How To Lower Your Payment When Refinancing Your Mortgage

If you are in the market for a new mortgage loan because you need a lower monthly payment, there are several ways to accomplish this. Even if your credit prevents your from qualifying for a lower mortgage rate there are ways to lower your payment amount when refinancing. Here are several tips to help you get a lower mortgage paying without paying lender junk fees.

The most desirable method of lowering your monthly mortgage payment is to refinance with a lower mortgage rate. If your financial situation has improved since you purchased your home you may qualify for a lower interest rate. This improvement could be due to paying down your bills, getting a higher paying job, or even getting married. Remember that even though your mortgage payment has gone down you will not realize a savings from refinancing until you break even from your expenses.

You can calculate how long it will take you to break even by dividing your total costs from refinancing (closing costs, points etc) by the amount your mortgage payment went down each month and dividing by twelve. This will tell you the number of months it will take to recoup your expenses from refinancing the loan.

If you are unable to qualify for a lower interest rate when refinancing your mortgage you can still lower your monthly payment by extending the term length of your loan. This is a less desirable option as it will result in paying more to the lender for financing; however, as a short-term solution it could provide much needed relief to your monthly budget. Term length is simply the amount of time you have to repay the loan and along with your interest rate determines your payment amount. Common term lengths are 15 or 30 years; however; there are now mortgage loans available with 40 and 50 year term lengths.

Homeowners who are able to qualify for a lower mortgage rate could lower their payment amount further by combining both options. Extending the term length with a lower mortgage rate would allow you take advantage of the lowest payment while paying less to the lender for your financing. You can learn more about your mortgage refinancing options, including costly pitfalls to avoid with a free mortgage toolkit.

To get your FREE Mortgage Refinancing Video Toolkit, visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this "Mortgage Refinancing Toolkit," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com

Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com

Refinancing Mortgage Rate

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Louisville City Mortgage

Mortgage and refinance specialist in Louisville, Kentucky. Louisville City Mortgage makes the loan process as simple and worry free as possible, with online applications.

If you are looking for a mortgage lender in the Louisville, Kentucky area, you may want to check out Louisville City Mortgage. This company offers complete service from mortgage processing to loan closing, and promises to keep customers informed every step of the way.

They pride themselves on providing superior customer service and working hard to exceed the expectations of the their customers, who often save money and close their loans quickly. Louisville City Mortgage is able make good on its promises to save its customers money and for quick closings by using advanced technology that coordinates the mortgage process and finds the best rates and terms possible.

You can apply for a loan with Louisville City Mortgage several different ways: complete the full application online and save it if you are unable to finish right away or complete a short application, which only takes five minutes, and a loan officer will contact you once the application is received. You can also call to have a loan officer complete the application over the phone or download and print the form and send it via U.S. mail or fax.

The company website also offers other great tools, including various calculators, a glossary of terms, and a library where you can study before going ahead with your mortgage loan. All in all, Louisville City Mortgage is a very good deal. Check it out!

Christian Stogner & Louisville City Mortgage is your one stop shop for mortgages in the state of Kentucky.

www.louisvillecitymortgage.com

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How To Avoid Foreclosure

The first thing you'll want to do to avoid foreclosure is stay current on your mortgage payments. Of course this is obvious, but what may not be so obvious are the options you have for doing this. If you are already behind on your payments, there are some tips for you in in part two as well.

If the problem is truly temporary, and soon you'll be able to handle your payments again, borrow the money to keep up on your payments. Family may be able to help, but even if you have to pay a few hundred dollars in interest for credit card advances, it may be better than losing your home. Consider what you have to lose in equity, and you may find that it even makes sense to cash in some of your retirement account and pay the penalty. You may also be able to borrow from your 401k.

Don't start borrowing on credit cards and breaking into retirement funds if the situation isn't truly temporary, however. You'll just make matters worse. If the real problem is that the mortgage payment is just more than you can handle, you need to look at long-term solutions.

If you have maintained your credit rating to this point, you might find financing with lower payments. Lower payments can be because of lower interest rate, or a longer amortization period. Don't be tempted into lowering your payments with an adjustable rate loan that has a low initial interest rate. Unless your income situation changes dramatically, in a year or two you'll have the same problem all over.

Another option is to sell the home an move into a less expensive home. This works best if you have some equity in your home, to help you with both the down payment on the next one and with the transition costs. If you have no equity, you may have to consider selling your home and renting for a few years.

Already Facing Foreclosure?

If you are already late on your mortgage payments, don't wait for things to happen. Get actively involved in solving the problem right now. You not only face being foreclosed on and losing your home, but if the home is then sold for less than you owe, you might be sued for the difference (depending on the terns of your mortgage loan). Both foreclosures and deficiency judgments can seriously affect your ability to qualify for credit in the future.

Call the lender and explain the situation. Depending on the type of loan, lenders can sometimes arrange a repayment plan (for back payments) that you can afford. They can sometimes arrange a temporary reduction in the payments, or even a temporary suspension of payments. (The latter isn't likely unless you have been laid-off from work and have a return date.) They can even occasionally modify the mortgage to reduce the payments, by lengthening the term.

FHA and other government-backed loans have other possibilities for avoiding foreclosure. Call and talk to a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 to locate the nearest housing counseling agency. These agencies frequently have information on services and programs offered by Government agencies and lists of private and community organizations that might help you. They may also offer credit counseling, and the services are usually free.

If you definitely can't handle the payments, consider offering the lender a "Deed-in-lieu of foreclosure," if they'll accept it. This is when you voluntarily "give back" your property to the lender. It won't save your home, but it's less damaging to your credit rating than a foreclosure. Some lenders will allow this if you have no other viable options and you have tried unsuccessfully to sell the home.

Move fast and do what you can to resolve the situation. But unless you have had an unusually long period of unemployment, or you had large unexpected medical costs, the problem is probably rooted in you poor financial habits. In that case, be sure to learn your lessons, so you can easily avoid foreclosure the next time around.

Copyright Steve Gillman. To see a photo of the home we bought for $17,500, get a free ebook on how to buy Cheap Houses, and get more tips on avoiding foreclosure, visit: http://www.HousesUnderFiftyThousand.com/avoid-foreclosure.html


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The Construction Loan on a New Home

When obtaining a construction loan, it is essential that everything is done step by step and the process is not rushed. You do not want to pursue the construction of a home that you cannot afford. When you get pre-qualified for a loan you are given some idea of what your monthly payments will be.

The best construction loan lenders are those with experience. This is primarily because construction loans are more complex than your average mortgage loan. Many national banks have developed construction loan programs, but as always, you must be sure to compare the rates of numerous banks in your area. Before signing a contract towards the completion of your home, pay close attention to the bank’s lock-in policies and interest rates. Most of these loans are set at the prime rate or a general short-term rate.

In providing a construction loan of any kind, lenders want an explanation of the construction plan. Before they give you money to build on your property, they want to know that you will still have the capital to pay them back. Because construction loans do not fall under the standard guidelines of the Fannie Mae and Freddie Mac corporations, most construction loan lenders have a developed a separate system of interest-only payments during the construction process that are then due at completion.

The construction process is officially completed when the home receives its certificate of occupancy. Many borrowers use a construction-to-permanent financing program that allows them to transfer their construction loan directly into a mortgage when the home has its certificate. Such programs allow the homeowner to avoid the hassle of refinancing. There are many different types of construction loans out there and it is important to be aware of all your options. For example, often the property itself can be used as equity on the construction loan. For more financial tips in homeownership, there are a wide variety of accessible websites including http://www.1refinanceloan.com and http://www.1californialoan.com.

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