Things are always better on the other side of the fence. Other people seem to be making the smart choices, from girlfriends to cars and even refinancing loan programs. Why not you?
Proact, not react
After making several bumbling errors, don’t make a serious mistake, not with a refinancing mortgage plan. A costly mistake at this time of economic hardships will surely make you miserable, while your friend is having a good time with his smart choice of almost everything.
Before you announce your grand design for a refinancing mortgage loan, do your assignment. Read up on mortgage news, and join forums. You can ask the silliest questions, assuming your knowledge on these matters is zero. How you got the first loan is questionable, and you are suffering for your haste and ignorance.
You can also tap information from various online sites to get a broader picture of the mortgage business. Perhaps your friend can recommend a broker. Or if you can, get an independent and reliable agent who can spell out the pros and cons without pressuring you into making a hasty decision.
How to choose your refinancing mortgage lender
Here are some tips to get even with your friend:
- Weigh the terms of the mortgage. Are you ready to be tied and bound for a 30-year loan? A longer term loan has a lower monthly payment. You can have extras for those little things in the house or for yourself. A 15-year loan will be more expensive, but you will be saving a lot on interests alone.
- Examine the advantages and disadvantages of a fixed rate to an adjusted rate. A fixed rate is stable. Throughout the period loan, you will know how much money to set aside monthly. A variable rate has the advantage of dipping into all-time lows, saving you more money. But when the rates soar to an all-time high and stays there for a long time, you’re dead meat.
- Do your math. Some lenders will charge origination or discount fees while others will not. Compare the costs. The lender boasting no fees will likely skim all your cream. So, find out if you are saving more from a lower rate. You might be astounded with your findings.
- Shop around for lenders. There will be one good one out there. Ask questions, and compare their responses. If you are unsure of the technical and financial details, then get a professional to help you.
- If you decide to stick with your current lender, that’s fine too. Since your refinancing mortgage lender has your files and is aware of your performance, you might get a better deal the second time around.
Preparing for your refinancing mortgage loan
Assess your financial situation: income, gratuities, fixed expenses, insurances, regular monthly bills, and expenses. If you are getting a lower interest rate, let’s say about 7.5% for a $200,000 30-year loan, you will be paying $1,398, which is already $70 less than your present monthly bills.
Get that $70 and save it. By the end of the year, you will have $770 to spend at the end of the year or money for your taxes. But you will be breaking even after 29 months. This is the grunt part of your refinancing mortgage loan.
Will that be a better deal like your friend’s at the other side of the fence? If it is, go for it.
Article Source: http://EzineArticles.com/?expert=Rony_Walker
Tuesday, November 6, 2007
Secrets for Refinancing With a Bad Credit Score
Interest rates today are still much lower than years ago. We still hear that "now's the time to refinance" from friends and family. Yet for the borrower with bad credit, is refinancing really the wise choice? Read on the find out.
Refinancing can often save you money over the long run, but if your credit has gotten worse since the time you obtained the loan, refinancing may not be the best idea. If your credit has improved since you got your original loan, then refinancing might be in your best interest.
The key is to do the math on your own. While most lenders are very helpful and have a vast base of knowledge in the financial world, they're still here to make a sale. In other words, asking a lender "is it a good idea for me to refinance?" won't always get you a straight answer.
Weigh the difference between the rates you qualify for and the closing costs for the new loan, and make sure you're actually coming out ahead by refinancing.
If you're in the condition where you need to refinance - Whether it's for a cash-out, or because of impending foreclosure - There are options that are available to bad credit borrowers.
One little-known option is the FHA backed refinance. While many borrowers know that you can get an FHA loan to buy a house, not many know that the FHA also backs refinances.
Find a lender that works with FHA loans and discuss your options. With an FHA loan, you can often get approved even with bad credit, reduce your down payment, and even get a better rate.
With an FHA backed refinance, instead of judging your application based on your FICO score, the FHA judges based on your credit history. In other words, they make their call based on your debt patterns over the last 12 months or more. This also gives you the chance to explain any blemishes on your credit report.
To see about refinancing your Home Mortgage Loan or to see about getting a Home Mortgage Loan Quote visit us at http://www.gethomemortgageloan.com/
Article Source: http://EzineArticles.com/?expert=Joshua_Spaulding
Refinancing can often save you money over the long run, but if your credit has gotten worse since the time you obtained the loan, refinancing may not be the best idea. If your credit has improved since you got your original loan, then refinancing might be in your best interest.
The key is to do the math on your own. While most lenders are very helpful and have a vast base of knowledge in the financial world, they're still here to make a sale. In other words, asking a lender "is it a good idea for me to refinance?" won't always get you a straight answer.
Weigh the difference between the rates you qualify for and the closing costs for the new loan, and make sure you're actually coming out ahead by refinancing.
If you're in the condition where you need to refinance - Whether it's for a cash-out, or because of impending foreclosure - There are options that are available to bad credit borrowers.
One little-known option is the FHA backed refinance. While many borrowers know that you can get an FHA loan to buy a house, not many know that the FHA also backs refinances.
Find a lender that works with FHA loans and discuss your options. With an FHA loan, you can often get approved even with bad credit, reduce your down payment, and even get a better rate.
With an FHA backed refinance, instead of judging your application based on your FICO score, the FHA judges based on your credit history. In other words, they make their call based on your debt patterns over the last 12 months or more. This also gives you the chance to explain any blemishes on your credit report.
To see about refinancing your Home Mortgage Loan or to see about getting a Home Mortgage Loan Quote visit us at http://www.gethomemortgageloan.com/
Article Source: http://EzineArticles.com/?expert=Joshua_Spaulding
How to Refinance Student Loans
Refinancing is the process of paying off one loan by obtaining another loan which is usually at a lower interest rate or with better terms. When it comes to student loans it's generally done to reduce monthly student loan payments. There are several ways to accomplish this through student loan consolidation programs through banks or programs through the government.
When refinancing your student loans there are several things to consider. If you have both federal student loans and private loans, you will have to refinance them separately. With federal loans, you can usually receive a lower interest rate than with private loans. Private student loans are personal loans based on the assumption that the income level will increase with more education. Therefore, refinancing is rated at a much higher level. If you were to mix the two together when you refinance, you would wind up paying a higher interest rate on the combined principal than you would if you financed the two loans separately.
Shop around because student loan rates vary by lender. Check out your credit scores prior to applying. Rates are based on your credit history. Before refinancing make sure your credit history is in good shape. By contrast, rates for refinancing federal student loans change only once a year on the first of July. While currently pretty low, they are subject to annual fluctuation.
Lenders have different qualifications for refinancing, although most require that none of your loans have an "in-school" status which means that you can't be paying for a student still enrolled in college. With some lenders there is an arbitrary, minimum balance for application.
When refinancing look for a couple options to make your repayment life easier. Reduce your monthly payments by either negotiating a lower interest rate or extending the duration of the loan. Getting a lower interest rate is the better course as you are also reducing your long-term
When figuring out how-to refinance student loans, remember that you can reduce your monthly payments either by getting a lower interest rate, or by extending the duration of your loan. Of the two methods, getting a lower interest rate is preferable since you are also reducing your long-term student loan debt rather than just spreading out repayments.
Article Source: http://EzineArticles.com/?expert=Rob_Hickey
When refinancing your student loans there are several things to consider. If you have both federal student loans and private loans, you will have to refinance them separately. With federal loans, you can usually receive a lower interest rate than with private loans. Private student loans are personal loans based on the assumption that the income level will increase with more education. Therefore, refinancing is rated at a much higher level. If you were to mix the two together when you refinance, you would wind up paying a higher interest rate on the combined principal than you would if you financed the two loans separately.
Shop around because student loan rates vary by lender. Check out your credit scores prior to applying. Rates are based on your credit history. Before refinancing make sure your credit history is in good shape. By contrast, rates for refinancing federal student loans change only once a year on the first of July. While currently pretty low, they are subject to annual fluctuation.
Lenders have different qualifications for refinancing, although most require that none of your loans have an "in-school" status which means that you can't be paying for a student still enrolled in college. With some lenders there is an arbitrary, minimum balance for application.
When refinancing look for a couple options to make your repayment life easier. Reduce your monthly payments by either negotiating a lower interest rate or extending the duration of the loan. Getting a lower interest rate is the better course as you are also reducing your long-term
When figuring out how-to refinance student loans, remember that you can reduce your monthly payments either by getting a lower interest rate, or by extending the duration of your loan. Of the two methods, getting a lower interest rate is preferable since you are also reducing your long-term student loan debt rather than just spreading out repayments.
Article Source: http://EzineArticles.com/?expert=Rob_Hickey
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