Refinancing your home loan can be worthwhile for several reasons. If you purchased your current home when rates were high, refinancing for a lesser rate may actually lower your monthly payment. Moreover, refinancing your home and receiving cash at closing is another attractive feature. With this option, homeowners also have the opportunity to eliminate debt.
What are Refinance Mortgage Loans?
By choosing to refinance your existing mortgage loan, you will create a new loan to replace the old. Aside from getting a lower interest rate, some choose refinancing to convert their adjustable rate mortgage into a fixed rate. Obtaining a shorter loan term is another reason for refinancing. Refinancing your home loan may take several weeks. Moreover, homeowners must have the disposable income to pay closing costs and other mortgage fees.
How to Consolidate Debt with a Mortgage Refinance?
A cash-out mortgage refinance will allow you to obtain a lump sum of money when you close on the new loan. When you refinance, you create a new mortgage and borrow money from your home's equity. The borrowed money can be used for any purpose. Debt consolidation is a top reason why many homeowners choose this option.
Once the funds are received, you can use the money to payoff the balance on credit cards, automobile loans, student loans, personal loans, etc. In most cases, the amount borrowed from your home's equity can be included in the new mortgage amount; thus you will not acquire a second loan.
Choosing a Good Debt Consolidation Refinance Lender
Several lenders are willing to offer mortgage refinancing. However, homeowners should not make a hasty decision. Instead, you should carefully review lender sites and request quotes before making a final decision.
The key to refinancing is getting a good, low rate. Moreover, homeowners should attempt to get some fees waived. For this matter, contact the lender of your current mortgage. If you were a loyal customer and developed a good relationship, your lenders may not charge fees such as title search, application, etc. In this instance, you can save hundred on your closing cost.
Working with an online mortgage broker is another great way to locate a good lender. Brokers will contact several lenders on your behalf. In turn, lenders will make you an offer. The offer will include rates and mortgage terms. You choose the lender with the best quote.
http://www.thesource.ws/refinance/Debt_Consolidation_Refi_Loans__Eliminate_Debt_With_A_Mortgage_Refinancing.html
Tuesday, August 21, 2007
Should You Consider Home Refinance, Or Not?
Home refinance seems to be the craze these days with interest rates at all time lows. However, you need to do some home refinance research before you will know if it is for you or not. In general, if you bought a home when interest rates were significantly higher, have great credit, little debt, and always pay your bills on time then you should probably at least consider home refinance. Although, if you meet any of the following criteria then you definitely need to think twice before you decide on a home refinance.
Home Refinance Tip #1 Second Mortgages
If you have a second mortgage and decide on a home refinance then you will likely find yourself paying more than with your original home loan. If you have taken out a second mortgage on your home to help pay other bills then getting a lender to consider a home refinance for you is going to be difficult.
Home Refinance Tip #2 High Debt to Income Ratio
When you apply for a home refinance option then you will have to go through the same qualification procedures you did as when you were approved for your first loan. If you have a high debt to income ratio then it will be unlikely you will be approved for home refinance, and if you are approved for a home refinance it is highly unlikely the terms would be worthwhile.
Home Refinance Tip #3 Bad Credit
Bad credit is generally the main villain when it comes to having a proposed home refinance application denied. So, if you have trouble paying your bills, are making late payments, and your credit score is declining, then you definitely need to get your credit in shape before you consider a home refinance.
About the Author: Jay Moncliff is the founder of http://www.generalrefinance.com a website specialized on Refinance, resources and articles. This site provides updated information on Refinance. For more info on Refinance visit: http://www.generalrefinance.com
http://www.thesource.ws/refinance/Should_You_Consider_Home_Refinance_Or_Not.html
Home Refinance Tip #1 Second Mortgages
If you have a second mortgage and decide on a home refinance then you will likely find yourself paying more than with your original home loan. If you have taken out a second mortgage on your home to help pay other bills then getting a lender to consider a home refinance for you is going to be difficult.
Home Refinance Tip #2 High Debt to Income Ratio
When you apply for a home refinance option then you will have to go through the same qualification procedures you did as when you were approved for your first loan. If you have a high debt to income ratio then it will be unlikely you will be approved for home refinance, and if you are approved for a home refinance it is highly unlikely the terms would be worthwhile.
Home Refinance Tip #3 Bad Credit
Bad credit is generally the main villain when it comes to having a proposed home refinance application denied. So, if you have trouble paying your bills, are making late payments, and your credit score is declining, then you definitely need to get your credit in shape before you consider a home refinance.
About the Author: Jay Moncliff is the founder of http://www.generalrefinance.com a website specialized on Refinance, resources and articles. This site provides updated information on Refinance. For more info on Refinance visit: http://www.generalrefinance.com
http://www.thesource.ws/refinance/Should_You_Consider_Home_Refinance_Or_Not.html
1st And 2nd Mortgage Refinance Loan - Consolidate 1st And 2nd Mortgages Into One Low Payment
Refinancing both your first and second mortgages will result in one low monthly payment that could save you thousands in interest charges. By combining both mortgages, you qualify for lower rates than if you refinance separately. You can see a significant savings with your second mortgage refinance, which is often several points higher than your first mortgage rates. You will also save on application fees and other closing costs.
Strategies To Lower Your Mortgage Payment
You have a couple of options to lower your mortgage payment when refinancing. The first choice is to find a low rate mortgage. So even if you choose the same length for your loan, you will still see a savings in your monthly mortgage bill. Adjustable rate and interest only loans will give you the lowest payments, at least at the beginning of your home loan. But a fixed rate loan can also give you reasonable rates with security that they won't rise in the future.
The other option is to extend your loan term, especially in the case of your second mortgage which usually is for five to ten years. By consolidating your loans to a thirty year loan, you lengthen your payment schedule for principal, so you have a smaller payment. However, your interest rate and charges will be higher than with a shorter term.
Getting The Best Loan
Once you determine the type of loan and terms you want, do your shopping for a good lender to save even more money. Lenders will vary in how much they charge for closing costs and interest rates. The APR will tell you how loans compare overall, both in terms of rates and closing costs.
But if you are planning to move or refinance again in the future, then be wary of paying high closing costs. Even if they secure you a lower rate, you will only see a savings if you keep the mortgage for several years.
Don't base your lender decision based on posted loan rates. Ask for a personalized loan quote based on your general information. With more accurate numbers, you can make an informed choice as to who has the best financing for you.
About The Author:
View our recommended lenders to choose the http://www.abcloanguide.com/refinance.shtml for you.
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Strategies To Lower Your Mortgage Payment
You have a couple of options to lower your mortgage payment when refinancing. The first choice is to find a low rate mortgage. So even if you choose the same length for your loan, you will still see a savings in your monthly mortgage bill. Adjustable rate and interest only loans will give you the lowest payments, at least at the beginning of your home loan. But a fixed rate loan can also give you reasonable rates with security that they won't rise in the future.
The other option is to extend your loan term, especially in the case of your second mortgage which usually is for five to ten years. By consolidating your loans to a thirty year loan, you lengthen your payment schedule for principal, so you have a smaller payment. However, your interest rate and charges will be higher than with a shorter term.
Getting The Best Loan
Once you determine the type of loan and terms you want, do your shopping for a good lender to save even more money. Lenders will vary in how much they charge for closing costs and interest rates. The APR will tell you how loans compare overall, both in terms of rates and closing costs.
But if you are planning to move or refinance again in the future, then be wary of paying high closing costs. Even if they secure you a lower rate, you will only see a savings if you keep the mortgage for several years.
Don't base your lender decision based on posted loan rates. Ask for a personalized loan quote based on your general information. With more accurate numbers, you can make an informed choice as to who has the best financing for you.
About The Author:
View our recommended lenders to choose the http://www.abcloanguide.com/refinance.shtml for you.
Hotlib.com - Huge collection of free articles and free reports at Hotlib.com
Learn What Refinance Has In Store For You
Mortgaging ones home has become a common phenomenon in UK. In the past years, you too must have mortgaged your home to finance important ventures. Prevailing low interest rates in the finance market is depressing for those who are paying a high rate of interest. Arent you interested in saving that extra cash that you have been paying as high interest rate? I am sure you would be. Refinancing loan brings the solution to your anxieties.
Refinancing can be defined as replacing the existing mortgage for a new mortgage with a different lender. Refinancing involves re-negotiating the terms and conditions of an existing mortgage. Refinancing your home with a new lender will help in saving thousands of pounds. These savings could prove beneficial in the future.
With a refinancing loan, one can borrow any amount ranging from 25,000 to 500,000, depending on the value of the property. With a new mortgage, you can choose either to increase the loan term to lower your monthly payments or to reduce the loan term to pay off your debts early.
Refinancing loan can be used for debt consolidation purpose. It will help in consolidating all your debts, to make it manageable. You can also use refinancing for making home improvements to make your home a more comfortable place to live and it will also help in adding value to your home, thereby increasing equity in your home.
Before you decide to borrow a refinance loan. You need to look greatly into your financial situation. Find out how high is your current interest rate, if your interest rate is 2 percentage points or more above the market rate, refinancing may be for you.
An individual who wish to opt for a refinance loan should look into another important aspect of how long does he or she plans to stay in their current house. Refinancing is a good decision if you plan to stay in your house for a while. A borrower should keep into consideration the cost associated with refinancing such as closing cost, title search, settlement fee, etc. Refinancing is perfect if the borrower gets to save some amount of money after paying all these costs.
Benefits of refinancing: -
Lower monthly payments Refinance can help to lower your monthly payments, by offering refinancing at a lower interest rate. Switching from a traditional mortgage with principal and interest payments to a mortgage program that allows interest only payments also helps in lowering monthly payments.
Facilitate change in the loan term You can change the term on your mortgage for lower monthly payments. Switching from a 5 year to a 10 years mortgage can lower your monthly payment. However, if long term saving is more appealing to you, refinancing from a 10 year to a 5 year mortgage can save you large sum of money.
Build up equity and pay off your debt faster with a shorter-term mortgage - Refinancing with a mortgage of a shorter term may enable borrowers to significantly lower their total interest costs, as they will be able to pay off the loan sooner. Reducing the loan term may help the borrower to build up equity faster.
Switch from an Adjustable Rate Mortgage (ARM) to a Fixed-Rate Mortgage or vice versa - It is very uncertain to determine the direction in which market will move. Fixed- rate mortgage is beneficial if the interest rate is low, which will save your money. A fixed-rate mortgage may provide you with peace of mind and steady monthly payments. An adjustable rate mortgage will provide a lower interest rate that is adjusted over lifetime of the loan. Fixed-rate mortgage option is ideal for people who wish to stay in their home for just few more years.
Refinancing may work as a cure for people with bad credit. You can increase your credit score by reducing unnecessary expenses and reducing debts that can help in improving relationship with the present creditors.
Refinancing can do wonders for you. A low rate of interest and low monthly payments is what you must be looking for. Evaluate your current financial position and compare current interest rate with the market interest rate. This will help you in building better understanding of refinancing and you can get the best out of it.
About the Author: After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers.To find a Secured or unsecured loan that best suits your needs visit http://www.ukfinanceworld.co.uk
http://www.thesource.ws/refinance/Learn_What_Refinance_Has_In_Store_For_You.html
Refinancing can be defined as replacing the existing mortgage for a new mortgage with a different lender. Refinancing involves re-negotiating the terms and conditions of an existing mortgage. Refinancing your home with a new lender will help in saving thousands of pounds. These savings could prove beneficial in the future.
With a refinancing loan, one can borrow any amount ranging from 25,000 to 500,000, depending on the value of the property. With a new mortgage, you can choose either to increase the loan term to lower your monthly payments or to reduce the loan term to pay off your debts early.
Refinancing loan can be used for debt consolidation purpose. It will help in consolidating all your debts, to make it manageable. You can also use refinancing for making home improvements to make your home a more comfortable place to live and it will also help in adding value to your home, thereby increasing equity in your home.
Before you decide to borrow a refinance loan. You need to look greatly into your financial situation. Find out how high is your current interest rate, if your interest rate is 2 percentage points or more above the market rate, refinancing may be for you.
An individual who wish to opt for a refinance loan should look into another important aspect of how long does he or she plans to stay in their current house. Refinancing is a good decision if you plan to stay in your house for a while. A borrower should keep into consideration the cost associated with refinancing such as closing cost, title search, settlement fee, etc. Refinancing is perfect if the borrower gets to save some amount of money after paying all these costs.
Benefits of refinancing: -
Lower monthly payments Refinance can help to lower your monthly payments, by offering refinancing at a lower interest rate. Switching from a traditional mortgage with principal and interest payments to a mortgage program that allows interest only payments also helps in lowering monthly payments.
Facilitate change in the loan term You can change the term on your mortgage for lower monthly payments. Switching from a 5 year to a 10 years mortgage can lower your monthly payment. However, if long term saving is more appealing to you, refinancing from a 10 year to a 5 year mortgage can save you large sum of money.
Build up equity and pay off your debt faster with a shorter-term mortgage - Refinancing with a mortgage of a shorter term may enable borrowers to significantly lower their total interest costs, as they will be able to pay off the loan sooner. Reducing the loan term may help the borrower to build up equity faster.
Switch from an Adjustable Rate Mortgage (ARM) to a Fixed-Rate Mortgage or vice versa - It is very uncertain to determine the direction in which market will move. Fixed- rate mortgage is beneficial if the interest rate is low, which will save your money. A fixed-rate mortgage may provide you with peace of mind and steady monthly payments. An adjustable rate mortgage will provide a lower interest rate that is adjusted over lifetime of the loan. Fixed-rate mortgage option is ideal for people who wish to stay in their home for just few more years.
Refinancing may work as a cure for people with bad credit. You can increase your credit score by reducing unnecessary expenses and reducing debts that can help in improving relationship with the present creditors.
Refinancing can do wonders for you. A low rate of interest and low monthly payments is what you must be looking for. Evaluate your current financial position and compare current interest rate with the market interest rate. This will help you in building better understanding of refinancing and you can get the best out of it.
About the Author: After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers.To find a Secured or unsecured loan that best suits your needs visit http://www.ukfinanceworld.co.uk
http://www.thesource.ws/refinance/Learn_What_Refinance_Has_In_Store_For_You.html
1st And 2nd Mortgage Refinance Loan
Refinancing a first and second mortgage requires some extra considerations. Depending on your equity, you may find that combining the two mortgages results in a higher interest rate. You may also find that you have to carry PMI with the refinanced mortgage.
Will Refinancing Benefit You?
Refinancing two mortgages allows you to consolidate your loans into one payment, often lowering your monthly bill. You may also find lower rates under the right circumstances.
Those with a large amount of equity benefit most from consolidating loans since they qualify for the lowest rates. It is important to look at interest savings, not just monthly numbers which can be misleading.
However, if you have less than 25% equity, you may end up qualifying for higher rates. With less than 20% equity, you will also have to pay for private mortgage insurance. Even with these factors, you may still find that you will save money by refinancing.
Have You Done Your Research?
To see if refinancing makes sense for you, research mortgage lenders. You can quickly go online and request quotes and terms. Look at the different offers, and work out the numbers. An online mortgage calculator can help you figure out monthly payments and interest costs.
An easy way to compare cost is to first add up your interest payments for both mortgages. Use this number to compare interest payments with each potential mortgage.
You also need to factor in the cost of refinancing. Just like with your original mortgage, you will have to pay fees and points. You want to be sure that you can recoup these costs with your interest savings.
Why Do You Want To Refinance Both Mortgages?
While refinancing both mortgages is convenient, you may decide to refinance only one or both separately. With your main mortgage, you can expect to get low rates.
A second mortgage will usually qualify for higher rates, but you can lock them in. You may also choose to convert from a line of credit to an actual mortgage. Again, you will want to investigate financial packages before signing up with a lender.
http://www.thesource.ws/refinance/1st_And_2nd_Mortgage_Refinance_Loan.html
Will Refinancing Benefit You?
Refinancing two mortgages allows you to consolidate your loans into one payment, often lowering your monthly bill. You may also find lower rates under the right circumstances.
Those with a large amount of equity benefit most from consolidating loans since they qualify for the lowest rates. It is important to look at interest savings, not just monthly numbers which can be misleading.
However, if you have less than 25% equity, you may end up qualifying for higher rates. With less than 20% equity, you will also have to pay for private mortgage insurance. Even with these factors, you may still find that you will save money by refinancing.
Have You Done Your Research?
To see if refinancing makes sense for you, research mortgage lenders. You can quickly go online and request quotes and terms. Look at the different offers, and work out the numbers. An online mortgage calculator can help you figure out monthly payments and interest costs.
An easy way to compare cost is to first add up your interest payments for both mortgages. Use this number to compare interest payments with each potential mortgage.
You also need to factor in the cost of refinancing. Just like with your original mortgage, you will have to pay fees and points. You want to be sure that you can recoup these costs with your interest savings.
Why Do You Want To Refinance Both Mortgages?
While refinancing both mortgages is convenient, you may decide to refinance only one or both separately. With your main mortgage, you can expect to get low rates.
A second mortgage will usually qualify for higher rates, but you can lock them in. You may also choose to convert from a line of credit to an actual mortgage. Again, you will want to investigate financial packages before signing up with a lender.
http://www.thesource.ws/refinance/1st_And_2nd_Mortgage_Refinance_Loan.html
Refinancing Your House Mortgage - 3 Reasons To Refinance While Rates Are Low
Before mortgage interest rates begin to rise, homeowners should consider the advantages of refinancing now. Although we're witnessing record low rates, these rates will not last forever. Unfortunately, many homeowners will delay refinancing and miss out on the savings. There are many reasons to refinance. Here are the top three reasons to refinance while rates are low.
Reduce Your Monthly Mortgage Payment
Interest rates greatly effect mortgage payments. Individuals with poor credit can get approved for home loans. However, the lender will charge higher fees or interest. If you receive a high interest rate, you may pay a couple of hundred dollars more than a good credit applicant who applied for the same mortgage amount.
If you purchased your existing home with poor credit, refinancing for a lower rate may decrease your monthly payments, especially if your credit has improved. Obtaining a home loan is a great way to boost your credit rating. In fact, many homeowners notice an increase in their credit score after establishing a good payment history with their mortgage lender. Thus, if you received a bad credit mortgage, make an effort to better your credit, and then refinance for a low rate.
Get a Fixed Rate Mortgage Loan
Furthermore, many homeowners choose to refinance their existing mortgage to take advantage of a low fixed rate. When interest rates were higher, many home buyers opted for adjustable rate mortgages because they carried lower rates. Although homeowners with an adjustable rate mortgage also benefit from decreases in interest rates, these low rates are not promised.
Every so often, mortgage rates rise and fall. If rates begin to climb, so do the rates for an adjustable mortgage. Hence, mortgage payments will increase. To avoid increased payments, refinance and secure a low fixed rate that will remain the same throughout the duration of the loan.
Take Advantage of Cash-Out Refinancing
Cash-out refinancing is a very attractive feature to refinancing your current home loan. With this option, you can refinance for a better rate, and borrow from your home's equity. At closing, you will be given a lump sum of cash. Funds may be used to consolidate debts, remodel your home, take a nice vacation, or pay for a child's education expense.
About The Author:
Carrie Reeder offers advice about
http://www.abcloanguide.com/refinancehomeloan.shtml Companies Online.
Hotlib.com - Huge collection of free articles and free reports at Hotlib.com
Reduce Your Monthly Mortgage Payment
Interest rates greatly effect mortgage payments. Individuals with poor credit can get approved for home loans. However, the lender will charge higher fees or interest. If you receive a high interest rate, you may pay a couple of hundred dollars more than a good credit applicant who applied for the same mortgage amount.
If you purchased your existing home with poor credit, refinancing for a lower rate may decrease your monthly payments, especially if your credit has improved. Obtaining a home loan is a great way to boost your credit rating. In fact, many homeowners notice an increase in their credit score after establishing a good payment history with their mortgage lender. Thus, if you received a bad credit mortgage, make an effort to better your credit, and then refinance for a low rate.
Get a Fixed Rate Mortgage Loan
Furthermore, many homeowners choose to refinance their existing mortgage to take advantage of a low fixed rate. When interest rates were higher, many home buyers opted for adjustable rate mortgages because they carried lower rates. Although homeowners with an adjustable rate mortgage also benefit from decreases in interest rates, these low rates are not promised.
Every so often, mortgage rates rise and fall. If rates begin to climb, so do the rates for an adjustable mortgage. Hence, mortgage payments will increase. To avoid increased payments, refinance and secure a low fixed rate that will remain the same throughout the duration of the loan.
Take Advantage of Cash-Out Refinancing
Cash-out refinancing is a very attractive feature to refinancing your current home loan. With this option, you can refinance for a better rate, and borrow from your home's equity. At closing, you will be given a lump sum of cash. Funds may be used to consolidate debts, remodel your home, take a nice vacation, or pay for a child's education expense.
About The Author:
Carrie Reeder offers advice about
http://www.abcloanguide.com/refinancehomeloan.shtml Companies Online.
Hotlib.com - Huge collection of free articles and free reports at Hotlib.com
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