credit set their minimum required ratings sub par of a typical mortgage loan for consumers with a good financial history. Mortgage lenders that assist these borrowers also usually require a certain debt-to-earning ratio, depending on their standards.
Other lending aspects such as points, processing fees, and minimum equity required are variables in getting these loans. For the consumer interested in investigating a loan, it is wise to be wary of mortgage lenders and brokers who will charge more than 4 or 5 points for closing costs and who add on more than usual lender's fees. There are some who border on fraudulent practices with regard to unreasonable lending charges, so checking out several lending sources and practices is wise for anyone refinancing with really bad credit. But the most important step to take when a person gets into financial problems is to call upon God for wisdom and mercy. The psalmist writes, "God be merciful unto us, and bless us; and cause his face to shine upon us" (Psalm 67:1). Whether a Christian has caused his own problems or tragedies have resulted in financial disaster, God can help. He is the first and the last person to consult over our financial dealings.
http://www.christianet.com/refinancing/refinancingreallybadcredit.htm
All lenders specializing in sub prime refinance loans have varying requirements when qualifying for their loans. Some analyze their client's ratings based on a grading scale much like an academic setting such as A, B, C, D, etc. Others use scores by FICO and other institutions that rate consumers between a 400 to 800 score, with 400 being the worst score and 800 the best score a consumer can receive. Lenders that allow refinancing with really bad credit set their minimum required ratings sub par of a typical mortgage loan for consumers with a good financial history. Mortgage lenders that assist these borrowers also usually require a certain debt-to-earning ratio, depending on their standards.
Other lending aspects such as points, processing fees, and minimum equity required are variables in getting these loans. For the consumer interested in investigating a loan, it is wise to be wary of mortgage lenders and brokers who will charge more than 4 or 5 points for closing costs and who add on more than usual lender's fees. There are some who border on fraudulent practices with regard to unreasonable lending charges, so checking out several lending sources and practices is wise for anyone refinancing with really bad credit. But the most important step to take when a person gets into financial problems is to call upon God for wisdom and mercy. The psalmist writes, "God be merciful unto us, and bless us; and cause his face to shine upon us" (Psalm 67:1). Whether a Christian has caused his own problems or tragedies have resulted in financial disaster, God can help. He is the first and the last person to consult over our financial dealings.
http://www.christianet.com/refinancing/refinancingreallybadcredit.htm
Tuesday, July 17, 2007
Refinance Lender
A refinance lender can help lower mortgage interest rates to reduce monthly house payments and save thousands in interest charges over the course of the loan. However, refinancing is not for everyone. Factors such as rate differences and the amount of time owning the home are significant considerations. Refinance lenders can help individuals determine whether refinancing is the right choice.
Refinancing an original loan to a lesser rate results in immediate savings in a lower monthly payment and also significant savings in interest fees over the life of the loan. Another option is to finance to a shorter term which may not substantially reduce their monthly payment, but saves thousands in interest charges and can cut the length of the loan in half. An educated and trusted refinance lender will be able to help determine what is best for each situation. Borrowers with adjustable rate mortgages (ARMs) often seek other financing options to afford a guaranteed rate for the life of the loan. Some use refinance lenders to obtain a second loan or home equity loan. Making this kind of decision needs to be done with lots of research and faith. Romans 5:1 says Therefore being justified by faith, we have peace with God through our Lord Jesus Christ. Trusting that God is on our side and blesses efforts toward a more Godly life is definitely a step in the right direction toward confident decision-making.
As a general rule, refinancing a home is worthwhile if rates have fallen 2 points lower than what is currently being paid. However, refinancing a 2-point difference might not be worthwhile for people not staying in a home for long due to the cost associated with a refinance. It typically takes 3 years to recoup the costs of a refinance and then begin saving money on the lower rate. Hold off on using a refinance lender if planning on moving in 3 years or less. Cost can vary widely from one to another. Expect application fees, title fees, origination or point fees, and a variety of other costs.
To compare the costs of refinancing from one refinance lender to another, ask for a good faith estimate. A good faith estimate requires the lender to clearly itemize their fees that incur as part of refinancing. When reading estimates be on the lookout for prepayment penalties that charge extra interest if paying the loan off early or in the event of a sale. Prepayment penalties can be a deterrent to refinancing, so look for refinance lenders that do not include such a penalty in their loans. Be a cautious consumer when comparing refinance lenders so that the lender isn't the only one who benefits from the new loan.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinancelenders.htm
Refinancing an original loan to a lesser rate results in immediate savings in a lower monthly payment and also significant savings in interest fees over the life of the loan. Another option is to finance to a shorter term which may not substantially reduce their monthly payment, but saves thousands in interest charges and can cut the length of the loan in half. An educated and trusted refinance lender will be able to help determine what is best for each situation. Borrowers with adjustable rate mortgages (ARMs) often seek other financing options to afford a guaranteed rate for the life of the loan. Some use refinance lenders to obtain a second loan or home equity loan. Making this kind of decision needs to be done with lots of research and faith. Romans 5:1 says Therefore being justified by faith, we have peace with God through our Lord Jesus Christ. Trusting that God is on our side and blesses efforts toward a more Godly life is definitely a step in the right direction toward confident decision-making.
As a general rule, refinancing a home is worthwhile if rates have fallen 2 points lower than what is currently being paid. However, refinancing a 2-point difference might not be worthwhile for people not staying in a home for long due to the cost associated with a refinance. It typically takes 3 years to recoup the costs of a refinance and then begin saving money on the lower rate. Hold off on using a refinance lender if planning on moving in 3 years or less. Cost can vary widely from one to another. Expect application fees, title fees, origination or point fees, and a variety of other costs.
To compare the costs of refinancing from one refinance lender to another, ask for a good faith estimate. A good faith estimate requires the lender to clearly itemize their fees that incur as part of refinancing. When reading estimates be on the lookout for prepayment penalties that charge extra interest if paying the loan off early or in the event of a sale. Prepayment penalties can be a deterrent to refinancing, so look for refinance lenders that do not include such a penalty in their loans. Be a cautious consumer when comparing refinance lenders so that the lender isn't the only one who benefits from the new loan.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinancelenders.htm
Refinancing A Mortgage Loan
Refinancing a mortgage loan offers are very popular right now, abounding through the mail, email and the Internet. The success of these loans is very profitable for the finance companies, institutions, credit unions and banks that are offering them. There is a lot of money to be made in fees, interest payments and miscellaneous charges attached. With all the hype around, it's hard for homeowners to choose the right lender to trust with their home refinance. Here are a few things for consumers to consider if refinancing mortgage loans might be something they want to execute.
Only after much consideration and research should refinancing a mortgage loan be entered into. "The heart of the wise teacheth his mouth, and addeth learning to his lips" (Proverbs 16:23). The process has become big business for those institutions dealing in them. Lending companies understand that they must convince consumers they have the best deal in town. Homeowners shouldn't think that they have to accept the first offer. There are millions of companies out there who want profit for refinancing a mortgage loan. Ads have to make it sound really good or the companies won't be able to convince consumers to refinance with them. Homeowners need to look at the deals carefully and be sure to understand all the charges such as points, finance charges and origination fees.
Financial hardship, lower interest rates or shorter terms are usually what tempt people into refinancing mortgage loans. These can be valid reasons that can assist the consumer and help their credit. Homeowners who find they cannot make payments on a credit card and their debts might find refinancing helpful. They can cash in their equity and pay everything off, thereby allowing them to save their credit. This can be a wise thing to do if the consumer is certain he will not accumulate more debt. Refinancing can be a good arrangement if the homeowner can get a lower interest rate, allowing him or her to save money over the term of the loan. Shorter loan terms are always an intelligent reason to refinance if it means paying off a loan earlier. To consider refinancing mortgage loans, one must know what they want to achieve and what is involved in obtaining that goal. Those with questions should consult a mortgage broker or financial advisor. Such professionals will offer sound advice, and homeowners will feel better about their decision.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinancingmortgageloans.htm
Only after much consideration and research should refinancing a mortgage loan be entered into. "The heart of the wise teacheth his mouth, and addeth learning to his lips" (Proverbs 16:23). The process has become big business for those institutions dealing in them. Lending companies understand that they must convince consumers they have the best deal in town. Homeowners shouldn't think that they have to accept the first offer. There are millions of companies out there who want profit for refinancing a mortgage loan. Ads have to make it sound really good or the companies won't be able to convince consumers to refinance with them. Homeowners need to look at the deals carefully and be sure to understand all the charges such as points, finance charges and origination fees.
Financial hardship, lower interest rates or shorter terms are usually what tempt people into refinancing mortgage loans. These can be valid reasons that can assist the consumer and help their credit. Homeowners who find they cannot make payments on a credit card and their debts might find refinancing helpful. They can cash in their equity and pay everything off, thereby allowing them to save their credit. This can be a wise thing to do if the consumer is certain he will not accumulate more debt. Refinancing can be a good arrangement if the homeowner can get a lower interest rate, allowing him or her to save money over the term of the loan. Shorter loan terms are always an intelligent reason to refinance if it means paying off a loan earlier. To consider refinancing mortgage loans, one must know what they want to achieve and what is involved in obtaining that goal. Those with questions should consult a mortgage broker or financial advisor. Such professionals will offer sound advice, and homeowners will feel better about their decision.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinancingmortgageloans.htm
Refinancing A House
Refinancing a house may be one of the wisest steps a person can take, especially if he has large credit card debt, high medical bills, or a high interest rate on his current mortgage. The first thing a person does to figure out if this step is wise for him is to assess his current home loan. The positive attributes vary for the homeowner, depending on his or her interest rates and long-term plans. Second, take a step by step look at the various lenders who are anxious to take over your loan. Because interest rates are at an all-time low, many borrowers will find that redoing their mortgage will be financially advantageous.
When analysing the choices, use the two percent rule. If the current interest rate on the mortgage when refinancing a house is a minimum of 2 percent points higher than the market's current rate, a borrower might be a good candidate for this type of loan. There are also costs, which we will discuss in detail further on. In order to make those costs worth while ask, the borrower should ask himself: "How long do I plan to stay in my house?" Usually three years are necessary to fully appreciate the savings that comes with a lower interest rate. In looking at examples of homes that have been refinanced, the monthly payments may be higher but the number of payments drops. For example, the loan length may change from twenty-five years to ten years. It is wise to use the house that you plan to live in for a few years. In addition to the number of future years in the house, one must consider the home values verses the closing costs. If the home value is rising or staying the same, the homeowner may be able to increase its equity faster with a lower interest rate. Unfortunately, if the house value is dropping, the closing cost may not be worthwhile.
Lenders should give the borrower a detailed description on how he can save a lot of money with a shorter loan, and may achieve long-term savings. In a basic breakdown there are two main costs to refinancing a house with underlying attributes; application fees and title search and insurance fees. The application fee is charge by a lender for the primary costs of processing the loan request and checking the credit report. The title search and title insurance fees are in place to insure the policyholder a specific amount should discrepancies arise. There last tip to save money and avoid purchasing a brand new policy. Ask the company for a re-issued policy at the re-issued rate. This policy recycling may save 70% more money that purchasing a new policy.
The possibilities of lower rates and less payments are tempting for those who are considering accepting unused gifts. However, one must remember the true foundation of a home is not in its physical stature or the amazing deal earned on refinancing a house. Instead, we live as if what we have is just temporary. Jesus is coming soon. "But Christ as a son over his own house; whose house are we, if we hold fast the confidence and the rejoicing of the hope firm unto the end." (Hebrews 3:6)
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinancingahouse.htm
When analysing the choices, use the two percent rule. If the current interest rate on the mortgage when refinancing a house is a minimum of 2 percent points higher than the market's current rate, a borrower might be a good candidate for this type of loan. There are also costs, which we will discuss in detail further on. In order to make those costs worth while ask, the borrower should ask himself: "How long do I plan to stay in my house?" Usually three years are necessary to fully appreciate the savings that comes with a lower interest rate. In looking at examples of homes that have been refinanced, the monthly payments may be higher but the number of payments drops. For example, the loan length may change from twenty-five years to ten years. It is wise to use the house that you plan to live in for a few years. In addition to the number of future years in the house, one must consider the home values verses the closing costs. If the home value is rising or staying the same, the homeowner may be able to increase its equity faster with a lower interest rate. Unfortunately, if the house value is dropping, the closing cost may not be worthwhile.
Lenders should give the borrower a detailed description on how he can save a lot of money with a shorter loan, and may achieve long-term savings. In a basic breakdown there are two main costs to refinancing a house with underlying attributes; application fees and title search and insurance fees. The application fee is charge by a lender for the primary costs of processing the loan request and checking the credit report. The title search and title insurance fees are in place to insure the policyholder a specific amount should discrepancies arise. There last tip to save money and avoid purchasing a brand new policy. Ask the company for a re-issued policy at the re-issued rate. This policy recycling may save 70% more money that purchasing a new policy.
The possibilities of lower rates and less payments are tempting for those who are considering accepting unused gifts. However, one must remember the true foundation of a home is not in its physical stature or the amazing deal earned on refinancing a house. Instead, we live as if what we have is just temporary. Jesus is coming soon. "But Christ as a son over his own house; whose house are we, if we hold fast the confidence and the rejoicing of the hope firm unto the end." (Hebrews 3:6)
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinancingahouse.htm
Refinance Loan Rate
Refinance loan rate quotes are advertised in many places online, in newspapers, and on bank statements with the intention of attracting homeowners to the world of refinancing. These numbers are typically lower than the regular mortgage rate to be competitive with the lending market. Most lending institutions have a refinancing department. Quotes are estimates given to individuals based on their credit history. Refinance loan rates are directly influenced by the borrowers credit report score. It is advised that a borrower present the lender with a copy of their credit report less than 30 days old.
A credit report is considered valid if pulled within 30 days. Creditors submit updates to the credit reporting agency monthly, so a credit report can drastically change in 30 days. For Example: a woman gets a refinance loan rate quote from a lender based on the credit report score of 700 that was pulled 15 days ago. The loan begins to process, and 45 days later, the promissory note to sign has a higher interest rate quoted. This woman was told that the refinance loan rate would be under 6% based on the credit score. In actuality, right before the promissory note was made available; a new credit report was pulled by the lender. This new report showed a credit score of 650.
Quotes are lower with the higher credit scores, and higher with the lower credit scores. The woman in the above situation could have just gone on vacation, racked up all the credit cards and because of the high balance on the credit cards, received a much lower credit score. She was quoted based on the credit score of 700 (which is good). Her score of 650 puts her at a credit risk, and thus her refinance loan rate could have dramatically increased. Romans 8:28 says "And we know that all things work together for good to them that love God, to them who are the called according to his purpose." This reminds Christians that prayer and dependence on God is the best way to conduct life.
Refinance loan rates are frequently subject to change, up until the time the promissory note is made available for the borrower to sign. A pre-qualifing quote is not the same as a pre-approved quote and should not be taken for granted. Rest assured that the lending institution will run a credit check the day before the promissory not is released. It is extremely important that those borrowers seeking the best deal be sure that their credit score is high, and that they refrain from using any credit until the promissory note is signed. This will ensure accuracy of the previously quoted refinance loan rates.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinanceloanrates.htm
A credit report is considered valid if pulled within 30 days. Creditors submit updates to the credit reporting agency monthly, so a credit report can drastically change in 30 days. For Example: a woman gets a refinance loan rate quote from a lender based on the credit report score of 700 that was pulled 15 days ago. The loan begins to process, and 45 days later, the promissory note to sign has a higher interest rate quoted. This woman was told that the refinance loan rate would be under 6% based on the credit score. In actuality, right before the promissory note was made available; a new credit report was pulled by the lender. This new report showed a credit score of 650.
Quotes are lower with the higher credit scores, and higher with the lower credit scores. The woman in the above situation could have just gone on vacation, racked up all the credit cards and because of the high balance on the credit cards, received a much lower credit score. She was quoted based on the credit score of 700 (which is good). Her score of 650 puts her at a credit risk, and thus her refinance loan rate could have dramatically increased. Romans 8:28 says "And we know that all things work together for good to them that love God, to them who are the called according to his purpose." This reminds Christians that prayer and dependence on God is the best way to conduct life.
Refinance loan rates are frequently subject to change, up until the time the promissory note is made available for the borrower to sign. A pre-qualifing quote is not the same as a pre-approved quote and should not be taken for granted. Rest assured that the lending institution will run a credit check the day before the promissory not is released. It is extremely important that those borrowers seeking the best deal be sure that their credit score is high, and that they refrain from using any credit until the promissory note is signed. This will ensure accuracy of the previously quoted refinance loan rates.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinanceloanrates.htm
Reverse Home Mortgage
A reverse home mortgage is an increasingly popular financial plan for older people who own their homes and need money. Essentially, this plan allows a homeownwer to borrow against the equity in the house. However, unlike traditional financing plans, repayment is not due until the last survivor passes away or moves out of the residence. The way reverse home mortgages benefit the lenders is that when all the owners die, the house can then be sold by the estate and the loan can be repaid.
In order to qualify, no other liens should be placed against the property. Ideally, the homeowner will own the house outright. If a homeowner still owes a balance on a note, however, a reverse home mortgage could still be a possibility. Sometimes these new loans can be used to pay off the first note as well as any other outstanding debts against the house. This will then leave the new note as the only loan against the property. The fees for reverse home mortgages can also be rolled into the new loan so applicants do not need to come up with extra cash to enter into the contract.
Often the elderly find themselves in financial situations due to rising medical costs, excessive home repairs, and loss of income through retirement. More of a hardship can be created if they are then forced to sell their residence to repay debts. Reverse home mortgages offer a solution to these financial problems by allowing the elderly to borrow against the equity they have spent perhaps a lifetime building, without the burden of worrying about repayment. A reverse home mortgage does not allow a person to borrow more than the value of the home. This ensures that the lender will be sufficiently repaid when the house is sold.
How do lenders make money on these services? Interest is charged on reverse home mortgages, but it is rolled into the loan and accumulates over time. When the house is sold, interest is calculated and added to the total amount due from the estate. A reverse home mortgage creates a worry-free way for senior adults to enjoy their retirement without the hassle of asking their children for money or severely adjusting their lifestyles. "The hoary head is a crown of glory, if it be found in the way of righteousness," (Proverbs 16:31).
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/reversehomemortgages.htm
In order to qualify, no other liens should be placed against the property. Ideally, the homeowner will own the house outright. If a homeowner still owes a balance on a note, however, a reverse home mortgage could still be a possibility. Sometimes these new loans can be used to pay off the first note as well as any other outstanding debts against the house. This will then leave the new note as the only loan against the property. The fees for reverse home mortgages can also be rolled into the new loan so applicants do not need to come up with extra cash to enter into the contract.
Often the elderly find themselves in financial situations due to rising medical costs, excessive home repairs, and loss of income through retirement. More of a hardship can be created if they are then forced to sell their residence to repay debts. Reverse home mortgages offer a solution to these financial problems by allowing the elderly to borrow against the equity they have spent perhaps a lifetime building, without the burden of worrying about repayment. A reverse home mortgage does not allow a person to borrow more than the value of the home. This ensures that the lender will be sufficiently repaid when the house is sold.
How do lenders make money on these services? Interest is charged on reverse home mortgages, but it is rolled into the loan and accumulates over time. When the house is sold, interest is calculated and added to the total amount due from the estate. A reverse home mortgage creates a worry-free way for senior adults to enjoy their retirement without the hassle of asking their children for money or severely adjusting their lifestyles. "The hoary head is a crown of glory, if it be found in the way of righteousness," (Proverbs 16:31).
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/reversehomemortgages.htm
Refinance A Mortgage
Refinance a mortgage only after considering all financial factors that impact the final decision including rates, closing costs, monthly payments and length of pay off. If a person is considering a second mortgage on their home, but is not sure if it is really worth it, a good look at the market is recommended in order to insure the best refinance package for the specific situation. There are many lenders that offer varying refinance packages with different interest rates, points charged and payment options. Nothing is fixed in stone throughout the lender market, so it is wise to consider all financial options through several lenders.
In order to get the best rates, best closing costs and best money saving payment plans, the consumer with a good credit rating, larger home equity, and yearly earning ability can negotiate a better refinance package. However, many consumers do not have all but perfect financial status and it is still possible to refinance a mortgage with satisfactory results. Understanding the basics of mortgage lending practices regarding closing costs, interest rates, and payment plans require diligence on the part of any consumer. Do not be afraid to ask questions and more questions in determining the best plan. "Take fast hold of instruction; let her not go: keep her; for she is thy life." (Proverbs 4:13)
Determining why refinancing is needed and what the personal financial goals are in securing a second mortgage. Perhaps a person who wishes to cash in some substantial home equity in order to finance college costs, home improvement costs or any other worthy venture. Maybe it is desired to save money in the long run on an adjustable rate mortgage by refinancing with a fixed rate mortgage. Perhaps a person has a goal of paying off their home entirely before retirement and wish to save money by shortening the length of pay off from 30 to 15 years. Knowing clearly what a person wishes to accomplish will help guide them in choosing the right lender through which to refinance a mortgage.
Many lenders offer refinancing with no fees, no points, total equity cash out, and low interest rates. Some except consumer applications with bad credit as well as good credit. Almost all lenders offer free quotes for consumers who wish to refinance a mortgage. A consumer should always take advantage of the free quote offer by checking with at least 3 or 4 lending sources in order to get the most competitive refinance package. Lenders of course do not give something for nothing, so any good refinance package will rest upon the financial status of the consumer.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinanceamortgage.htm
In order to get the best rates, best closing costs and best money saving payment plans, the consumer with a good credit rating, larger home equity, and yearly earning ability can negotiate a better refinance package. However, many consumers do not have all but perfect financial status and it is still possible to refinance a mortgage with satisfactory results. Understanding the basics of mortgage lending practices regarding closing costs, interest rates, and payment plans require diligence on the part of any consumer. Do not be afraid to ask questions and more questions in determining the best plan. "Take fast hold of instruction; let her not go: keep her; for she is thy life." (Proverbs 4:13)
Determining why refinancing is needed and what the personal financial goals are in securing a second mortgage. Perhaps a person who wishes to cash in some substantial home equity in order to finance college costs, home improvement costs or any other worthy venture. Maybe it is desired to save money in the long run on an adjustable rate mortgage by refinancing with a fixed rate mortgage. Perhaps a person has a goal of paying off their home entirely before retirement and wish to save money by shortening the length of pay off from 30 to 15 years. Knowing clearly what a person wishes to accomplish will help guide them in choosing the right lender through which to refinance a mortgage.
Many lenders offer refinancing with no fees, no points, total equity cash out, and low interest rates. Some except consumer applications with bad credit as well as good credit. Almost all lenders offer free quotes for consumers who wish to refinance a mortgage. A consumer should always take advantage of the free quote offer by checking with at least 3 or 4 lending sources in order to get the most competitive refinance package. Lenders of course do not give something for nothing, so any good refinance package will rest upon the financial status of the consumer.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/refinanceamortgage.htm
School Loan
School loans are an alternative to consider when needing to provide a good education on a tight budget. A school loan will allow young adults to earn a college degree even if financial resources are limited. There are quite a few lending companies, federal and private, that offer a variety of programs for the student. These loans will provide money to cover tuition, books, laptop computers, lodging, meals, and a number of other expenses associated with higher education. This is one of the most needed financial assistance programs that the individual could obtain. The payoff of being able to obtain or provide a great education for a child is priceless.
Educational funding programs have terms similar to any type of personal loan that an individual might obtain. The individual can find a school loan with a reasonable interest rate, which is determined by the current prime rate and personal credit history. A small percentage above prime will be added if there are credit problems. The interest rate is adjusted monthly on many school loans. Most funding packages offer low monthly payments and varying lengths of terms. Virtually any type of education can be funded with financial aid from a lender. Examples of education paths that can be funded include medical school, community colleges, technical school, undergraduate education, parent education, career training, and more.
Some programs allow the student to defer payment on the principal for a number of years. Sometimes, this is contingent upon when the student graduates. Upon graduation, the borrower will most likely have to begin paying a higher amount each month in order to pay back the school loan in a timely manner. Other lenders offering school loans will not require payment until the course of education is complete. "A wise man will hear, and will increase learning; and a man of understanding shall attain to wise counsels." (Proverbs 1:5)
Another benefit of a school loan is that when a young student applies, it helps establish the student's credit history. Young people must have a starting point when it comes to establishing credit. They are rarely given the opportunity to do this before graduating from high school. School loans offer the first step in setting the stage for a good credit record. It is also possible that a student that has never borrowed before may be required to have a co-borrower. The bottom line is that education is one of the best investments a person can make and these financial packages are available to help a person get the most out of an investment.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/schoolloans.htm
Educational funding programs have terms similar to any type of personal loan that an individual might obtain. The individual can find a school loan with a reasonable interest rate, which is determined by the current prime rate and personal credit history. A small percentage above prime will be added if there are credit problems. The interest rate is adjusted monthly on many school loans. Most funding packages offer low monthly payments and varying lengths of terms. Virtually any type of education can be funded with financial aid from a lender. Examples of education paths that can be funded include medical school, community colleges, technical school, undergraduate education, parent education, career training, and more.
Some programs allow the student to defer payment on the principal for a number of years. Sometimes, this is contingent upon when the student graduates. Upon graduation, the borrower will most likely have to begin paying a higher amount each month in order to pay back the school loan in a timely manner. Other lenders offering school loans will not require payment until the course of education is complete. "A wise man will hear, and will increase learning; and a man of understanding shall attain to wise counsels." (Proverbs 1:5)
Another benefit of a school loan is that when a young student applies, it helps establish the student's credit history. Young people must have a starting point when it comes to establishing credit. They are rarely given the opportunity to do this before graduating from high school. School loans offer the first step in setting the stage for a good credit record. It is also possible that a student that has never borrowed before may be required to have a co-borrower. The bottom line is that education is one of the best investments a person can make and these financial packages are available to help a person get the most out of an investment.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/schoolloans.htm
Second Mortgage Loan Rate
Second mortgage loan rates vary according to the type of funding a person is looking for, and that is usually a decision the borrower makes based upon what the money is needed for and how much is needed. The second mortgage loan rate that has the lowest payment is the line of credit. This note allows the borrower to draw on cash up to the value of his home equity as it is needed. The interest rates on contracts of this type vary with the prime rate at the time of a withdrawal, but the payments are usually smaller than with a fixed note because the borrower has the option of paying interest-only for a period of time. This rate is useful if the borrower wants to use the money for more than one purpose or if a customer needs the money immediately because he anticipates some large expenses or an upcoming financial opportunity. Though the payments may vary on second mortgage loan rates, they can be extended over fifteen to thirty years.
Just like first mortgages, a second mortgage loan rate for a fixed loan remains the same throughout the payback period, as do the payments. If the entire amount is needed immediately, this kind of note is most helpful. Borrowers often get this type for consolidating debt, paying for college tuition, making home improvements, or buying a car. The fact that the payments remain the same throughout the term of the contract makes this more acceptable to most borrowers. The interest will most likely be lower than the interest the borrower has been paying on credit cards. Even regular unsecured loans from a bank will have a higher interest percentages, so borrowers save by using the equity on their homes.
It is important for the homeowner to remember that a second mortgage rate is a lien on the house until it is paid off, and if he should decide for some reason to sell the house before that note is paid off, it will be taken out of the proceeds of the home sale before he gets any money. Furthermore, there are so many companies offering interest percentage that vary widely that it is important to check them out before signing any contract. Many online sites automatically give an applicant four companies to choose from for second mortgage loan rates, which helps one make a decision. When considering increasing one's indebtedness, it is good to remember "The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth" (Psalm 37:21). Although taking out a second mortgage loan rate is not prohibited in the Bible, God does require believers to handle their money wisely and not spend foolishly.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/secondmortgageloanrates.htm
Just like first mortgages, a second mortgage loan rate for a fixed loan remains the same throughout the payback period, as do the payments. If the entire amount is needed immediately, this kind of note is most helpful. Borrowers often get this type for consolidating debt, paying for college tuition, making home improvements, or buying a car. The fact that the payments remain the same throughout the term of the contract makes this more acceptable to most borrowers. The interest will most likely be lower than the interest the borrower has been paying on credit cards. Even regular unsecured loans from a bank will have a higher interest percentages, so borrowers save by using the equity on their homes.
It is important for the homeowner to remember that a second mortgage rate is a lien on the house until it is paid off, and if he should decide for some reason to sell the house before that note is paid off, it will be taken out of the proceeds of the home sale before he gets any money. Furthermore, there are so many companies offering interest percentage that vary widely that it is important to check them out before signing any contract. Many online sites automatically give an applicant four companies to choose from for second mortgage loan rates, which helps one make a decision. When considering increasing one's indebtedness, it is good to remember "The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth" (Psalm 37:21). Although taking out a second mortgage loan rate is not prohibited in the Bible, God does require believers to handle their money wisely and not spend foolishly.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/secondmortgageloanrates.htm
Second Mortgage Refinancing
With second mortgage refinancing, consumers can get benefits with a refinance for their previous second mortgage. With interest rates in the low digits, consumers and home owners are flocking to lending agencies to get assistance with their finance options. The Internet today has opened a new way of doing banking and borrowing and there are lenders using the Internet to advertise their services and to advertise providing help on mortgages. With the new way of handling loans and refinance packages, home owners can easily get ample information about rates and loans before they sign any commitment. And, these types of lenders are actually competing for a person's business, so they shop around and find the best deal for their financing package.
We hear about programs geared toward homeowners in this area, but a second mortgage refinancing package is hardly spoken of. But, this type of finance is available, and as consumers want to tap into the lower interest rates available now, they are considering ways to take advantage of these programs. Lowering an interest rate can save an individual or family thousands of dollars. With this type of financing, those who have an additional mortgage at a higher interest rate may want to determine if getting this loan refinanced will be worth the closing costs. Usually, and especially if the homeowner has a good credit rating, the different types of options is well worth the closing costs and the effort.
And, speaking of effort, never before has applying for a loan been easier. Homeowners who want to apply for a second mortgage refinancing package have only to turn on their computers and surf the Internet. The Internet has brought a unique financial opportunity to consumers, and that opportunity is shopping lenders. One's local banker is no longer the only game in town. There are brokerage firms online that will take their application, screen it, and then recommend up to four different agencies that would want to work with them. Also, lenders will compete for a chance to offer a person various options for a loan. No more lengthy appointments with bank loan officers, no more waiting for answers.
The Bible tells us to pray about all situations and circumstances in our lives. This is true of financial matters also. Seeking the Lord before making major decisions in life can bring a peace and comfort to the situation, leaving the doubting and second-guessing far behind. "Be careful for nothing; but in every thing by prayer and supplication with thanksgiving let your requests be made known unto God. And the peace of God, which passeth all understanding, shall keep your hearts and minds through Christ Jesus." (Philippians 4:6-7)
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/secondmortgagerefinancing.htm
We hear about programs geared toward homeowners in this area, but a second mortgage refinancing package is hardly spoken of. But, this type of finance is available, and as consumers want to tap into the lower interest rates available now, they are considering ways to take advantage of these programs. Lowering an interest rate can save an individual or family thousands of dollars. With this type of financing, those who have an additional mortgage at a higher interest rate may want to determine if getting this loan refinanced will be worth the closing costs. Usually, and especially if the homeowner has a good credit rating, the different types of options is well worth the closing costs and the effort.
And, speaking of effort, never before has applying for a loan been easier. Homeowners who want to apply for a second mortgage refinancing package have only to turn on their computers and surf the Internet. The Internet has brought a unique financial opportunity to consumers, and that opportunity is shopping lenders. One's local banker is no longer the only game in town. There are brokerage firms online that will take their application, screen it, and then recommend up to four different agencies that would want to work with them. Also, lenders will compete for a chance to offer a person various options for a loan. No more lengthy appointments with bank loan officers, no more waiting for answers.
The Bible tells us to pray about all situations and circumstances in our lives. This is true of financial matters also. Seeking the Lord before making major decisions in life can bring a peace and comfort to the situation, leaving the doubting and second-guessing far behind. "Be careful for nothing; but in every thing by prayer and supplication with thanksgiving let your requests be made known unto God. And the peace of God, which passeth all understanding, shall keep your hearts and minds through Christ Jesus." (Philippians 4:6-7)
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/secondmortgagerefinancing.htm
Stock Loan
A stock loan is an advance of cash based on the value of stock that is held by a person or company. When a stockholder in a company is in need of assistance and does not wish to sell his or her shares, holding on to them as a crucial investment, then the stockholder can find lending companies that will issue stock loans, using the stocks as collateral. Sometimes, within a company, the holding company may even issue an advance to stockholders, negating the need to put up shares as collateral to an outside party. There are many reasons that a stockholder may want to borrow money against his or her held stocks. Sometimes getting this funding may save an investor from complete liquidation and by not selling the stocks, there will be no sales taxes involved with the transactions.
There are many reasons that stockholders can find themselves in need of money. Generally, taking out a stock loan, with a lending company that specializes in this practice, will get the individual the money needed, and still give them the opportunity to own stocks. The stock is used as collateral, and once the amount owed is repaid, the shares used in the transaction will belong solely to the original stockholder once again. Stock loans are generally for large sums of cash of $100,000 or more. Negotiations and terms will depend upon the dividends paid and how the stockholder wants to pay interest. Meaning, a stockholder can choose to not pay interest on the loan, and simply apply all dividends to the lending agency.
The Internet hosts websites that have information that can educate a stockholder on how to get a stock loan. This can be a complicated process, but with the Internet and the access to instant information, stock loans can now be acquired within a matter of twenty-four to forty-eight hours. Those interested can log on to the Internet and research the different companies that specialize in this practice and the different legalities involved with these transactions. The Internet has brought the world of finance into homes, making it simpler to trade and sell stocks and get funding from shares.
If a specific situation has a person considering a stock loan, it is important to take time to consider all of the ramifications of using these holdings as collateral, and possibly losing shares, should the full amount not be repaid. The Bible always encourages patience, giving God the opportunity to exercise His timing in circumstances. "But let patience have her perfect work, that ye may be perfect and entire, wanting nothing. If any of you lack wisdom, let him ask of God, that giveth to all men liberally, and upbraideth not; and it shall be given him." (James 1:4-5)
http://www.christianet.com/refinancemortgage/stockloans.htm
There are many reasons that stockholders can find themselves in need of money. Generally, taking out a stock loan, with a lending company that specializes in this practice, will get the individual the money needed, and still give them the opportunity to own stocks. The stock is used as collateral, and once the amount owed is repaid, the shares used in the transaction will belong solely to the original stockholder once again. Stock loans are generally for large sums of cash of $100,000 or more. Negotiations and terms will depend upon the dividends paid and how the stockholder wants to pay interest. Meaning, a stockholder can choose to not pay interest on the loan, and simply apply all dividends to the lending agency.
The Internet hosts websites that have information that can educate a stockholder on how to get a stock loan. This can be a complicated process, but with the Internet and the access to instant information, stock loans can now be acquired within a matter of twenty-four to forty-eight hours. Those interested can log on to the Internet and research the different companies that specialize in this practice and the different legalities involved with these transactions. The Internet has brought the world of finance into homes, making it simpler to trade and sell stocks and get funding from shares.
If a specific situation has a person considering a stock loan, it is important to take time to consider all of the ramifications of using these holdings as collateral, and possibly losing shares, should the full amount not be repaid. The Bible always encourages patience, giving God the opportunity to exercise His timing in circumstances. "But let patience have her perfect work, that ye may be perfect and entire, wanting nothing. If any of you lack wisdom, let him ask of God, that giveth to all men liberally, and upbraideth not; and it shall be given him." (James 1:4-5)
http://www.christianet.com/refinancemortgage/stockloans.htm
Government Loans To Start A Business
Government loans to start a small business offer various types of financing for different ventures. People can qualify for financing to start a small company even if they do not have great credit, but do have other qualifying factors. One can start or expand businesses in any part of the country provided they can produce evidence of having researched the viability of the idea with a plan. Better research yet would be to heed the words that tell us exactly how to succeed. "As long as he sought the Lord, God made him to prosper." (2 Chronicles 26:5b)
These can provide financing for rural businesses, housing or farms and other traditional types of financing. While rural financing opportunities may vary state-to-state, people typically can get housing and farm financing through federal agencies such as HUD and FHA. The most common types of government loans to start a small business are offered through the Small Business Administration (SBA).
They are offered in various forms and can be long-term with fixed financing or short-term. The government loan to start a small business can come in the form of capital lines of credit, credit cards, equipment leasing or letters of credit. The type received will depend upon the individual financing needs. While some businesses will need working capital, others will need financing for equipment or construction. Fortunately, there are many different types to meet the variety of financing needs.
Because the government recognizes that not everybody who wishes to start a business will have great credit, they have made provision for those situations through the SBA. There are government loans to start a small business for which people can qualify that will take into consideration their individual circumstances. In addition, for those people who may have good credit, but not enough assets to secure a traditional financing, there is financing that focuses on a person's character, experience and reliability. If someone feels they will not qualify based on their past rejection from a traditional lender, they should apply for a government loan to start a small business.
Similar to applying for loans through traditional lenders, one will need to demonstrate the viability of their proposed business with a plan when applying for government financing. The plan not only will help demonstrate the positive potential for the proposed company, but also will show the government agency how it would benefit from a government loan to start a small business. When preparing a business plan in order to receive a loan, insure realistic projections for the businesses' financing needs.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/governmentloanstartsmallbusiness.htm
These can provide financing for rural businesses, housing or farms and other traditional types of financing. While rural financing opportunities may vary state-to-state, people typically can get housing and farm financing through federal agencies such as HUD and FHA. The most common types of government loans to start a small business are offered through the Small Business Administration (SBA).
They are offered in various forms and can be long-term with fixed financing or short-term. The government loan to start a small business can come in the form of capital lines of credit, credit cards, equipment leasing or letters of credit. The type received will depend upon the individual financing needs. While some businesses will need working capital, others will need financing for equipment or construction. Fortunately, there are many different types to meet the variety of financing needs.
Because the government recognizes that not everybody who wishes to start a business will have great credit, they have made provision for those situations through the SBA. There are government loans to start a small business for which people can qualify that will take into consideration their individual circumstances. In addition, for those people who may have good credit, but not enough assets to secure a traditional financing, there is financing that focuses on a person's character, experience and reliability. If someone feels they will not qualify based on their past rejection from a traditional lender, they should apply for a government loan to start a small business.
Similar to applying for loans through traditional lenders, one will need to demonstrate the viability of their proposed business with a plan when applying for government financing. The plan not only will help demonstrate the positive potential for the proposed company, but also will show the government agency how it would benefit from a government loan to start a small business. When preparing a business plan in order to receive a loan, insure realistic projections for the businesses' financing needs.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/governmentloanstartsmallbusiness.htm
VA Small Business Loan
VA small business loans are given to veterans who would like to start or expand a business. They can be given to any veteran who has served on active duty with any of the military divisions as well as those who served as reservists or National Guard members, as long as any of the above has not received a dishonorable discharge. In the majority of circumstances, a VA small business loan can be acquired only if it is a veteran-owned company. In order to be considered veteran-owned, a little over half the company must be owned and controlled by the veteran himself.
The Veterans Affairs office has given over most of the responsibility of securing this financing to the Small Business Administration (SBA). One type that is available is the Microloan, a short-term loan that provides up to $35,000 for small costs but cannot be put toward paying off a previous debt or purchasing real estate. Another type, the Delta, is also made available as a type of VA small business loan and provides assistance to small companies in the defense industry that have been affected by defense spending reductions or closures.
The Veterans Benefits Act of 2003 was set up to assist our service men and women to start a company and provide financial assistance programs for them through VA small business loans. "That they do good, that they be rich in good works, ready to distribute, willing to communicate." (1 Timothy 6:18) One type of financing is specifically set aside for handicapped veterans while another is considered disaster financing for those in the Reserve called up to active duty. This financing helps keep the company up and running while the reservist is away. The SBA is required to defer repayment in this situation. A similar VA small business loan helps smaller companies not necessarily run by a veteran, but nonetheless, someone who will suffer economically from an employee being called to active duty.
The Veterans Corporation, a non-profit organization established for the sole purpose of helping veterans, also offers VA small business loans. This financing has lower than market value rates and also has the same guarantees that non-veteran company owners would have. As anyone can see, VA small business loans are readily available through a variety of government administrations and other organizations and are not very difficult to obtain.
http://www.christianet.com/refinancemortgage/vasmallbusinessloans.htm
The Veterans Affairs office has given over most of the responsibility of securing this financing to the Small Business Administration (SBA). One type that is available is the Microloan, a short-term loan that provides up to $35,000 for small costs but cannot be put toward paying off a previous debt or purchasing real estate. Another type, the Delta, is also made available as a type of VA small business loan and provides assistance to small companies in the defense industry that have been affected by defense spending reductions or closures.
The Veterans Benefits Act of 2003 was set up to assist our service men and women to start a company and provide financial assistance programs for them through VA small business loans. "That they do good, that they be rich in good works, ready to distribute, willing to communicate." (1 Timothy 6:18) One type of financing is specifically set aside for handicapped veterans while another is considered disaster financing for those in the Reserve called up to active duty. This financing helps keep the company up and running while the reservist is away. The SBA is required to defer repayment in this situation. A similar VA small business loan helps smaller companies not necessarily run by a veteran, but nonetheless, someone who will suffer economically from an employee being called to active duty.
The Veterans Corporation, a non-profit organization established for the sole purpose of helping veterans, also offers VA small business loans. This financing has lower than market value rates and also has the same guarantees that non-veteran company owners would have. As anyone can see, VA small business loans are readily available through a variety of government administrations and other organizations and are not very difficult to obtain.
http://www.christianet.com/refinancemortgage/vasmallbusinessloans.htm
VA Loan
VA loans are for veterans backed by the Veterans Administration and are used to purchase a home. Many veterans who would otherwise not be able to buy a home can do so through this program. Eligibility is specific and those who qualify must have a Certificate of Eligibility from the Veterans Administration. There are both benefits and disadvantages to such mortgages, but it really depends on the veteran and their situation.
The Veterans Administration doesn't give out mortgages. They just run the program. Lenders work with the Veterans Administration to become approved partners in the program. The lenders give out funds, and the Veterans Administration will pay a percentage if the veteran happens to default on it. At the current percentage, the Veterans Administration will cover up to $36,000 for a $144,000 VA loan and up to $60,000 over $144,000.
Most people find the program to be beneficial. Typically, there are no prepayment penalties, and no down payment is required. VA loan interest rates are also considerably low. Though the process can be tedious, sometimes approval is faster than approval for conventional loans. Another benefit is there is no need for Private Mortgage Insurance (PMI) and closing costs can be completely covered by the seller.
These type of mortgages do have some setbacks. Sometimes VA loans take longer to process so lenders aren't always eager to process them. Also, not all lenders are VA approved so veterans' choices of lenders are limited compared to someone looking for a conventional loan. Another disadvantage is that the sales price of the home will probably be less negotiable because the seller will be asked to pay closing costs. Lastly, if the veteran defaults on the VA loan, the Veterans Administration will pay the lender, but most likely try to get the money back from the veteran.
Some veterans may find that the program is perfect for their situation. Many are left disabled or unable to work. This makes buying a home extremely difficult. With the VA loan program, veterans can own homes. The best source for information on these mortgages is the Veterans Administration website or someone at the local Veterans Administration office. They can explain if an applicant is eligible after they fill out a form. If the applicant is eligible, the administration will give potential lenders a Certificate of Eligibility. To find a lender, veterans may want to work with a mortgage broker or ask around to see which company is recommended. Above all, military and former military should pray about the decision to pursue VA loans. God will direct each step. "The counsel of the Lord standeth for ever, the thoughts of his heart to all generations". (Psalm 33:11)
The Veterans Administration doesn't give out mortgages. They just run the program. Lenders work with the Veterans Administration to become approved partners in the program. The lenders give out funds, and the Veterans Administration will pay a percentage if the veteran happens to default on it. At the current percentage, the Veterans Administration will cover up to $36,000 for a $144,000 VA loan and up to $60,000 over $144,000.
Most people find the program to be beneficial. Typically, there are no prepayment penalties, and no down payment is required. VA loan interest rates are also considerably low. Though the process can be tedious, sometimes approval is faster than approval for conventional loans. Another benefit is there is no need for Private Mortgage Insurance (PMI) and closing costs can be completely covered by the seller.
These type of mortgages do have some setbacks. Sometimes VA loans take longer to process so lenders aren't always eager to process them. Also, not all lenders are VA approved so veterans' choices of lenders are limited compared to someone looking for a conventional loan. Another disadvantage is that the sales price of the home will probably be less negotiable because the seller will be asked to pay closing costs. Lastly, if the veteran defaults on the VA loan, the Veterans Administration will pay the lender, but most likely try to get the money back from the veteran.
Some veterans may find that the program is perfect for their situation. Many are left disabled or unable to work. This makes buying a home extremely difficult. With the VA loan program, veterans can own homes. The best source for information on these mortgages is the Veterans Administration website or someone at the local Veterans Administration office. They can explain if an applicant is eligible after they fill out a form. If the applicant is eligible, the administration will give potential lenders a Certificate of Eligibility. To find a lender, veterans may want to work with a mortgage broker or ask around to see which company is recommended. Above all, military and former military should pray about the decision to pursue VA loans. God will direct each step. "The counsel of the Lord standeth for ever, the thoughts of his heart to all generations". (Psalm 33:11)
No Cost Refinancing
No cost refinancing usually means that the lender agrees to pay all normal closing costs when refinancing a mortgage. Some of these costs include the loan origination fee, appraisal fee, credit report fee, attorney's fees and title fees. One reason to consider no cost refinancing might be because of job loss or a job change resulting in lower income. Current monthly payments may be too high to maintain and as a result payments are late and charges are mounting up. Late payments are resulting in a lower credit score and credit history is being damaged. Damaged credit history will mean paying higher interest and fees for future purchases. To avoid damage to credit consider refinancing with a lower interest rate. This should also result in a lower monthly payment and shorter payoff terms.
Today's market still reflects low interest rates for mortgages. Now is a good time to consider refinancing to take advantage of these current rates before they increase. Many lending institutions and mortgage companies offer competitive rates along with many other advantages. No loan fees, or up front costs to borrowers. Some companies advertise no appraisal needed and no income verification. If a consumer has been faithful to make payments on an existing mortgage it is very easy to acquire a new agreement with limited hassle. "And he said unto him, Well, thou good servant: because thou hast been faithful in a very little, have thou authority over ten cities" (Luke 19:17).
When considering no cost refinancing, think about changing an adjustable rate to a fixed rate. Acquiring a low fixed rate will mean that the interest rate will remain the same over the entire life of the loan. It won't fluctuate with changing markets. If the borrower already has a fixed rate then it is possible to refinance with a lower interest rate. Some lenders guarantee that there will be no cost charged to the borrower nor will any of the costs will rolled into the agreement. With this type of offer how can one go wrong? More than likely the consumer who takes advantage of this type of deal will end up paying much less for their home in the long run.
Many lenders online offer no prepayment penalties on no cost refinancing. Do a search on the Internet and ask for a free quote. Mortgage companies may require current mortgage payment history. Additional documents needed may vary depending on the institution. It is important to get competitive comparisons on mortgage loans since some companies have stipulations that might apply. Some organizations offer to pay all the closing costs to refinance a mortgage but they don't offer competitive interest rates. Be sure to ask about other fees that might apply with this type of loan.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/nocostrefinancing.htm
Today's market still reflects low interest rates for mortgages. Now is a good time to consider refinancing to take advantage of these current rates before they increase. Many lending institutions and mortgage companies offer competitive rates along with many other advantages. No loan fees, or up front costs to borrowers. Some companies advertise no appraisal needed and no income verification. If a consumer has been faithful to make payments on an existing mortgage it is very easy to acquire a new agreement with limited hassle. "And he said unto him, Well, thou good servant: because thou hast been faithful in a very little, have thou authority over ten cities" (Luke 19:17).
When considering no cost refinancing, think about changing an adjustable rate to a fixed rate. Acquiring a low fixed rate will mean that the interest rate will remain the same over the entire life of the loan. It won't fluctuate with changing markets. If the borrower already has a fixed rate then it is possible to refinance with a lower interest rate. Some lenders guarantee that there will be no cost charged to the borrower nor will any of the costs will rolled into the agreement. With this type of offer how can one go wrong? More than likely the consumer who takes advantage of this type of deal will end up paying much less for their home in the long run.
Many lenders online offer no prepayment penalties on no cost refinancing. Do a search on the Internet and ask for a free quote. Mortgage companies may require current mortgage payment history. Additional documents needed may vary depending on the institution. It is important to get competitive comparisons on mortgage loans since some companies have stipulations that might apply. Some organizations offer to pay all the closing costs to refinance a mortgage but they don't offer competitive interest rates. Be sure to ask about other fees that might apply with this type of loan.
For more information: http://www.christianet.com/refinancemortgage
http://www.christianet.com/refinancemortgage/nocostrefinancing.htm
Monday, July 16, 2007
How To Lower Your Payment When Refinancing Your Mortgage
If you are in the market for a new mortgage loan because you need a lower monthly payment, there are several ways to accomplish this. Even if your credit prevents your from qualifying for a lower mortgage rate there are ways to lower your payment amount when refinancing. Here are several tips to help you get a lower mortgage paying without paying lender junk fees.
The most desirable method of lowering your monthly mortgage payment is to refinance with a lower mortgage rate. If your financial situation has improved since you purchased your home you may qualify for a lower interest rate. This improvement could be due to paying down your bills, getting a higher paying job, or even getting married. Remember that even though your mortgage payment has gone down you will not realize a savings from refinancing until you break even from your expenses.
You can calculate how long it will take you to break even by dividing your total costs from refinancing (closing costs, points etc) by the amount your mortgage payment went down each month and dividing by twelve. This will tell you the number of months it will take to recoup your expenses from refinancing the loan.
If you are unable to qualify for a lower interest rate when refinancing your mortgage you can still lower your monthly payment by extending the term length of your loan. This is a less desirable option as it will result in paying more to the lender for financing; however, as a short-term solution it could provide much needed relief to your monthly budget. Term length is simply the amount of time you have to repay the loan and along with your interest rate determines your payment amount. Common term lengths are 15 or 30 years; however; there are now mortgage loans available with 40 and 50 year term lengths.
Homeowners who are able to qualify for a lower mortgage rate could lower their payment amount further by combining both options. Extending the term length with a lower mortgage rate would allow you take advantage of the lowest payment while paying less to the lender for your financing. You can learn more about your mortgage refinancing options, including costly pitfalls to avoid with a free mortgage toolkit.
To get your FREE Mortgage Refinancing Video Toolkit, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this "Mortgage Refinancing Toolkit," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com
Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Refinancing Mortgage Rate
http://ezinearticles.com/?How-To-Lower-Your-Payment-When-Refinancing-Your-Mortgage&id=643012
Louisville City Mortgage
Mortgage and refinance specialist in Louisville, Kentucky. Louisville City Mortgage makes the loan process as simple and worry free as possible, with online applications.
If you are looking for a mortgage lender in the Louisville, Kentucky area, you may want to check out Louisville City Mortgage. This company offers complete service from mortgage processing to loan closing, and promises to keep customers informed every step of the way.
They pride themselves on providing superior customer service and working hard to exceed the expectations of the their customers, who often save money and close their loans quickly. Louisville City Mortgage is able make good on its promises to save its customers money and for quick closings by using advanced technology that coordinates the mortgage process and finds the best rates and terms possible.
You can apply for a loan with Louisville City Mortgage several different ways: complete the full application online and save it if you are unable to finish right away or complete a short application, which only takes five minutes, and a loan officer will contact you once the application is received. You can also call to have a loan officer complete the application over the phone or download and print the form and send it via U.S. mail or fax.
The company website also offers other great tools, including various calculators, a glossary of terms, and a library where you can study before going ahead with your mortgage loan. All in all, Louisville City Mortgage is a very good deal. Check it out!
Christian Stogner & Louisville City Mortgage is your one stop shop for mortgages in the state of Kentucky.
www.louisvillecitymortgage.com
http://ezinearticles.com/?Louisville-City-Mortgage&id=640141
How To Avoid Foreclosure
The first thing you'll want to do to avoid foreclosure is stay current on your mortgage payments. Of course this is obvious, but what may not be so obvious are the options you have for doing this. If you are already behind on your payments, there are some tips for you in in part two as well.
If the problem is truly temporary, and soon you'll be able to handle your payments again, borrow the money to keep up on your payments. Family may be able to help, but even if you have to pay a few hundred dollars in interest for credit card advances, it may be better than losing your home. Consider what you have to lose in equity, and you may find that it even makes sense to cash in some of your retirement account and pay the penalty. You may also be able to borrow from your 401k.
Don't start borrowing on credit cards and breaking into retirement funds if the situation isn't truly temporary, however. You'll just make matters worse. If the real problem is that the mortgage payment is just more than you can handle, you need to look at long-term solutions.
If you have maintained your credit rating to this point, you might find financing with lower payments. Lower payments can be because of lower interest rate, or a longer amortization period. Don't be tempted into lowering your payments with an adjustable rate loan that has a low initial interest rate. Unless your income situation changes dramatically, in a year or two you'll have the same problem all over.
Another option is to sell the home an move into a less expensive home. This works best if you have some equity in your home, to help you with both the down payment on the next one and with the transition costs. If you have no equity, you may have to consider selling your home and renting for a few years.
Already Facing Foreclosure?
If you are already late on your mortgage payments, don't wait for things to happen. Get actively involved in solving the problem right now. You not only face being foreclosed on and losing your home, but if the home is then sold for less than you owe, you might be sued for the difference (depending on the terns of your mortgage loan). Both foreclosures and deficiency judgments can seriously affect your ability to qualify for credit in the future.
Call the lender and explain the situation. Depending on the type of loan, lenders can sometimes arrange a repayment plan (for back payments) that you can afford. They can sometimes arrange a temporary reduction in the payments, or even a temporary suspension of payments. (The latter isn't likely unless you have been laid-off from work and have a return date.) They can even occasionally modify the mortgage to reduce the payments, by lengthening the term.
FHA and other government-backed loans have other possibilities for avoiding foreclosure. Call and talk to a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 to locate the nearest housing counseling agency. These agencies frequently have information on services and programs offered by Government agencies and lists of private and community organizations that might help you. They may also offer credit counseling, and the services are usually free.
If you definitely can't handle the payments, consider offering the lender a "Deed-in-lieu of foreclosure," if they'll accept it. This is when you voluntarily "give back" your property to the lender. It won't save your home, but it's less damaging to your credit rating than a foreclosure. Some lenders will allow this if you have no other viable options and you have tried unsuccessfully to sell the home.
Move fast and do what you can to resolve the situation. But unless you have had an unusually long period of unemployment, or you had large unexpected medical costs, the problem is probably rooted in you poor financial habits. In that case, be sure to learn your lessons, so you can easily avoid foreclosure the next time around.
Copyright Steve Gillman. To see a photo of the home we bought for $17,500, get a free ebook on how to buy Cheap Houses, and get more tips on avoiding foreclosure, visit: http://www.HousesUnderFiftyThousand.com/avoid-foreclosure.html
http://ezinearticles.com/?How-To-Avoid-Foreclosure&id=642436
If the problem is truly temporary, and soon you'll be able to handle your payments again, borrow the money to keep up on your payments. Family may be able to help, but even if you have to pay a few hundred dollars in interest for credit card advances, it may be better than losing your home. Consider what you have to lose in equity, and you may find that it even makes sense to cash in some of your retirement account and pay the penalty. You may also be able to borrow from your 401k.
Don't start borrowing on credit cards and breaking into retirement funds if the situation isn't truly temporary, however. You'll just make matters worse. If the real problem is that the mortgage payment is just more than you can handle, you need to look at long-term solutions.
If you have maintained your credit rating to this point, you might find financing with lower payments. Lower payments can be because of lower interest rate, or a longer amortization period. Don't be tempted into lowering your payments with an adjustable rate loan that has a low initial interest rate. Unless your income situation changes dramatically, in a year or two you'll have the same problem all over.
Another option is to sell the home an move into a less expensive home. This works best if you have some equity in your home, to help you with both the down payment on the next one and with the transition costs. If you have no equity, you may have to consider selling your home and renting for a few years.
Already Facing Foreclosure?
If you are already late on your mortgage payments, don't wait for things to happen. Get actively involved in solving the problem right now. You not only face being foreclosed on and losing your home, but if the home is then sold for less than you owe, you might be sued for the difference (depending on the terns of your mortgage loan). Both foreclosures and deficiency judgments can seriously affect your ability to qualify for credit in the future.
Call the lender and explain the situation. Depending on the type of loan, lenders can sometimes arrange a repayment plan (for back payments) that you can afford. They can sometimes arrange a temporary reduction in the payments, or even a temporary suspension of payments. (The latter isn't likely unless you have been laid-off from work and have a return date.) They can even occasionally modify the mortgage to reduce the payments, by lengthening the term.
FHA and other government-backed loans have other possibilities for avoiding foreclosure. Call and talk to a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 to locate the nearest housing counseling agency. These agencies frequently have information on services and programs offered by Government agencies and lists of private and community organizations that might help you. They may also offer credit counseling, and the services are usually free.
If you definitely can't handle the payments, consider offering the lender a "Deed-in-lieu of foreclosure," if they'll accept it. This is when you voluntarily "give back" your property to the lender. It won't save your home, but it's less damaging to your credit rating than a foreclosure. Some lenders will allow this if you have no other viable options and you have tried unsuccessfully to sell the home.
Move fast and do what you can to resolve the situation. But unless you have had an unusually long period of unemployment, or you had large unexpected medical costs, the problem is probably rooted in you poor financial habits. In that case, be sure to learn your lessons, so you can easily avoid foreclosure the next time around.
Copyright Steve Gillman. To see a photo of the home we bought for $17,500, get a free ebook on how to buy Cheap Houses, and get more tips on avoiding foreclosure, visit: http://www.HousesUnderFiftyThousand.com/avoid-foreclosure.html
http://ezinearticles.com/?How-To-Avoid-Foreclosure&id=642436
The Construction Loan on a New Home
When obtaining a construction loan, it is essential that everything is done step by step and the process is not rushed. You do not want to pursue the construction of a home that you cannot afford. When you get pre-qualified for a loan you are given some idea of what your monthly payments will be.
The best construction loan lenders are those with experience. This is primarily because construction loans are more complex than your average mortgage loan. Many national banks have developed construction loan programs, but as always, you must be sure to compare the rates of numerous banks in your area. Before signing a contract towards the completion of your home, pay close attention to the bank’s lock-in policies and interest rates. Most of these loans are set at the prime rate or a general short-term rate.
In providing a construction loan of any kind, lenders want an explanation of the construction plan. Before they give you money to build on your property, they want to know that you will still have the capital to pay them back. Because construction loans do not fall under the standard guidelines of the Fannie Mae and Freddie Mac corporations, most construction loan lenders have a developed a separate system of interest-only payments during the construction process that are then due at completion.
The construction process is officially completed when the home receives its certificate of occupancy. Many borrowers use a construction-to-permanent financing program that allows them to transfer their construction loan directly into a mortgage when the home has its certificate. Such programs allow the homeowner to avoid the hassle of refinancing. There are many different types of construction loans out there and it is important to be aware of all your options. For example, often the property itself can be used as equity on the construction loan. For more financial tips in homeownership, there are a wide variety of accessible websites including http://www.1refinanceloan.com and http://www.1californialoan.com.
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