There are many students and graduates out there that are struggling with paying for their student
loans. Often times, these people have heard of refinancing student loans in order to make their
payments lower and more manageable. But before you consider refinancing student loans, there are
some things you should first consider. Let this be your guide to the truth about refinancing
student loans.
Refinancing student loans often seems like a good idea. In fact, refinancing student loans is a
good idea, if you use it to your advantage. We shall go over that in a minute. First, you need to
know that most student loans are often of a variable percentage rate until the rate is locked
through means of a loan consolidation, or by refinancing the loan. Currently, interest rates are
quite low so it is a good time for refinancing student loans.
Refinancing student loans is only available to students who have always paid their student loan
bill on time. If this does not sound like you, then I wish you good luck trying to refinance your
student loan. Refinancing rates are often offered between one and two percent lower than your
original student loan rate. Most refinancing rates will save you up to 60 percent. But this is where
the drawback is that most people don't realize when they refinance their student loans.
The drawback is a hidden drawback that most people never really see. I will explain. In order to
get your payment lower through refinancing, you are given a much longer time period to pay the
loan off. Instead of 5 years, it may be 20! This may sound good in the beginning. At the time, it
will leave you with extra money that you may need for other bills. But in reality, it just costs
you more money in the end because you will be paying interest much longer to the lender.
The smart way to do it is to pay more towards your lower interest rate student loan bill that you
have just refinanced. This way it is cheaper and you will pay it off much quicker than normal.
But only do this if you can afford it. If you refinanced your student loan because you couldn't
afford the payment, then just pay it off as best you can at your own pace.
This is the truth about refinancing student loans. This information can either be welcomed, or a
hard thing to hear. Try to use this information to help you when you refinance student loans. If
you utilize all of the information at hand, you should be able to pay your loan off faster and
save some money.
About the Author
Tripp Taylor offers expert advice and great tips regarding all aspects concerning Student Loans. Get the information you are seeking now by visiting http://www.studentloansreview.info
Saturday, April 28, 2007
Everything you wanted to know about Mortgage
Mortgage is a loan to finance the purchase of real estate, within specified payment periods and interest rates. The borrower or the mortgager gives the lender or mortgagee a lien as collateral for the loan.
Need for mortgage
The need for mortgage arises just to finance the purchase of a real estate.
Limits for borrowing
Most lenders are prepared to offer 95% of the property’s value and charge less interest with a bigger deposit.
Types of mortgages
1) Fixed rate mortgages:-the interest rates remain fixed or constant over the entire term of loan. The major advantage of this mortgage is that the repayment remains unaffected even if the interest rate in the market goes up.
2) Adjustable rates mortgage (ARM):-here the interest rates fluctuates or floats over time according to the market situations. The interest rates remain lower than a fixed rate mortgage and a person can qualify for a larger loan.
3) Balloon mortgages:-Here the principal and interest payment remains constant for the term which is 5 to 7 years and the interest is amortized over 30 years. Such mortgages are offered at lower rates than fixed ones to make payments easy.
4) Interest only mortgage:-as the name implies the borrower pays the interest only on the loan during the mortgage term and so the capital remains outstanding. Such mortgages are for a period of 5 to 7 years and at the end of its period one can pay the full principal amount or refinance.
5) Cash back mortgage:-In such mortgage cash payments are given to the borrowers to spend in the manner they like.
6) Second Mortgages:-Such mortgage helps one to borrow money again against the same asset of the first loan. Such amounts can be used to finance secondary priorities like home improvement, debt consolidation and children’s higher education.
7) Home loan payment Relief Mortgage:-It is a three year adjustable rate mortgage at one percent point below the national average for such loans after three years the rate will adjust annually to market rates, with rates capped at 1% per year and at the end of 5 years one can repay the loan or apply to refinance and one can enjoy home ownership sooner..
8) Commercial Mortgages:-such mortgages are also granted for the purchase of real estate but for commercial use and not as household use. With the fast overall developments in the field of construction and investment sectors the growth of commercial loans has accelerated.
9) Bad credit Mortgage:-such mortgages are provided to people having a bad credit position or are on the verge of bankruptcy. One has to compare the rates in the market as the rates are higher on such mortgages but are of extreme help in the situation of financial crisis.
About the Author
Kajal Thakkar owns www.homeandfamilybills.com the site is meant to help individuals and families leverage their financial capabilities to the fullest. Visit www.homeandfamilybills.com/home-refinance-loans/home-mortgage-refinancing-rates.php to read more articles on mortgage and debt
By Kajal Thakkar
Independent Writer
Need for mortgage
The need for mortgage arises just to finance the purchase of a real estate.
Limits for borrowing
Most lenders are prepared to offer 95% of the property’s value and charge less interest with a bigger deposit.
Types of mortgages
1) Fixed rate mortgages:-the interest rates remain fixed or constant over the entire term of loan. The major advantage of this mortgage is that the repayment remains unaffected even if the interest rate in the market goes up.
2) Adjustable rates mortgage (ARM):-here the interest rates fluctuates or floats over time according to the market situations. The interest rates remain lower than a fixed rate mortgage and a person can qualify for a larger loan.
3) Balloon mortgages:-Here the principal and interest payment remains constant for the term which is 5 to 7 years and the interest is amortized over 30 years. Such mortgages are offered at lower rates than fixed ones to make payments easy.
4) Interest only mortgage:-as the name implies the borrower pays the interest only on the loan during the mortgage term and so the capital remains outstanding. Such mortgages are for a period of 5 to 7 years and at the end of its period one can pay the full principal amount or refinance.
5) Cash back mortgage:-In such mortgage cash payments are given to the borrowers to spend in the manner they like.
6) Second Mortgages:-Such mortgage helps one to borrow money again against the same asset of the first loan. Such amounts can be used to finance secondary priorities like home improvement, debt consolidation and children’s higher education.
7) Home loan payment Relief Mortgage:-It is a three year adjustable rate mortgage at one percent point below the national average for such loans after three years the rate will adjust annually to market rates, with rates capped at 1% per year and at the end of 5 years one can repay the loan or apply to refinance and one can enjoy home ownership sooner..
8) Commercial Mortgages:-such mortgages are also granted for the purchase of real estate but for commercial use and not as household use. With the fast overall developments in the field of construction and investment sectors the growth of commercial loans has accelerated.
9) Bad credit Mortgage:-such mortgages are provided to people having a bad credit position or are on the verge of bankruptcy. One has to compare the rates in the market as the rates are higher on such mortgages but are of extreme help in the situation of financial crisis.
About the Author
Kajal Thakkar owns www.homeandfamilybills.com the site is meant to help individuals and families leverage their financial capabilities to the fullest. Visit www.homeandfamilybills.com/home-refinance-loans/home-mortgage-refinancing-rates.php to read more articles on mortgage and debt
By Kajal Thakkar
Independent Writer
Florida Refinance - Refinancing In Florida
The decision to buy a home in Florida can be one of the best you will ever make. If you own a home in Florida you may be considering refinancing. Refinancing now can potentially save you thousands of dollars over the length of your mortgage. Florida lenders are offering low interest rates and could save you thousands of dollars over the length of your loan. Mortgage companies serving Florida and the United States are able to offer loan packages that make refinancing your home a wise decision. Compare your current interest rate to the rates being offered now and see how much money you can save by refinancing your home.
Florida is a great place for families, seniors, and businesses. Owning a home in Florida is a good financial investment due to the constantly expanding real estate market. There are many historical and modern cities in the state of Florida. Jacksonville is a historic city and was named for Andrew Jackson. It has two seaports, seven universities and five colleges. Winter Park is equally fascinating and abounds in social, educational and cultural amenities. As an added bonus, both Winter Park and Jacksonville have affordable housing to fit any budget and a multitude of mortgage lenders across the state, both online and traditional, to help you with all your refinancing needs.
Mortgage lenders in Florida and across the country are currently offering the lowest interest rates in many years. If you have been considering refinancing your home, contact a Florida lender today. You can often get multiple quotes from different lenders with one quick online application. Florida is the perfect location for those who enjoy the sunny weather and sandy beaches that dominate the landscape. Refinancing your Florida home can give you lower monthly mortgage payments, which could lead to extra cash in your pocket each month to explore all that Florida has to offer.
Mortgage lenders online generally service loans in all states and will be able to assist you in your refinancing goals quickly and efficiently. Apply today for a home refinance loan and you could start saving money every month and give yourself the freedom to accomplish your financial goals. Lenders are anxious to get your loan approved and will handle the processing of your loan with personal attention and professionalism. Interest rates in Florida are at all time lows and the real estate market is expanding constantly. Refinancing your Florida home is a smart investment in your future.
About the Author
To see a list of recommended mortgage refinance companies online who service the Florida area, visit this page: http://www.abcloanguide.com/refinance.shtml- Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.
Florida is a great place for families, seniors, and businesses. Owning a home in Florida is a good financial investment due to the constantly expanding real estate market. There are many historical and modern cities in the state of Florida. Jacksonville is a historic city and was named for Andrew Jackson. It has two seaports, seven universities and five colleges. Winter Park is equally fascinating and abounds in social, educational and cultural amenities. As an added bonus, both Winter Park and Jacksonville have affordable housing to fit any budget and a multitude of mortgage lenders across the state, both online and traditional, to help you with all your refinancing needs.
Mortgage lenders in Florida and across the country are currently offering the lowest interest rates in many years. If you have been considering refinancing your home, contact a Florida lender today. You can often get multiple quotes from different lenders with one quick online application. Florida is the perfect location for those who enjoy the sunny weather and sandy beaches that dominate the landscape. Refinancing your Florida home can give you lower monthly mortgage payments, which could lead to extra cash in your pocket each month to explore all that Florida has to offer.
Mortgage lenders online generally service loans in all states and will be able to assist you in your refinancing goals quickly and efficiently. Apply today for a home refinance loan and you could start saving money every month and give yourself the freedom to accomplish your financial goals. Lenders are anxious to get your loan approved and will handle the processing of your loan with personal attention and professionalism. Interest rates in Florida are at all time lows and the real estate market is expanding constantly. Refinancing your Florida home is a smart investment in your future.
About the Author
To see a list of recommended mortgage refinance companies online who service the Florida area, visit this page: http://www.abcloanguide.com/refinance.shtml- Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.
Home Mortgage Refinancing - Things To Consider When Looking To Get Cash Out On A Refinance
When you refinance your home mortgage, lenders often tempt you with the option of cashing out part of your home’s equity. Cash at a comparably low interest rate may seem like a good option, but make sure you will financially benefit from it first.
Raising Your Home’s Value
Only some home improvements raise the value of your home. Bathroom and kitchen upgrades are one example of this. However, with most remodel jobs, you will not see a financial gain. If you are using your home’s equity to fund projects, make sure that your investment will pay off.
Saving On Interest Payments
Paying off credit cards with your home’s equity will save you money in two ways. First of all, you will save on interest payments. Secondly, the interest you pay on your mortgage is tax deductible, unlike credit card interest.
PMI Penalty
Private mortgage insurance kicks in if you borrow more than 80f your home’s value. These extra payments can add up to several hundred dollars a year, so be careful how much you borrow. Other lines of credit may be more cost efficient when you factor in the cost of PMI on your mortgage.
The Length Of The Loan
While it may see smart to take out equity at a low interest rate with your mortgage, it may be cheaper to cash out through a home equity loan. Home equity loans allow you to deduct interest payments from your taxes, but they require a shorter repayment period.
Interest rates on a home equity loan are higher, so you will need to compare the costs between refinancing and a home equity loan. Generally, if your mortgage is long-term, a home equity loan is a better deal.
Your Financial Situation
To decide whether to cash out the equity of your home, you have to make decisions around what is best for your financial situation. There are no hard rules for this type of decision.
For example, purchasing a car with your home’s equity may be a wise investment if you need a car and would struggle with a car payment. In the end, financial decisions are about making trade-offs.
About the Author
Carrie Reeder is the owner http://www.abcloanguide.com,an informational website about various types of loans. To view our recommended sources for refinance mortgage loans online, visit this page: http://www.abcloanguide.com/refinance.shtml
Raising Your Home’s Value
Only some home improvements raise the value of your home. Bathroom and kitchen upgrades are one example of this. However, with most remodel jobs, you will not see a financial gain. If you are using your home’s equity to fund projects, make sure that your investment will pay off.
Saving On Interest Payments
Paying off credit cards with your home’s equity will save you money in two ways. First of all, you will save on interest payments. Secondly, the interest you pay on your mortgage is tax deductible, unlike credit card interest.
PMI Penalty
Private mortgage insurance kicks in if you borrow more than 80f your home’s value. These extra payments can add up to several hundred dollars a year, so be careful how much you borrow. Other lines of credit may be more cost efficient when you factor in the cost of PMI on your mortgage.
The Length Of The Loan
While it may see smart to take out equity at a low interest rate with your mortgage, it may be cheaper to cash out through a home equity loan. Home equity loans allow you to deduct interest payments from your taxes, but they require a shorter repayment period.
Interest rates on a home equity loan are higher, so you will need to compare the costs between refinancing and a home equity loan. Generally, if your mortgage is long-term, a home equity loan is a better deal.
Your Financial Situation
To decide whether to cash out the equity of your home, you have to make decisions around what is best for your financial situation. There are no hard rules for this type of decision.
For example, purchasing a car with your home’s equity may be a wise investment if you need a car and would struggle with a car payment. In the end, financial decisions are about making trade-offs.
About the Author
Carrie Reeder is the owner http://www.abcloanguide.com,an informational website about various types of loans. To view our recommended sources for refinance mortgage loans online, visit this page: http://www.abcloanguide.com/refinance.shtml
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