Why do I want to know about refinance?
Here are some of the basic reasons to consider refinancing your loan
* Your current interest rate is higher by more than 1% of the current rates.
* You want to move from an adjustable to a fixed rate of interest.
* You want to cash in on the equity of your home to finance your children’s education or consolidate other higher interest debts.
* You may have another mortgage at a higher rate of interest.
* You plan to stay in this home for at least five years before moving.
* You want to make some renovation in the home for which you need cash.
Once you decide to refinance, consult a mortgage advisor about the best time to refinance. It may be advisable to wait until interest rates stabilize, instead of just rushing into a refinance.
How can a mortgage calculator help you refinance
A mortgage calculator can help you work out the savings in interest over the remainder of your first mortgage. You can compare savings with different interest rates from different lenders and choose a refinance loan with the least processing and closing costs. It saves you number crunching and you get results instantly. You can then decide on the refinance loan that offers you the best deal.
Options in refinancing are many. You can use a refinance under the rate and term system to repay your first mortgage. Under the scheme you can get up to 2% of the new loan amount as cash back or $2000, whichever is less. You can use a rate and term refinance to repay a second mortgage. You can use a refinance loan to save money on your earlier mortgage, if you are planning to live for more than three years in the same home. You can shift to a 15-year loan with a higher monthly outgo, but work out the benefits of doing so using the mortgage calculator before making any decision.
Illustration
Let us consider that the original interest rate is 6.5% for a 30-year loan of $250,000. Assuming you have 120 months or ten years left of this loan and the interest rate reduces to 6.25%. You can go for a refinance loan of $200,000, of 30 years at 6.25%. Using a mortgage calculator for the remainder of the loan amount of $139,623.21, your monthly payment works out to $1580.17 for the old loan and $1231.43 for the new refinance loan, giving you monthly savings of $348.74. This works out to a saving of $125544.84 if you take the refinance loan. All figures are indicative and may not reflect actual interest rates. For the current interest rates, you can use the mortgage calculator for refinancing the loan which is available at most financial websites.
The disadvantage of not using a mortgage calculator
Taking a refinance loan costs money and involves savings of thousands of dollars over the tenure of the loan. It will be foolish to ignore the potential savings gained by using a mortgage calculator. Hence, consult a reputed mortgage lender and use their mortgage calculator to go for a refinance today.
About the author:
John Lee is CEO and owner of the acclaimed online mortgage resource http://www.refinance-refinance.net. Join the thousands who use our FREE Mortgage Calculators everyday to find the answers to questions such as:
"How much will my monthly mortgage be?"
"How much will I save by paying more or making additional payments on my mortgage?"
"How much money will I have to earn to afford my house payment and accompanying expenses?"
"How big of a mortgage can I take on?"
"What would my monthly savings be from an interest-only payment plan?"
... and many others.
We have loan calculators for practically any mortgage related question you can imagine.
http://www.buzzle.com/articles/save-refinancing-loan.html
Saturday, August 25, 2007
Refinancing And You
What exactly happens when you refinance an existing loan or loans?
Many homeowners go into the process of refinancing thinking that they need only consider what the interest rate is going to be and how many points it will cost to obtain a new loan.
The interest rate and points are only two factors in the process.
When you are refinancing an existing loan you will want to make sure that you obtain a new loan in an amount necessary to payoff the existing loan or loans, the interest on those loans, prepayment penalties, if any, reconveyance fees and recording fees.
The new loan you will be getting must also include escrow fees, title insurance fees, a new appraisal of your home, credit report fee, plus interest on the new loan and possibly impounds for property taxes and homeowners insurance, and your new lender fees. (Each lender has their own fees and charges.)
This leads us to an example; say you are paying off a $200,000 loan, just to cover all of the refinance costs, the loan amount needs to be in the neighborhood of $210,000. When additional cash-out funds are involved, you will want to add that number to the new loan amount.
So, if you want to get $50,000 out in cash with the new loan, your new loan amount will be approximately $260,000.
If, when you purchased your home, you went with 100% financing and need to payoff an existing first and second trust deed, remember that you will be paying interest on both as part of the payoffs of the loans.
Another item to think about is that if you purchased your home with 100% financing and you are ready to refinance, has your property value gone up enough to justify the additional funds needed to cover the refinance? You probably don’t want to be putting cash out of your pocket into the refinance.
When a lender is working on a refinance for you, it is possible to refinance your home up to 100% of its value, if you have really great credit and very few debts. Your debts compared to your income and your credit score is a large factor in determining how much of a loan you will be granted based on the appraised value of the home.
Giving yourself a little breathing room and getting a loan between 80% and 90% of the value of your home is a better move. That way, you can keep your house payments lower and you have room to get an equity line of credit or 2nd trust deed, if you need to at a later date.
This in turn, brings us to refinancing into a new loan or first trust deed and at the same time getting an equity line of credit. This equity line of credit need not be touched at the time of your new first trust deed but held onto just in case you need it at a later date. Many lenders will refinance you into a new first trust deed and not charge any up-front fees for giving you an equity line of credit.
Once the equity line of credit is in place, it is used very much like a credit card. Example; $50,000 equity line of credit, you borrow $10,000, your payments are based on $10,000, which is what you pay back, unless, of course, you borrow more, and so on.
The final item is that if, during the time that you have been paying on your current mortgage and you have had a few problems, either with making your monthly payments on time, medical problems, over your head in debt and making payments late, you can still refinance, even get out of debt, but, your interest rate will be higher and you may be granted a loan that has a fixed rate of interest for 2 to 5 years and comes with a prepayment penalty.
If this kind of financing gets you out of the trouble you may be in, that is a good thing. Now you have given yourself a second chance. Work on keeping your credit good, try not to get in over your head again and give yourself another couple of years when you can try again, get the loan you would really prefer and achieve your financial goals.
Patti Schopper's passion has always been to help people with their real estate and mortgage needs. Her goal has been to help people achieve their financial success. Visit Patti at www.socal-inlandempire.com
http://www.buzzle.com/articles/refinancing-right-time-existing-mortgage.html
Many homeowners go into the process of refinancing thinking that they need only consider what the interest rate is going to be and how many points it will cost to obtain a new loan.
The interest rate and points are only two factors in the process.
When you are refinancing an existing loan you will want to make sure that you obtain a new loan in an amount necessary to payoff the existing loan or loans, the interest on those loans, prepayment penalties, if any, reconveyance fees and recording fees.
The new loan you will be getting must also include escrow fees, title insurance fees, a new appraisal of your home, credit report fee, plus interest on the new loan and possibly impounds for property taxes and homeowners insurance, and your new lender fees. (Each lender has their own fees and charges.)
This leads us to an example; say you are paying off a $200,000 loan, just to cover all of the refinance costs, the loan amount needs to be in the neighborhood of $210,000. When additional cash-out funds are involved, you will want to add that number to the new loan amount.
So, if you want to get $50,000 out in cash with the new loan, your new loan amount will be approximately $260,000.
If, when you purchased your home, you went with 100% financing and need to payoff an existing first and second trust deed, remember that you will be paying interest on both as part of the payoffs of the loans.
Another item to think about is that if you purchased your home with 100% financing and you are ready to refinance, has your property value gone up enough to justify the additional funds needed to cover the refinance? You probably don’t want to be putting cash out of your pocket into the refinance.
When a lender is working on a refinance for you, it is possible to refinance your home up to 100% of its value, if you have really great credit and very few debts. Your debts compared to your income and your credit score is a large factor in determining how much of a loan you will be granted based on the appraised value of the home.
Giving yourself a little breathing room and getting a loan between 80% and 90% of the value of your home is a better move. That way, you can keep your house payments lower and you have room to get an equity line of credit or 2nd trust deed, if you need to at a later date.
This in turn, brings us to refinancing into a new loan or first trust deed and at the same time getting an equity line of credit. This equity line of credit need not be touched at the time of your new first trust deed but held onto just in case you need it at a later date. Many lenders will refinance you into a new first trust deed and not charge any up-front fees for giving you an equity line of credit.
Once the equity line of credit is in place, it is used very much like a credit card. Example; $50,000 equity line of credit, you borrow $10,000, your payments are based on $10,000, which is what you pay back, unless, of course, you borrow more, and so on.
The final item is that if, during the time that you have been paying on your current mortgage and you have had a few problems, either with making your monthly payments on time, medical problems, over your head in debt and making payments late, you can still refinance, even get out of debt, but, your interest rate will be higher and you may be granted a loan that has a fixed rate of interest for 2 to 5 years and comes with a prepayment penalty.
If this kind of financing gets you out of the trouble you may be in, that is a good thing. Now you have given yourself a second chance. Work on keeping your credit good, try not to get in over your head again and give yourself another couple of years when you can try again, get the loan you would really prefer and achieve your financial goals.
Patti Schopper's passion has always been to help people with their real estate and mortgage needs. Her goal has been to help people achieve their financial success. Visit Patti at www.socal-inlandempire.com
http://www.buzzle.com/articles/refinancing-right-time-existing-mortgage.html
Mortgage refinance top tips and ideas
A good mortgage refinance program can save you a lot of money as by lowering your monthly loan payments it will cause your interest rate to drop while you will thus be enabled to pay off the balance of your loan in a shorter time. You may also choose when applying for a mortgage refinance to extend the length of the loan, which will lower your monthly payments, although in this case the interest you will pay throughout the course of your loan will be higher. Still if you have difficulties in making the monthly payments a mortgage refinance can ease your current situation even if that means adding up to interest charges over the term of the loan.
The idea with a mortgage refinance is that you are given the chance to pay off your current loan with a refinancing loan provided by a different lender with a lower Annual Percentage Rate. You can use the mortgage refinance system no matter if you want to refinance the loan for your car or the loan for your house, although the procedures are different in the two cases. Getting a mortgage refinance for a car loan is usually quicker and imposing or requiring less conditioning than a house loan. That means that while an appraisal is required when you want a mortgage refinance for your home loan, refinancing your car loan will spare you of that. Still in both cases, the mortgage refinance loan must not exceed the value of the asset in matter.
The mortgage refinance system is working and it is very easy to understand: the lender will pay off your current loan and you will pay it back to your new lender at a lower APR.
So when could you make a mortgage refinance? Most commonly, the main reason for applying for a mortgage refinance is given by a decline in interest rates, but there may also be other reasons, such as changes regarding the employment or financial situation, or an improved credit history. You can thus shorten your loan term by increasing your monthly payments if your new financial situation allows you to do it, which will consequently help you save the interest rate charge on a longer term.
A mortgage refinance is of great help with fixed-rate mortgages if the interest rates have gone down, so you can make up for the money loss triggered by such a costly, unprofitable change in the interest rates.
You can also choose to refinance your mortgage just to switch from one type of rate to another. So you can choose to apply for an adjustable mortgage rate if you want a lower interest rate or a fixed one if the interest rates are increasing, or keep fluctuating in a way that you may find too stressful to cope with. Or maybe you just want to improve your Adjustable rate mortgages, especially if you are no longer satisfied with the protective caps setting superior and inferior limits to your payments variation during a year and over the entire term of the loan.
Regardless of the option you go for there is one thing that stays unchanged about mortgage refinance: it helps you save money.
http://www.buzzle.com/articles/mortgage-refinance-top-tips-ideas.html
The idea with a mortgage refinance is that you are given the chance to pay off your current loan with a refinancing loan provided by a different lender with a lower Annual Percentage Rate. You can use the mortgage refinance system no matter if you want to refinance the loan for your car or the loan for your house, although the procedures are different in the two cases. Getting a mortgage refinance for a car loan is usually quicker and imposing or requiring less conditioning than a house loan. That means that while an appraisal is required when you want a mortgage refinance for your home loan, refinancing your car loan will spare you of that. Still in both cases, the mortgage refinance loan must not exceed the value of the asset in matter.
The mortgage refinance system is working and it is very easy to understand: the lender will pay off your current loan and you will pay it back to your new lender at a lower APR.
So when could you make a mortgage refinance? Most commonly, the main reason for applying for a mortgage refinance is given by a decline in interest rates, but there may also be other reasons, such as changes regarding the employment or financial situation, or an improved credit history. You can thus shorten your loan term by increasing your monthly payments if your new financial situation allows you to do it, which will consequently help you save the interest rate charge on a longer term.
A mortgage refinance is of great help with fixed-rate mortgages if the interest rates have gone down, so you can make up for the money loss triggered by such a costly, unprofitable change in the interest rates.
You can also choose to refinance your mortgage just to switch from one type of rate to another. So you can choose to apply for an adjustable mortgage rate if you want a lower interest rate or a fixed one if the interest rates are increasing, or keep fluctuating in a way that you may find too stressful to cope with. Or maybe you just want to improve your Adjustable rate mortgages, especially if you are no longer satisfied with the protective caps setting superior and inferior limits to your payments variation during a year and over the entire term of the loan.
Regardless of the option you go for there is one thing that stays unchanged about mortgage refinance: it helps you save money.
http://www.buzzle.com/articles/mortgage-refinance-top-tips-ideas.html
Debt consolidation mortgage information – 5 reasons to Refinance
Do you have high interest rate loans or credit cards? Is your mortgage rate higher than 8.5%? If you answered yes to either of those questions, then you need to refinance. Here are 5 reasons why you should refinance your mortgage now.
1. The mortgage rates are very low right now and this will not last. Do you remember when people were bragging about having a rate below 10%? Now everybody is bragging about rates under 5%. So if your rate is over 8.5% and especially if it is in the double digits, you could be saving thousands of dollars on your mortgage.
2. If you have high interest loans or credit cards you need to refinance right away. It may seem like you are not accomplishing much by refinancing and paying off your high interest loans or credit cards, but you are saving so much money. It can take up to 25 years to pay off a $5,000 credit card balance at a rate of 15% or higher. This is very true if you pay the minimum payment. Plus you will end up paying thousands of dollars in interest over that period. Paying this off over the same amount of time at a lower rate will only save you money.
3. If you want to add value to your home with a sun porch, finishing a basement, or adding on a room. Contrary to popular belief, landscaping, new carpet, new paint, wallpaper, and other furnishing do not add value to your home. The only thing that really adds value to your home is adding square footage of living space. You can refinance your mortgage and add a room, a sun porch, or finish your basement to up the value of your home.
4. Refinance your home to take a dream vacation. Yes, this is not as important as some of the other reasons to refinance, but you only live once so if this is what you want to do, then go for it. There is nothing wrong with using your assets to do things for yourself.
5. Refinance to put a down payment on an investment property. This is probably one of the best reasons to refinance. You can use the cash you get from your equity to put money down on a rental property. Owning two homes instead of one is a great investment. There is a lot of money to be made in real estate and it is a great investment towards your retirement
There you have it. Five great reasons to refinance your home, and there are more. Any reason you can come up with to use your assets to your benefit or for something you really want is a good reason to refinance. You should start with getting a few online mortgage quotes and comparing deals. This will give you an idea of what you are looking at.
Get your online quote now. Go to the following website: Online Refinance Mortgage Quote
http://www.buzzle.com/articles/debt-consolidation-mortgage-information-reasons-refinance.html
1. The mortgage rates are very low right now and this will not last. Do you remember when people were bragging about having a rate below 10%? Now everybody is bragging about rates under 5%. So if your rate is over 8.5% and especially if it is in the double digits, you could be saving thousands of dollars on your mortgage.
2. If you have high interest loans or credit cards you need to refinance right away. It may seem like you are not accomplishing much by refinancing and paying off your high interest loans or credit cards, but you are saving so much money. It can take up to 25 years to pay off a $5,000 credit card balance at a rate of 15% or higher. This is very true if you pay the minimum payment. Plus you will end up paying thousands of dollars in interest over that period. Paying this off over the same amount of time at a lower rate will only save you money.
3. If you want to add value to your home with a sun porch, finishing a basement, or adding on a room. Contrary to popular belief, landscaping, new carpet, new paint, wallpaper, and other furnishing do not add value to your home. The only thing that really adds value to your home is adding square footage of living space. You can refinance your mortgage and add a room, a sun porch, or finish your basement to up the value of your home.
4. Refinance your home to take a dream vacation. Yes, this is not as important as some of the other reasons to refinance, but you only live once so if this is what you want to do, then go for it. There is nothing wrong with using your assets to do things for yourself.
5. Refinance to put a down payment on an investment property. This is probably one of the best reasons to refinance. You can use the cash you get from your equity to put money down on a rental property. Owning two homes instead of one is a great investment. There is a lot of money to be made in real estate and it is a great investment towards your retirement
There you have it. Five great reasons to refinance your home, and there are more. Any reason you can come up with to use your assets to your benefit or for something you really want is a good reason to refinance. You should start with getting a few online mortgage quotes and comparing deals. This will give you an idea of what you are looking at.
Get your online quote now. Go to the following website: Online Refinance Mortgage Quote
http://www.buzzle.com/articles/debt-consolidation-mortgage-information-reasons-refinance.html
Why should you refinance your home? Indiana mortgage refinance Information
A refinance mortgage for your home is a big decision and you need to know all the reasons why you might want to refinance your home. An Indiana mortgage refinance can be used to consolidate debt, make your life easier, or save money.
What is a good reason to refinance your home? Any reason that will save you money or make your life easier is a reason to refinance your home. There are some things you need to watch out for, especially in the state of Indiana.
There are a lot of bad deals in Indiana that you have to be careful of. This is because there are a large number of banks, mortgage brokers, and lending companies in Indiana. You probably already know this because they like to send a lot of great junk mail.
There are a lot of choices out there and here are a few tips to remember while shopping for the right refinance mortgage.
1) Every company that you talk to can always give you a better deal. Whether you are working with a broker, a bank, or a direct lender, there is always a better deal. Tell them that you have another company that is willing to offer you a better rate, lower fees, or a larger loan. They will find you a better deal when you do this.
2) All mortgage account executives earn commissions and bonuses. You need to allow them to earn their money, but also don’t settle for a deal that is not good for you. They will cut into their commissions a little bit to keep you happy and secure the loan closings.
3) Points are used to buy your rate down and save you money in the long run, remember this. You should be willing to pay a little extra in points if it will get you a lower rate. Ask your Loan Specialist to show you the savings each way for you.
4) Don’t get points confused with the broker fee. This is important if you are working with a mortgage broker because they charge a fee for their services. Brokers are not bad because they can shop through a bunch of different companies and programs, but they do charge a fee. Make sure your Loan Specialist shows you all the fees and explains then thoroughly.
These are some great tips to remember when making the decision to refinance your home. You will want to weigh all the benefits against the cost of the mortgage. Remember, getting your high interest credit cards and loans paid off with your refinance mortgage is the most important thing and will save you more money than you could ever imagine.
Ready to save money and a lower payment on your mortgage? Get your online quote and get the process started today here. Get the secrets to getting a mortgage with any type of credit here
http://www.buzzle.com/articles/refinance-home-indiana-mortgage-information.html
What is a good reason to refinance your home? Any reason that will save you money or make your life easier is a reason to refinance your home. There are some things you need to watch out for, especially in the state of Indiana.
There are a lot of bad deals in Indiana that you have to be careful of. This is because there are a large number of banks, mortgage brokers, and lending companies in Indiana. You probably already know this because they like to send a lot of great junk mail.
There are a lot of choices out there and here are a few tips to remember while shopping for the right refinance mortgage.
1) Every company that you talk to can always give you a better deal. Whether you are working with a broker, a bank, or a direct lender, there is always a better deal. Tell them that you have another company that is willing to offer you a better rate, lower fees, or a larger loan. They will find you a better deal when you do this.
2) All mortgage account executives earn commissions and bonuses. You need to allow them to earn their money, but also don’t settle for a deal that is not good for you. They will cut into their commissions a little bit to keep you happy and secure the loan closings.
3) Points are used to buy your rate down and save you money in the long run, remember this. You should be willing to pay a little extra in points if it will get you a lower rate. Ask your Loan Specialist to show you the savings each way for you.
4) Don’t get points confused with the broker fee. This is important if you are working with a mortgage broker because they charge a fee for their services. Brokers are not bad because they can shop through a bunch of different companies and programs, but they do charge a fee. Make sure your Loan Specialist shows you all the fees and explains then thoroughly.
These are some great tips to remember when making the decision to refinance your home. You will want to weigh all the benefits against the cost of the mortgage. Remember, getting your high interest credit cards and loans paid off with your refinance mortgage is the most important thing and will save you more money than you could ever imagine.
Ready to save money and a lower payment on your mortgage? Get your online quote and get the process started today here. Get the secrets to getting a mortgage with any type of credit here
http://www.buzzle.com/articles/refinance-home-indiana-mortgage-information.html
What is Mortgage and Mortgage Refinance
Is It Time To Refinance Your Mortgage?
Have you ever wondered whether it is time to refinance your mortgage? Perhaps you have often wondered whether refinancing would help you in any way, such as assisting you to pay off your mortgage before, lowering your repayments, or consolidating debt. If you have had a mortgage for a while, or are dejected with the mortgage that you currently have, it is possible that it is time to think the options available to you, and refinance.
What Is Mortgage Refinancing?
Let’s take a look at what mortgage refinancing is, and how it can help you. A mortgage re-finance loan mainly pays off the mortgage that you already have, and is replaced with a new one, so you start over fresh. Why will this help you?
Changing From Either An ARM Or A Fixed Rate Mortgage
ARM, short for adjustable rate mortgages can be the best way to repay your mortgage, since they commonly have much lower interest rates. However, they are a calculated risk as they are governed by the current markets and trends. Worst-case scenario with an ARM loan is that they can rise very high, leaving you with a much higher monthly repayment.
Consolidating Debt
Mortgage refinancing can also be used to consolidate debt from other sources, such as student loans, store cards, or credit card debt. When the new refinanced loan is drawn up, extra money is borrowed to pay off existing debts.
Planning refinancing?
If you are considering refinancing your current home loan, there are some things that you must take into consideration first. The most important is to assess your individual financial desires, and prudently consider what type of refinancing option is the best suited for you. Once you know what you are looking for in a re-financing loan option, you will need to carefully shop around to find the lowest interest rates, and the best terms available to you. Many people make the mistake of thinking that, in order to refinance their mortgages, they must stay with the same financial institution. This is not the case.
Question First, Apply Later
Make sure that while you are shopping around for the best terms and interest rates on your mortgage refinance loan you are not applying for them. This can be very damaging to your credit report, which is likely to cost you in the long run with your interest rates. The better your credit score, the better the terms and lower your interest rates will be.
Got Bad Credit?
If you have bad credit, it is likely that you won’t get the lowest possible interest rates from lending institutions. But there are some stuffs that you can do to make your credit rating better, including making sure that your repayments are made on time, and paying your other debts, such as credit cards, on time.
Before You Re-finance
Before you apply for a mortgage refinance, make sure that you ask for your credit report from the three major reporting agencies. One of each can be obtained free of charge each year. Once you receive your credit report, read through it, and make sure that the information is correct and up to date. If you do notice any mistakes, make sure that you ask for the information to be removed.
Mortgage Calculator: Some Buying Tips
Mortgage calculators like HP-12C can be procured from abundant vendors which give discounts on high volume orders too. There are a number of points to be considered while investing money in one. The foremost point is the feature set and customization. With fluctuating interest rates, the need of customizability of input is a must. The next most important feature is weight, battery life and builds quality. An absolute balance must be achieved between all the three.
You do not want a mortgage calculator which is the size of a primitive brick, nor would you like to buy one which is so small that you have to squint to use it. Similarly it must be sturdy enough to withstand rigorous treatment both indoor and outdoor. Finally the after sales service must be kept in consideration as there is always a risk of failure in electronic devices
Are you bankrupt and trying to get homeloan? Here you will find excellent information on home loans after bankruptcy.
http://www.buzzle.com/articles/mortgage-refinance.html
Have you ever wondered whether it is time to refinance your mortgage? Perhaps you have often wondered whether refinancing would help you in any way, such as assisting you to pay off your mortgage before, lowering your repayments, or consolidating debt. If you have had a mortgage for a while, or are dejected with the mortgage that you currently have, it is possible that it is time to think the options available to you, and refinance.
What Is Mortgage Refinancing?
Let’s take a look at what mortgage refinancing is, and how it can help you. A mortgage re-finance loan mainly pays off the mortgage that you already have, and is replaced with a new one, so you start over fresh. Why will this help you?
Changing From Either An ARM Or A Fixed Rate Mortgage
ARM, short for adjustable rate mortgages can be the best way to repay your mortgage, since they commonly have much lower interest rates. However, they are a calculated risk as they are governed by the current markets and trends. Worst-case scenario with an ARM loan is that they can rise very high, leaving you with a much higher monthly repayment.
Consolidating Debt
Mortgage refinancing can also be used to consolidate debt from other sources, such as student loans, store cards, or credit card debt. When the new refinanced loan is drawn up, extra money is borrowed to pay off existing debts.
Planning refinancing?
If you are considering refinancing your current home loan, there are some things that you must take into consideration first. The most important is to assess your individual financial desires, and prudently consider what type of refinancing option is the best suited for you. Once you know what you are looking for in a re-financing loan option, you will need to carefully shop around to find the lowest interest rates, and the best terms available to you. Many people make the mistake of thinking that, in order to refinance their mortgages, they must stay with the same financial institution. This is not the case.
Question First, Apply Later
Make sure that while you are shopping around for the best terms and interest rates on your mortgage refinance loan you are not applying for them. This can be very damaging to your credit report, which is likely to cost you in the long run with your interest rates. The better your credit score, the better the terms and lower your interest rates will be.
Got Bad Credit?
If you have bad credit, it is likely that you won’t get the lowest possible interest rates from lending institutions. But there are some stuffs that you can do to make your credit rating better, including making sure that your repayments are made on time, and paying your other debts, such as credit cards, on time.
Before You Re-finance
Before you apply for a mortgage refinance, make sure that you ask for your credit report from the three major reporting agencies. One of each can be obtained free of charge each year. Once you receive your credit report, read through it, and make sure that the information is correct and up to date. If you do notice any mistakes, make sure that you ask for the information to be removed.
Mortgage Calculator: Some Buying Tips
Mortgage calculators like HP-12C can be procured from abundant vendors which give discounts on high volume orders too. There are a number of points to be considered while investing money in one. The foremost point is the feature set and customization. With fluctuating interest rates, the need of customizability of input is a must. The next most important feature is weight, battery life and builds quality. An absolute balance must be achieved between all the three.
You do not want a mortgage calculator which is the size of a primitive brick, nor would you like to buy one which is so small that you have to squint to use it. Similarly it must be sturdy enough to withstand rigorous treatment both indoor and outdoor. Finally the after sales service must be kept in consideration as there is always a risk of failure in electronic devices
Are you bankrupt and trying to get homeloan? Here you will find excellent information on home loans after bankruptcy.
http://www.buzzle.com/articles/mortgage-refinance.html
Four Truths About Mortgage Refinancing
Borrowers looking for an inexpensive way to consolidate high-cost debt or to finance home improvements continue to rely on mortgage refinancing. Here’s why.
Many home buyers close their loans, make their payments and don't think about their mortgages again. They don't consider refinancing when they should. If you are among these inattentive homeowners, here are four truths about mortgage refinancing that may surprise you.
Truth #1 – Mortgage Refinancing can save you money.
If interest rates have dropped since you got your original loan, refinancing can reduce your monthly payment. When you refinance, you can also choose to shorten your loan term, meaning you will pay less money in interest over the life of the mortgage.
You could also save money by switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. The interest rate on an ARM is based on an index such as the LIBOR or the U.S. Treasury Bill. If they go up, so do your payments. By refinancing to a fixed-rate mortgage, you can prevent payment increases. (Your monthly payment might still increase due to changes in property taxes or insurance, but your principle and interest amounts will stay the same.)
If your original mortgage was for more than 80 percent of your home’s value, you are paying private mortgage insurance (PMI) as part of your monthly payment. As the value of your home increases and the principle on your mortgage decreases, you can get rid of PMI by refinancing for less than 80 percent of your home’s value.
Truth #2 – Mortgage Refinancing is a smart way to access your equity.
In the second quarter of 2006, 88 percent of Freddie Mac-owned loans that were refinanced resulted in new mortgages with loan amounts that were at least five percent higher than the original mortgage balances. Homes refinanced during this time had appreciated 33 percent on average since the original mortgage was taken out. The median age of the mortgage was 3.2 years.
"Borrowers who are looking for an inexpensive way to finance home improvements or business investments, or to consolidate high cost debt, are turning to cash-out refinance," said Amy Crews Cutts, Freddie Mac deputy chief economist. "These borrowers are often willing to refinance into higher rates on their first lien mortgages. . . This is the second consecutive quarter in which the median refinance borrower increased the rate on their first lien mortgage."
Truth #3 – Mortgage Refinancing is still very popular.
According to Frank Nothaft, Freddie Mac chief economist, "The staying power of refinance activity has been much stronger than we initially thought . . . borrowers are reacting to both incentives to cash out home equity through refinance and incentives to change their mortgage as they hit an interest rate adjustment.
Freddie Mac estimates that $500 billion in first lien mortgages will adjust this year and another $650 billion in second liens will see at least one rate change this year. Nationally, home values increased 10.2 percent over the last twelve months.
Truth #4 – Mortgage Refinancing is simpler than getting your original mortgage.
Mortgage refinancing is almost always simpler, cheaper and quicker than getting an original mortgage. The process can be handled online at sites like Simple Mortgage Refinancing. The site has helpful articles and offers free, no-obligation loan quotes.
http://www.buzzle.com/articles/mortgage-refinancing-consolidate-high-cost-debt.html
Many home buyers close their loans, make their payments and don't think about their mortgages again. They don't consider refinancing when they should. If you are among these inattentive homeowners, here are four truths about mortgage refinancing that may surprise you.
Truth #1 – Mortgage Refinancing can save you money.
If interest rates have dropped since you got your original loan, refinancing can reduce your monthly payment. When you refinance, you can also choose to shorten your loan term, meaning you will pay less money in interest over the life of the mortgage.
You could also save money by switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. The interest rate on an ARM is based on an index such as the LIBOR or the U.S. Treasury Bill. If they go up, so do your payments. By refinancing to a fixed-rate mortgage, you can prevent payment increases. (Your monthly payment might still increase due to changes in property taxes or insurance, but your principle and interest amounts will stay the same.)
If your original mortgage was for more than 80 percent of your home’s value, you are paying private mortgage insurance (PMI) as part of your monthly payment. As the value of your home increases and the principle on your mortgage decreases, you can get rid of PMI by refinancing for less than 80 percent of your home’s value.
Truth #2 – Mortgage Refinancing is a smart way to access your equity.
In the second quarter of 2006, 88 percent of Freddie Mac-owned loans that were refinanced resulted in new mortgages with loan amounts that were at least five percent higher than the original mortgage balances. Homes refinanced during this time had appreciated 33 percent on average since the original mortgage was taken out. The median age of the mortgage was 3.2 years.
"Borrowers who are looking for an inexpensive way to finance home improvements or business investments, or to consolidate high cost debt, are turning to cash-out refinance," said Amy Crews Cutts, Freddie Mac deputy chief economist. "These borrowers are often willing to refinance into higher rates on their first lien mortgages. . . This is the second consecutive quarter in which the median refinance borrower increased the rate on their first lien mortgage."
Truth #3 – Mortgage Refinancing is still very popular.
According to Frank Nothaft, Freddie Mac chief economist, "The staying power of refinance activity has been much stronger than we initially thought . . . borrowers are reacting to both incentives to cash out home equity through refinance and incentives to change their mortgage as they hit an interest rate adjustment.
Freddie Mac estimates that $500 billion in first lien mortgages will adjust this year and another $650 billion in second liens will see at least one rate change this year. Nationally, home values increased 10.2 percent over the last twelve months.
Truth #4 – Mortgage Refinancing is simpler than getting your original mortgage.
Mortgage refinancing is almost always simpler, cheaper and quicker than getting an original mortgage. The process can be handled online at sites like Simple Mortgage Refinancing. The site has helpful articles and offers free, no-obligation loan quotes.
http://www.buzzle.com/articles/mortgage-refinancing-consolidate-high-cost-debt.html
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