Before you even consider a refinance, ask yourself this fundamental question: "Why do I need it?" "Many times, people take out a new, larger loan to pay off credit cards, automobiles or even to purchase another home," says Norm Bour, host of the nationally syndicated U.S. radio program The Real Estate & Finance Show, and an experienced mortgage lender. "Sometimes they need the money to do home improvements or renovations." If, however, you want to lower your current loan payments or switch to a different type of loan, you must calculate the benefits before going the re-fi route. "If someone is going from a fixed loan to another fixed loan, my general benchmark is to see a 1% reduction of interest rates to justify it," says Bour, who also teaches money-management classes in Southern California. "Sometimes the borrower goes from a fixed-rate loan to an adjustable to lower his payments. Sometimes he does just the opposite-maybe to get away from interest-rate volatility. These are very personal decisions, specific to each individual client."
You may already know-or suspect-that you will not live in your current home beyond a certain timeframe (perhaps 5 years). If this is the case, why would you even consider a 30-year loan? "Sometimes, an adjustable-rate loan or a 'hybrid'-say, a 5-year fixed, then converting to an adjustable-makes the most sense," Bour says. Find out more here: ">http://www.mortgage-for-all.com/50047.php"> Home Mortgages: Think Before You Borrow
Do your homework before trying to qualify for a new loan. You should know: ? The approximate market value of your property, as "loan to value (LTV) is one of the primary factors that control interest rate," Bour says. ? Your credit score, which will affect your overall ability to secure a loan, as well as the interest rates offered and the options available to you.
In certain cases, refinancing may not yield "a monetary savings, per se," Bour says. This means there must be "compelling reasons" to secure a new loan, he emphasizes. "A good loan officer will ask a series of questions to help the borrower identify his best option," Bour says. The officer should: ? Assess your current monthly cash flow and potential future risks. ? Calculate your monthly savings if you were to refinance. ? Determine how long it will take you to break even. ? Fully explain the different types of loans and interest structures. ? Disclose all closing costs and "hidden" fees (origination fees, escrow, title, underwriting, interest, taxes, insurance, prepayment penalties, etc.). ? Treat you with respect and as an individual-not come up with a one-size-fits-all, cookie-cutter approach to your financial future. Find out more from our huge collection of expert mortgage and refinance collection at: Expert Mortgage Advice
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Showing posts with label advice. Show all posts
Showing posts with label advice. Show all posts
Tuesday, July 28, 2009
Saturday, June 6, 2009
Refinance Advisor Online
Before you sign your new mortgage loan, be sure that your lender or mortgage broker has disclosed their annual percentage rate (APR) and their terms. Lenders are legally required by the Truth in Lending Act to disclose the cost and terms of your financing package before you sign any final paperwork. If a lender refuses to reveal this information, you should find another lender who follows the legal process.
Asking About APR
When you begin shopping to refinance your mortgage, you should ask about the APR along with other fees and rates. The APR includes the total interest, points, and other fees. The APR allows you to make a quick comparison between lenders. However, your APR could be higher if you wish to pay points for lower interest rates.
You can call up individual lending institutions to request this information or use an online mortgage broker. With their websites you will receive offers from several different mortgage lenders. They will list out their rates and fees. You may also find better deals on closing costs or interest rates since online lenders have reduced overhead.
Requesting Terms
Federal law requires all lending institutions to disclose loan costs and terms before you sign for the loan. Most of the time, lenders will send out the paperwork with your application, but some financing companies wait until the settlement period.
Once you have your loan terms, review them carefully. The mortgage terms will include information on finance charges, payment schedule, and APR. You also have the right to cancel your loan within three business days after settlement or receiving your Truth in Lending disclosures, whichever occurs last.
Inquiring About Application Refunds
While you have the right to rescind on your home loan, you may forfeit your application fee depending on the lender. Application fees for processing your loan usually total $100 to $200, which is paid with your application. All other loans fees are required to be refunded if you cancel your loan within the three days of closing.
Some lenders do not refund application fees if you cancel or are not approved. Before you apply, it is best to ask about refunds along with rates and fees.
About the author:
See my recommended Home Mortgage Refinance Lenders for the lowest rates online. Carrie Reeder is the owner of ABC Loan Guide, which offers help finding low rate home mortgage loans.
Written by: Carrie Reeder
Asking About APR
When you begin shopping to refinance your mortgage, you should ask about the APR along with other fees and rates. The APR includes the total interest, points, and other fees. The APR allows you to make a quick comparison between lenders. However, your APR could be higher if you wish to pay points for lower interest rates.
You can call up individual lending institutions to request this information or use an online mortgage broker. With their websites you will receive offers from several different mortgage lenders. They will list out their rates and fees. You may also find better deals on closing costs or interest rates since online lenders have reduced overhead.
Requesting Terms
Federal law requires all lending institutions to disclose loan costs and terms before you sign for the loan. Most of the time, lenders will send out the paperwork with your application, but some financing companies wait until the settlement period.
Once you have your loan terms, review them carefully. The mortgage terms will include information on finance charges, payment schedule, and APR. You also have the right to cancel your loan within three business days after settlement or receiving your Truth in Lending disclosures, whichever occurs last.
Inquiring About Application Refunds
While you have the right to rescind on your home loan, you may forfeit your application fee depending on the lender. Application fees for processing your loan usually total $100 to $200, which is paid with your application. All other loans fees are required to be refunded if you cancel your loan within the three days of closing.
Some lenders do not refund application fees if you cancel or are not approved. Before you apply, it is best to ask about refunds along with rates and fees.
About the author:
See my recommended Home Mortgage Refinance Lenders for the lowest rates online. Carrie Reeder is the owner of ABC Loan Guide, which offers help finding low rate home mortgage loans.
Written by: Carrie Reeder
Saturday, March 28, 2009
General Personal Financial Advice
Personal finance is an individual's financial status. It's about how much money you have, and how much you need. It is about managing your money - today and for tomorrow. Money is the currency on which all world economies function. Income - expenditure -bills- debts - savings: These are a fact of life. A constant for most is the endeavor to tip the scales in favor of savings.
Successful financial management includes planning and keeping records of income and expenditure, budgeting, balancing your check book, insurance and investments - whether in real estate, the share market, funds or any of the other available mechanisms. You cannot overlook the necessity of planning your savings, your tax savings and your retirement.
A very interesting way to look at Asset and Liability is in the following terms:
An Asset is anything which brings in money or does not change the status of your money in the bank. A liability is anything which causes money to flow out - whether under the pretext of taxes, interest or fees.
Budgeting - This ensures that you are financially healthy and flourishing. It is a good idea to create and use a budget worksheet which allows you to make a detailed expenditure plan and helps you discover any shortage or unplanned expenditures.
Some useful tips in planning your finances:
- Handle your own money. If you choose a financial consultant, ensure you understand how your money is being managed. - Save a huge amount in interest by opting for a shorter tenure of loan term - home/ car/ personal. - Debt: Should ideally not be indulged in, or repaid at the earliest. - Savings: it is easier to save more if you start early - you can put aside small sums and over the years watch it accumulate and earn interest for you. - Retirement planning: don't wait till you are 40 to start. Begin today - and ensure a comfortable lifestyle in your old age. Avoid cashing out your PF or breaking your Funds. - It's a good idea to do an Annual/ Quarterly financial health check up.
About the author:
Joseph Then provides advices about Personal Finance and dealing with bad credits. You can visit the website http://www.BadCreditBin.com for more information
Written by: Joseph Then
Successful financial management includes planning and keeping records of income and expenditure, budgeting, balancing your check book, insurance and investments - whether in real estate, the share market, funds or any of the other available mechanisms. You cannot overlook the necessity of planning your savings, your tax savings and your retirement.
A very interesting way to look at Asset and Liability is in the following terms:
An Asset is anything which brings in money or does not change the status of your money in the bank. A liability is anything which causes money to flow out - whether under the pretext of taxes, interest or fees.
Budgeting - This ensures that you are financially healthy and flourishing. It is a good idea to create and use a budget worksheet which allows you to make a detailed expenditure plan and helps you discover any shortage or unplanned expenditures.
Some useful tips in planning your finances:
- Handle your own money. If you choose a financial consultant, ensure you understand how your money is being managed. - Save a huge amount in interest by opting for a shorter tenure of loan term - home/ car/ personal. - Debt: Should ideally not be indulged in, or repaid at the earliest. - Savings: it is easier to save more if you start early - you can put aside small sums and over the years watch it accumulate and earn interest for you. - Retirement planning: don't wait till you are 40 to start. Begin today - and ensure a comfortable lifestyle in your old age. Avoid cashing out your PF or breaking your Funds. - It's a good idea to do an Annual/ Quarterly financial health check up.
About the author:
Joseph Then provides advices about Personal Finance and dealing with bad credits. You can visit the website http://www.BadCreditBin.com for more information
Written by: Joseph Then
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