Homeowners turn to mortgage refinancing for many reasons, but most of these reasons revolved around one thing -- saving money. So it's only natural that these same homeowners would also be curious about online mortgage refinancing loans, since the word "online" often suggests convenience and money savings.
But what's the real story about online mortgage refinancing loans? Are they a legitimate way to save money on your mortgage refinance, or are they more often scams? And how much of the refinancing process can be done online? These are some of the questions we will answer in this article.
Online Mortgage Refinancing - Trust is Everything
The Internet has changed everything about the mortgage process. You can shop for mortgage rates online, research lenders, and yes ... even apply for a mortgage refinance online. But as with any other form of Internet shopping, you need to use some caution. There are plenty of legitimate companies who give mortgage quotes online, and even conduct some of the mortgage application process online. But there also some "sharks" out there.
The best way to protect yourself when seeking an online refinance loan is to stick with well-known companies. For example, companies like E-Loan and Quicken Loans offer online mortgage refinance products, and these companies have strong reputations and long histories.
Whether you choose to work with one of the aforementioned companies or some other company offering online refinance, look at the bottom of their website and see if they have icons stating that they've been "reviewed by Trust-e" or something similar. This means the company's website has been reviewed for security purposes and found to be a safe, secure place to conduct business.
Saving Money by Refinancing Online
That addresses the question of legitimacy. Now let's tackle another common question related to refinancing a mortgage loan online. Can you save money with this approach? As you might have guessed, the answer here is a big "sometimes."
If you shop wisely and ask the right questions of a lender, you can certainly save money by refinancing online. Companies that specialize in this process often have a lower overhead than traditional "bricks and mortar" lenders. They also have a more efficient workflow in most cases, using the Internet to streamline applications, credit reviews, etc.
So yes, you can save money on closing costs and other fees by refinancing your mortgage loan online. But as with anything else in life, you can also end up paying more if you make mistakes and choose the wrong kind of lender. So remember to ask about all fees in advance, stick with trusted companies, compare quotes from multiple lenders, and always get professional financial help if you're not sure about something!
http://www.mortgage-refinance-advice.com/online-mortgage-refinancing.php
Saturday, September 29, 2007
When Not to Refinance a Mortgage
One of the most important things to understand about mortgage refinancing is that it's not always a good idea. Some homeowners mistakenly assume that any refinance is a good refinance, because it almost always leads to lower interest rates and mortgage payments.
In truth, refinancing your mortgage at the wrong time can be a financial disaster that eliminates the equity you have in your home, leaving you with nothing gained. How long you've held your current mortgage is the key to all of this.
When you refinance a home, you need a certain period of time to recoup the cost of refinancing. This is often called the "break-even" point -- the point at which the money you've saved each month (with your lower interest rate) surpasses the cost of refinancing.
If you've been in the home for many years, there's a good chance you won't have enough monthly payments left to recoup your refinancing costs. This is especially true when there's not a huge difference between your previous interest rate and the (lower) refinanced interest rate. If the difference is small, you'll have to make the new payments for a longer period of time to reach the break-even point, at which you recoup your expenses.
http://www.mortgage-refinance-advice.com/when-to-not-refinance.php
In truth, refinancing your mortgage at the wrong time can be a financial disaster that eliminates the equity you have in your home, leaving you with nothing gained. How long you've held your current mortgage is the key to all of this.
When you refinance a home, you need a certain period of time to recoup the cost of refinancing. This is often called the "break-even" point -- the point at which the money you've saved each month (with your lower interest rate) surpasses the cost of refinancing.
If you've been in the home for many years, there's a good chance you won't have enough monthly payments left to recoup your refinancing costs. This is especially true when there's not a huge difference between your previous interest rate and the (lower) refinanced interest rate. If the difference is small, you'll have to make the new payments for a longer period of time to reach the break-even point, at which you recoup your expenses.
http://www.mortgage-refinance-advice.com/when-to-not-refinance.php
Should I Refinance My Mortgage?
Despite the helpful information you may get from this website, there is really only one person who can decide whether or not you should refinance your mortgage. And that person is you. Many homeowners have benefited financially from a mortgage refinance, but whether or not it's the right thing to do depends on your own financial circumstances.
With that disclaimer out of the way, let's discuss some financial scenarios when mortgage refinancing makes sense.
Mortgage Refinance - Quick Definition
Before we talk about scenarios when it makes sense to refinance, let's briefly define what exactly a mortgage refinance is. Basically, refinancing takes place with you pay off your current mortgage with a new one.
At first this might seem pointless. After all, a mortgage is a mortgage, right? Wrong. The whole point of refinancing a mortgage is to take advantage of a better interest rate.
For example, if you have improved your credit score since your first mortgage loan, you would likely qualify for a better interest rate on a new mortgage loan. In such cases, you can pay off your old mortgage with a new one, and enjoy a lower interest rate on the new loan. This of course means you will pay a smaller mortgage each month. That's the primary goal of mortgage refinancing.
When to Refinance
Now that we understand what it means to refinance a mortgage, let's talk about scenarios when it makes sense to do so. As a general rule of thumb, it's probably a good time to refinance if the interest rate is two percentage points below your current rate. In such cases, the money you would save each month would certainly make up for the upfront costs of refinancing your mortgage (origination fees, etc.).
Another scenario might occur if your income has increased. If you are making more money than when you first took out your mortgage (and you can afford a higher mortgage payment), you could refinance the mortgage to shorten the term of your mortgage. If the current interest rate is lower for the shorter-term mortgage, it would make sense to refinance the mortgage. Oppositely, you might wish to make larger principal payments against your mortgage to pay it off sooner. These are all possibilities with a mortgage refinance.
A third (and common) refinancing scenario occurs when home buyers trade their adjustable-rate mortgage (ARM) for a fixed-rate mortgage. At the time of this writing, home foreclosures have gone way up. This is largely due to ARMs that are adjusting and catching the homeowners off guard with much higher interest rates. Many people in this scenario have refinanced for a fixed-rate mortgage. This strategy also allows the homeowner to lock in a more favorable rate for the life of the loan. No more surprises!
Using a Refinance Calculators
In every case of mortgage refinance, there is a certain "break even" point. This is the point, beyond which, it makes sense to refinance your mortgage. In other words, the money you save will exceed the money you pay to take on a new loan.
Mortgage refinance calculators can help you determine this break-even point by comparing your monthly savings (after refinancing) to the amount you would pay if you did not refinance. Most of these calculators also have helpful instructions and tips on when it would make sense to refinance.
http://www.mortgage-refinance-advice.com/when-to-refinance.php
With that disclaimer out of the way, let's discuss some financial scenarios when mortgage refinancing makes sense.
Mortgage Refinance - Quick Definition
Before we talk about scenarios when it makes sense to refinance, let's briefly define what exactly a mortgage refinance is. Basically, refinancing takes place with you pay off your current mortgage with a new one.
At first this might seem pointless. After all, a mortgage is a mortgage, right? Wrong. The whole point of refinancing a mortgage is to take advantage of a better interest rate.
For example, if you have improved your credit score since your first mortgage loan, you would likely qualify for a better interest rate on a new mortgage loan. In such cases, you can pay off your old mortgage with a new one, and enjoy a lower interest rate on the new loan. This of course means you will pay a smaller mortgage each month. That's the primary goal of mortgage refinancing.
When to Refinance
Now that we understand what it means to refinance a mortgage, let's talk about scenarios when it makes sense to do so. As a general rule of thumb, it's probably a good time to refinance if the interest rate is two percentage points below your current rate. In such cases, the money you would save each month would certainly make up for the upfront costs of refinancing your mortgage (origination fees, etc.).
Another scenario might occur if your income has increased. If you are making more money than when you first took out your mortgage (and you can afford a higher mortgage payment), you could refinance the mortgage to shorten the term of your mortgage. If the current interest rate is lower for the shorter-term mortgage, it would make sense to refinance the mortgage. Oppositely, you might wish to make larger principal payments against your mortgage to pay it off sooner. These are all possibilities with a mortgage refinance.
A third (and common) refinancing scenario occurs when home buyers trade their adjustable-rate mortgage (ARM) for a fixed-rate mortgage. At the time of this writing, home foreclosures have gone way up. This is largely due to ARMs that are adjusting and catching the homeowners off guard with much higher interest rates. Many people in this scenario have refinanced for a fixed-rate mortgage. This strategy also allows the homeowner to lock in a more favorable rate for the life of the loan. No more surprises!
Using a Refinance Calculators
In every case of mortgage refinance, there is a certain "break even" point. This is the point, beyond which, it makes sense to refinance your mortgage. In other words, the money you save will exceed the money you pay to take on a new loan.
Mortgage refinance calculators can help you determine this break-even point by comparing your monthly savings (after refinancing) to the amount you would pay if you did not refinance. Most of these calculators also have helpful instructions and tips on when it would make sense to refinance.
http://www.mortgage-refinance-advice.com/when-to-refinance.php
Mortgage Refinancing - Two Important Questions for Your Lender
These days, it seems a lot of homeowners are in a rush to refinance their mortgage loans. The reasons why are obvious. When you refinance your mortgage under a better interest rate, you can save a lot of money over the long run.
But to achieve the biggest savings possible, you'll need to go about your mortgage refinance the right way. Researching mortgage companies and choosing the right one is a big part of this. To help you ask the right questions when screening mortgage companies, we've made a list of three important questions you should ask.
1. Will my interest rate include yield spread premium?
Yield Spread Premium is the amount paid to a mortgage broker based on selling an interest rate above the rate that the borrower qualifies for. In other words, it is a markup on your mortgage interest rate.
Oftentimes, you can avoid this markup by paying an origination fee up front. This is usually the best way to go, because you avoid paying the higher interest rate each month, which sort of defeats the purpose of a mortgage refinance.
2. How soon can I lock in my mortgage interest rate?
A lock-in (sometimes referred to as a rate-lock or rate commitment) is a mortgage lender's promise to give you a certain interest rate, usually for a specified period of time, while your loan application is processed. This is obviously a benefit to you, because it prevents the offered interest rate from increasing due to market conditions (while your paperwork is being processed).
Remember, the whole point of a mortgage refinance is to obtain a better interest rate on your loan, thus paying less of a mortgage each month. Until you lock in the rate that is offered to you, there are no guarantees. So once you're happy with the interest rate being offered, ask to lock it in -- and be absolutely sure to get it in writing.
http://www.mortgage-refinance-advice.com/questions-for-lenders.php
But to achieve the biggest savings possible, you'll need to go about your mortgage refinance the right way. Researching mortgage companies and choosing the right one is a big part of this. To help you ask the right questions when screening mortgage companies, we've made a list of three important questions you should ask.
1. Will my interest rate include yield spread premium?
Yield Spread Premium is the amount paid to a mortgage broker based on selling an interest rate above the rate that the borrower qualifies for. In other words, it is a markup on your mortgage interest rate.
Oftentimes, you can avoid this markup by paying an origination fee up front. This is usually the best way to go, because you avoid paying the higher interest rate each month, which sort of defeats the purpose of a mortgage refinance.
2. How soon can I lock in my mortgage interest rate?
A lock-in (sometimes referred to as a rate-lock or rate commitment) is a mortgage lender's promise to give you a certain interest rate, usually for a specified period of time, while your loan application is processed. This is obviously a benefit to you, because it prevents the offered interest rate from increasing due to market conditions (while your paperwork is being processed).
Remember, the whole point of a mortgage refinance is to obtain a better interest rate on your loan, thus paying less of a mortgage each month. Until you lock in the rate that is offered to you, there are no guarantees. So once you're happy with the interest rate being offered, ask to lock it in -- and be absolutely sure to get it in writing.
http://www.mortgage-refinance-advice.com/questions-for-lenders.php
Refinance a Home Mortgage for Interest Rate Reductions
People refinance mortgages for many reasons. But one of the most common reasons is to obtain a better interest rate, which can save you money over the life of the new mortgage loan. In other words, people refinance a home mortgage for interest rate savings -- thus lowering their total monthly mortgage amount.
Refinancing for Better Interest Rates
So how does one go about refinancing a home mortgage for interest rate savings? Well, the first thing you should do is to determine whether or not it's a good idea to refinance your mortgage in the first place. Some homeowners wrongfully assume that any mortgage refinancing that lowers their interest rate is worth pursuing. But this is not the case.
Here's the key to determining whether or not you should refinance your home mortgage for interest rate reduction. If the money you save over the life of the new mortgage (through interest rate reduction) exceeds the amount of money you spend to refinance (closing costs) -- then it might be wise to refinance your home mortgage for interest rate savings.
On the flip side, if you spend more to refinance the mortgage (through closing costs) than what you'll save over the term of the mortgage, then it doesn't make much sense to refinance. This concept is known as the refinancing "break-even point." Before the break-even point, it doesn't usually make sense to refinance the home mortgage. After the break-even point, you can often save money so it makes more sense to refinance your home mortgage loan.
Determine Your Break-Even Point
So how do you determine your break-even point, and by extension whether or not you should refinance your home mortgage for interest rate reduction? For starters, you can use a refinance calculator like those offered in the Resources section of our website. Such calculators are designed to show you the total savings (or lack thereof) you can gain from your mortgage refinance. Of course, it's always wise to speak to a professional financial counselor as well.
http://www.mortgage-refinance-advice.com/refinance-home-mortgage.php
Refinancing for Better Interest Rates
So how does one go about refinancing a home mortgage for interest rate savings? Well, the first thing you should do is to determine whether or not it's a good idea to refinance your mortgage in the first place. Some homeowners wrongfully assume that any mortgage refinancing that lowers their interest rate is worth pursuing. But this is not the case.
Here's the key to determining whether or not you should refinance your home mortgage for interest rate reduction. If the money you save over the life of the new mortgage (through interest rate reduction) exceeds the amount of money you spend to refinance (closing costs) -- then it might be wise to refinance your home mortgage for interest rate savings.
On the flip side, if you spend more to refinance the mortgage (through closing costs) than what you'll save over the term of the mortgage, then it doesn't make much sense to refinance. This concept is known as the refinancing "break-even point." Before the break-even point, it doesn't usually make sense to refinance the home mortgage. After the break-even point, you can often save money so it makes more sense to refinance your home mortgage loan.
Determine Your Break-Even Point
So how do you determine your break-even point, and by extension whether or not you should refinance your home mortgage for interest rate reduction? For starters, you can use a refinance calculator like those offered in the Resources section of our website. Such calculators are designed to show you the total savings (or lack thereof) you can gain from your mortgage refinance. Of course, it's always wise to speak to a professional financial counselor as well.
http://www.mortgage-refinance-advice.com/refinance-home-mortgage.php
Refinance a Mortgage Loan With Bad Credit
A common question among homeowners looking to refinance is, "Can I refinance my mortgage loan with bad credit ... and if so how?"
The short answer is yes, you can certainly refinance your mortgage loan with bad credit. The longer answer is that you must go about things differently than a homeowner with good credit. And you'll need to make sure that refinancing the mortgage makes financial sense, given your bad credit situation.
We will talk about refinancing a mortgage loan with bad credit in a moment. But first, let's talk about the reasons why people refinance in the first place. Everything will make more sense if we start with this.
Why Do Homeowners Refinance?
Mortgage refinance is always a popular topic among homeowners. Many homeowners feel the lure of lower interest rates and seek to refinance their mortgages in order to capitalize on lower rates. If done properly, the refinancing process can lead to significant savings over the life of the new mortgage loan. Another reason people refinance is to get cash out of their home. This is known as a "cash-out refinance."
Mortgage Refinance Benefits - Time for Math!
When deciding whether or not to refinance a mortgage, you have to do a little bit of math. Fortunately, there are a plenty of mortgage refinance calculators online to help with this process. We have one such calculator in our Resources section. Basically, you want to make sure they money you save over the life of the new mortgage (after refinancing) surpasses the amount you'll pay to obtain the new loan (closing costs). If not, there's really no point in refinancing.
You can learn more about this from this article: When Should I Refinance?
Bad Credit Refinancing
Okay, so now we know the basic deciding factors for refinancing. Now let's talk about ways to refinance a mortgage loan with bad credit. The most important thing to keep in mind here is that the interest rate on your new mortgage loan (after refinancing) will not be as low as it would for a homeowner with good credit. So the same basic math applies -- you should calculate your savings post-refinance based on the interest rate you qualify for, and see if those savings surpass the amount you'll pay to refinance the mortgage loan.
That's really all there is to it. Just remember this. When deciding whether or not to refinance your mortgage with bad credit, you need to get all the numbers up front in order to do the math. Find out (A) what your closing costs will be on the mortgage refinance, (B) what interest rate you will qualify for, and (C) how long you'll have to make payments under the new interest rate so that your total savings surpass your closing costs.
Protect Yourself
Some mortgage lenders claim to specialize in bad credit mortgage refinance loans. Most do so legitimately, but a few companies out there use bad credit situations as a way of taking advantage borrowers. In the mortgage industry, these are referred to as predatory lenders. But you can protect yourself from such unethical lenders by continuing your mortgage refinance education, asking the right questions, doing the math up front, and getting everything in writing!
I hope you have enjoyed this brief tutorial on mortgage refinancing with bad credit, and I wish you the best with your financial future.
http://www.mortgage-refinance-advice.com/bad-credit-refinancing.php
The short answer is yes, you can certainly refinance your mortgage loan with bad credit. The longer answer is that you must go about things differently than a homeowner with good credit. And you'll need to make sure that refinancing the mortgage makes financial sense, given your bad credit situation.
We will talk about refinancing a mortgage loan with bad credit in a moment. But first, let's talk about the reasons why people refinance in the first place. Everything will make more sense if we start with this.
Why Do Homeowners Refinance?
Mortgage refinance is always a popular topic among homeowners. Many homeowners feel the lure of lower interest rates and seek to refinance their mortgages in order to capitalize on lower rates. If done properly, the refinancing process can lead to significant savings over the life of the new mortgage loan. Another reason people refinance is to get cash out of their home. This is known as a "cash-out refinance."
Mortgage Refinance Benefits - Time for Math!
When deciding whether or not to refinance a mortgage, you have to do a little bit of math. Fortunately, there are a plenty of mortgage refinance calculators online to help with this process. We have one such calculator in our Resources section. Basically, you want to make sure they money you save over the life of the new mortgage (after refinancing) surpasses the amount you'll pay to obtain the new loan (closing costs). If not, there's really no point in refinancing.
You can learn more about this from this article: When Should I Refinance?
Bad Credit Refinancing
Okay, so now we know the basic deciding factors for refinancing. Now let's talk about ways to refinance a mortgage loan with bad credit. The most important thing to keep in mind here is that the interest rate on your new mortgage loan (after refinancing) will not be as low as it would for a homeowner with good credit. So the same basic math applies -- you should calculate your savings post-refinance based on the interest rate you qualify for, and see if those savings surpass the amount you'll pay to refinance the mortgage loan.
That's really all there is to it. Just remember this. When deciding whether or not to refinance your mortgage with bad credit, you need to get all the numbers up front in order to do the math. Find out (A) what your closing costs will be on the mortgage refinance, (B) what interest rate you will qualify for, and (C) how long you'll have to make payments under the new interest rate so that your total savings surpass your closing costs.
Protect Yourself
Some mortgage lenders claim to specialize in bad credit mortgage refinance loans. Most do so legitimately, but a few companies out there use bad credit situations as a way of taking advantage borrowers. In the mortgage industry, these are referred to as predatory lenders. But you can protect yourself from such unethical lenders by continuing your mortgage refinance education, asking the right questions, doing the math up front, and getting everything in writing!
I hope you have enjoyed this brief tutorial on mortgage refinancing with bad credit, and I wish you the best with your financial future.
http://www.mortgage-refinance-advice.com/bad-credit-refinancing.php
California Home Loan Mortgage Refinancing
Recently, I saw a news story about the skyrocketing number of home foreclosures in the U.S. California was at the top of the list -- not surprisingly. And where there's a spike in foreclosures, there's usually a spike in mortgage refinancing as well. That's why California home loan mortgage refinancing is such a hot topic.
California Mortgage Refinancing - Contributing Factors
We have already stated that the rise in home foreclosures (and the conditions that lead to foreclosures) are partly what drives California home mortgage refinancing rates. But what leads to these foreclosures? What puts so many people in the situation where they have to refinance their home mortgages to stay afloat? In a word -- adjustables. Sure, many factors contribute to the total volume of California home loan mortgage refinancing. But adjustable rate mortgages (ARMs) probably contribute more than any other factor.
Refinancing Adjustable Rate Mortgages
Here's a basic scenario that explains how adjustable rate mortgage can often drive the need to refinance a mortgage -- or worse, can lead to a foreclosure situation. John and Sally Smith move to San Diego, California for Sally's new job. They immediately begin house hunting and pricing out mortgage loans. But as you know, California real estate can be expensive, especially in San Diego.
John and Sally find a home they want to buy, but the mortgage is a little beyond their current budget. But John plans to find a job in San Diego as well, and they both expect pay increases in time. So they choose an adjustable rate mortgage (ARM) in order to get lower interest rates on the mortgage. The ARM has a fixed rate during the first three years, then it adjusts to whatever the prevailing interest rate is at the time of adjustment (after three years).
Everything is fine for the first few years. The mortgage payments are a bit steep for the Smiths, but they can manage. John and Sally are both working, so they're able to make ends meet. But then they reach the end of their fixed-rate period. How time flies! And their mortgage loan is about to adjust to the prevailing interest rates at that time -- and those interest rates are much higher than what the Smiths were used to under their introductory rate!
What do they do? Well, they can try to brave the new financial waters, like some homeowners do. But if they can't make their mortgage payments, they will go into foreclosure. So instead, they try to refinance their mortgage to a lower fixed-rate mortgage spread over 30 years or so. This is the basic definition of mortgage refinance -- you are replacing and old mortgage loan with a new one, ideally to lower your interest rates. Now, the Smiths are another statistic of California home loan mortgage refinancing.
http://www.mortgage-refinance-advice.com/california-mortgage-refinancing.php
California Mortgage Refinancing - Contributing Factors
We have already stated that the rise in home foreclosures (and the conditions that lead to foreclosures) are partly what drives California home mortgage refinancing rates. But what leads to these foreclosures? What puts so many people in the situation where they have to refinance their home mortgages to stay afloat? In a word -- adjustables. Sure, many factors contribute to the total volume of California home loan mortgage refinancing. But adjustable rate mortgages (ARMs) probably contribute more than any other factor.
Refinancing Adjustable Rate Mortgages
Here's a basic scenario that explains how adjustable rate mortgage can often drive the need to refinance a mortgage -- or worse, can lead to a foreclosure situation. John and Sally Smith move to San Diego, California for Sally's new job. They immediately begin house hunting and pricing out mortgage loans. But as you know, California real estate can be expensive, especially in San Diego.
John and Sally find a home they want to buy, but the mortgage is a little beyond their current budget. But John plans to find a job in San Diego as well, and they both expect pay increases in time. So they choose an adjustable rate mortgage (ARM) in order to get lower interest rates on the mortgage. The ARM has a fixed rate during the first three years, then it adjusts to whatever the prevailing interest rate is at the time of adjustment (after three years).
Everything is fine for the first few years. The mortgage payments are a bit steep for the Smiths, but they can manage. John and Sally are both working, so they're able to make ends meet. But then they reach the end of their fixed-rate period. How time flies! And their mortgage loan is about to adjust to the prevailing interest rates at that time -- and those interest rates are much higher than what the Smiths were used to under their introductory rate!
What do they do? Well, they can try to brave the new financial waters, like some homeowners do. But if they can't make their mortgage payments, they will go into foreclosure. So instead, they try to refinance their mortgage to a lower fixed-rate mortgage spread over 30 years or so. This is the basic definition of mortgage refinance -- you are replacing and old mortgage loan with a new one, ideally to lower your interest rates. Now, the Smiths are another statistic of California home loan mortgage refinancing.
http://www.mortgage-refinance-advice.com/california-mortgage-refinancing.php
Choosing a Home Mortgage Refinancing Lender
Each day, hundreds of Americans refinance their home mortgage loans. Some do it because they've improved their credit scores and subsequently qualify for lower interest rates. Others do it to pull money out of their home equity, with a cash-out refinance.
Are you considering the same thing? If so, you will have to work with a home mortgage refinancing lender. This is the lender through which you will pay off your old mortgage loan in exchange for a new one. But how do you choose the best home mortgage refinance lender? How can you protect yourself while getting the best interest rate and mortgage terms? These are some of the questions we will answer in this article.
Mortgage Refinance Lender - Still Just a Lender
Many mortgage lenders claim to specialize in refinance loans. But in reality, most are just regular lenders who offer mortgage refinance as one of their many products. In truth, there's not much that's unique about a home mortgage refinancing lender (as compared to any other lender). Nearly all mortgage companies handle refinance loans -- they'd be silly not to, because refinancing is big business.
Here's the bottom line. Don't think you have to find a mortgage refinance "specialist." It's more important to find a trustworthy lender who offers competitive rates. Most mortgage lenders offer mortgage refinancing as part of their product line.
Compare Lenders On Various Criteria
Shopping for a home mortgage refinancing lender is like shopping for anything else. The more comparisons you make, the better deals you can find. The most obvious point of comparison between mortgage lenders is the interest rate they're willing to offer you, as this will partly determine your overall mortgage payment. You also want to compare other aspects of the home mortgage loan, including the fees associated with it, closing costs, penalties ... in short, everything.
Trust Goes a Long Way
When choosing a home mortgage refinancing lender, you should also consider the less tangible qualities such as reputation and trustworthiness. There are some mortgage companies out there who prey on consumers, especially those consumers who find themselves in bad credit refinancing situations. Though they represent the minority (thankfully), these so-called "predatory" lenders are something to watch out for.
One of the best ways around this is to choose a mortgage refinance lender with a solid reputation, a long history, and a well-known name. Such a lender would be more likely to treat you fairly, since they have invested so much in their brand, name, reputation, etc.
http://www.mortgage-refinance-advice.com/mortgage-refinance-lender.php
Are you considering the same thing? If so, you will have to work with a home mortgage refinancing lender. This is the lender through which you will pay off your old mortgage loan in exchange for a new one. But how do you choose the best home mortgage refinance lender? How can you protect yourself while getting the best interest rate and mortgage terms? These are some of the questions we will answer in this article.
Mortgage Refinance Lender - Still Just a Lender
Many mortgage lenders claim to specialize in refinance loans. But in reality, most are just regular lenders who offer mortgage refinance as one of their many products. In truth, there's not much that's unique about a home mortgage refinancing lender (as compared to any other lender). Nearly all mortgage companies handle refinance loans -- they'd be silly not to, because refinancing is big business.
Here's the bottom line. Don't think you have to find a mortgage refinance "specialist." It's more important to find a trustworthy lender who offers competitive rates. Most mortgage lenders offer mortgage refinancing as part of their product line.
Compare Lenders On Various Criteria
Shopping for a home mortgage refinancing lender is like shopping for anything else. The more comparisons you make, the better deals you can find. The most obvious point of comparison between mortgage lenders is the interest rate they're willing to offer you, as this will partly determine your overall mortgage payment. You also want to compare other aspects of the home mortgage loan, including the fees associated with it, closing costs, penalties ... in short, everything.
Trust Goes a Long Way
When choosing a home mortgage refinancing lender, you should also consider the less tangible qualities such as reputation and trustworthiness. There are some mortgage companies out there who prey on consumers, especially those consumers who find themselves in bad credit refinancing situations. Though they represent the minority (thankfully), these so-called "predatory" lenders are something to watch out for.
One of the best ways around this is to choose a mortgage refinance lender with a solid reputation, a long history, and a well-known name. Such a lender would be more likely to treat you fairly, since they have invested so much in their brand, name, reputation, etc.
http://www.mortgage-refinance-advice.com/mortgage-refinance-lender.php
Increase Your Credit Score Before Refinancing a Mortgage
People refinance their mortgages for many different reasons. But the end goal is usually the same in all cases -- get a better interest rate!
Improving your credit score is a crucial step in qualifying for a better interest rate. Sure, you can refinance to take advantage of a more favorable market. But when you improve your credit score at the same time, you could get an even lower rate. This, of course, translates to a small mortgage payment each month.
Maintaining a Good Credit Score
When it comes to your credit score, an ounce of prevention is worth a pound of cure. It's a lot easier to maintain good credit than it is to recover from bad credit. So the best strategy is to stay out of that "neighborhood" to begin with. That way, when the time comes to refinance your mortgage, you'll be more likely to qualify for the best rate.
Five steps to a better credit score:
1. Debt-to-Income Ratio
Try to keep your debt-to-income ratio at 20% or below. Mortgage lenders like it when your overall debt equals no more than 20% of your net monthly income. If you're currently above the desired 20% mark, try to pay down your debt as quickly as possible.
2. Reducing Balances
Keep your credit card balances as low as possible. When these balances get out of control, it increases your overall debt. This leads to an unfavorable debt-to-income ratio (previous item).
3. Paying Bills
Pay all your bills on time. You've probably heard this one before, but that's only because it goes hand in hand with a good credit score. On the contrary, a history of late payments will lower your score.
4. Paying Minimums
Pay your minimum balances. Every time you receive a credit card bill, pay at least the minimum amount that's due. If you can pay more than the minimum, that will certainly help. But at the least, pay off those minimums religiously. This will reduce your credit card balance more quickly and help you reach a favorable debt-to-income ratio (as mentioned above).
5. Controlling Credit
Avoid taking on too many loans. If you apply for a line of credit too often, you might send a signal that you cannot manage your finances.
Refinancing your mortgage to take advantage of lower interest rates can be a smart financial move. But when you refinance with good credit, you stand an even better chance of lowering your interest rate. So be proactive in maintaining a good credit score.
http://www.mortgage-refinance-advice.com/increase-credit-score.php
Improving your credit score is a crucial step in qualifying for a better interest rate. Sure, you can refinance to take advantage of a more favorable market. But when you improve your credit score at the same time, you could get an even lower rate. This, of course, translates to a small mortgage payment each month.
Maintaining a Good Credit Score
When it comes to your credit score, an ounce of prevention is worth a pound of cure. It's a lot easier to maintain good credit than it is to recover from bad credit. So the best strategy is to stay out of that "neighborhood" to begin with. That way, when the time comes to refinance your mortgage, you'll be more likely to qualify for the best rate.
Five steps to a better credit score:
1. Debt-to-Income Ratio
Try to keep your debt-to-income ratio at 20% or below. Mortgage lenders like it when your overall debt equals no more than 20% of your net monthly income. If you're currently above the desired 20% mark, try to pay down your debt as quickly as possible.
2. Reducing Balances
Keep your credit card balances as low as possible. When these balances get out of control, it increases your overall debt. This leads to an unfavorable debt-to-income ratio (previous item).
3. Paying Bills
Pay all your bills on time. You've probably heard this one before, but that's only because it goes hand in hand with a good credit score. On the contrary, a history of late payments will lower your score.
4. Paying Minimums
Pay your minimum balances. Every time you receive a credit card bill, pay at least the minimum amount that's due. If you can pay more than the minimum, that will certainly help. But at the least, pay off those minimums religiously. This will reduce your credit card balance more quickly and help you reach a favorable debt-to-income ratio (as mentioned above).
5. Controlling Credit
Avoid taking on too many loans. If you apply for a line of credit too often, you might send a signal that you cannot manage your finances.
Refinancing your mortgage to take advantage of lower interest rates can be a smart financial move. But when you refinance with good credit, you stand an even better chance of lowering your interest rate. So be proactive in maintaining a good credit score.
http://www.mortgage-refinance-advice.com/increase-credit-score.php
Mortgage Refi Costs - Understanding Your Refinancing Costs
Understanding Mortgage Refi Costs
Refinancing a mortgage loan involves paying off the original mortgage and taking on a new one. In other words, you are "trading" your original mortgage loan for a new loan, usually to obtain a lower interest rate or more favorable terms.
But a mortgage refi is not always a good idea. Sometimes, a refi will cost more money than it will save you. In such cases, the refinancing costs will exceed the amount you save (through lower interest rates), thus making the refinance a bad financial move.
So how do you know if a mortgage refi is right for you? By understanding the full cost of refinancing the loan. Once you learn how to determine refinancing costs -- and you're able to compare those costs to your long-term savings over the life of the new loan -- you will know whether or not refinancing is the right thing to do.
What Makes Up Refinancing Costs?
If you remember back to the day you closed on your home (and took on your original mortgage loan), you will remember paying for closing costs. Many of these same closing costs will apply to your mortgage refi as well. These refinancing costs and fees will vary from one refi to the next, depending on the type of new loan, the borrower's qualifications, etc. With that said, here are some of the refinancing costs you are likely to encounter:
* Mortgage Application Fee - Regardless of the exact nature of your mortgage refi, you will almost always encounter an application fee. The mortgage lender charges this fee to cover the upfront cost of reviewing your loan request, checking your credit, etc. Mortgage application fees usually range from $100 to $350, so be sure to ask about them in advance.
* Origination Fees - In most mortgage refi situations, you will also pay a fee to have the loan processed. This is known as the origination fee, and it's usually expressed as a percentage point of the overall loan amount. For example, if your new mortgage is for $100,000 and the lender charges you a one-point origination fee, the fee would equal one percent of the loan amount or $1,000. The lender may allow you to finance this fee by adding it into the loan amount, as opposed to paying the fee up front.
* Title Search and Insurance - Before offering you a mortgage refinance, your chosen lender will examine public records to ensure that you own the property (just like when you took on the original mortgage). The initial cost of your title insurance policy is usually combined with this fee as well. The combined cost of this mortgage refi item usually averages between $400 and $700. As always, ask your refinance lender for the exact amount in advance.
* Attorney Fees - The mortgage lender will have an attorney review all documents during the closing / settlement process. While this process always takes place, different lenders handle the costs in different ways. Some lenders pay it themselves (for competitive reasons), while others pass the cost on to the borrower. This fee may range from $100 to $300 or more.
* Appraisal Fee - Like most refinancing costs, this is another fee you also encountered when you took on the original mortgage loan. Lenders will have the property appraised in order to ensure that it is worth the amount you paid for it. If your mortgage refi is through the same lender that gave you your original mortgage loan, you might not have to have the home appraised again. Appraisal fees range from $150 to $450.
* Prepayment Penalty - Some lenders charge a penalty fee if you pay off your mortgage early. This is referred to as a prepayment penalty, or an early pay-off fee. This fee would have been part of your original mortgage loan terms. Prepayment penalties can sometimes be steep, and they are therefore a common reason that people decide against mortgage refinancing. Refer to your original mortgage document to see if there is a prepayment penalty, and how much that penalty is.
* Other Refinancing Costs - This list of mortgage refi costs is not all-inclusive. Depending on the type of loan you currently have, and the type of refinance you're applying for, you might encounter refinancing costs not mentioned in this article. The important thing is to get all of the costs in advance, before you even apply for a mortgage refi.
Mortgage Refi Calculator - Determining the Break Even Point
Now that you have a better understanding of refinancing costs, you can calculate your "break-even" point to determine whether or not a mortgage refi is right for you. The break-even point (or BEP) is an important concept to grasp. Basically, the BEP comes from comparing the costs of refinancing to the amount of money you will save in the long term, after the mortgage has been refinanced.
You should only refinance a loan if the money you save exceeds the money you pay in costs and fees.
http://www.mortgage-refinance-advice.com/mortgage-refi-costs.php
Refinancing a mortgage loan involves paying off the original mortgage and taking on a new one. In other words, you are "trading" your original mortgage loan for a new loan, usually to obtain a lower interest rate or more favorable terms.
But a mortgage refi is not always a good idea. Sometimes, a refi will cost more money than it will save you. In such cases, the refinancing costs will exceed the amount you save (through lower interest rates), thus making the refinance a bad financial move.
So how do you know if a mortgage refi is right for you? By understanding the full cost of refinancing the loan. Once you learn how to determine refinancing costs -- and you're able to compare those costs to your long-term savings over the life of the new loan -- you will know whether or not refinancing is the right thing to do.
What Makes Up Refinancing Costs?
If you remember back to the day you closed on your home (and took on your original mortgage loan), you will remember paying for closing costs. Many of these same closing costs will apply to your mortgage refi as well. These refinancing costs and fees will vary from one refi to the next, depending on the type of new loan, the borrower's qualifications, etc. With that said, here are some of the refinancing costs you are likely to encounter:
* Mortgage Application Fee - Regardless of the exact nature of your mortgage refi, you will almost always encounter an application fee. The mortgage lender charges this fee to cover the upfront cost of reviewing your loan request, checking your credit, etc. Mortgage application fees usually range from $100 to $350, so be sure to ask about them in advance.
* Origination Fees - In most mortgage refi situations, you will also pay a fee to have the loan processed. This is known as the origination fee, and it's usually expressed as a percentage point of the overall loan amount. For example, if your new mortgage is for $100,000 and the lender charges you a one-point origination fee, the fee would equal one percent of the loan amount or $1,000. The lender may allow you to finance this fee by adding it into the loan amount, as opposed to paying the fee up front.
* Title Search and Insurance - Before offering you a mortgage refinance, your chosen lender will examine public records to ensure that you own the property (just like when you took on the original mortgage). The initial cost of your title insurance policy is usually combined with this fee as well. The combined cost of this mortgage refi item usually averages between $400 and $700. As always, ask your refinance lender for the exact amount in advance.
* Attorney Fees - The mortgage lender will have an attorney review all documents during the closing / settlement process. While this process always takes place, different lenders handle the costs in different ways. Some lenders pay it themselves (for competitive reasons), while others pass the cost on to the borrower. This fee may range from $100 to $300 or more.
* Appraisal Fee - Like most refinancing costs, this is another fee you also encountered when you took on the original mortgage loan. Lenders will have the property appraised in order to ensure that it is worth the amount you paid for it. If your mortgage refi is through the same lender that gave you your original mortgage loan, you might not have to have the home appraised again. Appraisal fees range from $150 to $450.
* Prepayment Penalty - Some lenders charge a penalty fee if you pay off your mortgage early. This is referred to as a prepayment penalty, or an early pay-off fee. This fee would have been part of your original mortgage loan terms. Prepayment penalties can sometimes be steep, and they are therefore a common reason that people decide against mortgage refinancing. Refer to your original mortgage document to see if there is a prepayment penalty, and how much that penalty is.
* Other Refinancing Costs - This list of mortgage refi costs is not all-inclusive. Depending on the type of loan you currently have, and the type of refinance you're applying for, you might encounter refinancing costs not mentioned in this article. The important thing is to get all of the costs in advance, before you even apply for a mortgage refi.
Mortgage Refi Calculator - Determining the Break Even Point
Now that you have a better understanding of refinancing costs, you can calculate your "break-even" point to determine whether or not a mortgage refi is right for you. The break-even point (or BEP) is an important concept to grasp. Basically, the BEP comes from comparing the costs of refinancing to the amount of money you will save in the long term, after the mortgage has been refinanced.
You should only refinance a loan if the money you save exceeds the money you pay in costs and fees.
http://www.mortgage-refinance-advice.com/mortgage-refi-costs.php
Refinance Home Mortgage Loans - Top Reasons for Refinancing
Right now, thousands of Americans are preparing to refinance home mortgage loans. Hopefully, they have done the proper research to determine that mortgage refinancing is, in fact, a wise move for them to make. And hopefully, they can refinance their home mortgage loans in a way that saves them a lot of money over the life of the loan.
But why do people turn to mortgage refinancing in the first place? What are the top reasons for refinancing a home mortgage loan? Here are some of the most common reasons, as cited by the homeowners / borrowers themselves.
Reasons for Refinancing Home Mortgage Loans
1. To Lower the Monthly Payment
Many people use mortgage refinancing to obtain a lower interest rate on their loan, thereby reducing the size of their monthly mortgage payment as well. For example, if you buy a home when interest rates are unusually high, and those interest rates drop considerably a few years down the road, you could refinance the home mortgage loan to capitalize on the lower interest rates of the time.
You could also quality for a lower interest rate if you dramatically improve your credit score. This is another scenario where it might make sense to refinance the mortgage to obtain a lower rate / monthly payment.
But use caution. A lower interest rate will only save you money when spread over a certain period of time and a certain number of mortgage payments. You will pay closing costs when you refinance the home mortgage, so you want to make sure the money save exceeds the money you pay in closing costs. Learn more from our related article, Should I Refinance?
2. To Pay Off the Loan Faster
Mortgage refinance is one of several ways to shorten the length of a mortgage loan (and thus pay off the loan faster). Perhaps the most common example is refinancing a home mortgage loan to go from a 30-year loan to a 15-year loan. Obviously, this could increase the size of the monthly mortgage payment, since it condenses the payments into a shorter period. But for homeowners who can afford the difference in monthly payment, and who want to pay off the loan faster, this can be a viable option.
3. To Get Cash Out of the Equity
Let's start with a basic definition of home equity, just so we're on the same page. Home equity is the difference between the home's value and the amount the homeowner still owes on the mortgage. If a home is valued at $100,000 and the mortgage balance is $90,000, the equity is $10,000 (or 10% of the home's value).
Many homeowners refinance home mortgage loans in order to draw cash out of their equity. This is called a cash-out refinance. With this option, the homeowner receives additional funds from the lender (in addition to the existing loan being paid off / refinanced). People use cash-out refinancing to pay for vacations, children's college tuition, home improvement, and other "big ticket" items.
4. To Avoid a Mortgage Adjustment
Many homeowners choose an adjustable rate mortgage as a way to obtain lower interest rates -- and thus pay a lower mortgage payment. But as the name implies, the adjustable rate mortgage will eventually adjust or "reset" to a higher interest rate.
When and how often the mortgage loan adjusts is something you will know in advance, because the mortgage lender is required by law to tell you such things. But you won't know the amount of the adjustment, because nobody can predict what interest rates will do in the future. This is the primary disadvantage of an adjustable rate mortgage, and it leads many people to refinance their mortgages prior to the adjustment phase.
When NOT to Refinance a Home Mortgage Loan
Here's the important thing to take away from this article. People use mortgage refinancing for many different reasons, and in many cases it's a smart financial move. But it's not the right thing to do in all occasions, as the cost of refinancing can sometimes exceed the savings. To learn about scenarios when refinancing is not the best move, read our article on when not to refinance.
http://www.mortgage-refinance-advice.com/refinance-mortgage-loans.php
But why do people turn to mortgage refinancing in the first place? What are the top reasons for refinancing a home mortgage loan? Here are some of the most common reasons, as cited by the homeowners / borrowers themselves.
Reasons for Refinancing Home Mortgage Loans
1. To Lower the Monthly Payment
Many people use mortgage refinancing to obtain a lower interest rate on their loan, thereby reducing the size of their monthly mortgage payment as well. For example, if you buy a home when interest rates are unusually high, and those interest rates drop considerably a few years down the road, you could refinance the home mortgage loan to capitalize on the lower interest rates of the time.
You could also quality for a lower interest rate if you dramatically improve your credit score. This is another scenario where it might make sense to refinance the mortgage to obtain a lower rate / monthly payment.
But use caution. A lower interest rate will only save you money when spread over a certain period of time and a certain number of mortgage payments. You will pay closing costs when you refinance the home mortgage, so you want to make sure the money save exceeds the money you pay in closing costs. Learn more from our related article, Should I Refinance?
2. To Pay Off the Loan Faster
Mortgage refinance is one of several ways to shorten the length of a mortgage loan (and thus pay off the loan faster). Perhaps the most common example is refinancing a home mortgage loan to go from a 30-year loan to a 15-year loan. Obviously, this could increase the size of the monthly mortgage payment, since it condenses the payments into a shorter period. But for homeowners who can afford the difference in monthly payment, and who want to pay off the loan faster, this can be a viable option.
3. To Get Cash Out of the Equity
Let's start with a basic definition of home equity, just so we're on the same page. Home equity is the difference between the home's value and the amount the homeowner still owes on the mortgage. If a home is valued at $100,000 and the mortgage balance is $90,000, the equity is $10,000 (or 10% of the home's value).
Many homeowners refinance home mortgage loans in order to draw cash out of their equity. This is called a cash-out refinance. With this option, the homeowner receives additional funds from the lender (in addition to the existing loan being paid off / refinanced). People use cash-out refinancing to pay for vacations, children's college tuition, home improvement, and other "big ticket" items.
4. To Avoid a Mortgage Adjustment
Many homeowners choose an adjustable rate mortgage as a way to obtain lower interest rates -- and thus pay a lower mortgage payment. But as the name implies, the adjustable rate mortgage will eventually adjust or "reset" to a higher interest rate.
When and how often the mortgage loan adjusts is something you will know in advance, because the mortgage lender is required by law to tell you such things. But you won't know the amount of the adjustment, because nobody can predict what interest rates will do in the future. This is the primary disadvantage of an adjustable rate mortgage, and it leads many people to refinance their mortgages prior to the adjustment phase.
When NOT to Refinance a Home Mortgage Loan
Here's the important thing to take away from this article. People use mortgage refinancing for many different reasons, and in many cases it's a smart financial move. But it's not the right thing to do in all occasions, as the cost of refinancing can sometimes exceed the savings. To learn about scenarios when refinancing is not the best move, read our article on when not to refinance.
http://www.mortgage-refinance-advice.com/refinance-mortgage-loans.php
The Basic Elements of Mortgage Refinancing
If you are planning to refinance your mortgage loan in the near future, it's time to start your research and education process! The more you learn about mortgage refinancing, the more able you will be to make smart financial decisions regarding your refinance.
We have listed this article first in the refinance articles section for a reason. It gives a basic overview of the mortgage refinance process that will pave the way for your future research.
Basic Elements of Mortgage Refinancing
Let's start with three important concepts that will come into play when you refinance your mortgage. By understanding these concepts, and keeping them in mind when choosing a mortgage lender and mortgage terms, you'll be more likely to make wise decisions. These three concepts are (1) the term of your mortgage, (2) the interest rate associated with the mortgage, and (3) other expenses associated with the mortgage.
1. The Term of Your Mortgage
When you hear the phrase "mortgage term," it usually refers to the length of time (and other conditions) you will have to repay the mortgage loan. For instance, a 30-year mortgage loan is a common term. With this option, the borrower has 30 years to repay the mortgage loan -- unless, of course, he or she chooses to refinance it first.
As logic and math would dictate, a longer mortgage term has lower monthly payments because those payments are spread over more months. And of course the opposite is true -- shorter term mortgages have higher monthly payments.
2. The Interest Rate
All loans have interest rates associated with them, and mortgage loans are no different. When you obtain a mortgage loan, the interest rate is one of the primary "ingredients" that determines the monthly amount you will have to pay.
When it comes to mortgage refinance, interest rates are a key motivator for many homeowners. When you refinance a mortgage and obtain lower interest rates as part of that refinance, you stand to save a lot of money over the long haul. But you need to be in the home (and maintain the new mortgage) for a certain period of time before you reach the "break even" point. After this point, your interest savings will make the cost of refinancing worthwhile.
3. Other Mortgage Expenses
A third piece of the mortgage puzzle to bear in mind is the cost of obtaining the mortgage. This cost is largely determined by the various fees associated with mortgage loans. If you are considering a mortgage refinance, then you have already been through at least one mortgage process in the past. So you probably remember all of those fees and costs that you had to pay on your mortgage -- above and beyond the principal loan amount and interest.
These fees are very important when it comes to mortgage refinancing. They are a key consideration when deciding whether or not it makes sense to refinance your mortgage. A basic rule of thumb when making such a decision is that the money you save from refinancing (over the term of the loan) should exceed the cost of refinancing.
This only makes sense -- you wouldn't want to pay more to refinance the mortgage than you save over the loan's term. That would be a money loser. For this reason, mortgage fees and costs are one of three most important elements of refinancing.
http://www.mortgage-refinance-advice.com/basics-of-refinancing.php
We have listed this article first in the refinance articles section for a reason. It gives a basic overview of the mortgage refinance process that will pave the way for your future research.
Basic Elements of Mortgage Refinancing
Let's start with three important concepts that will come into play when you refinance your mortgage. By understanding these concepts, and keeping them in mind when choosing a mortgage lender and mortgage terms, you'll be more likely to make wise decisions. These three concepts are (1) the term of your mortgage, (2) the interest rate associated with the mortgage, and (3) other expenses associated with the mortgage.
1. The Term of Your Mortgage
When you hear the phrase "mortgage term," it usually refers to the length of time (and other conditions) you will have to repay the mortgage loan. For instance, a 30-year mortgage loan is a common term. With this option, the borrower has 30 years to repay the mortgage loan -- unless, of course, he or she chooses to refinance it first.
As logic and math would dictate, a longer mortgage term has lower monthly payments because those payments are spread over more months. And of course the opposite is true -- shorter term mortgages have higher monthly payments.
2. The Interest Rate
All loans have interest rates associated with them, and mortgage loans are no different. When you obtain a mortgage loan, the interest rate is one of the primary "ingredients" that determines the monthly amount you will have to pay.
When it comes to mortgage refinance, interest rates are a key motivator for many homeowners. When you refinance a mortgage and obtain lower interest rates as part of that refinance, you stand to save a lot of money over the long haul. But you need to be in the home (and maintain the new mortgage) for a certain period of time before you reach the "break even" point. After this point, your interest savings will make the cost of refinancing worthwhile.
3. Other Mortgage Expenses
A third piece of the mortgage puzzle to bear in mind is the cost of obtaining the mortgage. This cost is largely determined by the various fees associated with mortgage loans. If you are considering a mortgage refinance, then you have already been through at least one mortgage process in the past. So you probably remember all of those fees and costs that you had to pay on your mortgage -- above and beyond the principal loan amount and interest.
These fees are very important when it comes to mortgage refinancing. They are a key consideration when deciding whether or not it makes sense to refinance your mortgage. A basic rule of thumb when making such a decision is that the money you save from refinancing (over the term of the loan) should exceed the cost of refinancing.
This only makes sense -- you wouldn't want to pay more to refinance the mortgage than you save over the loan's term. That would be a money loser. For this reason, mortgage fees and costs are one of three most important elements of refinancing.
http://www.mortgage-refinance-advice.com/basics-of-refinancing.php
Friday, September 28, 2007
Equipment Refinancing
Equipment refinancing is a way to obtain finances from pieces of equipment that a person already owns. This could be smaller pieces of equipment or larger pieces of equipment. Whether the consumer is paying off electronics (guitars, amplifiers, stereos, etc,) or a computer, the process can be done in a fast and simple way. In addition, refinancers can rework their current loan on equipment, possibly lowering interest and payments. This is very helpful for businesses who need fast cash or need to get a better deal on a past loan they are still paying on.
The best reason to refinance is to have the money to go elsewhere. Maybe in buying the property, the consumer over extended themselves. Therefore the best option is to refinance. Sometimes it is not easy to see the big picture of where money should go. But if the option is there, and the buyer is having trouble making payments, then the best suggestion is equipment refinancing. However, a wise businessman will talk with a financial professional about their options. When company finances are involved, every move is vital to the stability of the business. Company owners can also consult other owners and managers about options out there and which lenders are best to work with both locally and nationally.
A good candidate for to refinance equipment is one who has a good credit history and rating. This will give the lenders the security that the borrower is responsible and will pay them back to the best of their ability. Another good candidate is one who has a lot of equipment to refinance. This makes it worth going through the process of filling out paperwork and approval will be easier to obtain. Finally, a good candidate is one that has an income that can make the refinance payments. This is very important, even to the borrower because they don't want to have to go through equipment refinancing again.
Above all, in every situation, even financial ones, the Lord is in control. "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 1:5) The Lord will give wisdom in how and when and if one should do it. He is the ultimate loan counselor and the teacher. Let him reveal what he desires even when the situation seems small and unworthy. He desires to give good things always, even with equipment refinancing.
http://www.christianet.com/refinancing/equipmentrefinancing.htm
The best reason to refinance is to have the money to go elsewhere. Maybe in buying the property, the consumer over extended themselves. Therefore the best option is to refinance. Sometimes it is not easy to see the big picture of where money should go. But if the option is there, and the buyer is having trouble making payments, then the best suggestion is equipment refinancing. However, a wise businessman will talk with a financial professional about their options. When company finances are involved, every move is vital to the stability of the business. Company owners can also consult other owners and managers about options out there and which lenders are best to work with both locally and nationally.
A good candidate for to refinance equipment is one who has a good credit history and rating. This will give the lenders the security that the borrower is responsible and will pay them back to the best of their ability. Another good candidate is one who has a lot of equipment to refinance. This makes it worth going through the process of filling out paperwork and approval will be easier to obtain. Finally, a good candidate is one that has an income that can make the refinance payments. This is very important, even to the borrower because they don't want to have to go through equipment refinancing again.
Above all, in every situation, even financial ones, the Lord is in control. "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 1:5) The Lord will give wisdom in how and when and if one should do it. He is the ultimate loan counselor and the teacher. Let him reveal what he desires even when the situation seems small and unworthy. He desires to give good things always, even with equipment refinancing.
http://www.christianet.com/refinancing/equipmentrefinancing.htm
Car Refinancing
Car refinancing is one way for a car owner to lower the monthly payment, and have more money going toward the principal of the loan. Before signing a contract, the automobile owner should do some research into the available options. There are many different lenders willing to provide refinancing, so it probably isn't in the buyer's best interest to accept the very first offer. Unless, of course, that offer turns out to be the best one after several have been considered. Some lenders may engage in "hard sell" tactics to get a contract signed, so it will be up to the buyer to make sure he is getting a money-saving contract after the decision to refinance has been made.
This means of easing an auto owner's debt burden is offered for many reasons. If the automobile was purchased at a time when interest rates were high and now they are lower, then this is the time to think about these offers. It makes sense to pay as little interest as possible, as interest can add up quickly over the length of a loan. Getting the best interest rate will save the buyer significant money. When the automobile owner has made all the payments on time, some lenders will give a lower interest rate for refinancing. A good payment history goes a long way with creditors who are offering a deal in car refinancing. They know this person is a responsible borrower and a good credit risk so they are willing to offer a good deal. Where the automobile buyer has made the effort to establish good credit, this means of lowering interest might be a great reward for him. Through diligent effort, a person can be forgiven debt, but business forgiveness doesn't come close to the forgiveness we can receive from our Lord. "Then came Peter to him, and said, Lord, how oft shall my brother sin against me, and I forgive him? till seven times?" (Matthew 18:21) "And if he trespass against thee seven times in a day, and seven times in a day turn again to thee, saying, I repent; thou shalt forgive him." (Luke 17:4)
People who find they are having financial hardships often turn to refinancing a car to solve their financial problem. If a person is struggling to make high payments, but does not want to lose the vehicle, then this might be the answer. Car refinancing can offer a lower payment through extending the duration of a loan. If payments can be spread out over a longer time period the payments become smaller and easier to manage. If an automobile owner is in danger of losing his sole means of transportation, he might want to think about refinancing a car. One doesn't have to have perfect credit to qualify, but it helps to have good credit. The automobile is collateral for the loan, so there is little risk to the lender and they are, therefore, more willing to take the risk. If it comes down to losing one's automobile or car refinancing, consider the latter option.
http://www.christianet.com/refinancing/carrefinancing.htm
This means of easing an auto owner's debt burden is offered for many reasons. If the automobile was purchased at a time when interest rates were high and now they are lower, then this is the time to think about these offers. It makes sense to pay as little interest as possible, as interest can add up quickly over the length of a loan. Getting the best interest rate will save the buyer significant money. When the automobile owner has made all the payments on time, some lenders will give a lower interest rate for refinancing. A good payment history goes a long way with creditors who are offering a deal in car refinancing. They know this person is a responsible borrower and a good credit risk so they are willing to offer a good deal. Where the automobile buyer has made the effort to establish good credit, this means of lowering interest might be a great reward for him. Through diligent effort, a person can be forgiven debt, but business forgiveness doesn't come close to the forgiveness we can receive from our Lord. "Then came Peter to him, and said, Lord, how oft shall my brother sin against me, and I forgive him? till seven times?" (Matthew 18:21) "And if he trespass against thee seven times in a day, and seven times in a day turn again to thee, saying, I repent; thou shalt forgive him." (Luke 17:4)
People who find they are having financial hardships often turn to refinancing a car to solve their financial problem. If a person is struggling to make high payments, but does not want to lose the vehicle, then this might be the answer. Car refinancing can offer a lower payment through extending the duration of a loan. If payments can be spread out over a longer time period the payments become smaller and easier to manage. If an automobile owner is in danger of losing his sole means of transportation, he might want to think about refinancing a car. One doesn't have to have perfect credit to qualify, but it helps to have good credit. The automobile is collateral for the loan, so there is little risk to the lender and they are, therefore, more willing to take the risk. If it comes down to losing one's automobile or car refinancing, consider the latter option.
http://www.christianet.com/refinancing/carrefinancing.htm
High Risk Auto Refinance
High risk auto refinance deals can be made through multiple lending institutions that want a piece of interest from those that are being charged outrageous rates because of bad or no credit. During a refinance deal, a lender will need information concerning employment, credit, and previous loan arrangements. Detailed information about the car will also need to be provided. Auto refinancing is based on the amount needed to pay off the original loan, not the amount the car is worth, however, most auto refinancing lenders, will not refinance a car that is over 10 years old.
The first step in obtaining a high risk auto refinance loan is to pull a credit history on one's self from all three national credit reporting agencies. These agencies are Equifax, TransUnion, and Experian. That magical number on a credit report will directly influence the new interest rate sought. Some lenders use the number from only one agency; others use an average of all three. Regardless of the method a lender uses, pulling one's own report will save time and negative points on the credit report than if each lender pulled their own. Once the consumer has the credit scores, research for the best rate can begin. Luckily, we are not treated like debtors of old when we owe someone. "And his lord was wroth, and delivered him to the tormentors, till he should pay all that was due unto him." (Matthew 18:34)
With a simple phone call, a consumer interested in a high risk auto refinance loan can get all the information they need to make an informed decision. This can all be done before even applying for the loan. For a refinance applicant, a better interest rate can mean a tremendous decrease in not only the interest being paid over the life of the loan, but of the monthly payments being made. It is advised to keep an eye on the fluctuating interest rates online. Printed information cannot keep up to speed with interest rates that change daily. Finding a good website to check interest rates should be a priority.
Take for example a man who was considered high risk because of bad credit. He bought a car for $16,500 with a horrific interest rate of 21% for 60 months. This man's car payment is $446.38 per month. If he chooses to apply for a high risk auto refinance loan within the first year of payments, he may be able to lower his interest rate to 6%. This would drop his monthly payments to $318.99, thus saving him $7,643 in interest over the life of the loan. There are many other things that man could spend that money on besides interest to a lender. The best advice for those who seek a refinance loan is to keep looking and not get discouraged, there is a lender out there that will refinance the car.
http://www.christianet.com/refinancing/highriskautorefinance.htm
The first step in obtaining a high risk auto refinance loan is to pull a credit history on one's self from all three national credit reporting agencies. These agencies are Equifax, TransUnion, and Experian. That magical number on a credit report will directly influence the new interest rate sought. Some lenders use the number from only one agency; others use an average of all three. Regardless of the method a lender uses, pulling one's own report will save time and negative points on the credit report than if each lender pulled their own. Once the consumer has the credit scores, research for the best rate can begin. Luckily, we are not treated like debtors of old when we owe someone. "And his lord was wroth, and delivered him to the tormentors, till he should pay all that was due unto him." (Matthew 18:34)
With a simple phone call, a consumer interested in a high risk auto refinance loan can get all the information they need to make an informed decision. This can all be done before even applying for the loan. For a refinance applicant, a better interest rate can mean a tremendous decrease in not only the interest being paid over the life of the loan, but of the monthly payments being made. It is advised to keep an eye on the fluctuating interest rates online. Printed information cannot keep up to speed with interest rates that change daily. Finding a good website to check interest rates should be a priority.
Take for example a man who was considered high risk because of bad credit. He bought a car for $16,500 with a horrific interest rate of 21% for 60 months. This man's car payment is $446.38 per month. If he chooses to apply for a high risk auto refinance loan within the first year of payments, he may be able to lower his interest rate to 6%. This would drop his monthly payments to $318.99, thus saving him $7,643 in interest over the life of the loan. There are many other things that man could spend that money on besides interest to a lender. The best advice for those who seek a refinance loan is to keep looking and not get discouraged, there is a lender out there that will refinance the car.
http://www.christianet.com/refinancing/highriskautorefinance.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
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
Online Refinancing
Online refinancing is becoming a popular money management tool for homeowners. In order to enhance their financial stability, many people are looking for, and finding, excellent home refinancing packages. The most common reasons for home mortgage refinancing are (1) to pay off the current mortgage at a lower interest rate; (2) to change a current adjusted rate mortgage to a more stable fixed rate for the remaining life of the loan; and (3) to take advantage of a shorter overall mortgage term. All of these are sound reasons to pursue refinancing, but knowing whether doing so is actually beneficial in the long run will require careful evaluation.
If the interest rate available for the new mortgage is at least two percent lower than the current mortgage rate, it is probably worth proceeding. However, many of the same costs will be incurred as what the borrower had to put out for the initial mortgage. Borrowers should expect to pay an application fee, which includes the loan processing and credit check. A title search and title insurance policy are also required to be sure there are no claims to the title that may need to be cleared at a later date. Also, the new mortgage company will require an appraisal of the property and a new survey, both of which also carry fees. Borrowers will also need to purchase hazard insurance, pay the attorney's fee for the lender, pay for property inspection, loan origination fee, mortgage insurance, and anywhere from 1% to 3% in points. Taking all of these costs into consideration, homeowners need to be very sure that they are dealing with legitimate and reputable companies. Although many, if not most, online refinancing companies are on the up-and-up, it is always wise to research businesses through the Better Business Bureau. Asking for recommendations and feedback from friends and family is also a good idea.
In addition to specifics about the loan process, many sources also offer calculators that help determine what the monthly mortgage payments will be and just how much will be required for all of the fees and closing costs previously mentioned. Obviously, having a good idea of the costs before jumping into the application process is wise. Pursuing a new mortgage is not always cost-effective, and with this advance information the homeowners can see for themselves where they stand. When online refinancing will benefit the homeowner with lower payments and shorter repayment terms, the effort and expense will be worthwhile.
Similar services are offered for refinancing car loans, too. Online refinancing can result in a lower interest rate and faster payoff of current vehicle loans. Given today's high car prices, applying for a new loan often helps car owners keep the vehicles they were in danger of having repossessed. Again, it is absolutely essential for the loan applicant to check out the refinance companies carefully before committing to a loan agreement.
1 Timothy 6:10 reminds Believers of the dangers of putting all of their energies into making and saving and pursuing money. "For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows." So, while investigating refinancing options, keep motives pure and sights set on Godly things.
http://www.christianet.com/refinancing/onlinerefinancing.htm
If the interest rate available for the new mortgage is at least two percent lower than the current mortgage rate, it is probably worth proceeding. However, many of the same costs will be incurred as what the borrower had to put out for the initial mortgage. Borrowers should expect to pay an application fee, which includes the loan processing and credit check. A title search and title insurance policy are also required to be sure there are no claims to the title that may need to be cleared at a later date. Also, the new mortgage company will require an appraisal of the property and a new survey, both of which also carry fees. Borrowers will also need to purchase hazard insurance, pay the attorney's fee for the lender, pay for property inspection, loan origination fee, mortgage insurance, and anywhere from 1% to 3% in points. Taking all of these costs into consideration, homeowners need to be very sure that they are dealing with legitimate and reputable companies. Although many, if not most, online refinancing companies are on the up-and-up, it is always wise to research businesses through the Better Business Bureau. Asking for recommendations and feedback from friends and family is also a good idea.
In addition to specifics about the loan process, many sources also offer calculators that help determine what the monthly mortgage payments will be and just how much will be required for all of the fees and closing costs previously mentioned. Obviously, having a good idea of the costs before jumping into the application process is wise. Pursuing a new mortgage is not always cost-effective, and with this advance information the homeowners can see for themselves where they stand. When online refinancing will benefit the homeowner with lower payments and shorter repayment terms, the effort and expense will be worthwhile.
Similar services are offered for refinancing car loans, too. Online refinancing can result in a lower interest rate and faster payoff of current vehicle loans. Given today's high car prices, applying for a new loan often helps car owners keep the vehicles they were in danger of having repossessed. Again, it is absolutely essential for the loan applicant to check out the refinance companies carefully before committing to a loan agreement.
1 Timothy 6:10 reminds Believers of the dangers of putting all of their energies into making and saving and pursuing money. "For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows." So, while investigating refinancing options, keep motives pure and sights set on Godly things.
http://www.christianet.com/refinancing/onlinerefinancing.htm
Mortgage Rate
A mortgage rate fluctuates with the federal prime interest rate and therefore is somewhat dependent upon the state of the economy. If a person is thinking of purchasing a home and will be in need of a loan, then he will want to get the best deal available. This can be dependent upon the borrower's financial portfolio and what kind of risk the lender determines that the borrower is. When shopping for the current mortgage rates and the best rates available, use the Internet. The Internet has thousands of mortgage companies advertising and offering very competitive terms. The competition is fierce in the loan industry, and now is a good time to take advantage of the low rates and of the many agencies vying for the borrower's business.
With the changing economy, loan rates can rise and fall, depending upon what the federal government does with their responsibilities. When the economy is sluggish or poor, a mortgage rate can drop, generating interest in buying homes and upgrading existing ones. This activity can help put the economy back on track. When the economy begins to grow, then mortgage rates will generally rise higher, stabilizing the growth to a management level. Many people will wait to purchase a home until the loans are more affordable, and many people will also refinance a home loan to get better terms. Having a lower interest rate can save the homeowner monthly money, and the home will cost less over all.
To receive a competitive deal, a borrower must prove that he or she is not a risky investment. Interest rates can be determined by how much debt a consumer has, what his credit ratings is, and what the payment histories prove. The lower the credit score, the higher the fees. The more debt that a family accumulates, the higher the mortgage rate will be. To receive the best deals possible, families should make sure that their credit reports are in good order and that they have a fair amount of debt paid off. Keeping bills current and never getting behind is also good advice for those who will be seeking a home loan in the future.
The Internet can provide any prospective borrower with mortgage rates information. There are thousands of mortgage companies that offer services online. There are also brokers online that will match up a person's financial portfolio with a lender that is willing to consider loaning him money. There are also articles and financial information via the Internet that will help anyone learn more about lenders and the best mortgage rate available. Proverbs 16:20 says, "He that handleth a matter wisely shall find good: and whoso trusteth in the Lord, happy is he." Our first step in any financial situation is to consult God, and use the wisdom of His Word to help us make that decision.
http://www.christianet.com/refinancing/mortgagerates.htm
With the changing economy, loan rates can rise and fall, depending upon what the federal government does with their responsibilities. When the economy is sluggish or poor, a mortgage rate can drop, generating interest in buying homes and upgrading existing ones. This activity can help put the economy back on track. When the economy begins to grow, then mortgage rates will generally rise higher, stabilizing the growth to a management level. Many people will wait to purchase a home until the loans are more affordable, and many people will also refinance a home loan to get better terms. Having a lower interest rate can save the homeowner monthly money, and the home will cost less over all.
To receive a competitive deal, a borrower must prove that he or she is not a risky investment. Interest rates can be determined by how much debt a consumer has, what his credit ratings is, and what the payment histories prove. The lower the credit score, the higher the fees. The more debt that a family accumulates, the higher the mortgage rate will be. To receive the best deals possible, families should make sure that their credit reports are in good order and that they have a fair amount of debt paid off. Keeping bills current and never getting behind is also good advice for those who will be seeking a home loan in the future.
The Internet can provide any prospective borrower with mortgage rates information. There are thousands of mortgage companies that offer services online. There are also brokers online that will match up a person's financial portfolio with a lender that is willing to consider loaning him money. There are also articles and financial information via the Internet that will help anyone learn more about lenders and the best mortgage rate available. Proverbs 16:20 says, "He that handleth a matter wisely shall find good: and whoso trusteth in the Lord, happy is he." Our first step in any financial situation is to consult God, and use the wisdom of His Word to help us make that decision.
http://www.christianet.com/refinancing/mortgagerates.htm
Mortgage Loan Applications
A mortgage loan application is the documentation process a prospective borrower goes through in order to obtain a mortgage which is a loan often needed in order to purchase a home. Anyone who needs to borrow money for a home will have to fill out one of these documents along with many others through the borrowing process. In the end, though, the homebuyer can end up with a new home, an older home, a vacation house, condo, or even a home to be used as a rental property. What ever the type of home or the reason for purchase; mortgage loan applications will begin the process of the purchase.
Various lending institutions allow prospective borrowers to apply through the Internet. Also, borrowers can call, write, or email lending institutions for a mortgage loan application to be sent to them if they do not want to apply online. Some real estate companies keep forms for lending on hand from lending institutions that their clients have successfully received financing from. Typically, lending institutions will review the mortgage loan applications and pre-approve prospective borrowers. Lending institutions usually take less then two business days to review and pre-approve the borrowers.
Applicants must typically list employers and their contact information, social security number, references, gross annual income, etc when applying for home lending. Just applying, usually, gives the lending institution permission to read one's credit report. During the mortgage loan application process, the lending institution will arrange to have the value of the property they wish to buy or re-finance appraised. Part of the application process will include a phone or personal meeting. The lending institution will want to review the mortgage loan applications with the applicant and talk about the conditions of the lending contract.
Waiting on the final acceptance and release of the forms will take patience. The mortgage loan application process from start to finish can take a couple of weeks to a few months. There are many factors that will determine how quickly the lending institution will process the mortgage loan applications and release the money to the applicant. God, through His Word, encourages His people to pursue patience. It is written: "But thou, O man of God, flee these things: and follow after righteousness, godliness, faith, love, patience, meekness." (1 Timothy 6:11). Those who are anxious and excited about moving into the home and the release of the loan is taking longer than expected should rely on God for patience.
http://www.christianet.com/refinancing/mortgageloanapplications.htm
Various lending institutions allow prospective borrowers to apply through the Internet. Also, borrowers can call, write, or email lending institutions for a mortgage loan application to be sent to them if they do not want to apply online. Some real estate companies keep forms for lending on hand from lending institutions that their clients have successfully received financing from. Typically, lending institutions will review the mortgage loan applications and pre-approve prospective borrowers. Lending institutions usually take less then two business days to review and pre-approve the borrowers.
Applicants must typically list employers and their contact information, social security number, references, gross annual income, etc when applying for home lending. Just applying, usually, gives the lending institution permission to read one's credit report. During the mortgage loan application process, the lending institution will arrange to have the value of the property they wish to buy or re-finance appraised. Part of the application process will include a phone or personal meeting. The lending institution will want to review the mortgage loan applications with the applicant and talk about the conditions of the lending contract.
Waiting on the final acceptance and release of the forms will take patience. The mortgage loan application process from start to finish can take a couple of weeks to a few months. There are many factors that will determine how quickly the lending institution will process the mortgage loan applications and release the money to the applicant. God, through His Word, encourages His people to pursue patience. It is written: "But thou, O man of God, flee these things: and follow after righteousness, godliness, faith, love, patience, meekness." (1 Timothy 6:11). Those who are anxious and excited about moving into the home and the release of the loan is taking longer than expected should rely on God for patience.
http://www.christianet.com/refinancing/mortgageloanapplications.htm
Mobile Home Equity Loan
Mobile Home equity loans allow people to borrow money against the equity in their mobile or manufactured house. With a mobile home equity loan, the funds are secured by offering the house as collateral. Ideally, it would lower the consumers interest rates, which can be most beneficial for paying off existing high interest rate debts, paying for renovations, or getting cash out for other bills and expenses.
There are some significant differences between these types of financial assistance as compared to a regular home equity loan. Mobile home equity loans are not as popular as their counterparts. Many banks will not finance this funding because the current default or foreclosure rate for mobile homes is far in excess of that of regular homes. Granting a mobile home equity loan is often too much of a risk for financial institutions.
Financing a manufactured house for the first time may be a chore, and refinancing or seeking funding against this property is even more difficult. There are many guidelines that consumers must follow in order to meet eligibility requirements. The qualifications or restrictions for a mobile home equity loan include the age of the home. It must have been built after 1977 and must be built to Housing and Urban development standards. It also must meet minimum size and square footage requirements, must be livable and have skirting. Additionally, mobile home equity loans may be dependent on other factors that will be determined according to the individuals particular situation.
There's no need to despair though, as there are lenders who are more than happy to work with people needing financial assistance. Some offering mobile home equity loans offer a 30 day break period from payments and have no prepayment penalties. The consumers credit rating may play a crucial part in obtaining assistance, as will other factors, such as payment history, the value of the house, etc. Before seeking out a mobile home equity loan, the individual may want to do some checking on things like whether or not the property meets foundation requirements, when it was built, and the state of deterioration. While financing for this type of property may not be as readily available as receiving funding for other items, lenders are available. The consumer will just have to work hard to find companies that offer programs and packages that will fit their financial needs. "Commit thy works unto the LORD, and thy thoughts shall be established."
http://www.christianet.com/refinancing/mobilehomeequityloans.htm
There are some significant differences between these types of financial assistance as compared to a regular home equity loan. Mobile home equity loans are not as popular as their counterparts. Many banks will not finance this funding because the current default or foreclosure rate for mobile homes is far in excess of that of regular homes. Granting a mobile home equity loan is often too much of a risk for financial institutions.
Financing a manufactured house for the first time may be a chore, and refinancing or seeking funding against this property is even more difficult. There are many guidelines that consumers must follow in order to meet eligibility requirements. The qualifications or restrictions for a mobile home equity loan include the age of the home. It must have been built after 1977 and must be built to Housing and Urban development standards. It also must meet minimum size and square footage requirements, must be livable and have skirting. Additionally, mobile home equity loans may be dependent on other factors that will be determined according to the individuals particular situation.
There's no need to despair though, as there are lenders who are more than happy to work with people needing financial assistance. Some offering mobile home equity loans offer a 30 day break period from payments and have no prepayment penalties. The consumers credit rating may play a crucial part in obtaining assistance, as will other factors, such as payment history, the value of the house, etc. Before seeking out a mobile home equity loan, the individual may want to do some checking on things like whether or not the property meets foundation requirements, when it was built, and the state of deterioration. While financing for this type of property may not be as readily available as receiving funding for other items, lenders are available. The consumer will just have to work hard to find companies that offer programs and packages that will fit their financial needs. "Commit thy works unto the LORD, and thy thoughts shall be established."
http://www.christianet.com/refinancing/mobilehomeequityloans.htm
Refinance A Truck
To refinance a truck, a borrower can use the Internet to search for lenders who offer a variety of terms and interest rates better than what they currently have in their loan. Borrowers with large amounts of unsecured debt with high interest rates (like credit card debt) can apply for a loan that will allow them to pay off these unsecured debts. But to do this, a borrower must find out if a new loan would be advantageous. First, the borrower must investigate his own FICO credit score. If the score is above 650, the options for finding terms with much better deals are many. But if the borrower has a poorer score, he may be turned down by certain lenders or may have to pay higher interest rates. Therefore, he should investigate a consolidation loan by using the charts on websites that offer these types of consolidations.
A simple Internet search of "refinance a truck" will bring back many results that the customer can use to compare interest rates and terms of the loans between several lenders. Other sources are also available, including credit unions, banks, and finance companies. The wise borrower will investigate all the options before choosing a lender, whether over the Internet or otherwise. The consumer can also ask the aid of financial counselors; there are many different institutions and organizations that will gladly help a consumer with financial advice. Some of the nonprofit groups will help for low fees. They specialize in giving borrowers the needed strategies to reverse bad spending habits.
Another good reason for checking out these loans is if a loan-holder has improved his credit score. If so, he may be able to get better terms and interest rates from the original loan. Other borrowers may be holding high interest rates on credit cards that could be paid off with a consolidation loan to refinance a truck. But borrowers need to examine the terms of the old loan so that when choosing a new one, they don't pay more in the long run than they are now. The options on these types of loans are varied. Some are the interest rate and repayment time-span, hidden fees, fees for late or missed payments, and charges for paying off the loan early. The Bible teaches that we should seek wisdom in making decisions. "Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding" (Proverbs 4:7). We, as Christians, are encouraged to look for answers and gain understanding through the Bible and by seeking out God's will through prayer. If a believer decides to refinance a truck, he should pray about what the Lord would have him do.
http://www.christianet.com/refinancing/refinanceatruck.htm
A simple Internet search of "refinance a truck" will bring back many results that the customer can use to compare interest rates and terms of the loans between several lenders. Other sources are also available, including credit unions, banks, and finance companies. The wise borrower will investigate all the options before choosing a lender, whether over the Internet or otherwise. The consumer can also ask the aid of financial counselors; there are many different institutions and organizations that will gladly help a consumer with financial advice. Some of the nonprofit groups will help for low fees. They specialize in giving borrowers the needed strategies to reverse bad spending habits.
Another good reason for checking out these loans is if a loan-holder has improved his credit score. If so, he may be able to get better terms and interest rates from the original loan. Other borrowers may be holding high interest rates on credit cards that could be paid off with a consolidation loan to refinance a truck. But borrowers need to examine the terms of the old loan so that when choosing a new one, they don't pay more in the long run than they are now. The options on these types of loans are varied. Some are the interest rate and repayment time-span, hidden fees, fees for late or missed payments, and charges for paying off the loan early. The Bible teaches that we should seek wisdom in making decisions. "Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding" (Proverbs 4:7). We, as Christians, are encouraged to look for answers and gain understanding through the Bible and by seeking out God's will through prayer. If a believer decides to refinance a truck, he should pray about what the Lord would have him do.
http://www.christianet.com/refinancing/refinanceatruck.htm
Refinance Auto Loan With Bad Credit
People looking to refinance an auto loan with bad credit probably have many questions. Consumers wonder if they are eligible for refinancing packages and if the benefits of doing so are worthwhile. There are many advantages to refinancing. The money saved can be used to pay off other debts. Even if the current automobile loan rate is just two interest points higher than the rate offered through a new financing package, hundreds or even thousands of dollars can be saved.
A plethora of auto loan companies on the Internet offer the option to refinance an auto loan. Simply fill out the online application and, even with less than perfect credit, consumers can qualify to refinance their vehicle loans within minutes. There are some common guidelines that must be met in order to qualify to refinance an auto loan with bad credit. For example, the borrower must be at least 18 years old. Any bankruptcy in the borrower's history must have been discharged for a period of 2 years, and a repossession must be 12 months or older. The income requirements will vary from one auto loan company to another, but a general guideline is that the total combined gross income must be anywhere from $1200 to $1800 per month. This amount is often a bit less for those in the military.
Some other requirements include being current on any other account payments and having made at least three payments on your current car loan. Some auto lenders will not refinance on vehicles used primarily for commercial purposes. They may also decline the application if the vehicle is more than ten years old or has more than 100,000 miles registered on the odometer. Normally, no lease or line-of-credit conversions are allowed. Additionally, the vehicle must be registered in the state of your residence and the registration must be valid for at least 30 days in most states. Also, be prepared to refinance an auto loan with bad credit by providing at least one year's worth of proof of employment and residence.
People with low FICO scores will pay higher interest rates. Keep in mind that the interest rate borrowers are offered is largely influenced by the history with other loans and charge cards. If someone with a good FICO score co-signs to refinance an auto loan with bad credit, the chance of obtaining refinancing with a lower interest rate increases. However, many people with good credit histories are advised not to co-sign loans for anyone, especially for people with poor credit who pose a risk to the co-signer's credit report. "Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law."
http://www.christianet.com/refinancing/refinanceautoloanbadcredit.htm
A plethora of auto loan companies on the Internet offer the option to refinance an auto loan. Simply fill out the online application and, even with less than perfect credit, consumers can qualify to refinance their vehicle loans within minutes. There are some common guidelines that must be met in order to qualify to refinance an auto loan with bad credit. For example, the borrower must be at least 18 years old. Any bankruptcy in the borrower's history must have been discharged for a period of 2 years, and a repossession must be 12 months or older. The income requirements will vary from one auto loan company to another, but a general guideline is that the total combined gross income must be anywhere from $1200 to $1800 per month. This amount is often a bit less for those in the military.
Some other requirements include being current on any other account payments and having made at least three payments on your current car loan. Some auto lenders will not refinance on vehicles used primarily for commercial purposes. They may also decline the application if the vehicle is more than ten years old or has more than 100,000 miles registered on the odometer. Normally, no lease or line-of-credit conversions are allowed. Additionally, the vehicle must be registered in the state of your residence and the registration must be valid for at least 30 days in most states. Also, be prepared to refinance an auto loan with bad credit by providing at least one year's worth of proof of employment and residence.
People with low FICO scores will pay higher interest rates. Keep in mind that the interest rate borrowers are offered is largely influenced by the history with other loans and charge cards. If someone with a good FICO score co-signs to refinance an auto loan with bad credit, the chance of obtaining refinancing with a lower interest rate increases. However, many people with good credit histories are advised not to co-sign loans for anyone, especially for people with poor credit who pose a risk to the co-signer's credit report. "Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law."
http://www.christianet.com/refinancing/refinanceautoloanbadcredit.htm
Loan Refinance
Loan refinance is the process of paying off a current loan with the proceeds from a new loan based on the same property, and it often involves home loans, auto loans or debt consolidation. There are many financial institutions that offer these services. Individuals can find such institutions by doing an Internet search on refinancing or by contacting a financial lending institution directly. Whether they succeed in the process or not, borrowers need to praise God for all that they have and every chance to improve their finances. "I will give thee thanks in the great congregation: I will praise thee among much people" (Psalm 35:18).
When looking for a refinancing, people need to do their homework in order to find the loan that is right for the situation. To find the right opportunity, consumers should consult with a number of financial institutions. They can do this on their own if the time is available or there are actually companies online that will provide quotes from various institutions by filling out one simple application. When choosing the right lender, individuals must look at both the quality of service and the cost of loan refinance services provided.
Those who are going to investigate various loan refinance opportunities on their own need to know how to check rate trends as well as calculate interest rates and payments. Many financial institutions will do this for borrowers by providing free, no obligation quotes to interested clients. Consumers shouldn't be afraid to let the companies they are talking with know what others have quoted. They should mention the best offer received and have the lender beat that offer. Lenders like competition, and borrowers often benefit from it. Also, consumers must be sure to find out all fees required upfront. Some lenders offer higher fees and lower interest rates while others offer lower fees and higher interest rates.
There are two major reasons to refinance a loan. One has to do with interest refinancing. This is often done when looking for a way to save money or a way to streamline the repayment process. For the most part, lower interest rates are offered which reduce monthly payments giving borrowers more cash each month and saving them thousands of dollars over the term of the loan. The second reason to refinance a loan is because consumers are in need of a large chunk of money for something like home improvements, college education, or some large purchase or investment. The refinancing provides cash outright, known as cash-back or cash out refinancing. With this process, borrowers refinance for more than what is owed and get the difference paid in cash. Regardless of the reason for needing a loan refinanced, people need to make sure to find the deal that is right for them.
http://www.christianet.com/refinancing/loanrefinance.htm
When looking for a refinancing, people need to do their homework in order to find the loan that is right for the situation. To find the right opportunity, consumers should consult with a number of financial institutions. They can do this on their own if the time is available or there are actually companies online that will provide quotes from various institutions by filling out one simple application. When choosing the right lender, individuals must look at both the quality of service and the cost of loan refinance services provided.
Those who are going to investigate various loan refinance opportunities on their own need to know how to check rate trends as well as calculate interest rates and payments. Many financial institutions will do this for borrowers by providing free, no obligation quotes to interested clients. Consumers shouldn't be afraid to let the companies they are talking with know what others have quoted. They should mention the best offer received and have the lender beat that offer. Lenders like competition, and borrowers often benefit from it. Also, consumers must be sure to find out all fees required upfront. Some lenders offer higher fees and lower interest rates while others offer lower fees and higher interest rates.
There are two major reasons to refinance a loan. One has to do with interest refinancing. This is often done when looking for a way to save money or a way to streamline the repayment process. For the most part, lower interest rates are offered which reduce monthly payments giving borrowers more cash each month and saving them thousands of dollars over the term of the loan. The second reason to refinance a loan is because consumers are in need of a large chunk of money for something like home improvements, college education, or some large purchase or investment. The refinancing provides cash outright, known as cash-back or cash out refinancing. With this process, borrowers refinance for more than what is owed and get the difference paid in cash. Regardless of the reason for needing a loan refinanced, people need to make sure to find the deal that is right for them.
http://www.christianet.com/refinancing/loanrefinance.htm
Interest Only Mortgage Refinance Rates
Interest only mortgage refinance rates provide information to consumers on the percentage that will be required on this type of home loan. These numbers are not necessarily lower than a mortgage refinance without the interest-only option. Misconceptions are plentiful when it comes to these rates. One common misconception is that interest-only loans are a type of mortgage, when in fact they are merely an option that can be attached to any type of mortgage. Many consumers believe that the rates will be lower since there is no amortization for a specified period. This is not necessarily true because the risk of default is higher on loans that amortize more slowly.
Saying that percentages are lower than traditional refinance rates is like comparing apples to oranges. ARMs, or Adjustable Rate Mortgages, have lower fixed rates than FRMs, or Fixed-rate Mortgages, without the interest-only option. But, an ARM with this option does not have a lower rate then the identical ARM without it. The interest-only option is available on both Fixed-rate Mortgages and Adjustable Rate Mortgages, so choosing an ARM just because of this option might not be a wise decision. The consumers decision should be based on how long they intend to have the loan and the level of risk they are prepared to accept in a possible future rate increase. It is vital for the individual to explore all options before settling for interest only mortgage refinance rates.
These numbers will reduce the monthly payment by a considerable percentage, for a specified period of time, such as five years. After making the monthly payment for the five-year term, the principal balance is the same as when the loan originated because the payment consists of interest only mortgage refinance rates. In the 1920s, interest-only loans were considered to be the norm. Homeowners usually refinanced at term providing the home had not lost any value and the borrower maintained steady employment. When the depression hit in the 1930s, a large portion of these loans went into foreclosure. The lenders simply stopped writing them and have not brought them back as a primary loan option. Lenders want loans that will eventually amortize.
With this type of program, the rates are solely dependent on the current interest rates and the credit history of the borrower. It is important to remember that this type of refinancing option is not a stand-alone but can be combined with most any type of refinancing loan package. Since the interest-only option would prevent the loan from amortizing, you will have a lower payment for a specified term, but the individual should be prepared to accept a higher monthly payment when the term is up. When thinking about interest only mortgage refinance rates, it is important to understand that the longer the interest-only period, the larger the monthly payment will be when that period ends. "Discretion shall preserve thee, understanding shall keep thee" (Proverbs 2:11). Understanding the differences in these programs can be difficult for a person so it is important to ask God to provide discretion.
http://www.christianet.com/refinancing/interestonlymortgagerate.htm
Saying that percentages are lower than traditional refinance rates is like comparing apples to oranges. ARMs, or Adjustable Rate Mortgages, have lower fixed rates than FRMs, or Fixed-rate Mortgages, without the interest-only option. But, an ARM with this option does not have a lower rate then the identical ARM without it. The interest-only option is available on both Fixed-rate Mortgages and Adjustable Rate Mortgages, so choosing an ARM just because of this option might not be a wise decision. The consumers decision should be based on how long they intend to have the loan and the level of risk they are prepared to accept in a possible future rate increase. It is vital for the individual to explore all options before settling for interest only mortgage refinance rates.
These numbers will reduce the monthly payment by a considerable percentage, for a specified period of time, such as five years. After making the monthly payment for the five-year term, the principal balance is the same as when the loan originated because the payment consists of interest only mortgage refinance rates. In the 1920s, interest-only loans were considered to be the norm. Homeowners usually refinanced at term providing the home had not lost any value and the borrower maintained steady employment. When the depression hit in the 1930s, a large portion of these loans went into foreclosure. The lenders simply stopped writing them and have not brought them back as a primary loan option. Lenders want loans that will eventually amortize.
With this type of program, the rates are solely dependent on the current interest rates and the credit history of the borrower. It is important to remember that this type of refinancing option is not a stand-alone but can be combined with most any type of refinancing loan package. Since the interest-only option would prevent the loan from amortizing, you will have a lower payment for a specified term, but the individual should be prepared to accept a higher monthly payment when the term is up. When thinking about interest only mortgage refinance rates, it is important to understand that the longer the interest-only period, the larger the monthly payment will be when that period ends. "Discretion shall preserve thee, understanding shall keep thee" (Proverbs 2:11). Understanding the differences in these programs can be difficult for a person so it is important to ask God to provide discretion.
http://www.christianet.com/refinancing/interestonlymortgagerate.htm
Home Loan Refinance Rates
Home loan refinance rates are available for viewing on lenders' websites, in print or television advertising, and on bank statements by consumers seeking to remortgage homes. Typically much lower than first time homebuyer terms, the most popular reasons that homeowners refinance are for debt consolidation, to lower an finance charges, and to pull money out of the equity in the house. Many lenders are offering lower terms to homeowners and still benefiting by earning a profit from the interest earned. On property financing, interest is paid early in the life of the deal.
A homeowner shopping for better interest offers has already paid the original mortgage company a substantial amount of interest. Once the homeowner refinances, the new lender can also benefit from an upfront payment of fees called points. However, the homeowners' benefit of cutting their interest rates by up to 45% is a fair and very valuable tradeoff. It is no surprise that home loan refinance rates are lower than standard first mortgage rates. If they were not competitive, homeowners would not go through the time and energy to save thousands of dollars in interest charges.
For example: refinancing terms of 5%-5.5% down from original terms of 7-7.5% can lower the total interest paid on a $200,000 loan from $300,000 to $210,000. That is $90,000 in interest saved that goes right back into the homeowner's pocket! When researched well, home loan refinance rates, can benefit the borrower by paying much less on the total financed amount then the original mortgage terms would have resulted in. This reason is why refinancing is so popular. The homeowner pays less interest and more lenders stay in competitive business, a good thing for borrowers!
Although Christians are warned of borrowing, it is nearly impossible to own a home in today's society without using a mortgage loan to finance it. The goal for a Christian is to learn self control with finances. Live beneath your means, not over them. God did not say in the Bible that homeownership is a must, or that we should pay $500,000 over 30 years for a $200,000 home. We must be still, and listen to his guiding and direction. Searching for the lowest home loan refinance rates to lower our payments, or pay off the loan early is a good idea. Caution should be taken when dealing with any need for borrowing. Always do the research first, before signing any papers. "Blessed is the man that maketh the Lord his trust, and respecteth not the proud, nor such as turn aside to lies"
http://www.christianet.com/refinancing/homeloanrefinancerate.htm
A homeowner shopping for better interest offers has already paid the original mortgage company a substantial amount of interest. Once the homeowner refinances, the new lender can also benefit from an upfront payment of fees called points. However, the homeowners' benefit of cutting their interest rates by up to 45% is a fair and very valuable tradeoff. It is no surprise that home loan refinance rates are lower than standard first mortgage rates. If they were not competitive, homeowners would not go through the time and energy to save thousands of dollars in interest charges.
For example: refinancing terms of 5%-5.5% down from original terms of 7-7.5% can lower the total interest paid on a $200,000 loan from $300,000 to $210,000. That is $90,000 in interest saved that goes right back into the homeowner's pocket! When researched well, home loan refinance rates, can benefit the borrower by paying much less on the total financed amount then the original mortgage terms would have resulted in. This reason is why refinancing is so popular. The homeowner pays less interest and more lenders stay in competitive business, a good thing for borrowers!
Although Christians are warned of borrowing, it is nearly impossible to own a home in today's society without using a mortgage loan to finance it. The goal for a Christian is to learn self control with finances. Live beneath your means, not over them. God did not say in the Bible that homeownership is a must, or that we should pay $500,000 over 30 years for a $200,000 home. We must be still, and listen to his guiding and direction. Searching for the lowest home loan refinance rates to lower our payments, or pay off the loan early is a good idea. Caution should be taken when dealing with any need for borrowing. Always do the research first, before signing any papers. "Blessed is the man that maketh the Lord his trust, and respecteth not the proud, nor such as turn aside to lies"
http://www.christianet.com/refinancing/homeloanrefinancerate.htm
Refinancing A Home Mortgage Loan
Refinancing a home loan can find homeowners benefiting from the increase in equity and perhaps decreasing their monthly payments by a substantial amount. Because of today's booming market, the value of homes has skyrocketed and it is presently an opportune time to cash in on this phenomena. If a mortgage payment is a bit much to handle, consider refinancing to get a better rate. Doing this when the interest rates are at their lowest would be the best for saving money. The rate can be locked in at a reasonable price and the mortgage payment will be satisfied without any worry about whether or not ends will meet at the end of the month in regards to the other bills.
In order to get the most for the money, a scant amount of research is needed. Determine how much equity is involved, check the present interest rates and then look for a professional with some expertise in refinancing a home loan. There are programs available to the homeowner that can help one understand exactly what the process is involving the home and the equity involved. There are key tips and different ways to implement great benefits when refinancing and the weight of worry can be lifted off shoulders regarding monthly mortgage payments.
If any friends or family members have already looked into the wonderful world of refinancing or are currently working through the process, they may be of much help when considering this. It is possible that they have already done all the legwork and have learned the process of refinancing a home loan and are now reaping the benefits. Talk with neighbors who may be at the same pinnacle in their lives and may have information that could be beneficial. Talk with them about the pros and cons of refinancing. With other people's input, it helps to make better decisions in regards to making a big decision.
Mortgage companies who specialize in refinancing can answer questions about any type of financing and all the pros and cons. There are qualified professionals who make it their aim to give the most recent and up to date information about refinancing a home loan. They are there to make the process a success. So, when seeking out companies who offer home loan programs, let God help to make the decisions regarding the most suitable and righteous deal. "There are many devices in a man's heart; nevertheless the counsel of the Lord, that shall stand."
http://www.christianet.com/refinancing/refinancingahomeloan.htm
In order to get the most for the money, a scant amount of research is needed. Determine how much equity is involved, check the present interest rates and then look for a professional with some expertise in refinancing a home loan. There are programs available to the homeowner that can help one understand exactly what the process is involving the home and the equity involved. There are key tips and different ways to implement great benefits when refinancing and the weight of worry can be lifted off shoulders regarding monthly mortgage payments.
If any friends or family members have already looked into the wonderful world of refinancing or are currently working through the process, they may be of much help when considering this. It is possible that they have already done all the legwork and have learned the process of refinancing a home loan and are now reaping the benefits. Talk with neighbors who may be at the same pinnacle in their lives and may have information that could be beneficial. Talk with them about the pros and cons of refinancing. With other people's input, it helps to make better decisions in regards to making a big decision.
Mortgage companies who specialize in refinancing can answer questions about any type of financing and all the pros and cons. There are qualified professionals who make it their aim to give the most recent and up to date information about refinancing a home loan. They are there to make the process a success. So, when seeking out companies who offer home loan programs, let God help to make the decisions regarding the most suitable and righteous deal. "There are many devices in a man's heart; nevertheless the counsel of the Lord, that shall stand."
http://www.christianet.com/refinancing/refinancingahomeloan.htm
Thursday, September 27, 2007
Choosing The Best Time To Refinance Your Mortgage
Choosing to refinance your existing mortgage or home loan can be a wise and profitable decision, as you will likely be able to take advantage of lower interest rates from a different bank or lending institution.
It is possible to save hundreds or even thousands of dollars every month, but the trick is knowing what you need to do in order to have everything structured in the best possible manner to minimize your total cost.
If you are reading this, there is a good chance that you already have a mortgage, and you know that the size of your monthly payments depends upon the total value of the mortgage as well as the interest rate to which you and the bank agreed.
If you have a fixed rate mortgage, it will be easier for you to figure out whether refinancing your home loan will be a good option for you. If you have an adjustable rate mortgage, the calculation may vary but you should still be able to get a good idea of where your current interest rate is and what direction it will be headed in the next few years.
Most people pay attention to only the interest rate when looking to refinance their mortgage, but this can be a misleading methodology for a few reasons:
First, more important than just the interest rate is the TOTAL amount of interest that will eventually be paid back.
To illustrate this point, let's say that you got a $500,000 mortgage and you agreed to a 30-year period and a fixed interest rate of 9%. It has already been 18 years, so now you have only 12 years of payments left.
Now if you were to refinance this, you could get a new loan with a 5-year term, and even if you had an 11% interest rate with this new loan, you will still pay back less total interest. This is important to realize as it will save you more money in the long run, and if you are a person that only looks at the interest rates then you might not see the potential benefit of a refinancing situation such as this.
The point here is that even though the surface interest rate may be higher with a refinanced loan (regardless of whether it is fixed or adjustable), you may still be paying back LESS total interest over the term of the loan.
What your goal should be in terms of your home loan or mortgage is to minimize the amount of total interest that you will pay back to the bank, while making sure that the interest rate and time-period you have chosen will make your monthly payments as comfortable as possible.
You would not want to over-extend yourself financially by creating monthly payments that are too large, but at the same time remember that the smaller the payments are (and the longer the time you pay them) the greater the total amount of interest repaid will be.
If you know how to structure it correctly, you can save a lot on your monthly payments through proper mortgage refinancing. YourRefinancingSolution.com can be an excellent resource where you can learn how to refinance a home loan.
http://EzineArticles.com/?expert=Richard_Weber
It is possible to save hundreds or even thousands of dollars every month, but the trick is knowing what you need to do in order to have everything structured in the best possible manner to minimize your total cost.
If you are reading this, there is a good chance that you already have a mortgage, and you know that the size of your monthly payments depends upon the total value of the mortgage as well as the interest rate to which you and the bank agreed.
If you have a fixed rate mortgage, it will be easier for you to figure out whether refinancing your home loan will be a good option for you. If you have an adjustable rate mortgage, the calculation may vary but you should still be able to get a good idea of where your current interest rate is and what direction it will be headed in the next few years.
Most people pay attention to only the interest rate when looking to refinance their mortgage, but this can be a misleading methodology for a few reasons:
First, more important than just the interest rate is the TOTAL amount of interest that will eventually be paid back.
To illustrate this point, let's say that you got a $500,000 mortgage and you agreed to a 30-year period and a fixed interest rate of 9%. It has already been 18 years, so now you have only 12 years of payments left.
Now if you were to refinance this, you could get a new loan with a 5-year term, and even if you had an 11% interest rate with this new loan, you will still pay back less total interest. This is important to realize as it will save you more money in the long run, and if you are a person that only looks at the interest rates then you might not see the potential benefit of a refinancing situation such as this.
The point here is that even though the surface interest rate may be higher with a refinanced loan (regardless of whether it is fixed or adjustable), you may still be paying back LESS total interest over the term of the loan.
What your goal should be in terms of your home loan or mortgage is to minimize the amount of total interest that you will pay back to the bank, while making sure that the interest rate and time-period you have chosen will make your monthly payments as comfortable as possible.
You would not want to over-extend yourself financially by creating monthly payments that are too large, but at the same time remember that the smaller the payments are (and the longer the time you pay them) the greater the total amount of interest repaid will be.
If you know how to structure it correctly, you can save a lot on your monthly payments through proper mortgage refinancing. YourRefinancingSolution.com can be an excellent resource where you can learn how to refinance a home loan.
http://EzineArticles.com/?expert=Richard_Weber
Refinance With Credit Score Under 500
If your credit score is under 500 and you need to refinance your mortgage you have severely limited options when compared to someone with a credit score over 500. Most sub prime lenders will not accept a below refinance loan from a under 500 credit score borrower. However all hope is not lost and you do still have some options to refinance even with a credit score under 500.
One option many credit score under 500 refinance borrowers turn to is a hard money lender. Hard money lenders are typically equity driven and do not look at credit score. They are mainly concerned with making in the short term, therefore many hard money loans will have interest rates over 10% and many will have funding fees of up to 5% of the loan amount. You will however need 30-40% equity in your home to secure a hard money loan. All though not cheap they can help you refinance with a credit score under 500 to get cash out to pay off debt or stop a foreclosure.
Another not so widely known option for a credit score under 500 refinance is an FHA loan. FHA is backed by the federal government does not have any actual minimum credit score requirements, instead they look at overall credit profile. This type of underwriting is just what the below 500 refinance borrower needs. With a FHA refinance you will need to prove financial responsibility and explain why your credit score is under 500. For example if your credit score is under 500 due to medical bills but all your other payments were on time then FHA more then likely will help you with a credit score under 500 refinance. You will however have to show valid proof of positive payment on your consumer credit accounts. FHA will even accept payment history on alternate credit accounts such as the cable bill, electric bill and cell phone bills. What FHA will not accept for a credit score under 500 refinance is a borrower who just did not pay their bills and was irresponsible.
The best option for a homeowner with a credit score under 500 is to find a local FHA refinance expert and talk to them about your situation. Many times based off experience they should be able to tell you if your credit score under 500 refinance will be FHA approved or not.
http://EzineArticles.com/?expert=Darin_Sewell
Time To Make The Big Change With Refinance Mortgage Arizona
Everybody needs a change. If you’re tired, burnt out, and bored out of your eyeballs, then it’s definitely time to consider changes in your life. You might feel that your career is going nowhere and you’re sick of your old neighborhood. A change of scenery will do you good and while you’re at it, so will a career change. Consider moving to Arizona, where many industries thrive and even more houses being built everyday. With refinance mortgage Arizona, there’s no stopping you.
What’s in Arizona?
What used to be barren wasteland are now several thriving desert cities with many a successful industry to its name. Communities are sprouting up everywhere in the state like mushrooms, and they just keep growing.
Arizona experienced its boom in population half a century ago when air conditioning was invented. Suddenly, the desert heat became tolerable and even ideal for some. With the state’s wide open spaces, beautiful sunsets, and warm weather all-year round, it’s the perfect place to raise a family and is the haven of outdoorsmen and homebodies alike.
Arizona has since played host to many industries, from computers to customer service, education to medicine. You name it, Arizona has it. Of course, you won’t take that refinance mortgage Arizona until you know there’s a job waiting for you out there. But don’t fret, you’ll find one quicker than you expect.
How do I get to Arizona?
When you finally have that job offer under your belt, you’re well on your way to Arizona. It’s just a matter of how. It’s time to shop around for the best refinance mortgage Arizona. Of course, you don’t want to settle for less when you can have the best. With the many companies offering refinance mortgage Arizona today, it’s best to tread carefully and not to be too hasty in your decisions. After all, you want to end up with a home as an asset and not a huge liability for you.
Take the time to look around. Compare rates and offers from different companies offering refinance mortgage Arizona. Get your persuasive juices flowing and negotiate for the best deal that works for you. Look out for locked interest rates, meaning interest rates that don’t change over time. It might be exactly what you need. Also look out for hidden fees and charges. It always pays to read the fine print.
Don’t be so easily persuaded by smooth talking brokers. They’re no more than salespeople out to get commissions out of your business and they hardly ever have your best interest at heart. You know your finances best. You know what you can afford. By knowing where to draw the line, you’re finally ready to sign your name on the dotted line, and you’ll be well on your way to beautiful Arizona.
Indeed, with a good refinance mortgage Arizona, moving to the Wild, Wild West is as easy as ABC. When you’re sitting on your porch and watching the sun set over the desert, you’ll know you’ve made the best decision of your life.
How would you like to know more about refinance mortgage Arizona? Check out whataboutloans.com today and also learn more about Colorado mortgage lender and home mortgage refinancing lender.
http://EzineArticles.com/?expert=Rony_Walker
What’s in Arizona?
What used to be barren wasteland are now several thriving desert cities with many a successful industry to its name. Communities are sprouting up everywhere in the state like mushrooms, and they just keep growing.
Arizona experienced its boom in population half a century ago when air conditioning was invented. Suddenly, the desert heat became tolerable and even ideal for some. With the state’s wide open spaces, beautiful sunsets, and warm weather all-year round, it’s the perfect place to raise a family and is the haven of outdoorsmen and homebodies alike.
Arizona has since played host to many industries, from computers to customer service, education to medicine. You name it, Arizona has it. Of course, you won’t take that refinance mortgage Arizona until you know there’s a job waiting for you out there. But don’t fret, you’ll find one quicker than you expect.
How do I get to Arizona?
When you finally have that job offer under your belt, you’re well on your way to Arizona. It’s just a matter of how. It’s time to shop around for the best refinance mortgage Arizona. Of course, you don’t want to settle for less when you can have the best. With the many companies offering refinance mortgage Arizona today, it’s best to tread carefully and not to be too hasty in your decisions. After all, you want to end up with a home as an asset and not a huge liability for you.
Take the time to look around. Compare rates and offers from different companies offering refinance mortgage Arizona. Get your persuasive juices flowing and negotiate for the best deal that works for you. Look out for locked interest rates, meaning interest rates that don’t change over time. It might be exactly what you need. Also look out for hidden fees and charges. It always pays to read the fine print.
Don’t be so easily persuaded by smooth talking brokers. They’re no more than salespeople out to get commissions out of your business and they hardly ever have your best interest at heart. You know your finances best. You know what you can afford. By knowing where to draw the line, you’re finally ready to sign your name on the dotted line, and you’ll be well on your way to beautiful Arizona.
Indeed, with a good refinance mortgage Arizona, moving to the Wild, Wild West is as easy as ABC. When you’re sitting on your porch and watching the sun set over the desert, you’ll know you’ve made the best decision of your life.
How would you like to know more about refinance mortgage Arizona? Check out whataboutloans.com today and also learn more about Colorado mortgage lender and home mortgage refinancing lender.
http://EzineArticles.com/?expert=Rony_Walker
Refinancing Mortgage Loans for the Growing Family
Your kids are growing and your house is getting smaller. Thinking big? Go ahead and get that second loan, but you have to know that refinancing mortgage loans should not be taken lightly. Get to know the best refinancing strategies before you take out a loan. You won’t regret it.
Are you good enough?
People turn to refinancing mortgage loans for different reasons. Some people need bigger homes for their growing family. Others resort to refinancing mortgage loans in order to reduce monthly payments. Yet others refinance to shift to other types of loans, while some refinance to build equity faster. Whatever your excuse is, there are a few things you should know about mortgage refinancing.
Before you head off to your lender to refinance your loans, you should be able to assess your personal eligibility to refinance, if only to spare yourself the pain of being rejected just in case you’re not good enough. Ask yourself basic questions like:
1. How big a house do I need?
2. How long do I plan to stay in my home?
3. How many years are left on my current loan?
4. Do I have enough resources to cover the expenses that come with refinancing mortgage loans?
Answer these questions as best as you can. These questions will not only determine your personal qualifications for refinancing mortgage loans, but will also help you decide the type of mortgage to take on. Depending on your needs, you can choose from the different terms and interest rates offered by a lender.
If you pass your own rigid personal assessment, you’re now ready to face the big guys – the lenders. Based on your income, property value, existing mortgage information, and other pertinent data, the lender will confirm your eligibility for refinancing mortgage loans. They have the final word, so cross your fingers and hope you’re all on the same wavelength.
Do you have what it takes?
So you’ve passed your evaluation with flying colors. You can now begin the process of refinancing. Mortgage loans may be refinanced by the original lender. But it will also be a good idea to contact other companies and compare notes. If you find something better, by all means, switch lenders. Nobody’s stopping you.
Be prepared to shoulder new fees aplenty, however, regardless if you’re switching lender or not. After all, they’re all running a business. Expect expenses such as closing fees, application fees, title insurance and title search fees, appraisal costs, discount points, loan origination fee, prepayment penalties, and legal service fees with your refinancing mortgage loans. The cost of refinancing mortgage loans varies from one case to another. In some cases, a new appraisal will not be required, especially if you’re sticking to your old lender. Other fees may be negotiated or waived, so turn on that charm and you might get lucky.
Want to kiss those fees goodbye?
If you feel that additional expenses are unjustified, put your righteous indignation to use and contact lenders that offer no-cost refinancing. Shop around for lenders that do not require up-front payments for closing fees and applications fees. While some lenders stick to their promise of no-cost refinancing, there are some that don’t.
Take the time to visit possible lenders. Play devil’s advocate and show up armed with a list of questions to ask the lender. After all, asking questions is your right. Compare the offers and other important information gathered, and come up with a shortlist. Keep an eye out for hidden charges and other unnecessary fees charged by the lender.
Working with lenders that use automated underwriting will speed up your application process. If you’re in a hurry, automated underwriting decreases the amount of time it takes to produce a loan approval. It also reduces the initial refinancing fees. Lenders that use automated underwriting do not require property appraisal, so that’s one expense down the drain.
Indeed, refinancing mortgage loans can help you, but if you’re not careful, it can give you more headaches than your kids or a hangover. It doesn’t pay to be hasty, so take your time. They’re not going anywhere.
Need those refinancing mortgage loans? Visit whataboutloans.com today. Also check out the information on loan refinance Florida and California home loan mortgage refinancing.
: http://EzineArticles.com/?expert=Rony_Walker
Are you good enough?
People turn to refinancing mortgage loans for different reasons. Some people need bigger homes for their growing family. Others resort to refinancing mortgage loans in order to reduce monthly payments. Yet others refinance to shift to other types of loans, while some refinance to build equity faster. Whatever your excuse is, there are a few things you should know about mortgage refinancing.
Before you head off to your lender to refinance your loans, you should be able to assess your personal eligibility to refinance, if only to spare yourself the pain of being rejected just in case you’re not good enough. Ask yourself basic questions like:
1. How big a house do I need?
2. How long do I plan to stay in my home?
3. How many years are left on my current loan?
4. Do I have enough resources to cover the expenses that come with refinancing mortgage loans?
Answer these questions as best as you can. These questions will not only determine your personal qualifications for refinancing mortgage loans, but will also help you decide the type of mortgage to take on. Depending on your needs, you can choose from the different terms and interest rates offered by a lender.
If you pass your own rigid personal assessment, you’re now ready to face the big guys – the lenders. Based on your income, property value, existing mortgage information, and other pertinent data, the lender will confirm your eligibility for refinancing mortgage loans. They have the final word, so cross your fingers and hope you’re all on the same wavelength.
Do you have what it takes?
So you’ve passed your evaluation with flying colors. You can now begin the process of refinancing. Mortgage loans may be refinanced by the original lender. But it will also be a good idea to contact other companies and compare notes. If you find something better, by all means, switch lenders. Nobody’s stopping you.
Be prepared to shoulder new fees aplenty, however, regardless if you’re switching lender or not. After all, they’re all running a business. Expect expenses such as closing fees, application fees, title insurance and title search fees, appraisal costs, discount points, loan origination fee, prepayment penalties, and legal service fees with your refinancing mortgage loans. The cost of refinancing mortgage loans varies from one case to another. In some cases, a new appraisal will not be required, especially if you’re sticking to your old lender. Other fees may be negotiated or waived, so turn on that charm and you might get lucky.
Want to kiss those fees goodbye?
If you feel that additional expenses are unjustified, put your righteous indignation to use and contact lenders that offer no-cost refinancing. Shop around for lenders that do not require up-front payments for closing fees and applications fees. While some lenders stick to their promise of no-cost refinancing, there are some that don’t.
Take the time to visit possible lenders. Play devil’s advocate and show up armed with a list of questions to ask the lender. After all, asking questions is your right. Compare the offers and other important information gathered, and come up with a shortlist. Keep an eye out for hidden charges and other unnecessary fees charged by the lender.
Working with lenders that use automated underwriting will speed up your application process. If you’re in a hurry, automated underwriting decreases the amount of time it takes to produce a loan approval. It also reduces the initial refinancing fees. Lenders that use automated underwriting do not require property appraisal, so that’s one expense down the drain.
Indeed, refinancing mortgage loans can help you, but if you’re not careful, it can give you more headaches than your kids or a hangover. It doesn’t pay to be hasty, so take your time. They’re not going anywhere.
Need those refinancing mortgage loans? Visit whataboutloans.com today. Also check out the information on loan refinance Florida and California home loan mortgage refinancing.
: http://EzineArticles.com/?expert=Rony_Walker
Low Refinance Rates
If the thought of paying your high housing loan interests makes you feel queasy, then opt for refinancing and get rid of all your worries and anxieties. Refinance your loan and lead a stress free life. And the veritably low refinance rates available in the market today makes mortgage refinance a lesser devil to tackle than usual.
What is Refinancing?
Securing a loan to pay off your previous loan against the same assets, property etc is called refinancing. It is generally undertaken when the interest rates on the new loan are lower than that charged on the previous one. There are no-cost as well as low-cost refinance loans. In low-cost refinance loans the costs are included in the loan.
When to Refinance?
Interest rates fluctuate, when the Central Reserve enters a rate cutting period. The prevailing rates may become significantly lower than when you originally secured your first loan. By refinancing your mortgage when interest rates are lower, you can exchange higher interest rates for a lower one, which, in turn, will lower your monthly payment. Low refinance rates leads to interest savings ultimately recovering the cost you've paid for the new loan. Refinance when you find the current market rates are low. You can enjoy the benefits of refinance if you can secure an interest rate 2 per cent below the rate on your current loan. Refinancing is beneficial even if the rate decline is only 1 percentage point, that is, even if you have contracted a fixed-rate home loan at 9 per cent, you will benefit from refinancing the rate to 8 per cent. This is possible due to low refinance rates which may vary from 2-2.5 per cent.
Benefits of low refinance rates
- Reduces Interest Cost
Low refinance rates reduces interest costs and helps save more money at the end of month that would. It brings great respite in times of emergency by providing ready cash. Refinance rates are usually lower than the original loan when you actually compare rates, thereby allowing you to have extra cash, while simultaneously lowering your monthly mortgage payment.
- Lowers Monthly Mortgage Payment
In essence, refinancing a mortgage or other type of loan can lower the monthly payments owed, either by changing the loan to a lower interest rate or by extending the period of loan so as to spread out the repayment over a longer period of time. Low refinance rates helps save money which can be used to pay down the principal of the loan, thus further reducing payments.
In order to avail low refinance rate, keep a check on your credit score. Your credit history will make a big difference in refinance rate offered to you. Paying points are also one more way of getting low refinance rate. So, refinance your loan, pay low rate of interest and invest the savings thereby for exigencies. Low refinance rates sure make borrowing seem like a piece of cake. But do not get carried away with low refinance rate alone. Remember there is something called closing costs and redemption penalty.
Martin Lukac represents RateEmpire.com Mortgage Rate and Refinance Rate marketplace. RateEmpire.com is a destination site of personal finance, investing and taxes. For more information please visit Low Refinance Rates
http://EzineArticles.com/?expert=Martin_Lukac
What is Refinancing?
Securing a loan to pay off your previous loan against the same assets, property etc is called refinancing. It is generally undertaken when the interest rates on the new loan are lower than that charged on the previous one. There are no-cost as well as low-cost refinance loans. In low-cost refinance loans the costs are included in the loan.
When to Refinance?
Interest rates fluctuate, when the Central Reserve enters a rate cutting period. The prevailing rates may become significantly lower than when you originally secured your first loan. By refinancing your mortgage when interest rates are lower, you can exchange higher interest rates for a lower one, which, in turn, will lower your monthly payment. Low refinance rates leads to interest savings ultimately recovering the cost you've paid for the new loan. Refinance when you find the current market rates are low. You can enjoy the benefits of refinance if you can secure an interest rate 2 per cent below the rate on your current loan. Refinancing is beneficial even if the rate decline is only 1 percentage point, that is, even if you have contracted a fixed-rate home loan at 9 per cent, you will benefit from refinancing the rate to 8 per cent. This is possible due to low refinance rates which may vary from 2-2.5 per cent.
Benefits of low refinance rates
- Reduces Interest Cost
Low refinance rates reduces interest costs and helps save more money at the end of month that would. It brings great respite in times of emergency by providing ready cash. Refinance rates are usually lower than the original loan when you actually compare rates, thereby allowing you to have extra cash, while simultaneously lowering your monthly mortgage payment.
- Lowers Monthly Mortgage Payment
In essence, refinancing a mortgage or other type of loan can lower the monthly payments owed, either by changing the loan to a lower interest rate or by extending the period of loan so as to spread out the repayment over a longer period of time. Low refinance rates helps save money which can be used to pay down the principal of the loan, thus further reducing payments.
In order to avail low refinance rate, keep a check on your credit score. Your credit history will make a big difference in refinance rate offered to you. Paying points are also one more way of getting low refinance rate. So, refinance your loan, pay low rate of interest and invest the savings thereby for exigencies. Low refinance rates sure make borrowing seem like a piece of cake. But do not get carried away with low refinance rate alone. Remember there is something called closing costs and redemption penalty.
Martin Lukac represents RateEmpire.com Mortgage Rate and Refinance Rate marketplace. RateEmpire.com is a destination site of personal finance, investing and taxes. For more information please visit Low Refinance Rates
http://EzineArticles.com/?expert=Martin_Lukac
Wednesday, September 26, 2007
Ameriquest Mortgage
If you’re not sure if you should sign up for an adjustable rate mortgage (ARM) or a fixed rate mortgage, you’re not alone. It is very easy to get excited when thinking about your new home, and then get feel a bit deflated when it is time to start thinking about financing.
Part of the challenge for any home buyer is to reconcile the fact that the introductory rates on adjustable rate mortgages can be so low. In fact, they are often lower than the market rate, and considerably lower than the rates on fixed rate mortgages. Now, you can get an ARM and some of the benefits of a fixed rate loan with the hybrid adjustable rate mortgage.
A hybrid ARM is one where the rate is locked in for the first few years of the loan and then will go back to market rate at the end of the lock-in period. The lock in period is quoted up front and written into the adjustable rate mortgage contract. This period can vary from five years on up. Depending on your credit history, the amount of the loan, and your experience with your mortgage lender, you can negotiate lock in term as high as eight or eleven years.
This type of loan is ideal for anyone who plans to stay in their home for the first few years and then move to another place. Couples, young home owners, first time buyers and anyone who is upwardly mobile. The average
American spends about nine years in their first home. If you fit into this profile, you can get a hybrid adjustable rate mortgage, get a fixed rate for the first five to ten years and then sell the home before the rate starts to fluctuate again.
If you were to get a fixed 30-year mortgage at the same that you’re considering the hybrid, it is unlikely that you would get a fixed rate that matches the teaser rate on the ARMs in the market. To take full advantage of this type of mortgage, you must fully understand that the rate will revert to the ARM levels at some point.
This means that you can count on a rapid and drastic increase in your monthly payment once the loan goes back to a full adjustable rate basis. If you plan to stay in the home for a very long time, your savings from the locked in period will probably be wiped out when the loan reverts to its adjustable status. You can consider a refinance, but that will also take some money out of your pocket. If you decide that you don’t want to sell the property, keep in mind that overall, your loan will still be an excellent choice for your financial situation.
http://www.american-lender.com/free-info/Have-you-considered-a-hybrid-adjustable-mortgage.html
Part of the challenge for any home buyer is to reconcile the fact that the introductory rates on adjustable rate mortgages can be so low. In fact, they are often lower than the market rate, and considerably lower than the rates on fixed rate mortgages. Now, you can get an ARM and some of the benefits of a fixed rate loan with the hybrid adjustable rate mortgage.
A hybrid ARM is one where the rate is locked in for the first few years of the loan and then will go back to market rate at the end of the lock-in period. The lock in period is quoted up front and written into the adjustable rate mortgage contract. This period can vary from five years on up. Depending on your credit history, the amount of the loan, and your experience with your mortgage lender, you can negotiate lock in term as high as eight or eleven years.
This type of loan is ideal for anyone who plans to stay in their home for the first few years and then move to another place. Couples, young home owners, first time buyers and anyone who is upwardly mobile. The average
American spends about nine years in their first home. If you fit into this profile, you can get a hybrid adjustable rate mortgage, get a fixed rate for the first five to ten years and then sell the home before the rate starts to fluctuate again.
If you were to get a fixed 30-year mortgage at the same that you’re considering the hybrid, it is unlikely that you would get a fixed rate that matches the teaser rate on the ARMs in the market. To take full advantage of this type of mortgage, you must fully understand that the rate will revert to the ARM levels at some point.
This means that you can count on a rapid and drastic increase in your monthly payment once the loan goes back to a full adjustable rate basis. If you plan to stay in the home for a very long time, your savings from the locked in period will probably be wiped out when the loan reverts to its adjustable status. You can consider a refinance, but that will also take some money out of your pocket. If you decide that you don’t want to sell the property, keep in mind that overall, your loan will still be an excellent choice for your financial situation.
http://www.american-lender.com/free-info/Have-you-considered-a-hybrid-adjustable-mortgage.html
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