Finding a good lender to refinance your mortgage can be almost as important a decision as the actual mortgage you choose. In order to make a wise selection of a refinancing lender you should do four things:
1. Know the objective of your mortgage refinance
Do you want to lower your current interest rate? Generally, refinancing your mortgage can be profitable if your current mortgage is 2% higher than the prevailing rates. Do you want to move from an adjustable rate mortgage (ARM) to a fixed rate mortgage?
If interest rates are creeping up this may be a good idea. Do you want to shorten the term of your mortgage to accumulate value more quickly? Do you want to take cash out of your home's equity? The mortgage refinance lender you pick will want to know your reason for refinancing so that the appropriate mortgage product can be chosen. You will also want to be aware of your credit score and the terms of your current mortgage.
2. Know the different types of mortgage refinance lenders and the different types of mortgage refinance products that are available
Just like when your home's mortgage was originally financed, there are a variety of lenders who can refinance your mortgage: Banks, credit unions, mortgage companies. There are also brokers who will find a variety of lenders for you. You should be aware, however, that unless specifically contracted to do so a mortgage broker does not have to find the mortgage refinance package that might be the best for you.
Refresh your knowledge of the mortgage financing vocabulary. Be fluent with terms such as interest rate, point and prepayment penalties. Also, most newspapers publish a daily listing of current interest rates for different types of mortgages. Become familiar with these listings and check them on a daily basis.
3. Shop around and find several different lenders to refinance your mortgage
The market for refinancing mortgages has become so crowded and competitive that it is fairly easy to find several lenders to compare. You might use a broker. The newspaper and the yellow pages are also good places to start. If you are comfortable negotiating the Internet, it is an excellent resource. There are many services online which will perform a preliminary search for a lender. Your current mortgage lender should also be included in this group.
4. Negotiate the mortgage refinance loan that suits your needs
Many times the compensation a lender makes on refinancing a mortgage is dependent on the terms of the mortgage so it is up to you to make sure that the loan received is the most advantageous for you.
You might want to investigate mortgage refinance lenders who offer no closing cost loans or free appraisals. It is important to make sure that you are comparing like products. In order to do this, have your lender present proposals in writing and require ample time to compare the different offers.
Prepare a list of the features of each loan. The type of loan, interest rate, points, prepayment penalties, closing costs are a few of the loan elements which should be compared. Check the rate you are being offered against the rates from the most current newspaper listings. The more organized, thorough and knowledgeable you are, the better your decision will be.
Deciding to refinance your mortgage is an important choice that should not be made lightly. Know why you are doing it. Know the possibilities for refinancing lenders and products that are available. Be willing to shop amongst the different lenders and to negotiate a beneficial deal. If you follow these steps, finding a good mortgage refinance lender will be much easier.
About the author:
View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Written by: Carrie Reeder
Showing posts with label Home Mortgage Loan. Show all posts
Showing posts with label Home Mortgage Loan. Show all posts
Wednesday, July 8, 2009
Wednesday, July 1, 2009
Refinance Home Loans
Refinance home loan lenders are eager to lend money to any individual regardless of credit as long as the homeowner has a fair amount of equity in the home and the home itself is in a condition that can be resold. Refinance home loans are different than a second mortgage or line of credit in that the proceeds from the loan disbursement first pay off the original mortgage loan. The remainder of the refinance home loan proceeds leaves the homeowner to spend the money as they wish. Typically, refinance home loans carry lower interest rates than purchase mortgages.
For a homeowner to obtain a refinance home loan, it is in their best interest to get a loan with an interest rate lower than the loan they already posses. Some borrowers prefer to re-extend their payment length back to 30 years, others prefer to use refinance home loans for the existing time left on their original loan. In order to determine the best deal throughout the life of both loans, in depth calculations will have to be done. Many Internet websites have interest calculators to make it easier for homeowners to determine how much interest is going to the lender before deciding if a refinance home loan is the most beneficial option.
Once a decision has been made to apply for a refinance home loan, the borrower must provide the lender with their social security number for a credit check. A credit report score directly determines the interest rate. It is recommended that before applying for various refinance home loans, the borrower receives a copy of his/her credit report from each of the three credit reporting agencies. If the credit score is low, then expect the interest rate on the refinance home loan to be high. If the credit score is high, then expect the interest rate on the refinance home loan to be low. Sometimes, easy measures can be taken to lift the credit scores. A credit report can look drastically different in only 30 days.
Refinance home loans gain extreme popularity when the interest rates drop nationally. It is an opportunity for a homeowner to save thousands of dollars in interest over the life of the loan, and to save hundreds of dollars in interest every month. Some homeowners use the refinance home loan to pay off their existing loan, and pocket the money for college, home improvement, or that vacation they have always wanted to take. The option to refinance a home loan is a great idea if a homeowner can lower an interest rate on such a large loan that extends for such a long period of time. It is no wonder there are many lenders out there that are advertising for individuals to consider getting a refinance home loan.
For more information about refinance home loan and refinance home loans, visit:
http://refinance.christianet.com
http://refinance.christianet.com/articles.htm
http://www.christianet.com
About the Author
Christian N,
http://www.ChristiaNet.com
http://blogs.christianet.com
Featuring numerous life application articles and tips.
Written by: Christian
For a homeowner to obtain a refinance home loan, it is in their best interest to get a loan with an interest rate lower than the loan they already posses. Some borrowers prefer to re-extend their payment length back to 30 years, others prefer to use refinance home loans for the existing time left on their original loan. In order to determine the best deal throughout the life of both loans, in depth calculations will have to be done. Many Internet websites have interest calculators to make it easier for homeowners to determine how much interest is going to the lender before deciding if a refinance home loan is the most beneficial option.
Once a decision has been made to apply for a refinance home loan, the borrower must provide the lender with their social security number for a credit check. A credit report score directly determines the interest rate. It is recommended that before applying for various refinance home loans, the borrower receives a copy of his/her credit report from each of the three credit reporting agencies. If the credit score is low, then expect the interest rate on the refinance home loan to be high. If the credit score is high, then expect the interest rate on the refinance home loan to be low. Sometimes, easy measures can be taken to lift the credit scores. A credit report can look drastically different in only 30 days.
Refinance home loans gain extreme popularity when the interest rates drop nationally. It is an opportunity for a homeowner to save thousands of dollars in interest over the life of the loan, and to save hundreds of dollars in interest every month. Some homeowners use the refinance home loan to pay off their existing loan, and pocket the money for college, home improvement, or that vacation they have always wanted to take. The option to refinance a home loan is a great idea if a homeowner can lower an interest rate on such a large loan that extends for such a long period of time. It is no wonder there are many lenders out there that are advertising for individuals to consider getting a refinance home loan.
For more information about refinance home loan and refinance home loans, visit:
http://refinance.christianet.com
http://refinance.christianet.com/articles.htm
http://www.christianet.com
About the Author
Christian N,
http://www.ChristiaNet.com
http://blogs.christianet.com
Featuring numerous life application articles and tips.
Written by: Christian
Saturday, June 6, 2009
Refinance
The 2% Rule Many CPA's across America advise their clients to refinance their present mortgage when they can reduce their interest rate by at least 2%, and/or shorten the term remaining to pay off the mortgage.
Reasons to Finance
There are many good reasons to refinance your current mortgage, or get a second mortgage and pull equity out of your home. Here are just a few.
1. Adding structural additions or improvements to your home.
2. Get a lower mortgage rate and reduce interest costs.
3. Obtaining funds for investment
4. College tuition for your children. 5. Paying off other debt, such as credit cards, in order to reduce your total monthly outlay.
Consider The Following
When selecting a Home Improvement Loan consider all of the following:
1. Minimum & Maximum loan limits.
2. Terms (The shorter the term the lower the overall finance charge/higher monthly payment, longer the term the less the monthly payment/the greater the overall finance charge).
3. Loan type's: Home Equity, HELOC's, FHA 203K, Cash Out Refinance, Secured Consumer loans such as Retail Installment Obligation (RIO's), and Unsecured RIO (loan terms from 12 months).
4. Interest Rate and loan costs. For example: A no closing cost HELOC at prime or prime plus 1/2 may be tax deductible, and may be used to draw upon for FUTURE Home improvement projects with no "out of pocket" loan charges.
Improving your home can increase its value. Investing wisely can help create a larger net worth. Both could pay off in retirement benefits for you. Be careful. Don't risk the security of your home on frivolous spending.
About the Author
Ron Vignari M&M Resources Unlimited, Inc. Helping customers since 1986
1577 Ridge Road West, Suite 119 Rochester, NY 14615 Office: (585) 865-0950 Fax: (585) 865-3202 Toll Free: 1-800-937-2350
Licensed Mortgage Banker/NYS Banking Department
Written by: Ron Vignari
Reasons to Finance
There are many good reasons to refinance your current mortgage, or get a second mortgage and pull equity out of your home. Here are just a few.
1. Adding structural additions or improvements to your home.
2. Get a lower mortgage rate and reduce interest costs.
3. Obtaining funds for investment
4. College tuition for your children. 5. Paying off other debt, such as credit cards, in order to reduce your total monthly outlay.
Consider The Following
When selecting a Home Improvement Loan consider all of the following:
1. Minimum & Maximum loan limits.
2. Terms (The shorter the term the lower the overall finance charge/higher monthly payment, longer the term the less the monthly payment/the greater the overall finance charge).
3. Loan type's: Home Equity, HELOC's, FHA 203K, Cash Out Refinance, Secured Consumer loans such as Retail Installment Obligation (RIO's), and Unsecured RIO (loan terms from 12 months).
4. Interest Rate and loan costs. For example: A no closing cost HELOC at prime or prime plus 1/2 may be tax deductible, and may be used to draw upon for FUTURE Home improvement projects with no "out of pocket" loan charges.
Improving your home can increase its value. Investing wisely can help create a larger net worth. Both could pay off in retirement benefits for you. Be careful. Don't risk the security of your home on frivolous spending.
About the Author
Ron Vignari M&M Resources Unlimited, Inc. Helping customers since 1986
1577 Ridge Road West, Suite 119 Rochester, NY 14615 Office: (585) 865-0950 Fax: (585) 865-3202 Toll Free: 1-800-937-2350
Licensed Mortgage Banker/NYS Banking Department
Written by: Ron Vignari
Refinance Home Mortgage Loan
Homebuyers have several loan options. Hence, purchasing a new home has never been easier. Individuals who cannot afford a down payment or closing costs may take advantage of loan programs that offer assistance. Furthermore, those hoping to obtain a low rate mortgage may consider a loan with an adjustable rate. Because of the initial low cost of adjustable rate mortgages, monthly mortgage payments are also lower. However, low rate mortgages are short term. To avoid an interest rate hike, homeowners should refinance before rates begin to increase.
Advantages of Adjustable Rate Mortgages
There are several advantages to accepting an adjustable mortgage. For starters, a low rate mortgage allows buyers to purchase pricier homes, while maintaining an affordable monthly payment. Moreover, because of record low rates, homebuyers who obtain an adjustable rate mortgage can enjoy falling rates without refinancing their mortgage. Thus, they avoid closing costs and other fees.
Adjustable rate mortgages are also ideal for individuals who plan on moving in a few years. Some people enjoy the stability of living in one place for many years. In this case, refinancing for a fixed rate is a wise choice. However, if you prefer the flexibility of moving every three to five years, you will save money with an adjustable rate.
Pitfalls of Adjustable Rate Mortgages
While adjustable rates offer many attractive features, one major drawback is that low rates are temporary. If interest rates continue to fall, you will not be subjected to the dangers of these loans. However, if rates begin to climb, so will your mortgage payment. Homebuyers who cannot afford an increased mortgage are at risk of losing their home. Thus, if your goal is to remain in your current home for many years, refinancing for a fixed rate will offer predictable mortgage payments.
How Soon Can You Refinance a Mortgage?
Fortunately, home mortgage loans can be refinanced whenever you like. Some lenders suggest allowing the loan to mature at least 12 months. However, if you detect a change in market trends, refinancing shortly after purchasing your home is a smart maneuver. Those contemplating refinancing must be prepared to pay additional closing fees. Moreover, contact your current lender and inquire of prepayment penalties.
About the author:
Carrie Reeder offers advice about Mortgage Refinance Loans Online. View our Recommended Lowest Rate Mtg Refinance Lenders Online.
Written by: Carrie Reeder
Advantages of Adjustable Rate Mortgages
There are several advantages to accepting an adjustable mortgage. For starters, a low rate mortgage allows buyers to purchase pricier homes, while maintaining an affordable monthly payment. Moreover, because of record low rates, homebuyers who obtain an adjustable rate mortgage can enjoy falling rates without refinancing their mortgage. Thus, they avoid closing costs and other fees.
Adjustable rate mortgages are also ideal for individuals who plan on moving in a few years. Some people enjoy the stability of living in one place for many years. In this case, refinancing for a fixed rate is a wise choice. However, if you prefer the flexibility of moving every three to five years, you will save money with an adjustable rate.
Pitfalls of Adjustable Rate Mortgages
While adjustable rates offer many attractive features, one major drawback is that low rates are temporary. If interest rates continue to fall, you will not be subjected to the dangers of these loans. However, if rates begin to climb, so will your mortgage payment. Homebuyers who cannot afford an increased mortgage are at risk of losing their home. Thus, if your goal is to remain in your current home for many years, refinancing for a fixed rate will offer predictable mortgage payments.
How Soon Can You Refinance a Mortgage?
Fortunately, home mortgage loans can be refinanced whenever you like. Some lenders suggest allowing the loan to mature at least 12 months. However, if you detect a change in market trends, refinancing shortly after purchasing your home is a smart maneuver. Those contemplating refinancing must be prepared to pay additional closing fees. Moreover, contact your current lender and inquire of prepayment penalties.
About the author:
Carrie Reeder offers advice about Mortgage Refinance Loans Online. View our Recommended Lowest Rate Mtg Refinance Lenders Online.
Written by: Carrie Reeder
Friday, April 17, 2009
Home Mortgage and Refinance
"While seeking home mortgages and refinances it is important to shop wisely to get the best deal possible. While most organizations offer a similar array of products, it is the service that makes the difference. On time service, immediate response systems to queries and strong support from an excellent panel of sharp minds is what makes the services of mortgageease.com a little more special.
The decision to take a mortgage is one of the most important financial decisions one makes in his or her lifetime. This is because, this decision impacts your future financial life. Here are a few pointers that go into making the right mix. Click here for home mortgages and refinances.
The Right Product In the initial years, there were limited options in home mortgage, but not anymore. Now there are various mortgage products in the market and a range of mortgage providers. The popular options include fixed rate mortgages, adjustable rate mortgages, jumbo loans and balloon mortgages.
The Right Providers Many organizations provide such loans today. One can opt to take home mortgages and refinances from banks, finance companies, credit unions and local lenders to name a few. Good rapport with organizations and good credit history can go a long way in getting lower interest rates for the loan.
Online Support With the evolution of the Internet, it has become much easier to compare companies, loan options and use smart tools to analyse loan feasibilities. A few of the online tools that one must explore include the loan advisor that allows users to answer three quick questions and give the right type of loan to suit individual needs. The monthly principal and interest payment calculator is yet another tool that allows users to calculate monthly interest and principal payment and figure the impact of pre-paying the mortgage.
The Right Services Choose an organization that provides turnkey services and will assist you through the entire process, from deciding on the right product, loan application to approval and after sale support. They will help you decide how large a loan you will qualify for, compare loan options, repayment options and answer your queries regarding the loan.
Mortgageease.com offers the extra advantage of providing top of the line products and excellent tools and services. Once you contact us, our team representative gets in touch with you through mail, telephone or in person to help you through the process of gauging your requirements and understanding your needs for the loan. Call us toll-free at 888-744-EASE (3273) Monday Through Friday: 9 am to 9 pm (EST).
"
About the Author
I write articles for www.mortgageease.com.We're a full-service mortgage company that specializes in providing residential loans--for borrowers with all types of credit histories.
Written by: mortgageease
The decision to take a mortgage is one of the most important financial decisions one makes in his or her lifetime. This is because, this decision impacts your future financial life. Here are a few pointers that go into making the right mix. Click here for home mortgages and refinances.
The Right Product In the initial years, there were limited options in home mortgage, but not anymore. Now there are various mortgage products in the market and a range of mortgage providers. The popular options include fixed rate mortgages, adjustable rate mortgages, jumbo loans and balloon mortgages.
The Right Providers Many organizations provide such loans today. One can opt to take home mortgages and refinances from banks, finance companies, credit unions and local lenders to name a few. Good rapport with organizations and good credit history can go a long way in getting lower interest rates for the loan.
Online Support With the evolution of the Internet, it has become much easier to compare companies, loan options and use smart tools to analyse loan feasibilities. A few of the online tools that one must explore include the loan advisor that allows users to answer three quick questions and give the right type of loan to suit individual needs. The monthly principal and interest payment calculator is yet another tool that allows users to calculate monthly interest and principal payment and figure the impact of pre-paying the mortgage.
The Right Services Choose an organization that provides turnkey services and will assist you through the entire process, from deciding on the right product, loan application to approval and after sale support. They will help you decide how large a loan you will qualify for, compare loan options, repayment options and answer your queries regarding the loan.
Mortgageease.com offers the extra advantage of providing top of the line products and excellent tools and services. Once you contact us, our team representative gets in touch with you through mail, telephone or in person to help you through the process of gauging your requirements and understanding your needs for the loan. Call us toll-free at 888-744-EASE (3273) Monday Through Friday: 9 am to 9 pm (EST).
"
About the Author
I write articles for www.mortgageease.com.We're a full-service mortgage company that specializes in providing residential loans--for borrowers with all types of credit histories.
Written by: mortgageease
Monday, April 13, 2009
Home Mortgages and Refinances
While seeking home mortgages and refinances it is important to shop wisely to get the best deal possible. While most organizations offer a similar array of products, it is the service that makes the difference. On time service, immediate response systems to queries and strong support from an excellent panel of sharp minds is what makes the services of mortgageease.com a little more special.
The decision to take a mortgage is one of the most important financial decisions one makes in his or her lifetime. This is because, this decision impacts your future financial life. Here are a few pointers that go into making the right mix. Click here for home mortgages and refinances.
The Right Product In the initial years, there were limited options in home mortgage, but not anymore. Now there are various mortgage products in the market and a range of mortgage providers. The popular options include fixed rate mortgages, adjustable rate mortgages, jumbo loans and balloon mortgages.
The Right Providers Many organizations provide such loans today. One can opt to take home mortgages and refinances from banks, finance companies, credit unions and local lenders to name a few. Good rapport with organizations and good credit history can go a long way in getting lower interest rates for the loan.
Online Support With the evolution of the Internet, it has become much easier to compare companies, loan options and use smart tools to analyse loan feasibilities. A few of the online tools that one must explore include the loan advisor that allows users to answer three quick questions and give the right type of loan to suit individual needs. The monthly principal and interest payment calculator is yet another tool that allows users to calculate monthly interest and principal payment and figure the impact of pre-paying the mortgage.
The Right Services Choose an organization that provides turnkey services and will assist you through the entire process, from deciding on the right product, loan application to approval and after sale support. They will help you decide how large a loan you will qualify for, compare loan options, repayment options and answer your queries regarding the loan.
Mortgageease.com offers the extra advantage of providing top of the line products and excellent tools and services. Once you contact us, our team representative gets in touch with you through mail, telephone or in person to help you through the process of gauging your requirements and understanding your needs for the loan. Call us toll-free at 888-744-EASE (3273) Monday Through Friday: 9 am to 9 pm (EST).
"
About the Author
I write articles for www.mortgageease.com.We're a full-service mortgage company that specializes in providing residential loans--for borrowers with all types of credit histories.
Written by: mortgageease
The decision to take a mortgage is one of the most important financial decisions one makes in his or her lifetime. This is because, this decision impacts your future financial life. Here are a few pointers that go into making the right mix. Click here for home mortgages and refinances.
The Right Product In the initial years, there were limited options in home mortgage, but not anymore. Now there are various mortgage products in the market and a range of mortgage providers. The popular options include fixed rate mortgages, adjustable rate mortgages, jumbo loans and balloon mortgages.
The Right Providers Many organizations provide such loans today. One can opt to take home mortgages and refinances from banks, finance companies, credit unions and local lenders to name a few. Good rapport with organizations and good credit history can go a long way in getting lower interest rates for the loan.
Online Support With the evolution of the Internet, it has become much easier to compare companies, loan options and use smart tools to analyse loan feasibilities. A few of the online tools that one must explore include the loan advisor that allows users to answer three quick questions and give the right type of loan to suit individual needs. The monthly principal and interest payment calculator is yet another tool that allows users to calculate monthly interest and principal payment and figure the impact of pre-paying the mortgage.
The Right Services Choose an organization that provides turnkey services and will assist you through the entire process, from deciding on the right product, loan application to approval and after sale support. They will help you decide how large a loan you will qualify for, compare loan options, repayment options and answer your queries regarding the loan.
Mortgageease.com offers the extra advantage of providing top of the line products and excellent tools and services. Once you contact us, our team representative gets in touch with you through mail, telephone or in person to help you through the process of gauging your requirements and understanding your needs for the loan. Call us toll-free at 888-744-EASE (3273) Monday Through Friday: 9 am to 9 pm (EST).
"
About the Author
I write articles for www.mortgageease.com.We're a full-service mortgage company that specializes in providing residential loans--for borrowers with all types of credit histories.
Written by: mortgageease
Home Mortgage- Reasons to Refinance Your Home
Refinancing can have other financial benefits besides lowering rates. Locking in rates can protect you from higher rates, saving you money on future interest costs. You can also change your ARM for better caps to prevent huge monthly increases. Consolidating your bills with your equity saves on credit card rates while providing a tax advantage.
Protection From Future Rate Hikes
An adjustable rate mortgage (ARM) provides the lowest rates for home buyers, but these rates can increase. Monthly payments can jump a couple of hundred dollars a month depending on market rates and loan caps.
For those planning to stay in their home for more than seven years, it is a good idea to refinance to a fixed-rate mortgage if rates look likely to rise. Fixed-rate mortgages offer security from future payment hikes, but with slightly higher rates than ARMs.
Trading In For Better Caps
Many ARMs offer initial low set rates that can change after a couple of years. Jumps in payments can be surprising, especially if you have less than favorable caps. Caps set limits on how much and how often your payments can increase.
Refinancing your ARM can help you negotiate lower caps. You can also find an ARM with set rates for several years, just like with your original mortgage.
Helping To Pay Off Your Loan
Early payment of your home loan saves on interest costs. For those you need a structured approach to make larger payments, refinancing for a shorter term may be the answer.
For instance, exchanging your 30 year mortgage for a 15 year mortgage can reduce your interest costs by almost half, even at the same rate. Even with the origination costs, early payment will still save you money.
Taking The Tax Advantage
Mortgage interest is tax deductible, unlike interest on other bills. Cashing out part of your equity to pay off bills can give you a financial edge to get ahead. Be sure to make refinancing part of your larger financial goals to enjoy the full benefits.
Investigating Lenders
Investigate lenders before you sign a contract to be sure you are getting the best financial offers. Ask about their APR to get a true understanding of the loan costs. Many financial companies post this information online, or you can request near instant quotes.
About the author:
View our recommended mortgage re fi lenders.
Written by: Carrie Reeder
Protection From Future Rate Hikes
An adjustable rate mortgage (ARM) provides the lowest rates for home buyers, but these rates can increase. Monthly payments can jump a couple of hundred dollars a month depending on market rates and loan caps.
For those planning to stay in their home for more than seven years, it is a good idea to refinance to a fixed-rate mortgage if rates look likely to rise. Fixed-rate mortgages offer security from future payment hikes, but with slightly higher rates than ARMs.
Trading In For Better Caps
Many ARMs offer initial low set rates that can change after a couple of years. Jumps in payments can be surprising, especially if you have less than favorable caps. Caps set limits on how much and how often your payments can increase.
Refinancing your ARM can help you negotiate lower caps. You can also find an ARM with set rates for several years, just like with your original mortgage.
Helping To Pay Off Your Loan
Early payment of your home loan saves on interest costs. For those you need a structured approach to make larger payments, refinancing for a shorter term may be the answer.
For instance, exchanging your 30 year mortgage for a 15 year mortgage can reduce your interest costs by almost half, even at the same rate. Even with the origination costs, early payment will still save you money.
Taking The Tax Advantage
Mortgage interest is tax deductible, unlike interest on other bills. Cashing out part of your equity to pay off bills can give you a financial edge to get ahead. Be sure to make refinancing part of your larger financial goals to enjoy the full benefits.
Investigating Lenders
Investigate lenders before you sign a contract to be sure you are getting the best financial offers. Ask about their APR to get a true understanding of the loan costs. Many financial companies post this information online, or you can request near instant quotes.
About the author:
View our recommended mortgage re fi lenders.
Written by: Carrie Reeder
Saturday, April 11, 2009
Home Loan Mortgage Loan Refinance -Refinance For A Shorter Term to Save Money
Saving money with lower rates isn't the only reason to refinance. Opting for a shorter loan can also save thousands in interest and free up income in the future. A short term loan can also help you pay down your principal quicker.
Better Rates
A 15 year mortgage has a better rate than a 30 year mortgage offered the same day - usually by a quarter of a percent. However, even if rates are the same as your current mortgage, refinancing to a shorter mortgage can save you thousands in interest by paying off the principal sooner. Your monthly payments will be slightly larger, but that is because a larger portion of the balance is being paid.
Offers Self-Discipline
Short term loans make your decision to pay off your mortgage official. For those that have a hard time making extra payments on their mortgage, a short term mortgage may be the answer.
It is helpful to first look at your long term financial goals. Perhaps you are planning to pay for kids' college tuition, to retire, or to reduce your debt load in the future. Decide when you want your mortgage paid off and look at the monthly payments. You can choose a number of periods - 15, 20 or 25 year home loans.
Factors To Consider
Low rates aren't the only factor to consider when deciding to refinance, the payment period is also important. By simply making larger principal payments, you get rid of your loan sooner and save money on interest payments. Additionally, reducing your debt level by paying off your mortgage also improves your credit and financial situation.
However, you should also remember the immediate impact of a short term mortgage. A larger monthly payment can put a strain on your monthly budget. You may also find that if you plan to sell your home within a couple of years, you will not recoup the cost of refinancing fees.
You are also limiting your financial flexibility. You are committing yourself to a larger principal payment. You could choose to simply pay down the principal when you have the available cash.
In the end, short term mortgages do have their benefits and should be considered when you plan to refinance.
About the author:
View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Written by: Carrie Reeder
Better Rates
A 15 year mortgage has a better rate than a 30 year mortgage offered the same day - usually by a quarter of a percent. However, even if rates are the same as your current mortgage, refinancing to a shorter mortgage can save you thousands in interest by paying off the principal sooner. Your monthly payments will be slightly larger, but that is because a larger portion of the balance is being paid.
Offers Self-Discipline
Short term loans make your decision to pay off your mortgage official. For those that have a hard time making extra payments on their mortgage, a short term mortgage may be the answer.
It is helpful to first look at your long term financial goals. Perhaps you are planning to pay for kids' college tuition, to retire, or to reduce your debt load in the future. Decide when you want your mortgage paid off and look at the monthly payments. You can choose a number of periods - 15, 20 or 25 year home loans.
Factors To Consider
Low rates aren't the only factor to consider when deciding to refinance, the payment period is also important. By simply making larger principal payments, you get rid of your loan sooner and save money on interest payments. Additionally, reducing your debt level by paying off your mortgage also improves your credit and financial situation.
However, you should also remember the immediate impact of a short term mortgage. A larger monthly payment can put a strain on your monthly budget. You may also find that if you plan to sell your home within a couple of years, you will not recoup the cost of refinancing fees.
You are also limiting your financial flexibility. You are committing yourself to a larger principal payment. You could choose to simply pay down the principal when you have the available cash.
In the end, short term mortgages do have their benefits and should be considered when you plan to refinance.
About the author:
View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Written by: Carrie Reeder
Friday, March 27, 2009
FHA Home Mortgage Purchase Or Refinance Loans
Most borrowers have heard of FHA home loans. They are very common. You hear about them mostly as loans for first time borrowers, which is common. However, most people don't realize that FHA loans can also be does for refinancing. They are not only for purchasing a house.
HUD owns and operates FHA, which is a program designed to help borrowers who might have difficulty buying a house. If the borrower falls within FHA's requirements FHA insures the loan for the lender, which makes the loan very low risk for the lender, which is very good for the borrower. It could mean a lower interest rate, better terms and just an overall better loan.
FHA's requirements are; a down payment of 3-5%, the home must be under the FHA's set loan limit for the county that the borrower lives in and a few other small requirements.
The main advantage to an FHA loan, is if you can fall within their requirements, your credit history or income level, will not hold you back from getting a home loan. If you are getting turned down from other lenders because of a high debt to income ratio or because your credit is bad. You may want to consider applying for an FHA loan, where those requirements are either non-existant or much more flexible.
If the idea of down payment is holding you back, consider also, that FHA loans allow the use of a non-profit organization as a source for the down payment, which opens up the option of using down payment assistance programs like Neighborhood Gold.
To view our list of recommended mortgage lenders online, who offer FHA programs, visit this page: http://www.abcloanguide.com/govloans.shtml>http://www.abcloanguide.com/govloans.shtml
About the Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
Written by: Carrie Reeder
HUD owns and operates FHA, which is a program designed to help borrowers who might have difficulty buying a house. If the borrower falls within FHA's requirements FHA insures the loan for the lender, which makes the loan very low risk for the lender, which is very good for the borrower. It could mean a lower interest rate, better terms and just an overall better loan.
FHA's requirements are; a down payment of 3-5%, the home must be under the FHA's set loan limit for the county that the borrower lives in and a few other small requirements.
The main advantage to an FHA loan, is if you can fall within their requirements, your credit history or income level, will not hold you back from getting a home loan. If you are getting turned down from other lenders because of a high debt to income ratio or because your credit is bad. You may want to consider applying for an FHA loan, where those requirements are either non-existant or much more flexible.
If the idea of down payment is holding you back, consider also, that FHA loans allow the use of a non-profit organization as a source for the down payment, which opens up the option of using down payment assistance programs like Neighborhood Gold.
To view our list of recommended mortgage lenders online, who offer FHA programs, visit this page: http://www.abcloanguide.com/govloans.shtml>http://www.abcloanguide.com/govloans.shtml
About the Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
Written by: Carrie Reeder
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