Home owners are increasingly choosing mortgage refinancing with hybrid Adjustable Rate Mortgage loans. Hybrids have a number of advantages over regular Adjustable Rate Mortgages including less risk for the borrower. Here are several tips to help you decide if mortgage refinancing with a hybrid Adjustable Rate Mortgage is right for you.
The most common hybrid Adjustable Rate Mortgages are designated with 3/1, 5/1, and 7/1. This designation means your interest rate will be fixed for a certain number of years and the second number is the interval your lender adjust the interest rate. In the case of a 3/1 hybrid mortgage, the interest rate is fixed for 3 years, and the lender adjusts it every year after that.
Suppose you’re considering mortgage refinancing for $200,000. With a 3/1 hybrid Adjustable Rate Mortgage, you could cut your monthly payment from $1,599 to $1,240 per month for the first three years. This is especially helpful for homeowners that will be selling or refinancing at the end of the fixed rate period. Adjustable Rate Mortgages frequently come with an ultra-low introductory interest rate often called a teaser rate.
Before choosing mortgage refinancing with a hybrid Adjustable Rate Mortgage it is important to fully understand what you are getting into to avoid payment shock when the lender starts adjusting your interest rate. Adjustable Rate Mortgages come with caps to prevent excessive increases in the mortgage payment and interest rate. Make sure your Adjustable Rate Mortgage has both interest rate and payment caps and you choose mortgage refinancing with the most competitive caps.
You can learn more about your mortgage refinancing options with hybrid Adjustable Rate Mortgages including costly mistakes to avoid by registering for a free mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Video Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Tuesday, September 18, 2007
Bad Credit Mortgage Refinance
With todays aggressive mortgage lending market home owners with bad credit scores and late mortgage payments can still qualify for a bad credit mortgage refinance. Mortgage lenders who write these types of bad credit mortgage refinance loans are referred to as sub prime lenders and are mainly sold by mortgage brokers. Credit scores for sub prime mortgages are usually between 500 and 620.
Although borrowers with mid 500 credit scores and above should try and qualify for FHA financing before accepting a sub prime loan. There are drawbacks to a bad credit mortgage refinance, Sub prime mortgage loans carry with them a higher interest rate and many times a prepayment penalty. Although a small disadvantage to someone who needs the loan they should be taken into consideration.
Many bad credit mortgage refinances are originated in the form of a 2 year ARM. An ARM has an interest rate that will change in a certain period of time meaning higher payments. That time is 2 years for the 2 year ARM, Sub prime ARMS are available in 2,3 and 5 year periods. The ARM is not the only option for a bad credit refinance, you do have the option of going with a fixed rate mortgage but be ready for a interest rate that is .75% or more higher then the ARM rate. In general the sub prime mortgage loan is considered but many to be just a band aid type loan meant to carry you along until you can raise your credit score up enough to get a conforming loan. If you must take the ARM over the fixed mortgage do yourself a favor and take the 5 year ARM. It will give you much more time to straighten out your credit profile.
For more information on bad credit mortgage refinancing please visit http://www.mkemortgage.net/content/sitemap.htm
Article Source: http://EzineArticles.com/?expert=Darin_Sewell
Although borrowers with mid 500 credit scores and above should try and qualify for FHA financing before accepting a sub prime loan. There are drawbacks to a bad credit mortgage refinance, Sub prime mortgage loans carry with them a higher interest rate and many times a prepayment penalty. Although a small disadvantage to someone who needs the loan they should be taken into consideration.
Many bad credit mortgage refinances are originated in the form of a 2 year ARM. An ARM has an interest rate that will change in a certain period of time meaning higher payments. That time is 2 years for the 2 year ARM, Sub prime ARMS are available in 2,3 and 5 year periods. The ARM is not the only option for a bad credit refinance, you do have the option of going with a fixed rate mortgage but be ready for a interest rate that is .75% or more higher then the ARM rate. In general the sub prime mortgage loan is considered but many to be just a band aid type loan meant to carry you along until you can raise your credit score up enough to get a conforming loan. If you must take the ARM over the fixed mortgage do yourself a favor and take the 5 year ARM. It will give you much more time to straighten out your credit profile.
For more information on bad credit mortgage refinancing please visit http://www.mkemortgage.net/content/sitemap.htm
Article Source: http://EzineArticles.com/?expert=Darin_Sewell
Refinance Mortgage 101: Mortgage Refinancing Basics You Need to Know
There are a variety of different reasons for refinancing your mortgage loan. Common reasons for refinancing include lowering your interest rate, lowering your monthly payment, cashing out equity in your home, and even raising your monthly payment amount. You can take advantage of refinancing in any economy depending on your reasons for taking out a new mortgage. Here are the basics you need to know before refinancing your mortgage loan.
Is There a Best Time to Refinance?
Depending on your reason for refinancing, the timing could impact your interest rate; however, timing is not the most important factor. If you are refinancing your mortgage to qualify for a lower interest rate, timing and prevaling interest rates will determine the interest rate you will qualify for. If you are refinancing for any other reason, timing becomes less important and you can find competitive loan offers in any economy. If you are refinancing to lower your monthly mortgage payment, you can do this even if you cannot qualify for a lower interest rate. By extending the term length of your new mortgage you can lower your payment amount and even take cash back. If your financial situation has improved since you took out your original mortgage, or if you have a better paying job or better credit, you may qualify for a lower interest rate and better terms.
Mortgage Refinancing Options
When you decide to refinance your mortgage loan there are a number of different loans to choose from. Choosing the wrong type of loan could cost you thousands of dollars and even wreck your finances. Options for your new mortgage include taking cash back at closing, lowering your payment with a longer term, and even building equity faster with a shorter term. You can learn more about your mortgage options by registering for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: www.refiadvisor.com
Mortgage Refinance 101
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Is There a Best Time to Refinance?
Depending on your reason for refinancing, the timing could impact your interest rate; however, timing is not the most important factor. If you are refinancing your mortgage to qualify for a lower interest rate, timing and prevaling interest rates will determine the interest rate you will qualify for. If you are refinancing for any other reason, timing becomes less important and you can find competitive loan offers in any economy. If you are refinancing to lower your monthly mortgage payment, you can do this even if you cannot qualify for a lower interest rate. By extending the term length of your new mortgage you can lower your payment amount and even take cash back. If your financial situation has improved since you took out your original mortgage, or if you have a better paying job or better credit, you may qualify for a lower interest rate and better terms.
Mortgage Refinancing Options
When you decide to refinance your mortgage loan there are a number of different loans to choose from. Choosing the wrong type of loan could cost you thousands of dollars and even wreck your finances. Options for your new mortgage include taking cash back at closing, lowering your payment with a longer term, and even building equity faster with a shorter term. You can learn more about your mortgage options by registering for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: www.refiadvisor.com
Mortgage Refinance 101
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Mortgage Refinancing: How to Lower Your Payment with Rising Interest Rates
Are the rising costs of energy, taxes, and insurance strangling your budget? If it is becoming increasingly difficult for you to make ends meet each month, there are steps you can take to improve your cash flow by refinancing your mortgage. Many people will tell you not to refinance your mortgage when interest rates are rising; however, if you need to lower your monthly payment or have an adjustable rate mortgage and want to stop your payments from going up, refinancing may be your only option. Rising interest rates does not mean you should not refinance, just that you need to refinance smartly.
Lowering your monthly mortgage payment is not without risk. When you pay less each month the mortgage lender is still going to collect their interest on the loan; the lower monthly payment comes from paying less principal back. Lowering your monthly payment means you will pay more to finance your home, a necessary trade off for many homeowners feeling the pinch of a declining economy.
There are three ways to lower your monthly mortgage payment. To accomplish this you can refinance to mortgage with a lower interest rate than you are currently paying, choose a mortgage with a longer term length, or downsize your home. To learn more about your mortgage refinancing options, including common mortgage mistakes to avoid, register for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com
Mortgage Refinance
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Lowering your monthly mortgage payment is not without risk. When you pay less each month the mortgage lender is still going to collect their interest on the loan; the lower monthly payment comes from paying less principal back. Lowering your monthly payment means you will pay more to finance your home, a necessary trade off for many homeowners feeling the pinch of a declining economy.
There are three ways to lower your monthly mortgage payment. To accomplish this you can refinance to mortgage with a lower interest rate than you are currently paying, choose a mortgage with a longer term length, or downsize your home. To learn more about your mortgage refinancing options, including common mortgage mistakes to avoid, register for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com
Mortgage Refinance
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Car Loan Refinance - Your Loan Funding Tool
While opting for a car loan, the primary concern for any borrower is the rate of interest and the resultant EMIs. Though the market offers a variety of finance products, the eligibility criteria for most such schemes are stringent and have been designed to attract borrowers who can offer better security and financial stability. Apart from that some institutions take time to process ones loan. Thus, in the bid to get a quick loan to finance the dream car, some borrowers often tend to opt for a finance scheme that charges a steep rate of interest. Now once the loan has been sanctioned and accepted, the EMIs have to be repaid by the borrower and it is then that the realization of financial crunch finally dawns upon. Not only that, any borrower who is paying a higher EMI will opt for a plan with a lower rate of interest any day, provided he comparatively saves more money in the long run.
The process of replacing the existing loan with an entirely new scheme that charges a lower rate of interest is known as refinancing. So if one has taken a car loan and wants to shift to a plan that charges a lower rate of interest can very well refinance it.
Moreover, an car loan refinance makes life easy for all those who had opted for a bad credit car loan. Most financial institution rely heavily on a person’s credit score to determine his/ her eligibility. Those with less than desired level of credit score often fail to qualify. However, such customers opt for a bad credit car loan that has been designed exclusively for loan seekers with a low credit score. The only concern regarding a bad credit car loan is its higher rate of interest as compared to the general plans. The concept of auto loan refinancing gives such borrowers an opportunity to revive their credit scores and replace their loan with an entirely new plan that charges them a much lower rate of interest.
Car loan refinance is fast catching popularity among the customers. With more than a dozen new car models being launched every year, the need to have a car is irresistible. Financing a car purchase is not difficult either and if the EMIs are poking a big hole in the pocket, simply just refinance the loan.
Alfred Anderson has rich experience in the field of online brand marketing. His interests includes Internet marketing and research on emerging online business trends. Bad Credit Auto Loans
Article Source: http://EzineArticles.com/?expert=Alfred_Anderson
The process of replacing the existing loan with an entirely new scheme that charges a lower rate of interest is known as refinancing. So if one has taken a car loan and wants to shift to a plan that charges a lower rate of interest can very well refinance it.
Moreover, an car loan refinance makes life easy for all those who had opted for a bad credit car loan. Most financial institution rely heavily on a person’s credit score to determine his/ her eligibility. Those with less than desired level of credit score often fail to qualify. However, such customers opt for a bad credit car loan that has been designed exclusively for loan seekers with a low credit score. The only concern regarding a bad credit car loan is its higher rate of interest as compared to the general plans. The concept of auto loan refinancing gives such borrowers an opportunity to revive their credit scores and replace their loan with an entirely new plan that charges them a much lower rate of interest.
Car loan refinance is fast catching popularity among the customers. With more than a dozen new car models being launched every year, the need to have a car is irresistible. Financing a car purchase is not difficult either and if the EMIs are poking a big hole in the pocket, simply just refinance the loan.
Alfred Anderson has rich experience in the field of online brand marketing. His interests includes Internet marketing and research on emerging online business trends. Bad Credit Auto Loans
Article Source: http://EzineArticles.com/?expert=Alfred_Anderson
Mortgage Refinancing – You Can Improve Your Credit Score Before Applying
Credit scoring companies refuse to fully disclose how they calculate your score; however, there are steps you can take to improve your credit score before mortgage refinancing. Credit scoring agencies simply put your information in their computer and out pops your credit score. Here are several tips to help you improve your credit score before mortgage refinancing and qualify for a better interest rate.
For $12.95 you can visit Fair Isaac’s consumer website at myfico.com and view your credit score generated from your Equifax credit report. Unfortunately, the number from myfico.com is not enough to fully assess the state of your credit. Mortgage lenders use scores from all three credit reporting agencies to gauge how much of a risk you are for lending. If your credit scores vary from one credit agency the next you could wind up paying a higher interest rate when mortgage refinancing.
What Should You Do About Your Credit Scores?
The best thing to do before mortgage refinancing is request copies of your credit reports from each of the three reporting agencies (Equifax, Experian, and Trans Union). You can get all three reports free once per year from annualcreditreport.com. Once you have your credit reports carefully review all three reports for errors. Any mistakes or negative information such as a judgment will significantly reduce your credit score. If you find mistakes in your credit reports you will need to dispute them with each credit reporting agency responsible for that error.
You can learn more about your mortgage options, including costly homeowner mistakes you need to avoid by registering for a free mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Video Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com
Mortgage Refinance Information
Article Source: http://EzineArticles.com/?expert=Louie_Latour
For $12.95 you can visit Fair Isaac’s consumer website at myfico.com and view your credit score generated from your Equifax credit report. Unfortunately, the number from myfico.com is not enough to fully assess the state of your credit. Mortgage lenders use scores from all three credit reporting agencies to gauge how much of a risk you are for lending. If your credit scores vary from one credit agency the next you could wind up paying a higher interest rate when mortgage refinancing.
What Should You Do About Your Credit Scores?
The best thing to do before mortgage refinancing is request copies of your credit reports from each of the three reporting agencies (Equifax, Experian, and Trans Union). You can get all three reports free once per year from annualcreditreport.com. Once you have your credit reports carefully review all three reports for errors. Any mistakes or negative information such as a judgment will significantly reduce your credit score. If you find mistakes in your credit reports you will need to dispute them with each credit reporting agency responsible for that error.
You can learn more about your mortgage options, including costly homeowner mistakes you need to avoid by registering for a free mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Video Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com
Mortgage Refinance Information
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Low Credit Score Mortgage Refinance - Refinance Loans for All Credit Types
Having bad credit may seem like the end of the world. Because of a negative credit rating, you may be turned down for personal loans, credit cards, auto loans, and mortgages. Those unfamiliar with bad credit lenders may attempt to obtain financing through a bank or credit union. However, these financial institutions rarely offer bad credit loans. To get approved for financing with bad credit, you must select lenders that specialize in all credit types.
What are Bad Credit Refinancing Lenders?
Declining interest rates have many homeowners contemplating refinancing. Years ago, the average home interest rate was about 9 percent. Today, rates are as low as 5 percent. Those who refinance will receive a significantly lower rate. Hence, their monthly mortgage payment will also decrease. The extra money could be used to start a savings accounts or payoff bills.
Low credit score individuals can greatly benefit from a refinancing. Lenders that specialize in bad credit refinancing are called sub prime lenders or high risk lenders. Their objective is to help bad credit homebuyers acquire a mortgage or loan at reasonable rates. If you were to apply for a loan with a prime lender, the rates quoted will be much higher, which defeats the purpose of refinancing.
Advantages of Low Credit Score Refinance Mortgages
Even though bad credit mortgages may include additional fees, these loans are perfect for rebuilding your credit. Furthermore, you have the option of a cash-out refinancing. This involves refinancing your mortgage and borrowing some of your home's equity. This is great for people hoping to improve their low credit score. The funds can be used to consolidate and eliminate debt, which will greatly increase your credit rating.
Locating Bad Credit Refinance Lenders Online
Applying for a bad credit refinancing online is quick and convenient. Many sub prime and high risk lenders have online application forms. You must supply information concerning income, employment, credit rating, and desired loan amount. After submitting information, the lender will review your application and remit a quote. The quote will consist of offered rate, terms, mortgage payment, and estimated closing costs. Applicants may accept or decline the offer. Before accepting an offer, request quotes from at least four bad credit lenders.
View our recommended Bad Credit Mortgage Refinance lenders or view all of our Recommended Refinance Lenders.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
What are Bad Credit Refinancing Lenders?
Declining interest rates have many homeowners contemplating refinancing. Years ago, the average home interest rate was about 9 percent. Today, rates are as low as 5 percent. Those who refinance will receive a significantly lower rate. Hence, their monthly mortgage payment will also decrease. The extra money could be used to start a savings accounts or payoff bills.
Low credit score individuals can greatly benefit from a refinancing. Lenders that specialize in bad credit refinancing are called sub prime lenders or high risk lenders. Their objective is to help bad credit homebuyers acquire a mortgage or loan at reasonable rates. If you were to apply for a loan with a prime lender, the rates quoted will be much higher, which defeats the purpose of refinancing.
Advantages of Low Credit Score Refinance Mortgages
Even though bad credit mortgages may include additional fees, these loans are perfect for rebuilding your credit. Furthermore, you have the option of a cash-out refinancing. This involves refinancing your mortgage and borrowing some of your home's equity. This is great for people hoping to improve their low credit score. The funds can be used to consolidate and eliminate debt, which will greatly increase your credit rating.
Locating Bad Credit Refinance Lenders Online
Applying for a bad credit refinancing online is quick and convenient. Many sub prime and high risk lenders have online application forms. You must supply information concerning income, employment, credit rating, and desired loan amount. After submitting information, the lender will review your application and remit a quote. The quote will consist of offered rate, terms, mortgage payment, and estimated closing costs. Applicants may accept or decline the offer. Before accepting an offer, request quotes from at least four bad credit lenders.
View our recommended Bad Credit Mortgage Refinance lenders or view all of our Recommended Refinance Lenders.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
Mortgage Refinancing - Should You Trust a Mortgage Banker?
Many homeowners choose to refinance their mortgages with a bank as a matter of convenience. While it’s true that banks are convenient, they’re not going to give you the best deal. Here are several reasons why you should steer clear of your bank when refinancing your mortgage.
The first problem with refinancing with your bank, and it’s a big one, is that banks are exempt from the Real Estate Settlement Procedures Act that requires mortgage lenders to disclose their fees and profit margins. The banking lobby spent millions of dollars to have the law changed and banks routinely take advantage of homeowners using this loophole.
The second problem with refinancing with your bank comes from the way banks mark up their mortgage rates. Banks sell their loans to investors on the secondary market for a profit. Mortgage loans with higher than market interest rates bring premium profits for the bank. Your bank knows the wholesale mortgage rate you would qualify for; however, they mark your rate up to boost their profits. This markup by the bank is called Service Release Premium and if you accept a mortgage that includes it you’ll overpay thousands of dollars for new mortgage.
Service Release Premium is like Yield Spread Premium except for one important difference. Regular mortgage companies are required to disclose their markup, known as Yield Spread Premium by the Real Estate Settlement Procedures Act. Banks as you already know are exempt from this law and are not required to disclose Service Release Premium or their profit margins on your loan. The only one who knows how much they are overcharging you is the bank. Why would even consider refinancing with someone who doesn’t have to play by the rules?
You can learn more about refinancing while avoiding costly mistakes with a free mortgage video tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, 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 free video tutorial: "Mortgage Refinance - What You Need to Know," 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
Home Mortgage Refinance Loan
Article Source: http://EzineArticles.com/?expert=Louie_Latour
The first problem with refinancing with your bank, and it’s a big one, is that banks are exempt from the Real Estate Settlement Procedures Act that requires mortgage lenders to disclose their fees and profit margins. The banking lobby spent millions of dollars to have the law changed and banks routinely take advantage of homeowners using this loophole.
The second problem with refinancing with your bank comes from the way banks mark up their mortgage rates. Banks sell their loans to investors on the secondary market for a profit. Mortgage loans with higher than market interest rates bring premium profits for the bank. Your bank knows the wholesale mortgage rate you would qualify for; however, they mark your rate up to boost their profits. This markup by the bank is called Service Release Premium and if you accept a mortgage that includes it you’ll overpay thousands of dollars for new mortgage.
Service Release Premium is like Yield Spread Premium except for one important difference. Regular mortgage companies are required to disclose their markup, known as Yield Spread Premium by the Real Estate Settlement Procedures Act. Banks as you already know are exempt from this law and are not required to disclose Service Release Premium or their profit margins on your loan. The only one who knows how much they are overcharging you is the bank. Why would even consider refinancing with someone who doesn’t have to play by the rules?
You can learn more about refinancing while avoiding costly mistakes with a free mortgage video tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, 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 free video tutorial: "Mortgage Refinance - What You Need to Know," 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
Home Mortgage Refinance Loan
Article Source: http://EzineArticles.com/?expert=Louie_Latour
Subscribe to:
Posts (Atom)