Choosing to refinance your existing mortgage or home loan can be a wise and profitable decision, as you will likely be able to take advantage of lower interest rates from a different bank or lending institution.
It is possible to save hundreds or even thousands of dollars every month, but the trick is knowing what you need to do in order to have everything structured in the best possible manner to minimize your total cost.
If you are reading this, there is a good chance that you already have a mortgage, and you know that the size of your monthly payments depends upon the total value of the mortgage as well as the interest rate to which you and the bank agreed.
If you have a fixed rate mortgage, it will be easier for you to figure out whether refinancing your home loan will be a good option for you. If you have an adjustable rate mortgage, the calculation may vary but you should still be able to get a good idea of where your current interest rate is and what direction it will be headed in the next few years.
Most people pay attention to only the interest rate when looking to refinance their mortgage, but this can be a misleading methodology for a few reasons:
First, more important than just the interest rate is the TOTAL amount of interest that will eventually be paid back.
To illustrate this point, let's say that you got a $500,000 mortgage and you agreed to a 30-year period and a fixed interest rate of 9%. It has already been 18 years, so now you have only 12 years of payments left.
Now if you were to refinance this, you could get a new loan with a 5-year term, and even if you had an 11% interest rate with this new loan, you will still pay back less total interest. This is important to realize as it will save you more money in the long run, and if you are a person that only looks at the interest rates then you might not see the potential benefit of a refinancing situation such as this.
The point here is that even though the surface interest rate may be higher with a refinanced loan (regardless of whether it is fixed or adjustable), you may still be paying back LESS total interest over the term of the loan.
What your goal should be in terms of your home loan or mortgage is to minimize the amount of total interest that you will pay back to the bank, while making sure that the interest rate and time-period you have chosen will make your monthly payments as comfortable as possible.
You would not want to over-extend yourself financially by creating monthly payments that are too large, but at the same time remember that the smaller the payments are (and the longer the time you pay them) the greater the total amount of interest repaid will be.
If you know how to structure it correctly, you can save a lot on your monthly payments through proper mortgage refinancing. YourRefinancingSolution.com can be an excellent resource where you can learn how to refinance a home loan.
http://EzineArticles.com/?expert=Richard_Weber
Thursday, September 27, 2007
Refinance With Credit Score Under 500
If your credit score is under 500 and you need to refinance your mortgage you have severely limited options when compared to someone with a credit score over 500. Most sub prime lenders will not accept a below refinance loan from a under 500 credit score borrower. However all hope is not lost and you do still have some options to refinance even with a credit score under 500.
One option many credit score under 500 refinance borrowers turn to is a hard money lender. Hard money lenders are typically equity driven and do not look at credit score. They are mainly concerned with making in the short term, therefore many hard money loans will have interest rates over 10% and many will have funding fees of up to 5% of the loan amount. You will however need 30-40% equity in your home to secure a hard money loan. All though not cheap they can help you refinance with a credit score under 500 to get cash out to pay off debt or stop a foreclosure.
Another not so widely known option for a credit score under 500 refinance is an FHA loan. FHA is backed by the federal government does not have any actual minimum credit score requirements, instead they look at overall credit profile. This type of underwriting is just what the below 500 refinance borrower needs. With a FHA refinance you will need to prove financial responsibility and explain why your credit score is under 500. For example if your credit score is under 500 due to medical bills but all your other payments were on time then FHA more then likely will help you with a credit score under 500 refinance. You will however have to show valid proof of positive payment on your consumer credit accounts. FHA will even accept payment history on alternate credit accounts such as the cable bill, electric bill and cell phone bills. What FHA will not accept for a credit score under 500 refinance is a borrower who just did not pay their bills and was irresponsible.
The best option for a homeowner with a credit score under 500 is to find a local FHA refinance expert and talk to them about your situation. Many times based off experience they should be able to tell you if your credit score under 500 refinance will be FHA approved or not.
http://EzineArticles.com/?expert=Darin_Sewell
Time To Make The Big Change With Refinance Mortgage Arizona
Everybody needs a change. If you’re tired, burnt out, and bored out of your eyeballs, then it’s definitely time to consider changes in your life. You might feel that your career is going nowhere and you’re sick of your old neighborhood. A change of scenery will do you good and while you’re at it, so will a career change. Consider moving to Arizona, where many industries thrive and even more houses being built everyday. With refinance mortgage Arizona, there’s no stopping you.
What’s in Arizona?
What used to be barren wasteland are now several thriving desert cities with many a successful industry to its name. Communities are sprouting up everywhere in the state like mushrooms, and they just keep growing.
Arizona experienced its boom in population half a century ago when air conditioning was invented. Suddenly, the desert heat became tolerable and even ideal for some. With the state’s wide open spaces, beautiful sunsets, and warm weather all-year round, it’s the perfect place to raise a family and is the haven of outdoorsmen and homebodies alike.
Arizona has since played host to many industries, from computers to customer service, education to medicine. You name it, Arizona has it. Of course, you won’t take that refinance mortgage Arizona until you know there’s a job waiting for you out there. But don’t fret, you’ll find one quicker than you expect.
How do I get to Arizona?
When you finally have that job offer under your belt, you’re well on your way to Arizona. It’s just a matter of how. It’s time to shop around for the best refinance mortgage Arizona. Of course, you don’t want to settle for less when you can have the best. With the many companies offering refinance mortgage Arizona today, it’s best to tread carefully and not to be too hasty in your decisions. After all, you want to end up with a home as an asset and not a huge liability for you.
Take the time to look around. Compare rates and offers from different companies offering refinance mortgage Arizona. Get your persuasive juices flowing and negotiate for the best deal that works for you. Look out for locked interest rates, meaning interest rates that don’t change over time. It might be exactly what you need. Also look out for hidden fees and charges. It always pays to read the fine print.
Don’t be so easily persuaded by smooth talking brokers. They’re no more than salespeople out to get commissions out of your business and they hardly ever have your best interest at heart. You know your finances best. You know what you can afford. By knowing where to draw the line, you’re finally ready to sign your name on the dotted line, and you’ll be well on your way to beautiful Arizona.
Indeed, with a good refinance mortgage Arizona, moving to the Wild, Wild West is as easy as ABC. When you’re sitting on your porch and watching the sun set over the desert, you’ll know you’ve made the best decision of your life.
How would you like to know more about refinance mortgage Arizona? Check out whataboutloans.com today and also learn more about Colorado mortgage lender and home mortgage refinancing lender.
http://EzineArticles.com/?expert=Rony_Walker
What’s in Arizona?
What used to be barren wasteland are now several thriving desert cities with many a successful industry to its name. Communities are sprouting up everywhere in the state like mushrooms, and they just keep growing.
Arizona experienced its boom in population half a century ago when air conditioning was invented. Suddenly, the desert heat became tolerable and even ideal for some. With the state’s wide open spaces, beautiful sunsets, and warm weather all-year round, it’s the perfect place to raise a family and is the haven of outdoorsmen and homebodies alike.
Arizona has since played host to many industries, from computers to customer service, education to medicine. You name it, Arizona has it. Of course, you won’t take that refinance mortgage Arizona until you know there’s a job waiting for you out there. But don’t fret, you’ll find one quicker than you expect.
How do I get to Arizona?
When you finally have that job offer under your belt, you’re well on your way to Arizona. It’s just a matter of how. It’s time to shop around for the best refinance mortgage Arizona. Of course, you don’t want to settle for less when you can have the best. With the many companies offering refinance mortgage Arizona today, it’s best to tread carefully and not to be too hasty in your decisions. After all, you want to end up with a home as an asset and not a huge liability for you.
Take the time to look around. Compare rates and offers from different companies offering refinance mortgage Arizona. Get your persuasive juices flowing and negotiate for the best deal that works for you. Look out for locked interest rates, meaning interest rates that don’t change over time. It might be exactly what you need. Also look out for hidden fees and charges. It always pays to read the fine print.
Don’t be so easily persuaded by smooth talking brokers. They’re no more than salespeople out to get commissions out of your business and they hardly ever have your best interest at heart. You know your finances best. You know what you can afford. By knowing where to draw the line, you’re finally ready to sign your name on the dotted line, and you’ll be well on your way to beautiful Arizona.
Indeed, with a good refinance mortgage Arizona, moving to the Wild, Wild West is as easy as ABC. When you’re sitting on your porch and watching the sun set over the desert, you’ll know you’ve made the best decision of your life.
How would you like to know more about refinance mortgage Arizona? Check out whataboutloans.com today and also learn more about Colorado mortgage lender and home mortgage refinancing lender.
http://EzineArticles.com/?expert=Rony_Walker
Refinancing Mortgage Loans for the Growing Family
Your kids are growing and your house is getting smaller. Thinking big? Go ahead and get that second loan, but you have to know that refinancing mortgage loans should not be taken lightly. Get to know the best refinancing strategies before you take out a loan. You won’t regret it.
Are you good enough?
People turn to refinancing mortgage loans for different reasons. Some people need bigger homes for their growing family. Others resort to refinancing mortgage loans in order to reduce monthly payments. Yet others refinance to shift to other types of loans, while some refinance to build equity faster. Whatever your excuse is, there are a few things you should know about mortgage refinancing.
Before you head off to your lender to refinance your loans, you should be able to assess your personal eligibility to refinance, if only to spare yourself the pain of being rejected just in case you’re not good enough. Ask yourself basic questions like:
1. How big a house do I need?
2. How long do I plan to stay in my home?
3. How many years are left on my current loan?
4. Do I have enough resources to cover the expenses that come with refinancing mortgage loans?
Answer these questions as best as you can. These questions will not only determine your personal qualifications for refinancing mortgage loans, but will also help you decide the type of mortgage to take on. Depending on your needs, you can choose from the different terms and interest rates offered by a lender.
If you pass your own rigid personal assessment, you’re now ready to face the big guys – the lenders. Based on your income, property value, existing mortgage information, and other pertinent data, the lender will confirm your eligibility for refinancing mortgage loans. They have the final word, so cross your fingers and hope you’re all on the same wavelength.
Do you have what it takes?
So you’ve passed your evaluation with flying colors. You can now begin the process of refinancing. Mortgage loans may be refinanced by the original lender. But it will also be a good idea to contact other companies and compare notes. If you find something better, by all means, switch lenders. Nobody’s stopping you.
Be prepared to shoulder new fees aplenty, however, regardless if you’re switching lender or not. After all, they’re all running a business. Expect expenses such as closing fees, application fees, title insurance and title search fees, appraisal costs, discount points, loan origination fee, prepayment penalties, and legal service fees with your refinancing mortgage loans. The cost of refinancing mortgage loans varies from one case to another. In some cases, a new appraisal will not be required, especially if you’re sticking to your old lender. Other fees may be negotiated or waived, so turn on that charm and you might get lucky.
Want to kiss those fees goodbye?
If you feel that additional expenses are unjustified, put your righteous indignation to use and contact lenders that offer no-cost refinancing. Shop around for lenders that do not require up-front payments for closing fees and applications fees. While some lenders stick to their promise of no-cost refinancing, there are some that don’t.
Take the time to visit possible lenders. Play devil’s advocate and show up armed with a list of questions to ask the lender. After all, asking questions is your right. Compare the offers and other important information gathered, and come up with a shortlist. Keep an eye out for hidden charges and other unnecessary fees charged by the lender.
Working with lenders that use automated underwriting will speed up your application process. If you’re in a hurry, automated underwriting decreases the amount of time it takes to produce a loan approval. It also reduces the initial refinancing fees. Lenders that use automated underwriting do not require property appraisal, so that’s one expense down the drain.
Indeed, refinancing mortgage loans can help you, but if you’re not careful, it can give you more headaches than your kids or a hangover. It doesn’t pay to be hasty, so take your time. They’re not going anywhere.
Need those refinancing mortgage loans? Visit whataboutloans.com today. Also check out the information on loan refinance Florida and California home loan mortgage refinancing.
: http://EzineArticles.com/?expert=Rony_Walker
Are you good enough?
People turn to refinancing mortgage loans for different reasons. Some people need bigger homes for their growing family. Others resort to refinancing mortgage loans in order to reduce monthly payments. Yet others refinance to shift to other types of loans, while some refinance to build equity faster. Whatever your excuse is, there are a few things you should know about mortgage refinancing.
Before you head off to your lender to refinance your loans, you should be able to assess your personal eligibility to refinance, if only to spare yourself the pain of being rejected just in case you’re not good enough. Ask yourself basic questions like:
1. How big a house do I need?
2. How long do I plan to stay in my home?
3. How many years are left on my current loan?
4. Do I have enough resources to cover the expenses that come with refinancing mortgage loans?
Answer these questions as best as you can. These questions will not only determine your personal qualifications for refinancing mortgage loans, but will also help you decide the type of mortgage to take on. Depending on your needs, you can choose from the different terms and interest rates offered by a lender.
If you pass your own rigid personal assessment, you’re now ready to face the big guys – the lenders. Based on your income, property value, existing mortgage information, and other pertinent data, the lender will confirm your eligibility for refinancing mortgage loans. They have the final word, so cross your fingers and hope you’re all on the same wavelength.
Do you have what it takes?
So you’ve passed your evaluation with flying colors. You can now begin the process of refinancing. Mortgage loans may be refinanced by the original lender. But it will also be a good idea to contact other companies and compare notes. If you find something better, by all means, switch lenders. Nobody’s stopping you.
Be prepared to shoulder new fees aplenty, however, regardless if you’re switching lender or not. After all, they’re all running a business. Expect expenses such as closing fees, application fees, title insurance and title search fees, appraisal costs, discount points, loan origination fee, prepayment penalties, and legal service fees with your refinancing mortgage loans. The cost of refinancing mortgage loans varies from one case to another. In some cases, a new appraisal will not be required, especially if you’re sticking to your old lender. Other fees may be negotiated or waived, so turn on that charm and you might get lucky.
Want to kiss those fees goodbye?
If you feel that additional expenses are unjustified, put your righteous indignation to use and contact lenders that offer no-cost refinancing. Shop around for lenders that do not require up-front payments for closing fees and applications fees. While some lenders stick to their promise of no-cost refinancing, there are some that don’t.
Take the time to visit possible lenders. Play devil’s advocate and show up armed with a list of questions to ask the lender. After all, asking questions is your right. Compare the offers and other important information gathered, and come up with a shortlist. Keep an eye out for hidden charges and other unnecessary fees charged by the lender.
Working with lenders that use automated underwriting will speed up your application process. If you’re in a hurry, automated underwriting decreases the amount of time it takes to produce a loan approval. It also reduces the initial refinancing fees. Lenders that use automated underwriting do not require property appraisal, so that’s one expense down the drain.
Indeed, refinancing mortgage loans can help you, but if you’re not careful, it can give you more headaches than your kids or a hangover. It doesn’t pay to be hasty, so take your time. They’re not going anywhere.
Need those refinancing mortgage loans? Visit whataboutloans.com today. Also check out the information on loan refinance Florida and California home loan mortgage refinancing.
: http://EzineArticles.com/?expert=Rony_Walker
Low Refinance Rates
If the thought of paying your high housing loan interests makes you feel queasy, then opt for refinancing and get rid of all your worries and anxieties. Refinance your loan and lead a stress free life. And the veritably low refinance rates available in the market today makes mortgage refinance a lesser devil to tackle than usual.
What is Refinancing?
Securing a loan to pay off your previous loan against the same assets, property etc is called refinancing. It is generally undertaken when the interest rates on the new loan are lower than that charged on the previous one. There are no-cost as well as low-cost refinance loans. In low-cost refinance loans the costs are included in the loan.
When to Refinance?
Interest rates fluctuate, when the Central Reserve enters a rate cutting period. The prevailing rates may become significantly lower than when you originally secured your first loan. By refinancing your mortgage when interest rates are lower, you can exchange higher interest rates for a lower one, which, in turn, will lower your monthly payment. Low refinance rates leads to interest savings ultimately recovering the cost you've paid for the new loan. Refinance when you find the current market rates are low. You can enjoy the benefits of refinance if you can secure an interest rate 2 per cent below the rate on your current loan. Refinancing is beneficial even if the rate decline is only 1 percentage point, that is, even if you have contracted a fixed-rate home loan at 9 per cent, you will benefit from refinancing the rate to 8 per cent. This is possible due to low refinance rates which may vary from 2-2.5 per cent.
Benefits of low refinance rates
- Reduces Interest Cost
Low refinance rates reduces interest costs and helps save more money at the end of month that would. It brings great respite in times of emergency by providing ready cash. Refinance rates are usually lower than the original loan when you actually compare rates, thereby allowing you to have extra cash, while simultaneously lowering your monthly mortgage payment.
- Lowers Monthly Mortgage Payment
In essence, refinancing a mortgage or other type of loan can lower the monthly payments owed, either by changing the loan to a lower interest rate or by extending the period of loan so as to spread out the repayment over a longer period of time. Low refinance rates helps save money which can be used to pay down the principal of the loan, thus further reducing payments.
In order to avail low refinance rate, keep a check on your credit score. Your credit history will make a big difference in refinance rate offered to you. Paying points are also one more way of getting low refinance rate. So, refinance your loan, pay low rate of interest and invest the savings thereby for exigencies. Low refinance rates sure make borrowing seem like a piece of cake. But do not get carried away with low refinance rate alone. Remember there is something called closing costs and redemption penalty.
Martin Lukac represents RateEmpire.com Mortgage Rate and Refinance Rate marketplace. RateEmpire.com is a destination site of personal finance, investing and taxes. For more information please visit Low Refinance Rates
http://EzineArticles.com/?expert=Martin_Lukac
What is Refinancing?
Securing a loan to pay off your previous loan against the same assets, property etc is called refinancing. It is generally undertaken when the interest rates on the new loan are lower than that charged on the previous one. There are no-cost as well as low-cost refinance loans. In low-cost refinance loans the costs are included in the loan.
When to Refinance?
Interest rates fluctuate, when the Central Reserve enters a rate cutting period. The prevailing rates may become significantly lower than when you originally secured your first loan. By refinancing your mortgage when interest rates are lower, you can exchange higher interest rates for a lower one, which, in turn, will lower your monthly payment. Low refinance rates leads to interest savings ultimately recovering the cost you've paid for the new loan. Refinance when you find the current market rates are low. You can enjoy the benefits of refinance if you can secure an interest rate 2 per cent below the rate on your current loan. Refinancing is beneficial even if the rate decline is only 1 percentage point, that is, even if you have contracted a fixed-rate home loan at 9 per cent, you will benefit from refinancing the rate to 8 per cent. This is possible due to low refinance rates which may vary from 2-2.5 per cent.
Benefits of low refinance rates
- Reduces Interest Cost
Low refinance rates reduces interest costs and helps save more money at the end of month that would. It brings great respite in times of emergency by providing ready cash. Refinance rates are usually lower than the original loan when you actually compare rates, thereby allowing you to have extra cash, while simultaneously lowering your monthly mortgage payment.
- Lowers Monthly Mortgage Payment
In essence, refinancing a mortgage or other type of loan can lower the monthly payments owed, either by changing the loan to a lower interest rate or by extending the period of loan so as to spread out the repayment over a longer period of time. Low refinance rates helps save money which can be used to pay down the principal of the loan, thus further reducing payments.
In order to avail low refinance rate, keep a check on your credit score. Your credit history will make a big difference in refinance rate offered to you. Paying points are also one more way of getting low refinance rate. So, refinance your loan, pay low rate of interest and invest the savings thereby for exigencies. Low refinance rates sure make borrowing seem like a piece of cake. But do not get carried away with low refinance rate alone. Remember there is something called closing costs and redemption penalty.
Martin Lukac represents RateEmpire.com Mortgage Rate and Refinance Rate marketplace. RateEmpire.com is a destination site of personal finance, investing and taxes. For more information please visit Low Refinance Rates
http://EzineArticles.com/?expert=Martin_Lukac
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