If you are like many others considering getting a mortgage refinancing loan then don't expect to get approved immediately by the company you are applying to. Unfortunately as with any type of loan the lender (financial institute) will need to carry out some checks on you first.
First of all they will what to see what kind of credit score you have and also they will need to find out how much equity you have available and which you can use as a guarantee against the sum you are looking to borrow. But as well as checking out your credit score and equity they will need to take a close look at your employment file. By doing this they will be able to see whether you are a good or bad credit risk for them. So before you do actually apply for any sort of mortgage refinancing loan you will need to assess the situation carefully.
Whenever anyone takes out mortgage refinancing or any kind of refinancing loan they need to remember that they are taking it out for a much longer term in order for them to get the much lower rate of interest. Generally the term times being offered on these kinds of loans compared to more traditional loans is about 15 years. Therefore when looking for any sort of refinancing it is important that you spend time comparing as many as possible so that you know that you are getting the best deal for you. The best way of being able to compare the various different rates being offered by financial institutes and loan companies is by searching the net.
Whilst carry out your research it is important that you actually work out just how much the monthly bill is going to be and if you can actually afford to pay it over the next 15 years. You need to be happy that you are going to be able to comfortably afford to repay the loan you have taken out without putting any other financial obligations you have in jeopardy.
One thing that is crucial when you are looking for mortgage refinance or any kind of refinance loan is that you look to get one that has an interest rate on it of less than two percent. If you can not find one like this then really you have wasted a lot of time and effort on nothing, and because the payments are higher than you expected you may well find that you can not afford to make them. This could then result in you possibly losing your home in the future.
Although getting a lower rate of interest on your refinancing may seem like the best deal possible you may well find that once it comes to actually paying the debt back you can not afford it. Unfortunately the biggest mistake made by many people when they decide to take out a refinance mortgage is that they are actually going to have more money available to them and this is just not true. So really do your homework before you take that leap.
One of the main advantages to be gained from getting a mortgage refinance loan is you will be able to reduce how much you are paying out each month. For example you could actually use this kind of loan to clear off debts that charge high rates of interest whilst there is money outstanding on them, such as your credit cards. By paying off your credit cards completely (and then either getting rid of them all or a few) you will find yourself with additional funds that can then be used towards paying off some other bills you have faster.
It is crucial that when making your final decision on taking out mortgage refinancing you know that you will be able to repay the money borrowed in the future. Unfortunately if you find yourself in a situation where you have taken out such a loan and can not afford to pay it back your financial situation could become even worse than before you took it out. Remember in many cases when taking out such loans a person will use their home as collateral and if the payments are not made then they could find themselves in a position where a repossession has been raised by the loan company. Therefore it is vital that any one considering such loans carry out as much research as possible before they fill in and then sign any forms.
http://www.realestateinvestmentarticles.net/Article/real-estate-investments---investment-loan--refinance---Mortgage-Refinancing---Look-Before-You-Leap-/3839
Monday, October 1, 2007
refinance - "Mortgage Refinancing - Things To Bear In Mind"
If you are considering applying for mortgage refinancing like many others have then do not expect for it to be approved instantaneously. The company that you are applying to will first want to carry out a number of checks on you before they agree or decline your application.
All companies who offer refinancing loans including mortgages will first want to see what an applicants credit score is like. They will also want to see just how much equity that person has available to them and which can be put up against the amount they wish to borrow. Then once they have carried out these checks they will need to take a look at the person's employment records as this will help them to assess whether this person is going to be able to repay the sum borrowed. So before anyone applies for any sort of mortgage refinancing they need to assess the situation they are currently in.
When a person takes out a refinancing loan of any sort they will be taking it out for a much longer period than the original loan they have simply because they will get a much lower rate of interest on it. However on average the term of the loans that people take out for refinancing purposes last around 15 years. So when searching for any sort of refinancing loan it is best that you compare as many different loans as possible in order that you get the best deal possible. A great place to look in order to compare the different rates of the different loan companies is by surfing the net.
As you carry out your research in to getting any sort of refinance loan you should first work out just how much each monthly bill will be and whether you can actually afford to make the payments for the next 15 years. It is important that any loan you take out you know that you will be comfortable with being able to repay the loan that you have just got without putting any other financial obligations you have at risk.
It is vital that when you are looking for any refinancing loan including a mortgage that you aim for one that has an interest rate of less than 2% on it. If you don't do this then all the effort you have made will end up going to waste and you could find yourself losing your home in the future.
Even so although you may feel that actually getting a lower rate of interest on any sort of refinancing is ideal for you. Be wary that when you have actually taken the loan out you may find that the payments required are much higher than you expected and you may find it difficult to repay them. The other big mistake that many people make when they consider taking out any sort of refinancing is that they are going to have more money available and this is not the case. So it is important that you look at each loan carefully before making any final decisions.
Yet the great thing to be gained from taking out a mortgage refinance loan is that you will find that you can actually lower how much you are paying out each month on all your bills. Through this sort of loan you could actually look at clearing all the debt you have accumulated on your credit cards. This in turn leaves you with additional funds which you can then use to pay off any other bills you have each month more quickly.
It is crucial that when making your final decision on taking out mortgage refinancing you know that you will be able to repay the money borrowed in the future. Unfortunately if you find yourself in a situation where you have taken out such a loan and can not afford to pay it back your financial situation could become even worse than before you took it out. Remember in many cases when taking out such loans a person will use their home as collateral and if the payments are not made then they could find themselves in a position where a repossession has been raised by the loan company. Therefore it is vital that any one considering such loans carry out as much research as possible before they fill in and then sign any forms.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---refinance----Mortgage-Refinancing---Things-To-Bear-In-Mind-/3858
All companies who offer refinancing loans including mortgages will first want to see what an applicants credit score is like. They will also want to see just how much equity that person has available to them and which can be put up against the amount they wish to borrow. Then once they have carried out these checks they will need to take a look at the person's employment records as this will help them to assess whether this person is going to be able to repay the sum borrowed. So before anyone applies for any sort of mortgage refinancing they need to assess the situation they are currently in.
When a person takes out a refinancing loan of any sort they will be taking it out for a much longer period than the original loan they have simply because they will get a much lower rate of interest on it. However on average the term of the loans that people take out for refinancing purposes last around 15 years. So when searching for any sort of refinancing loan it is best that you compare as many different loans as possible in order that you get the best deal possible. A great place to look in order to compare the different rates of the different loan companies is by surfing the net.
As you carry out your research in to getting any sort of refinance loan you should first work out just how much each monthly bill will be and whether you can actually afford to make the payments for the next 15 years. It is important that any loan you take out you know that you will be comfortable with being able to repay the loan that you have just got without putting any other financial obligations you have at risk.
It is vital that when you are looking for any refinancing loan including a mortgage that you aim for one that has an interest rate of less than 2% on it. If you don't do this then all the effort you have made will end up going to waste and you could find yourself losing your home in the future.
Even so although you may feel that actually getting a lower rate of interest on any sort of refinancing is ideal for you. Be wary that when you have actually taken the loan out you may find that the payments required are much higher than you expected and you may find it difficult to repay them. The other big mistake that many people make when they consider taking out any sort of refinancing is that they are going to have more money available and this is not the case. So it is important that you look at each loan carefully before making any final decisions.
Yet the great thing to be gained from taking out a mortgage refinance loan is that you will find that you can actually lower how much you are paying out each month on all your bills. Through this sort of loan you could actually look at clearing all the debt you have accumulated on your credit cards. This in turn leaves you with additional funds which you can then use to pay off any other bills you have each month more quickly.
It is crucial that when making your final decision on taking out mortgage refinancing you know that you will be able to repay the money borrowed in the future. Unfortunately if you find yourself in a situation where you have taken out such a loan and can not afford to pay it back your financial situation could become even worse than before you took it out. Remember in many cases when taking out such loans a person will use their home as collateral and if the payments are not made then they could find themselves in a position where a repossession has been raised by the loan company. Therefore it is vital that any one considering such loans carry out as much research as possible before they fill in and then sign any forms.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---refinance----Mortgage-Refinancing---Things-To-Bear-In-Mind-/3858
investment loan : refinance - "Refinancing Closing Costs"
4 Tips for Saving on Your Refinancing Closing Costs
Just as when you first attained your mortgage, when you refinance your mortgage you will have a number of refinancing closing costs that you will have to pay. While you will invariably have some refinancing closing costs that you cannot evade, there are ways that you can save some money. Here are four tips to help save money on your refinancing closing costs:
Tip #1 – Since the bulk of your mortgage payment goes toward paying down interest, and not to the principle, to save the most money on your refinancing you want to find the lowest rate possible. Some lenders will want you to pay “points” at your closing to bring your interest rate down. However, you can possibly find a lower rate without having to pay the thousands of dollars in points if you do your homework and work with a reputable mortgage broker or two. You can use multiple brokers and compare the various fees each charges you.
Tip #2 – While numerous lenders today are offering “no closing costs” mortgages, this is a very deceptive marketing tactic. While you may very well have no out-of-pocket costs at the closing table, you will be paying more for your loan in terms of a higher interest rate for the next 15-30 years. This means that as you may save a couple thousand dollars in refinancing closing costs, you will be paying tens of thousands of dollars more for your loan as the years go by. The tip here is to read the fine print and understand what “no closing costs” really means.
Tip #3 – For every mortgage out there the lender is required to supply you with a Good Faith Estimate which lists your costs. On the Good Faith Estimate, you will find the fees for the lender, broker and appraisal fees. Compare this Good Faith Estimate to another one to make sure that all of the fees look reasonable. There are usually a lot of “junk” fees, such as “document origination” fees which you can negotiate to have removed completely. However, it is important to understand that a few fees are necessary to pay for your refinance.
Tip #4 – The most important thing you want to do is to get everything, and I mean EVERYTHING, in writing. Never take the word of a mortgage broker or title company without getting everything in writing. The last think you want to do is get into the closing meeting and find out that your mortgage has a ton of fees and charges that you were not expecting. Many people will simply sign their papers rather than be embarrassed and ask for changes or cancellation of the loan.
While every refinance has closing costs to pay, you can lower these costs by educating yourself and understanding which closing cost fees are reasonable and which are not. Work with a broker, or multiple brokers, and find the best lending program to meet your needs. Use their professionalism to get you the best deal. Don’t buy into the “no closing fees” sales pitch and understand that you will actually pay more for one of these loans. Read and compare your Good Faith Estimate and make sure it does not contain any junk fees. Get everything in writing and you should have no unpleasant surprises at the closing table.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-aritcles---investment-loan---refinance----Refinancing-Closing-Costs-/3922
Just as when you first attained your mortgage, when you refinance your mortgage you will have a number of refinancing closing costs that you will have to pay. While you will invariably have some refinancing closing costs that you cannot evade, there are ways that you can save some money. Here are four tips to help save money on your refinancing closing costs:
Tip #1 – Since the bulk of your mortgage payment goes toward paying down interest, and not to the principle, to save the most money on your refinancing you want to find the lowest rate possible. Some lenders will want you to pay “points” at your closing to bring your interest rate down. However, you can possibly find a lower rate without having to pay the thousands of dollars in points if you do your homework and work with a reputable mortgage broker or two. You can use multiple brokers and compare the various fees each charges you.
Tip #2 – While numerous lenders today are offering “no closing costs” mortgages, this is a very deceptive marketing tactic. While you may very well have no out-of-pocket costs at the closing table, you will be paying more for your loan in terms of a higher interest rate for the next 15-30 years. This means that as you may save a couple thousand dollars in refinancing closing costs, you will be paying tens of thousands of dollars more for your loan as the years go by. The tip here is to read the fine print and understand what “no closing costs” really means.
Tip #3 – For every mortgage out there the lender is required to supply you with a Good Faith Estimate which lists your costs. On the Good Faith Estimate, you will find the fees for the lender, broker and appraisal fees. Compare this Good Faith Estimate to another one to make sure that all of the fees look reasonable. There are usually a lot of “junk” fees, such as “document origination” fees which you can negotiate to have removed completely. However, it is important to understand that a few fees are necessary to pay for your refinance.
Tip #4 – The most important thing you want to do is to get everything, and I mean EVERYTHING, in writing. Never take the word of a mortgage broker or title company without getting everything in writing. The last think you want to do is get into the closing meeting and find out that your mortgage has a ton of fees and charges that you were not expecting. Many people will simply sign their papers rather than be embarrassed and ask for changes or cancellation of the loan.
While every refinance has closing costs to pay, you can lower these costs by educating yourself and understanding which closing cost fees are reasonable and which are not. Work with a broker, or multiple brokers, and find the best lending program to meet your needs. Use their professionalism to get you the best deal. Don’t buy into the “no closing fees” sales pitch and understand that you will actually pay more for one of these loans. Read and compare your Good Faith Estimate and make sure it does not contain any junk fees. Get everything in writing and you should have no unpleasant surprises at the closing table.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-aritcles---investment-loan---refinance----Refinancing-Closing-Costs-/3922
investment loan - refinance - "Refinancing Mortgage Loans"
Refinancing Mortgage Loans – Which is Better 15 or 30 years?
While considering their options in refinancing mortgage loans, many people are asking themselves if a 15-year or a 30-year mortgage is the most excellent option. Let’s take a quick look at both options from a financial point of view and look at the clear advantages and disadvantages of both are.
An Instance of Both Loans with Their Costs
Assume for a second that you are looking at refinancing mortgage loans of $100,000. If you were to do a 15-year loan at say 5% interest, the payment on your mortgage loan would be about $800 each month. The entirety of interest paid over the 15-year time would be about $42,000. Because your mortgage interest is tax deductible, this makes your total interest paid more like $32,000 over the 15-year life of your loan.
By applying the equal math to a 30-year fixed mortgage at 5.5% interest, your monthly payment is about $575 each month, about $255 less than the 15-year mortgage, but the interest over the life of the 30-year loan would be about $46,000 after tax considerations.
Advantages and Disadvantages to Each Option
So, in the example above, if you look only at the actual costs, you will see that the 15-year mortgage is clearly the cheaper option of the two. You will be mortgage free in half the time and you will a lesser amount for your home as well. However, each month you will be paying an additional $255 per month on your mortgage and might have invested that money into your IRA or into the stock market. And, you are also stuck with the higher payment for the life of the loan regardless of what else happens in your financial life.
With the 30-year mortgage option, you can clearly see that you will have the extra $255 each month to do with as you please. Most investments, even very conservative ones, will net you a return of more than 5.5%. If you were to take that extra $255 each month and invest it, at even 6%, after the 15 years you would have more than $65,000. At this point the balance due on your mortgage isn’t much larger than that and you could easily pay it off. This would actually make the 30-year loan cheaper in the long run!
While the 30-year mortgage could be the better option it does rely on the fact that you have to have discipline and save that extra $255 each and every month. While some people have this dedication and discipline, a lot of us do not. Simply by paying the extra $255 to our mortgage would insure that we have an automatic savings plan in place and we would be mortgage free in 15 years.
In addition, investing forever involves some form of risk. What if you choose to invest your extra money each month and do not see the rate of return higher than your mortgage payment interest would have been? There are unknowns to this scenario.
While no option is right or wrong for everyone, refinancing mortgage loans for a better interest rate is always a good decision. Choosing whether or not you wish for a 15-year or a 30-year mortgage is a more personal choice.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---investment-loan---refinance----Refinancing-Mortgage-Loans-/3945
While considering their options in refinancing mortgage loans, many people are asking themselves if a 15-year or a 30-year mortgage is the most excellent option. Let’s take a quick look at both options from a financial point of view and look at the clear advantages and disadvantages of both are.
An Instance of Both Loans with Their Costs
Assume for a second that you are looking at refinancing mortgage loans of $100,000. If you were to do a 15-year loan at say 5% interest, the payment on your mortgage loan would be about $800 each month. The entirety of interest paid over the 15-year time would be about $42,000. Because your mortgage interest is tax deductible, this makes your total interest paid more like $32,000 over the 15-year life of your loan.
By applying the equal math to a 30-year fixed mortgage at 5.5% interest, your monthly payment is about $575 each month, about $255 less than the 15-year mortgage, but the interest over the life of the 30-year loan would be about $46,000 after tax considerations.
Advantages and Disadvantages to Each Option
So, in the example above, if you look only at the actual costs, you will see that the 15-year mortgage is clearly the cheaper option of the two. You will be mortgage free in half the time and you will a lesser amount for your home as well. However, each month you will be paying an additional $255 per month on your mortgage and might have invested that money into your IRA or into the stock market. And, you are also stuck with the higher payment for the life of the loan regardless of what else happens in your financial life.
With the 30-year mortgage option, you can clearly see that you will have the extra $255 each month to do with as you please. Most investments, even very conservative ones, will net you a return of more than 5.5%. If you were to take that extra $255 each month and invest it, at even 6%, after the 15 years you would have more than $65,000. At this point the balance due on your mortgage isn’t much larger than that and you could easily pay it off. This would actually make the 30-year loan cheaper in the long run!
While the 30-year mortgage could be the better option it does rely on the fact that you have to have discipline and save that extra $255 each and every month. While some people have this dedication and discipline, a lot of us do not. Simply by paying the extra $255 to our mortgage would insure that we have an automatic savings plan in place and we would be mortgage free in 15 years.
In addition, investing forever involves some form of risk. What if you choose to invest your extra money each month and do not see the rate of return higher than your mortgage payment interest would have been? There are unknowns to this scenario.
While no option is right or wrong for everyone, refinancing mortgage loans for a better interest rate is always a good decision. Choosing whether or not you wish for a 15-year or a 30-year mortgage is a more personal choice.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---investment-loan---refinance----Refinancing-Mortgage-Loans-/3945
real estate investment articles : investment loan : refinance - "Refinance Your Mortgage Easily"
Need cash? Paying too much in interest charges? Worried about your growing debt? Mortgage refinancing could be the answer to your financial problems.
As all homeowners know, a mortgage is no more than a long term loan that is repaid over an extended period of time. Mortgages may be paid on a monthly, bi-weekly or weekly basis. With accelerated weekly plans, the mortgage is paid off in less time.
The interest rate is probably the most important factor in choosing a mortgage. It's important to shop for the lowest interest rate, as a lower rate results in lower monthly payments. If you've already locked into a mortgage with a high rate, you can refinance to take advantage of today's lower interest rates, and decrease your monthly payments.
Mortgages are available in fixed and floating terms. In a fixed rate mortgage, the borrower is locked in at a set rate for the duration of the mortgage term. A floating mortgage means that the borrower will pay more or less each month, depending on the current interest rates. Both types of plans have their pros and cons, and the type of mortgage you choose has a lot to do with your present situation. Mortgage refinancing is a good tool to use when homeowners wish to switch from a higher adjustable plan to a lower fixed rate mortgage.
In our prevailing market, mortgage rates will change on a regular basis. If you have already committed to a loan at a higher rate than today's interest rate, you might want to consider mortgage refinancing. When you refinance your mortgage, the full payment of your current agreement will be entered into a new loan at today's interest rate. This can be a wise move when rates drop dramatically, by two points or more. Watch the prevailing interest rates and compare them to what you're currently paying.
There are several factors to consider before moving to refinance your mortgage. Your remaining term is one important consideration. If you have just a few years to pay off the loan, then it wouldn't make sense to refinance and commit to another extended payment period. Various costs also come into play. Prepayment fees for your current mortgage, closing costs of the new agreement and other borrowing fees may be payable. Some lenders will charge a fee for closing a mortgage early, so ask questions and read the fine print before you make your decision.
Refinancing your mortgage can also bring extra cash when you need it. If you have built a significant amount of home equity, you can use mortgage refinancing to obtain a home equity loan. In this case, you can use your home equity to generate cash. The proceeds from mortgage refinance can be used for various purposes, like debt consolidation, home improvements, or as a college fund for your children. Many people wisely use mortgage refinancing to consolidate their debts. Choosing one monthly payment over many bills is not only easier, but it saves you a lot of money by avoiding higher interest payments from credit cards and private lenders. Your pocketbook, and your credit rating, will look a lot healthier.
If high interest rates and a stack of bills are straining your budget, consider refinancing your mortgage. You'll save money by paying less interest. Talk to your bank or financial advisor to determine the option that's best for you.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---investment-loan---refinance----Refinance-Your-Mortgage-Easily-/3588
As all homeowners know, a mortgage is no more than a long term loan that is repaid over an extended period of time. Mortgages may be paid on a monthly, bi-weekly or weekly basis. With accelerated weekly plans, the mortgage is paid off in less time.
The interest rate is probably the most important factor in choosing a mortgage. It's important to shop for the lowest interest rate, as a lower rate results in lower monthly payments. If you've already locked into a mortgage with a high rate, you can refinance to take advantage of today's lower interest rates, and decrease your monthly payments.
Mortgages are available in fixed and floating terms. In a fixed rate mortgage, the borrower is locked in at a set rate for the duration of the mortgage term. A floating mortgage means that the borrower will pay more or less each month, depending on the current interest rates. Both types of plans have their pros and cons, and the type of mortgage you choose has a lot to do with your present situation. Mortgage refinancing is a good tool to use when homeowners wish to switch from a higher adjustable plan to a lower fixed rate mortgage.
In our prevailing market, mortgage rates will change on a regular basis. If you have already committed to a loan at a higher rate than today's interest rate, you might want to consider mortgage refinancing. When you refinance your mortgage, the full payment of your current agreement will be entered into a new loan at today's interest rate. This can be a wise move when rates drop dramatically, by two points or more. Watch the prevailing interest rates and compare them to what you're currently paying.
There are several factors to consider before moving to refinance your mortgage. Your remaining term is one important consideration. If you have just a few years to pay off the loan, then it wouldn't make sense to refinance and commit to another extended payment period. Various costs also come into play. Prepayment fees for your current mortgage, closing costs of the new agreement and other borrowing fees may be payable. Some lenders will charge a fee for closing a mortgage early, so ask questions and read the fine print before you make your decision.
Refinancing your mortgage can also bring extra cash when you need it. If you have built a significant amount of home equity, you can use mortgage refinancing to obtain a home equity loan. In this case, you can use your home equity to generate cash. The proceeds from mortgage refinance can be used for various purposes, like debt consolidation, home improvements, or as a college fund for your children. Many people wisely use mortgage refinancing to consolidate their debts. Choosing one monthly payment over many bills is not only easier, but it saves you a lot of money by avoiding higher interest payments from credit cards and private lenders. Your pocketbook, and your credit rating, will look a lot healthier.
If high interest rates and a stack of bills are straining your budget, consider refinancing your mortgage. You'll save money by paying less interest. Talk to your bank or financial advisor to determine the option that's best for you.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---investment-loan---refinance----Refinance-Your-Mortgage-Easily-/3588
real estate investment articles : refinance - "Why You Should Consider an FHA Refinance Mortgage"
No one likes to do all the research needed when refinancing a mortgage. However, without spending that time looking up information, it's much harder to get a good deal on a FHA Refinance Mortgage.
Although the intricacies related to mortgage refinancing are quite dull and boring, they are nevertheless important so that we can secure the best deal. FHA Refinance Mortgages can take care of the difficult part by conducting the necessary and relevant research so that we can make an informed decision. The FHA Refinance Loans have been around for a long time; they carefully examine your individual needs and accordingly devise a solution that would fit you perfectly.
FHA i.e., the Federal Housing Administration can provide all the necessary assistance and guidance to help you refinance your current home mortgage despite your personal reasons. The FHA provides certain additional benefits and guarantees the lenders on your behalf to enable you to use it in ways different from those of the traditional institutions.
FHA Refinance Mortgages essentially insure your ability to repay your loan. That way, lenders can offer you a better mortgage rate than they would otherwise, with the certainty that they will be repaid.
Typically, the loans are made to stable purchasers who have proven their credit worthiness over time, but in some cases those who are not typical borrowers are also accepted to use an FHA Loan. This can include those who have had some credit problems in the past but have not filed bankruptcy in the last five years, as well as those who are single parents, with only one income, or who have never had any type of credit. Single parent or traditional family, the FHA program can probably benefit you and even help you borrow money on the equity in your home to effect home repair or improvement provided that such improvements are energy efficient, which is the single rule that is provided for by the FHA when considering whether or not to lend you funding for your home repairs and renovations.
FHA Refinance Loans will help you to take cash out and work with your home equity to make it easier for you to be able to make home repair necessities and to help you be able to meet your current needs in finances for things such as a spare room or a roof fix.
It is necessary to complete all of your repairs in an approved cost-efficient, energy efficient manner. This is to make sure that natural resources are conserved, both during the construction and afterwards. With growing concern over fuel costs and energy efficiency, this is something a lot of us are doing anyway.
Now, faced with an array of lenders and loan types in refinancing, one may ask the reasons to choose the FHA Streamline Refinance Mortgage over others. What does the FHA Refinance Home Loans offer that gives them an edge over the traditional mortgages?
FHA Refinance Home Loans provide mortgage options that are not provided by many other mortgage types.
FHA loans guarantee repayment for lenders
You can pay only as much as perhaps a 3% down payment on your home and also finance the closing costs of it with the mortgage.
FHA will try to find no down payment programs and homes
A home that is in bad shape can be repaired using your mortgage
FHA loans cover manufactured and mobile housing.
You are able to cover the costs of your energy efficient repairs with the monies from your mortgage.
FHA Refinance Mortgage does not simply lend you the funding; it guarantees your loan to other lenders. These lenders adhere to the FHA rules of lending and are guaranteed the repayment of your loan even if you may fail to make the payments. These lenders are thus willing to provide lower interest rates and other incentives to you.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---refinance----Why-You-Should-Consider-an-FHA-Refinance-Mortgage-/3688
Although the intricacies related to mortgage refinancing are quite dull and boring, they are nevertheless important so that we can secure the best deal. FHA Refinance Mortgages can take care of the difficult part by conducting the necessary and relevant research so that we can make an informed decision. The FHA Refinance Loans have been around for a long time; they carefully examine your individual needs and accordingly devise a solution that would fit you perfectly.
FHA i.e., the Federal Housing Administration can provide all the necessary assistance and guidance to help you refinance your current home mortgage despite your personal reasons. The FHA provides certain additional benefits and guarantees the lenders on your behalf to enable you to use it in ways different from those of the traditional institutions.
FHA Refinance Mortgages essentially insure your ability to repay your loan. That way, lenders can offer you a better mortgage rate than they would otherwise, with the certainty that they will be repaid.
Typically, the loans are made to stable purchasers who have proven their credit worthiness over time, but in some cases those who are not typical borrowers are also accepted to use an FHA Loan. This can include those who have had some credit problems in the past but have not filed bankruptcy in the last five years, as well as those who are single parents, with only one income, or who have never had any type of credit. Single parent or traditional family, the FHA program can probably benefit you and even help you borrow money on the equity in your home to effect home repair or improvement provided that such improvements are energy efficient, which is the single rule that is provided for by the FHA when considering whether or not to lend you funding for your home repairs and renovations.
FHA Refinance Loans will help you to take cash out and work with your home equity to make it easier for you to be able to make home repair necessities and to help you be able to meet your current needs in finances for things such as a spare room or a roof fix.
It is necessary to complete all of your repairs in an approved cost-efficient, energy efficient manner. This is to make sure that natural resources are conserved, both during the construction and afterwards. With growing concern over fuel costs and energy efficiency, this is something a lot of us are doing anyway.
Now, faced with an array of lenders and loan types in refinancing, one may ask the reasons to choose the FHA Streamline Refinance Mortgage over others. What does the FHA Refinance Home Loans offer that gives them an edge over the traditional mortgages?
FHA Refinance Home Loans provide mortgage options that are not provided by many other mortgage types.
FHA loans guarantee repayment for lenders
You can pay only as much as perhaps a 3% down payment on your home and also finance the closing costs of it with the mortgage.
FHA will try to find no down payment programs and homes
A home that is in bad shape can be repaired using your mortgage
FHA loans cover manufactured and mobile housing.
You are able to cover the costs of your energy efficient repairs with the monies from your mortgage.
FHA Refinance Mortgage does not simply lend you the funding; it guarantees your loan to other lenders. These lenders adhere to the FHA rules of lending and are guaranteed the repayment of your loan even if you may fail to make the payments. These lenders are thus willing to provide lower interest rates and other incentives to you.
http://www.realestateinvestmentarticles.net/Article/real-estate-investment-articles---refinance----Why-You-Should-Consider-an-FHA-Refinance-Mortgage-/3688
Refinance Loans Information
Keep browsing through this essay to learn how the refinancing home issue may well benefit you, and the textual corpus you are presented here will provide the required material.
There are various reasons for proprietors to refinancing online: in order to secure a low interest rate, to make use of property value they`ve built up on a home, or to settle the loan rapidly. In the event that you are thinking of refi, below are a few of the issues you should consider.
The rate of interest on your present home loan as opposed to the market rate of interest. If, for instance, you see that interest rates have decreased by 2 notches, you may want to consider remortgages.
The type of loan you are paying. In the event that you are paying an adjustable rate loan, you should equity refinance in order to change over to a rigid mortgage.
How long you plan to be in the house. In the event that you`re thinking of leaving in the next 3 to 5 years, the money you save on refinance morgage may not be enough for the costs incurred by finalizing.
Since mortgages refinance will incorporate finalization expenses, the objective is to save cash in the long run. Finalization expenses are always a factor. Sometimes home loans that are said as having no-cost low-fee closings include finalization fees - they are just not called closing fees.
Fees and formalities are not the only drawbacks to mortgages refinance, however. In the event that the current home loan contract includes a pre-payment fine, you may lose through mortage refinance if you can not convince your lender to drop a prepayment section.
In addition, in the event that you will be shelling out points on the mortgage, you will not be allowed to deduct the whole amount on this year`s tax forms. The IRS obligates you to amortize the money lender`s fees over the existence of your home loan.
A good way to save money as well as energy is to refunding with the same lender who closed your previous home loan. They already possess your paperwork; so, you might not need to redo everything. In addition, you`ve built a rapport and that may help you while closing.
refinancing home isn`t something you should go into dismissively: It can be drawn out and expensive. However, as soon as when you run the numbers you may see that your long-term money savings should counterbalance any costs connected to loan financing. Then, you can take the difference you save each month with the low installments and put that to better use.
This text has shown you the different things you may well achieve with the subject matter of refinancing home, now go ahead and put into practice a number of this provider`s tips in order to attain your goals.
http://www.arefinancinghome.com/
There are various reasons for proprietors to refinancing online: in order to secure a low interest rate, to make use of property value they`ve built up on a home, or to settle the loan rapidly. In the event that you are thinking of refi, below are a few of the issues you should consider.
The rate of interest on your present home loan as opposed to the market rate of interest. If, for instance, you see that interest rates have decreased by 2 notches, you may want to consider remortgages.
The type of loan you are paying. In the event that you are paying an adjustable rate loan, you should equity refinance in order to change over to a rigid mortgage.
How long you plan to be in the house. In the event that you`re thinking of leaving in the next 3 to 5 years, the money you save on refinance morgage may not be enough for the costs incurred by finalizing.
Since mortgages refinance will incorporate finalization expenses, the objective is to save cash in the long run. Finalization expenses are always a factor. Sometimes home loans that are said as having no-cost low-fee closings include finalization fees - they are just not called closing fees.
Fees and formalities are not the only drawbacks to mortgages refinance, however. In the event that the current home loan contract includes a pre-payment fine, you may lose through mortage refinance if you can not convince your lender to drop a prepayment section.
In addition, in the event that you will be shelling out points on the mortgage, you will not be allowed to deduct the whole amount on this year`s tax forms. The IRS obligates you to amortize the money lender`s fees over the existence of your home loan.
A good way to save money as well as energy is to refunding with the same lender who closed your previous home loan. They already possess your paperwork; so, you might not need to redo everything. In addition, you`ve built a rapport and that may help you while closing.
refinancing home isn`t something you should go into dismissively: It can be drawn out and expensive. However, as soon as when you run the numbers you may see that your long-term money savings should counterbalance any costs connected to loan financing. Then, you can take the difference you save each month with the low installments and put that to better use.
This text has shown you the different things you may well achieve with the subject matter of refinancing home, now go ahead and put into practice a number of this provider`s tips in order to attain your goals.
http://www.arefinancinghome.com/
Time is Right to Purchase or Refinance Says Statewide Bancorp, Inc.
The Fed's recent decision to leave interest rates alone may prompt consumers waiting for a drop in interest rates to obtain a mortgage or refinance a current mortgage.
"Lower interest rates increase consumer buying power," says JR Diaz, Vice President of Statewide Bancorp, Inc. "The Fed's decision to leave alone interest rates is prompting more consumers to refinance a current mortgage - - or purchase a home. In fact, we have experienced a surge in inbound traffic within the last month."
Statewide Bancorp, Inc. is driven to create a loan process that is simple and convenient. Potential borrowers can log onto the Web site or call toll-free and apply for a loan anytime. Agents are available via telephone or on the Web site. Statewide Bancorp offers competitive rates and no up front fees.
A drop in rates boosts affordability
As interest rates drop, home affordability rises. First time homebuyers and move-up buyers can see their home affordability increase by thousands with a slight downward shift in interest rates. Using a 30-year fixed rate loan program as an example, a buyer who would qualify for $100,000 at 6.5% would qualify at $110,000 at 5.5%.
When and why to refinance
Lower rates also spark interest in refinancing and generally bring to mind the old rule-of-thumb that refinancing makes sense only when consumers can save 2% or more on their current rate.
Today's homeowners refinance for a variety of reasons and don't always hold out for the 2% difference. This holds especially true for homeowners with adjustable rate mortgages who may want to switch to a more stable fixed rate, or those who wish to tap into some of the equity in their home.
Refinancing may also shorten mortgage term
Many homeowners may also want to refinance to shorten a mortgage term. In some cases, with a lower interest rate, the mortgage term length can be reduced for about the same payment the homeowner is presently making. Even saving 1% on a rate can make sense, if the homeowner plans to stay in the home for more than a few years. In many cases, the closing costs resulting from refinancing a loan to 7% from 8% can be recovered in less than two years.
Learn more about home financing, refinancing
To learn more about your borrowing power during the current low rate environment, for purchase or refinance, call Statewide Bancorp, Inc at 1.800.737.0104.
Statewide Bancorp is one of the country's fastest and most innovative direct discount mortgage lenders. Statewide Bancorp has developed a process that enables the company to work efficiently with minimum overhead. The streamlined approach enables the company to offer competitive rates and fees.
http://www.re-loan.org/refinance-news/issue3.php
"Lower interest rates increase consumer buying power," says JR Diaz, Vice President of Statewide Bancorp, Inc. "The Fed's decision to leave alone interest rates is prompting more consumers to refinance a current mortgage - - or purchase a home. In fact, we have experienced a surge in inbound traffic within the last month."
Statewide Bancorp, Inc. is driven to create a loan process that is simple and convenient. Potential borrowers can log onto the Web site or call toll-free and apply for a loan anytime. Agents are available via telephone or on the Web site. Statewide Bancorp offers competitive rates and no up front fees.
A drop in rates boosts affordability
As interest rates drop, home affordability rises. First time homebuyers and move-up buyers can see their home affordability increase by thousands with a slight downward shift in interest rates. Using a 30-year fixed rate loan program as an example, a buyer who would qualify for $100,000 at 6.5% would qualify at $110,000 at 5.5%.
When and why to refinance
Lower rates also spark interest in refinancing and generally bring to mind the old rule-of-thumb that refinancing makes sense only when consumers can save 2% or more on their current rate.
Today's homeowners refinance for a variety of reasons and don't always hold out for the 2% difference. This holds especially true for homeowners with adjustable rate mortgages who may want to switch to a more stable fixed rate, or those who wish to tap into some of the equity in their home.
Refinancing may also shorten mortgage term
Many homeowners may also want to refinance to shorten a mortgage term. In some cases, with a lower interest rate, the mortgage term length can be reduced for about the same payment the homeowner is presently making. Even saving 1% on a rate can make sense, if the homeowner plans to stay in the home for more than a few years. In many cases, the closing costs resulting from refinancing a loan to 7% from 8% can be recovered in less than two years.
Learn more about home financing, refinancing
To learn more about your borrowing power during the current low rate environment, for purchase or refinance, call Statewide Bancorp, Inc at 1.800.737.0104.
Statewide Bancorp is one of the country's fastest and most innovative direct discount mortgage lenders. Statewide Bancorp has developed a process that enables the company to work efficiently with minimum overhead. The streamlined approach enables the company to offer competitive rates and fees.
http://www.re-loan.org/refinance-news/issue3.php
Bad Credit Refinance
Our investigation into mortgage refinance approval using people with bad credit reveals that the key lies with where they apply for the mortgage refinance. For example, many people with bad credit visited conventional banks or credit unions to apply for a mortgage refinance but were declined. These same people could immediately apply with another mortgage broker, and be approved for an "A paper" mortgage.
The reason seems to be that banks and credit unions have specific underwriting guidelines and specific home loan and mortgage refinance programs. If the borrower does not happen to match the conventional bank or credit union's underwriting guidelines due to bad credit, they didn’t qualify for the mortgage refinance program offered. Sometimes the conventional bank or credit union would approve the borrower with bad credit but at a much higher rate and/or adding several points to the closing costs.
This seems to present a stumbling block for many with bad credit seeking new home loans or to refinance their existing mortgage. Many people stopped trying to get approved after being rejected due to bad credit, interpreting the conventional bank or credit union's rejection to mean they did not qualify for a home loan or mortgage refinance, period. The disqualification because of bad credit also caused embarrassment and apprehension to try again.
But, try again is exactly what the borrower with bad credit should do. It is not advised to apply all over town for the mortgage refinance hoping someone will say yes. This is putting the cart before the horse and may result in wasted time and could lower the already bad credit score. (Though this is a matter of debate that we have not confirmed, most mortgage professionals we spoke with strongly believed that pulling multiple credit reports decreased the credit score).
The borrower needs to gain access to multiple loan programs and then apply for the specific mortgage program they will be approved for. We found the existence of literally thousands of mortgage refinance programs for people with bad credit and a wide variety underwriting guidelines for consumers with less then perfect, bad credit, high debt to income ratios, no equity, missed mortgage payments, recent bankruptcy, and hard to document income (self-employed or commission sales).
So for those with bad credit that want to refinance their mortgage, there are mortgage brokers and that represent dozens, if not hundreds of specialized lenders that offer mortgage refinance programs with approval guidelines based on an individual's unique situation (including bad credit). If they cannot get you approved today, they generally offer advice on what can be done in the short term to improve the bad credit enough to qualify.
http://www.re-loan.org/refinance-news/issue2.php
The reason seems to be that banks and credit unions have specific underwriting guidelines and specific home loan and mortgage refinance programs. If the borrower does not happen to match the conventional bank or credit union's underwriting guidelines due to bad credit, they didn’t qualify for the mortgage refinance program offered. Sometimes the conventional bank or credit union would approve the borrower with bad credit but at a much higher rate and/or adding several points to the closing costs.
This seems to present a stumbling block for many with bad credit seeking new home loans or to refinance their existing mortgage. Many people stopped trying to get approved after being rejected due to bad credit, interpreting the conventional bank or credit union's rejection to mean they did not qualify for a home loan or mortgage refinance, period. The disqualification because of bad credit also caused embarrassment and apprehension to try again.
But, try again is exactly what the borrower with bad credit should do. It is not advised to apply all over town for the mortgage refinance hoping someone will say yes. This is putting the cart before the horse and may result in wasted time and could lower the already bad credit score. (Though this is a matter of debate that we have not confirmed, most mortgage professionals we spoke with strongly believed that pulling multiple credit reports decreased the credit score).
The borrower needs to gain access to multiple loan programs and then apply for the specific mortgage program they will be approved for. We found the existence of literally thousands of mortgage refinance programs for people with bad credit and a wide variety underwriting guidelines for consumers with less then perfect, bad credit, high debt to income ratios, no equity, missed mortgage payments, recent bankruptcy, and hard to document income (self-employed or commission sales).
So for those with bad credit that want to refinance their mortgage, there are mortgage brokers and that represent dozens, if not hundreds of specialized lenders that offer mortgage refinance programs with approval guidelines based on an individual's unique situation (including bad credit). If they cannot get you approved today, they generally offer advice on what can be done in the short term to improve the bad credit enough to qualify.
http://www.re-loan.org/refinance-news/issue2.php
WHEN IS IT RIGHT TO REFINANCE?
With "everyone" talking about the historically low mortgage rates you are ready to decide if it "pays" to refinance. The "rule of thumb" supplied by mortgage companies is that if you can reduce your interest rate by 1% it is usually profitable.
But there is more to it than that. Like how long are you planning on staying in the house? Realistically, the first thing you need to determine is what rates do you qualify for and what are the other costs (like points and closing costs).
When refinancing it is common to roll the additional costs and fees back into the mortgage so there are no "out of pocket" costs. But this allows the Bank or other mortgage holder to charge you interest on these fees. At the current low interest rates and if you choose a short time period for your mortgage the additional interest will be relatively small.
But even at these low rates, if you have a 30 year mortgage, interest will end up doubling the amount of fees over the 30 year life of the loan.
Assume you took a 30 year, $115,000 First mortgage on a house 5 years ago. The interest rate at the time was 7.5% and your principal and interest payment was $765.10 per month.
(If $765.10 sounds low to you, remember your "actual payment" may also include mortgage insurance, taxes and home owners insurance.)
After paying $765.10 per month or $9181.20/year for 5 years you have spent a total of $45,906. Plus, you still owe about $108,000 on your $115,000 mortgage and you still have 25 more years to go! Not much of your payment is going toward principal! So the sooner you can get out from under the better.
Recently interest rates have fallen to around 5% so you consider refinancing. Assuming Closing Costs, fees and expenses are about $3,000. you will have to "borrow" $111,000. to pay off your $108,000. loan (or come up with the $3,000.) from savings.
If you decide to refinance the additional costs for another 30 years... your loan amount would be $111,000. and you would be almost back to where you started 5 years ago... but your payment would drop to $595.87 for a monthly savings of $169.23
Although it might be nice to have an additional $169.23 to spend each month, the question is what will you do with the money? Go out to eat more, buy more toys? Invest it in your retirement fund? Or just "blow it"?
If you just "blow it"... all you have accomplished is that you are in debt to the bank for an additional 5 years. Not a happy prospect...
What if you set the mortgage term to 25 years? In that case, your payment would be $648.89 saving you $116.21 per month. So for an additional $53.02 per month your mortgage term remained the same.
Personally, I think that is a better solution. At least you aren't pushing your retirement out an additional 5 years while you continue paying your mortgage.
Remember, the original question was... Is it worth it to refinance and pay the additional $3000. or just keep paying on the old mortgage?
Keep in mind, as soon as you sign the papers the equity you have in your house drops by $3000! Assuming you chose the 25 year mortgage (with the $116.21/mo savings) it will take you 25.8 months to break even ($3000/$116.21) because at that point you will have saved the $3000. it cost you to refinance. So if you intend to stay in your house 3 or more years it would pay for you to refinance.
But what if you took it one step further? What if you kept your payment the same and reduced the term of your mortgage as far as possible? A $111,000 mortgage at 5% with a payment of about $765 would require a term of 223 months or about 18.5 years.
Assuming you could get an 18.5 year mortgage and you intended to stay in your house that long, this would be an excellent move! You have drastically reduced the amount of money you will pay the bank over the life of the mortgage and you are free and clear 6.5 years earlier!
Even if you move sooner, your equity will be building faster so you will have more money when you sell.
Unfortunately, lenders do not usually let you choose an odd term length like 18.5 years , so you would have to choose either a 20 year term with a payment of $732.55 which would still save you about $30/month but also knock 5 years off your loan (and build equity somewhat faster).
Or you could choose a 15 year term with a payment of $877.78 which would actually cost you about $110/month more than what you are currently paying but would knock a full 10 years off your mortgage. If your income has risen since you got your initial mortgage and you could swing it... it would be money well spent.
For those with higher incomes who have difficulty saving, this is a great idea because it actually forces you to save a little bit more each month and once you get used to it, you won't even miss it.
Perhaps you can remove the mortgage insurance off your mortgage. On the original loan, you might have to pay it for the first 10 years, so you would still have to pay it for 5 more years.
But... if you have made improvements to the home... or property values have increased dramatically in your neighborhood... you might be able to get the new loan without the mortgage insurance. If you can, you will save an additional $100/month! With that savings you can move to the 15 year mortgage without mortgage insurance for the same amount that you are currently paying for a 30 year mortgage with mortgage insurance. Not bad eh? Whack 15 years off your mortgage just like that!
Another way to reduce the monthly payment is to reduce the amount you borrow. If you could come up with the additional $3000 in closing costs from savings, your monthly payment on a 15 year mortgage would drop from $877.78 to $854.06 ... or only about $89. per month more than what you are currently paying.
Is it worth $89/month to knock another 5 years off your mortgage?
That depends on your personal circumstances! If your budget is already stretched to the limit, or it will put you at risk if you lose your job, NO.
But if you can find a way to come up with $3.00 per day, (perhaps by giving up cigarettes, or skipping a trip to the vending machine or to McDonalds) it will save you thousands over the life of your mortgage!
To choose from dozens of places to search for the best mortgage rates check out http://yourfamilyfinances.com/yff/Resources.aspx
Useful Mortgage Calculators
http://www.re-loan.org/refinance-news/issue1.php
But there is more to it than that. Like how long are you planning on staying in the house? Realistically, the first thing you need to determine is what rates do you qualify for and what are the other costs (like points and closing costs).
When refinancing it is common to roll the additional costs and fees back into the mortgage so there are no "out of pocket" costs. But this allows the Bank or other mortgage holder to charge you interest on these fees. At the current low interest rates and if you choose a short time period for your mortgage the additional interest will be relatively small.
But even at these low rates, if you have a 30 year mortgage, interest will end up doubling the amount of fees over the 30 year life of the loan.
Assume you took a 30 year, $115,000 First mortgage on a house 5 years ago. The interest rate at the time was 7.5% and your principal and interest payment was $765.10 per month.
(If $765.10 sounds low to you, remember your "actual payment" may also include mortgage insurance, taxes and home owners insurance.)
After paying $765.10 per month or $9181.20/year for 5 years you have spent a total of $45,906. Plus, you still owe about $108,000 on your $115,000 mortgage and you still have 25 more years to go! Not much of your payment is going toward principal! So the sooner you can get out from under the better.
Recently interest rates have fallen to around 5% so you consider refinancing. Assuming Closing Costs, fees and expenses are about $3,000. you will have to "borrow" $111,000. to pay off your $108,000. loan (or come up with the $3,000.) from savings.
If you decide to refinance the additional costs for another 30 years... your loan amount would be $111,000. and you would be almost back to where you started 5 years ago... but your payment would drop to $595.87 for a monthly savings of $169.23
Although it might be nice to have an additional $169.23 to spend each month, the question is what will you do with the money? Go out to eat more, buy more toys? Invest it in your retirement fund? Or just "blow it"?
If you just "blow it"... all you have accomplished is that you are in debt to the bank for an additional 5 years. Not a happy prospect...
What if you set the mortgage term to 25 years? In that case, your payment would be $648.89 saving you $116.21 per month. So for an additional $53.02 per month your mortgage term remained the same.
Personally, I think that is a better solution. At least you aren't pushing your retirement out an additional 5 years while you continue paying your mortgage.
Remember, the original question was... Is it worth it to refinance and pay the additional $3000. or just keep paying on the old mortgage?
Keep in mind, as soon as you sign the papers the equity you have in your house drops by $3000! Assuming you chose the 25 year mortgage (with the $116.21/mo savings) it will take you 25.8 months to break even ($3000/$116.21) because at that point you will have saved the $3000. it cost you to refinance. So if you intend to stay in your house 3 or more years it would pay for you to refinance.
But what if you took it one step further? What if you kept your payment the same and reduced the term of your mortgage as far as possible? A $111,000 mortgage at 5% with a payment of about $765 would require a term of 223 months or about 18.5 years.
Assuming you could get an 18.5 year mortgage and you intended to stay in your house that long, this would be an excellent move! You have drastically reduced the amount of money you will pay the bank over the life of the mortgage and you are free and clear 6.5 years earlier!
Even if you move sooner, your equity will be building faster so you will have more money when you sell.
Unfortunately, lenders do not usually let you choose an odd term length like 18.5 years , so you would have to choose either a 20 year term with a payment of $732.55 which would still save you about $30/month but also knock 5 years off your loan (and build equity somewhat faster).
Or you could choose a 15 year term with a payment of $877.78 which would actually cost you about $110/month more than what you are currently paying but would knock a full 10 years off your mortgage. If your income has risen since you got your initial mortgage and you could swing it... it would be money well spent.
For those with higher incomes who have difficulty saving, this is a great idea because it actually forces you to save a little bit more each month and once you get used to it, you won't even miss it.
Perhaps you can remove the mortgage insurance off your mortgage. On the original loan, you might have to pay it for the first 10 years, so you would still have to pay it for 5 more years.
But... if you have made improvements to the home... or property values have increased dramatically in your neighborhood... you might be able to get the new loan without the mortgage insurance. If you can, you will save an additional $100/month! With that savings you can move to the 15 year mortgage without mortgage insurance for the same amount that you are currently paying for a 30 year mortgage with mortgage insurance. Not bad eh? Whack 15 years off your mortgage just like that!
Another way to reduce the monthly payment is to reduce the amount you borrow. If you could come up with the additional $3000 in closing costs from savings, your monthly payment on a 15 year mortgage would drop from $877.78 to $854.06 ... or only about $89. per month more than what you are currently paying.
Is it worth $89/month to knock another 5 years off your mortgage?
That depends on your personal circumstances! If your budget is already stretched to the limit, or it will put you at risk if you lose your job, NO.
But if you can find a way to come up with $3.00 per day, (perhaps by giving up cigarettes, or skipping a trip to the vending machine or to McDonalds) it will save you thousands over the life of your mortgage!
To choose from dozens of places to search for the best mortgage rates check out http://yourfamilyfinances.com/yff/Resources.aspx
Useful Mortgage Calculators
http://www.re-loan.org/refinance-news/issue1.php
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