by Joe Leech Leech
Save Thousands With New Way To Pay Off Your Mortgage!
You Can't WIN! At least by doing it the conventional way!
FACT: Unlike about any other debt or "loan", the typical mortgage (probably yours) is front ended load to apply most of your payment to the interest for at least 1/3rd of the loan life. On a typical 30 year mortgage, 90% or so of your payments go to interest for the first 7 years!
FACT: The "6%" or quoted mortgage interest rate only becomes effective at that rate after you complete the full contracted (15 or 30 year) period!
FACT: On your 30 year conventional mortgage, not even half of your payment goes to reduce principal until after the 7th year!
FACT: Over 70% of Americans move or refinance before the end of a seven year occupancy and paying.
FACT: On that move or refinance; most Americans take some equity out and start their clock all over again!
FACT: If you had money available to make extra principal payments, you could accelerate the time where your money starts to go toward principal and you could effectively knock years of "the back end" of the mortgage.
FACT: IF you had the money, you could accelerate the mortgage pay down and save substantially.
FACT: Most Americans DON'T have the extra money to make substantial additional payments.
FACT: Under The Standard System You Can't Win
How then do you accelerate the payoff of your mortgage?
Under the standard system, we said you can make additional payments to principal.. but most people don't have enough to do that on a regular basis. You can refinance possibly to a lower interest rate, but when you examine this option, you'll often find that the costs associated with refinancing won't be recovered for 3, 4, or even 5 years. And lastly, you could go to a bi weekly payment plan which is essence is a forced way to make one extra payment a year, and on average will accelerate the pay down of a 30 year mortgage by seven years.
Even with that, it's not a win-win situation because you make two payments a month on average, but the bank sits on your first payment until the end of the 28th day, using your money, but not paying you any interest on it and ONLY crediting you with the payment at the end of the month.
Is there an answer to the problem? Surprisingly, there is! But it takes a little knowledge (or the use of a tool that has "knowledge" built into it and can do some complex calculations.
Why complex calculations? Because we're going to follow some advice that's been around for a very long time in successful financial transactions! What is the secret?
USE OTHER PEOPLE'S MONEY!.
In this case, the "other people" is the bank!
You see, that very same bank has a tool..... well, maybe your exact bank doesn't have one... but if not, this tool is available to most people at SOME bank, and it's an open ended loan account, generally referred to as a Home Equity Line of Credit.
You need to do some independent reading because the suggested length of an article like this does not allow for a full discussion of that financial instrument, but suffice it to say, in this type of a loan interest is treated much differently. Your interest is calculated only on the average daily balance, and that balance can be changed nearly daily. In other words, if you make a payment to your principal on the 5th, you get credit for the payment on the 5th.. not at the end of the month.
We want to keep the balance on this account as low as possible, and we can do that by putting money into it that is otherwise sitting around in zero or very low interest bearing accounts. But we need to know when to put money in and take it out.
Your HELOC will act like a conventional checking and banking account in nearly all respects, except it can never have a POSITIVE balance in it. If you have obtained a credit line of $10,000 you can withdraw up to $10,000 from it, but you never can put money in that would make it "store" money.
So let's say you tap this account to make a substantial principal only payment on your primary mortgage. You've used "other peoples" money. For example purposes, you made a payment of 5000. Now you also have some household living expenses that equal 4000 and you wrote this out of the HELOC. Now you are "in hoc" to your heloc by 9000. You and your significant other (if you have one) or you alone... it doesn't matter... have a monthly income (at least this month) of $6000. So you put your paycheck into your HELOC, and at the end of the month, you really only have a balance of $3000.. and that's what you pay interest on. But you've killed the interest on your first of $5000. Because the first is front end loaded, depending on the year, that was really having an effective interest rate maybe of 50%.
Next month you wrote out your living expenses of $4000 from the HELOC, and as you had a negative balance in it of 3000, you owe your HELOC $y 7000. Payday again! Same $$6000, so you put it in. Balance becomes just $$1000.
Month 3... same schedule for the old budget. Monthly expenses were the same $4000, and add that to the bal of $1000 you owed starting.. so you have a 5000 balance you owe the bank. Payday coming up and you know the vital fact we just stated: You can't have a positive balance in your HELOC! If you tried to put that full $6000 paycheck in, it would not take it.
So at some time before payday, you need to transfer some funds out of the HELOC to pay down some more principal.
Ah Ha.. the magic questions: When, and how much.
Take a guess and pay too much from your HELOC and your "spread" of interest advantage disappears. Why not make a massive payment of $8000.. after all , you have a credit line of $10,000. And when to make it.
The answer is that if you pay too much relative to your repayment schedule, the interest of that HELOC will cancel any advantages. Ditto on the timing.
While your regular mortgage payment has to be made by a certain date, or you get late charges, remember that you are NOT credited with payments until the end of the amortized schedule.. usually monthly. So you don't want to put money in too soon and let the bank sit on it until they decide to credit you!
IF you had the time and patience, you could figure this all out to the penny and to the date and hour.
The facts of life are that most of us don't have these skills or the discipline, so we need some one, or some things, to give us that guidance.
This is just math, not magic. Applied "numbers crunching" and what does that better than a computer!
The GOOD NEWS: There are commercial software programs in the market today that will do this for you. Some are better than others, but we suggest you become familiar with what is available and begin to use it as soon as possible.
Will this work for everyone? No. The software will, but you need an open ended loan account, and the most common IS your Alternate Home Equity Line of Credit. Looks like a second mortgage, but is not in that it is truly open ended. By definition, to get one, you must have SOME equity in your home, or a home if not your principal residence. You need to have an income where your income exceeds your monthly expenses. Doesn't nave to be by much.. as little as $$50,000 qualifies most people. And you should have a respectable credit score or rating.
In late fall of 2007 we all read about the mess the mortgage lenders are in, and in an effort to cleans themselves up, they have tightened loan standards. Even if you meet the existing criteria above, you own bank may not offer this tool to you. so shop around.
You may be able to substitute a personal line of credit. Again, shop around.
As to the commercial software.. ask if it is dynamic. Does it adjust for your changing expenses and possibly income if you are self employed or paid on commission, so that each day and month, your calculations are adjusted to optimize your prompts for payment. Is it totally confidential and NOT move your money, but gives you full and complete control. If you change residences, can you transfer the account to a new home or mortgage? How about tech support.. is it available e 24/7? For your lifetime? From someone in the USA that you can understand? Is there a written guarantee of satisfaction? Will it reside on YOUR PC or on a mainframe? How often is it backed up? Do you have 24/7 access? Will it provide ancillary financial advice on decisions such as true costs of major purchases?
This is only an entry level article, but it demonstrates a proven concept, in use for many years in places like Australia and the Far east; It demonstrates how you can take advantage of the spreads between when interest is applied and calculated and when principal is applied, and how with the right tools and calculations, you can truly use other peoples money to accelerate your mortgage.
Typical results cut 1/3 to 1/2 off a standard mortgage.. and you don't have to refinance or make any alterations.
We wish you well and much financial success.
http://www.goarticles.com/cgi-bin/showa.cgi?C=631564
2007-09-30
How to Choose Your Mortgage - Compare Interest Rate or APR?
by Patricia Adkins
When you are in the market to purchase a home or refinance an existing loan, understanding the difference between the interest rate that was quoted to you and the actual APR is crucial. If you consider only the interest rate, you can easily end up spending more money than you expected. Here is a guide to understanding the difference between the two.
The acronym APR stands for Annual Percentage Rate, a term that was created by the government as a standard for all lenders. Lenders must disclose the APR as well as the interest rate to loan applicants so that people applying for a loan can accurately compare rates. Many people do not fully understand the difference between interest rates and APR and therefore choose loans based on interest rates only.
The interest rates that lenders use to attract customers differ from the actual cost of the loan. The interest rate is the amount that a financial institution will charge you for allowing you to use their money. The interest rate is only applicable on the principal, or original, amount of the loan.
The APR takes into account many of the fees and charges that may accompany your loan. Examples of these charges may be points, PMI or private mortgage insurance, prepaid interest, closing costs, and others. It is the amount of interest you will pay on a yearly basis after all of the interest and charges are figured in, and represents the total cost of credit on a yearly basis after all charges are taken into consideration
The APR can be confusing because companies do not calculate the APR the same way. Although Federal law requires lenders to disclose the APR, it does not specify what must be included and how it is to be calculated. As a result different lenders include different things. It is wise to inquire what is included in the APR before making a decision. This way you can get a true comparison between prospective lenders.
Keep in mind that while the APR is going to be higher than your interest rate, it should not be too much higher. Beware of annual percentage rates that are significantly higher than the quoted interest rate, this means that there are hidden fees. Look at all the terms before you agree to a loan.
It is more important to compare the APRs on different loan options than it is to compare the interest rates. The APR more accurately represents the actual cost of your loan and is the rate that your monthly payment will be calculated based on. The APR will vary based on the length of the term, for instance a fifteen year loan will have a higher APR than a thirty year loan, but you will ultimately pay less interest on a fifteen year term.
The APR does not represent any variables like prepayment penalties or balloon payments. It is important for you to do your research when looking for a new loan and understand all of the terminology associated with the loan. Having a good understanding of the difference between the interest rate and the APR is a good place to start. APRs, although inconsistently calculated, can be a very useful guide in choosing your loan, but it is wise to consult a mortgage professional to help you find the best loan for your situation.
http://www.goarticles.com/cgi-bin/showa.cgi?C=631675
When you are in the market to purchase a home or refinance an existing loan, understanding the difference between the interest rate that was quoted to you and the actual APR is crucial. If you consider only the interest rate, you can easily end up spending more money than you expected. Here is a guide to understanding the difference between the two.
The acronym APR stands for Annual Percentage Rate, a term that was created by the government as a standard for all lenders. Lenders must disclose the APR as well as the interest rate to loan applicants so that people applying for a loan can accurately compare rates. Many people do not fully understand the difference between interest rates and APR and therefore choose loans based on interest rates only.
The interest rates that lenders use to attract customers differ from the actual cost of the loan. The interest rate is the amount that a financial institution will charge you for allowing you to use their money. The interest rate is only applicable on the principal, or original, amount of the loan.
The APR takes into account many of the fees and charges that may accompany your loan. Examples of these charges may be points, PMI or private mortgage insurance, prepaid interest, closing costs, and others. It is the amount of interest you will pay on a yearly basis after all of the interest and charges are figured in, and represents the total cost of credit on a yearly basis after all charges are taken into consideration
The APR can be confusing because companies do not calculate the APR the same way. Although Federal law requires lenders to disclose the APR, it does not specify what must be included and how it is to be calculated. As a result different lenders include different things. It is wise to inquire what is included in the APR before making a decision. This way you can get a true comparison between prospective lenders.
Keep in mind that while the APR is going to be higher than your interest rate, it should not be too much higher. Beware of annual percentage rates that are significantly higher than the quoted interest rate, this means that there are hidden fees. Look at all the terms before you agree to a loan.
It is more important to compare the APRs on different loan options than it is to compare the interest rates. The APR more accurately represents the actual cost of your loan and is the rate that your monthly payment will be calculated based on. The APR will vary based on the length of the term, for instance a fifteen year loan will have a higher APR than a thirty year loan, but you will ultimately pay less interest on a fifteen year term.
The APR does not represent any variables like prepayment penalties or balloon payments. It is important for you to do your research when looking for a new loan and understand all of the terminology associated with the loan. Having a good understanding of the difference between the interest rate and the APR is a good place to start. APRs, although inconsistently calculated, can be a very useful guide in choosing your loan, but it is wise to consult a mortgage professional to help you find the best loan for your situation.
http://www.goarticles.com/cgi-bin/showa.cgi?C=631675
2007-09-28
Why Resort to a Refinance Loan?
by Ajeet Khurana
These days, it is common practice to use new loans to pay off old debts. Refinancing has been around for a while now, and people have discovered that it is a great option. Most often, this is what people who have taken home loans apply for in trying to lessen their burden of debt. Home loans are generally long term expenses. Hence, they can seem like a huge load after passage of several months and loan installments. However, people need not have anxiety attacks regarding payments of high installments for long. Refinance allows us to not only reduce the amount that we pay as installment, but also to reduce the loan duration.
One of the main reasons why people resort to refinance loans is because the heavy loan installments are a big burden. It often happens that while we are looking for mortgages, the interest rates are high. Thus, we end up paying large amounts as interest in addition to the monthly payments on the loan. In the course of time, interest rates will go down at some time or another. At such times, it would be smart to start shopping for refinance loans that charge lower rates of interest. This would help us to diminish considerably the amounts that we pay every month toward the repayment of our loans. However, we have to also think about the refinance fees. The question we should be asking is whether, even with the lower rate of interest, if the refinance fees make the loan a more expensive one. If the answer is "no", then you might want to avail of this loan.
A lot of people look to refinance loans if they would like to repay their loans much faster. Even with the same monthly installment, a person can pay off larger chunks of their loan because of the lower rates of interest. This would help in shrinking the term period pending on the original loan. If one has recently got a salary increment, it might be prudent to free oneself from the burden of debt sooner by availing of a refinance loan that requires payments over a shorter term.
A refinance loan can also be used to consolidate one's miscellaneous loans. Home equity loans are quite popular among those seeking consolidation. Such a loan is great for cutting down on our debt burden as this allows us to pay off a single loan at a single rate of interest. Moreover, refinance loans such as home equity loans help us avoid the problem of bankruptcy. The security of the house guards us against that danger.
http://www.goarticles.com/cgi-bin/showa.cgi?C=628797
These days, it is common practice to use new loans to pay off old debts. Refinancing has been around for a while now, and people have discovered that it is a great option. Most often, this is what people who have taken home loans apply for in trying to lessen their burden of debt. Home loans are generally long term expenses. Hence, they can seem like a huge load after passage of several months and loan installments. However, people need not have anxiety attacks regarding payments of high installments for long. Refinance allows us to not only reduce the amount that we pay as installment, but also to reduce the loan duration.
One of the main reasons why people resort to refinance loans is because the heavy loan installments are a big burden. It often happens that while we are looking for mortgages, the interest rates are high. Thus, we end up paying large amounts as interest in addition to the monthly payments on the loan. In the course of time, interest rates will go down at some time or another. At such times, it would be smart to start shopping for refinance loans that charge lower rates of interest. This would help us to diminish considerably the amounts that we pay every month toward the repayment of our loans. However, we have to also think about the refinance fees. The question we should be asking is whether, even with the lower rate of interest, if the refinance fees make the loan a more expensive one. If the answer is "no", then you might want to avail of this loan.
A lot of people look to refinance loans if they would like to repay their loans much faster. Even with the same monthly installment, a person can pay off larger chunks of their loan because of the lower rates of interest. This would help in shrinking the term period pending on the original loan. If one has recently got a salary increment, it might be prudent to free oneself from the burden of debt sooner by availing of a refinance loan that requires payments over a shorter term.
A refinance loan can also be used to consolidate one's miscellaneous loans. Home equity loans are quite popular among those seeking consolidation. Such a loan is great for cutting down on our debt burden as this allows us to pay off a single loan at a single rate of interest. Moreover, refinance loans such as home equity loans help us avoid the problem of bankruptcy. The security of the house guards us against that danger.
http://www.goarticles.com/cgi-bin/showa.cgi?C=628797
2007-09-26
Things to Consider For Your Colorado Home Loan Quote.
by 1st American Mortgage
Shopping for a Colorado home loan quote isn't much different than looking for mortgages elsewhere in the U.S.; however, the housing market in Colorado does present some unique needs. Buyers that work with and in-state Colorado home mortgage company will have an added advantage
Shopping for a Colorado Home Loan Quote
Buyers looking for the best Colorado home loan quote should begin with the basics.
First, gather the information needed to obtain an accurate quote from a professional. Providing as many specifics as possible will give you the most reliable Colorado home loan quote. Providing information about income, debt, and purchase price or refinance amounts will be helpful. Be prepared with a list of goals and questions.
To find reputable Colorado home mortgage lenders, search local ads and online.Make a list of prospective lenders, and then call for an initial consultation. It will likely take a day or two for them to thoroughly go over your information and provide your Colorado home loan quote.
When you shop for a Colorado home loan quote, you will be provided with a variety of terms and options. Your lender will help to decipher these options and fit them to your personal situation and goals to get you not only the best Colorado home loan quote, but also the most affordable Colorado home mortgage payment for you.
The following options represent what you may be presented with:
Adjustable Rate Mortgage - For the first 3-5 years, the ARM works similar to a Colorado fixed rate loan in that the payments will stay the same at a locked interest rate for a specified period. After that initial 3-5 years, your rate will adjust with market rates based on an index. An ARM works well for buyers that want lower payments in the short term and should be considered if you plan to refinance or sell the property in the near future..
Colorado fixed rate loan - The rate you lock in the beginning of a Colorado fixed rate loan is the rate you have for the life of the Colorado fixed rate loan. The Colorado home loan quote you get on a Colorado fixed rate loan will be higher than an ARM Colorado home loan quote, but it's predictable and will never change predictable and will never change%%. A Colorado fixed rate loan is good if you plan to own your property for a long time. With a Colorado fixed rate loan, you won't have to stress over interest rate increases.
Colorado jumbo mortgages - Colorado jumbo mortgages are those taken for any amount over $417,000. The Colorado home loan quote for Colorado jumbo mortgages will be slightly higher because of increased risk factors for lenders, but this shouldn't dissuade you from products for Colorado jumbo mortgages. Very simply, many of the best Colorado home mortgages fall into the 'jumbo' category, and there is no other way to obtain such a property.
Like a standard Colorado home mortgage, Colorado jumbo mortgages come with options like variable ARMs and Colorado fixed rate loan 15-30 year terms. Shop for jumbo loans as you would a conforming loan. The same basic rules apply - short term ARMs have better rates than a Colorado fixed rate loan, but in the long term, the Colorado fixed rate loan is better.
Whether you're shopping for an ARM or Colorado fixed rate loan with 30 year jumbo mortgage rates, the key is to find a reputable Colorado mortgage company you can trust to deliver the Colorado home loan quote as quoted. Particularly if you are locking into a 30 year Colorado fixed rate loan, you want good rates and reasonable fees. Several Colorado mortgage brokers have experience with 15 and 30 year jumbo mortgage and finding one will be well worth your effort.
TrueMortgageQuote.com
Shopping for a Colorado home loan quote isn't much different than looking for mortgages elsewhere in the U.S.; however, the housing market in Colorado does present some unique needs. Buyers that work with and in-state Colorado home mortgage company will have an added advantage
Shopping for a Colorado Home Loan Quote
Buyers looking for the best Colorado home loan quote should begin with the basics.
First, gather the information needed to obtain an accurate quote from a professional. Providing as many specifics as possible will give you the most reliable Colorado home loan quote. Providing information about income, debt, and purchase price or refinance amounts will be helpful. Be prepared with a list of goals and questions.
To find reputable Colorado home mortgage lenders, search local ads and online.Make a list of prospective lenders, and then call for an initial consultation. It will likely take a day or two for them to thoroughly go over your information and provide your Colorado home loan quote.
When you shop for a Colorado home loan quote, you will be provided with a variety of terms and options. Your lender will help to decipher these options and fit them to your personal situation and goals to get you not only the best Colorado home loan quote, but also the most affordable Colorado home mortgage payment for you.
The following options represent what you may be presented with:
Adjustable Rate Mortgage - For the first 3-5 years, the ARM works similar to a Colorado fixed rate loan in that the payments will stay the same at a locked interest rate for a specified period. After that initial 3-5 years, your rate will adjust with market rates based on an index. An ARM works well for buyers that want lower payments in the short term and should be considered if you plan to refinance or sell the property in the near future..
Colorado fixed rate loan - The rate you lock in the beginning of a Colorado fixed rate loan is the rate you have for the life of the Colorado fixed rate loan. The Colorado home loan quote you get on a Colorado fixed rate loan will be higher than an ARM Colorado home loan quote, but it's predictable and will never change predictable and will never change%%. A Colorado fixed rate loan is good if you plan to own your property for a long time. With a Colorado fixed rate loan, you won't have to stress over interest rate increases.
Colorado jumbo mortgages - Colorado jumbo mortgages are those taken for any amount over $417,000. The Colorado home loan quote for Colorado jumbo mortgages will be slightly higher because of increased risk factors for lenders, but this shouldn't dissuade you from products for Colorado jumbo mortgages. Very simply, many of the best Colorado home mortgages fall into the 'jumbo' category, and there is no other way to obtain such a property.
Like a standard Colorado home mortgage, Colorado jumbo mortgages come with options like variable ARMs and Colorado fixed rate loan 15-30 year terms. Shop for jumbo loans as you would a conforming loan. The same basic rules apply - short term ARMs have better rates than a Colorado fixed rate loan, but in the long term, the Colorado fixed rate loan is better.
Whether you're shopping for an ARM or Colorado fixed rate loan with 30 year jumbo mortgage rates, the key is to find a reputable Colorado mortgage company you can trust to deliver the Colorado home loan quote as quoted. Particularly if you are locking into a 30 year Colorado fixed rate loan, you want good rates and reasonable fees. Several Colorado mortgage brokers have experience with 15 and 30 year jumbo mortgage and finding one will be well worth your effort.
TrueMortgageQuote.com
2007-09-25
Understanding Mortgage Refinancing
by Worldwide Publishing
First you should weigh the costs and benefits of mortgage refinancing to determine if you'll come out ahead. Your mortgage may have a 30-year term, but not many homeowners stay with the same loan for that long. In fact, the average American refinances his or her mortgage every four years, according to the Mortgage Bankers Association. That's because paying off your present mortgage and taking out a new one can mean big savings over several years. However, mortgage refinancing comes with a price in the short term, so it's important to consider both the costs and benefits before making your decision.
There are several reasons to consider mortgage refinancing: To obtain a lower fixed rate. If you took out a fixed-rate mortgage several years ago and interest rates have since dropped, refinancing may lower your payments considerably. A $150,000 mortgage with a 30-year term and a rate of 8 percent, for example, carries a monthly payment of $1,100. The same mortgage at 6 percent will have a payment of less than $900 a month. To switch to a fixed rate or an adjustable rate mortgage. Adjustable-rate mortgages (ARMs) offer lower interest rates initially, but some homeowners find the fluctuations stressful. If rates are on the way up, you might consider locking in at a fixed rate and consistent monthly payment. On the other hand, if you want to reduce your monthly payments and are comfortable with the interest rate changes of an ARM, it could save you money to refinance to an ARM. To improve the features of your ARM. Mortgages with adjustable rates have protective caps that limit how much your payments can increase in any given year and over the full term of the loan. You may be dissatisfied with the caps on your current ARM and feel you can negotiate more favorable features if you refinance. To build your home equity faster. If a recent change in your financial situation has made it possible for you increase your monthly payments, you might want to refinance your mortgage with a shorter term. The higher payments will enable you to pay off your home more quickly and to save substantially on long-term interest charges. However, if you are disciplined you can also opt not to refinance and simply pay more towards your principal each month. To reduce your monthly payments. Refinancing for a longer term will lower the amount you have to pay each month. You will end up paying more in interest charges over the life of your loan, but if you're having difficulty making your current payments, this strategy could provide some relief. To turn home equity into cash. You may want to take out a new mortgage with a larger principal, in order to turn some of your home equity into cash for a major expense. This is called cash-out refinancing. The advantage of taking out a loan secured by your home is that you can get a lower rate of interest than you can with an unsecured loan or credit card. However, if the interest rate offered for your refinanced mortgage is higher than your current rate, a home equity loan or line of credit might be a better choice. Is mortgage refinancing right for you? If you're refinancing in order to pay less interest, you won't usually see the savings right away. That's because lenders typically charge fees when you take out a new mortgage, and you may also have to pay a penalty for getting out of your old one. To determine whether refinancing makes financial sense for you, consider these issues: How long you plan to be in your home. If you expect to move in a year or two, you may never realize the potential savings you'd get from refinancing. As a rule of thumb, the longer you plan to stay in your current home, the more sense it makes to refinance. The prepayment penalty on your current mortgage. Many mortgages carry a penalty if you pay them off early. The amount varies, but it is usually a small percentage of the outstanding balance, or several months' worth of interest payments. The costs of the new mortgage. When you take out a new loan, your lender may charge a number of fees including application, appraisal, origination and insurance fees, plus title search, insurance and legal costs that can add up to thousands of dollars. Lenders may also charge discount points, which are paid upfront to secure a lower interest rate. As a guideline, expect fees to eat up any potential savings unless your new interest rate is at least a half a percentage point lower than your current one. The true difference in borrowing costs. When you're considering refinancing, remember that the posted interest rate doesn't reflect the entire cost of the mortgage. The amount you pay over the life of the loan will also be affected by the length of the term, whether your rate is adjustable or fixed, whether you paid discount points, and what upfront and ongoing fees you incur. One way to compare mortgage costs is to look at the annual percentage rate (APR), which takes into account not only the base interest rate, but also points and other charges. All lenders must follow the same rules when calculating the APR, so it's a good basis for comparison. Your reduced tax savings. If you claim mortgage interest on your tax return, refinancing to a lower rate will mean that you'll have less mortgage interest to deduct. You will still save money overall, but your real savings from refinancing may not be as large as you first believed. Consult a tax advisor who can help you understand the tax implications of refinancing.
A good lender will be able to explain to you your break even point. The break-even point In the end, deciding whether the cost of mortgage refinancing is worth it comes down to a simple question: "How long will it take before I start to save money?" In theory, this is a simple calculation. You start with the amount you will save by lowering your monthly payment. Then you add up all the costs associated with refinancing and divide the total by your monthly savings. This will reveal the number of months it will take to reach the break-even point. For example, let's assume that refinancing would lower your payment from $1,000 to $800 (for a savings of $200 per month) and your prepayment penalty, closing costs and points add up to $5,000. Divide $5,000 by $200 and you'll see that it would take 25 months to realize the savings. In reality, however, your break-even point also depends on other factors, including your tax situation and whether you pay closing costs upfront or add them to the principal of your new mortgage. If you are refinancing and your home has appreciated in value, you may also be able to save by canceling your private mortgage insurance. For a more accurate estimate, use our refinancing calculator. Or consult a financial advisor who is familiar with your tax situation.
http://www.company-mortgage.com
First you should weigh the costs and benefits of mortgage refinancing to determine if you'll come out ahead. Your mortgage may have a 30-year term, but not many homeowners stay with the same loan for that long. In fact, the average American refinances his or her mortgage every four years, according to the Mortgage Bankers Association. That's because paying off your present mortgage and taking out a new one can mean big savings over several years. However, mortgage refinancing comes with a price in the short term, so it's important to consider both the costs and benefits before making your decision.
There are several reasons to consider mortgage refinancing: To obtain a lower fixed rate. If you took out a fixed-rate mortgage several years ago and interest rates have since dropped, refinancing may lower your payments considerably. A $150,000 mortgage with a 30-year term and a rate of 8 percent, for example, carries a monthly payment of $1,100. The same mortgage at 6 percent will have a payment of less than $900 a month. To switch to a fixed rate or an adjustable rate mortgage. Adjustable-rate mortgages (ARMs) offer lower interest rates initially, but some homeowners find the fluctuations stressful. If rates are on the way up, you might consider locking in at a fixed rate and consistent monthly payment. On the other hand, if you want to reduce your monthly payments and are comfortable with the interest rate changes of an ARM, it could save you money to refinance to an ARM. To improve the features of your ARM. Mortgages with adjustable rates have protective caps that limit how much your payments can increase in any given year and over the full term of the loan. You may be dissatisfied with the caps on your current ARM and feel you can negotiate more favorable features if you refinance. To build your home equity faster. If a recent change in your financial situation has made it possible for you increase your monthly payments, you might want to refinance your mortgage with a shorter term. The higher payments will enable you to pay off your home more quickly and to save substantially on long-term interest charges. However, if you are disciplined you can also opt not to refinance and simply pay more towards your principal each month. To reduce your monthly payments. Refinancing for a longer term will lower the amount you have to pay each month. You will end up paying more in interest charges over the life of your loan, but if you're having difficulty making your current payments, this strategy could provide some relief. To turn home equity into cash. You may want to take out a new mortgage with a larger principal, in order to turn some of your home equity into cash for a major expense. This is called cash-out refinancing. The advantage of taking out a loan secured by your home is that you can get a lower rate of interest than you can with an unsecured loan or credit card. However, if the interest rate offered for your refinanced mortgage is higher than your current rate, a home equity loan or line of credit might be a better choice. Is mortgage refinancing right for you? If you're refinancing in order to pay less interest, you won't usually see the savings right away. That's because lenders typically charge fees when you take out a new mortgage, and you may also have to pay a penalty for getting out of your old one. To determine whether refinancing makes financial sense for you, consider these issues: How long you plan to be in your home. If you expect to move in a year or two, you may never realize the potential savings you'd get from refinancing. As a rule of thumb, the longer you plan to stay in your current home, the more sense it makes to refinance. The prepayment penalty on your current mortgage. Many mortgages carry a penalty if you pay them off early. The amount varies, but it is usually a small percentage of the outstanding balance, or several months' worth of interest payments. The costs of the new mortgage. When you take out a new loan, your lender may charge a number of fees including application, appraisal, origination and insurance fees, plus title search, insurance and legal costs that can add up to thousands of dollars. Lenders may also charge discount points, which are paid upfront to secure a lower interest rate. As a guideline, expect fees to eat up any potential savings unless your new interest rate is at least a half a percentage point lower than your current one. The true difference in borrowing costs. When you're considering refinancing, remember that the posted interest rate doesn't reflect the entire cost of the mortgage. The amount you pay over the life of the loan will also be affected by the length of the term, whether your rate is adjustable or fixed, whether you paid discount points, and what upfront and ongoing fees you incur. One way to compare mortgage costs is to look at the annual percentage rate (APR), which takes into account not only the base interest rate, but also points and other charges. All lenders must follow the same rules when calculating the APR, so it's a good basis for comparison. Your reduced tax savings. If you claim mortgage interest on your tax return, refinancing to a lower rate will mean that you'll have less mortgage interest to deduct. You will still save money overall, but your real savings from refinancing may not be as large as you first believed. Consult a tax advisor who can help you understand the tax implications of refinancing.
A good lender will be able to explain to you your break even point. The break-even point In the end, deciding whether the cost of mortgage refinancing is worth it comes down to a simple question: "How long will it take before I start to save money?" In theory, this is a simple calculation. You start with the amount you will save by lowering your monthly payment. Then you add up all the costs associated with refinancing and divide the total by your monthly savings. This will reveal the number of months it will take to reach the break-even point. For example, let's assume that refinancing would lower your payment from $1,000 to $800 (for a savings of $200 per month) and your prepayment penalty, closing costs and points add up to $5,000. Divide $5,000 by $200 and you'll see that it would take 25 months to realize the savings. In reality, however, your break-even point also depends on other factors, including your tax situation and whether you pay closing costs upfront or add them to the principal of your new mortgage. If you are refinancing and your home has appreciated in value, you may also be able to save by canceling your private mortgage insurance. For a more accurate estimate, use our refinancing calculator. Or consult a financial advisor who is familiar with your tax situation.
http://www.company-mortgage.com
2007-09-24
How To Get The Best Home Improvement Loan Possible
by Jon Arnold
Choosing what type of home improvement loan is best for you can be very confusing. There are many types of loans available and each has its own advantages and disadvantages. Here is a brief look at the options.
Probably the most popular type of home improvement loan is the home equity loan. This is a loan secured by the equity you have available in your home. These types of loans come in the form of a loan or a line of credit. The loan has a fixed interest rate, term, and payment. A home equity loan is best suited for people who know just how much they are going to spend and are going to spend it in a relatively short period of time.
The home equity line of credit works more like a credit card. You have a certain amount available and you can use as much or as little of that amount as you choose. You only pay on the amount of the line that you use. There is usually an annual fee associated with a home equity line of credit. This type of home improvement loan is good for people who are not sure of the amount they want to spend or are going to spend the money over a longer period of time.
With both types of home equity loans the rate that you will be given is going to be significantly lower than any other type of loan. These home improvement loans also have great tax advantages. Generally speaking, if you are able to deduct the interest on your first mortgage on your taxes, you should be able to do the same with the interest on your second.
Another type of home improvement loan is the personal loan. This is an unsecured loan, meaning that there is no collateral securing it. It is sometimes referred to as a signature loan. These loans will always come with a higher interest rate than a loan that is secured, since the risk of default to the lender is greater. These also come in a loan and line of credit form. Personal loans do not afford you any tax advantages.
You can also look into what is known specifically as a home improvement loan. These are typically unsecured loans that are designated specifically for home improvements. Sometimes, however, these loans will be secured by the home itself. They normally have a higher interest rate than a home equity loan.
Another option is to roll your home improvement costs into your first mortgage and completely refinance your home. You will get the lowest overall rate and have the advantages of only one payment You should consider whether or not you have a prepayment penalty on your current mortgage and whether the new loan will be a higher or lower rate overall. If you have enough equity in your home, this could be something to consider for many reasons, including the tax advantages.
These are just some of the considerations that you should make when searching for the right home improvement loan. Think about what kind of payment you can afford and when all of the money will be spent. Choosing a loan with tax advantages is going to be the smartest way to go, but the other options may work great in your situation.
www.personalloantips.com
Choosing what type of home improvement loan is best for you can be very confusing. There are many types of loans available and each has its own advantages and disadvantages. Here is a brief look at the options.
Probably the most popular type of home improvement loan is the home equity loan. This is a loan secured by the equity you have available in your home. These types of loans come in the form of a loan or a line of credit. The loan has a fixed interest rate, term, and payment. A home equity loan is best suited for people who know just how much they are going to spend and are going to spend it in a relatively short period of time.
The home equity line of credit works more like a credit card. You have a certain amount available and you can use as much or as little of that amount as you choose. You only pay on the amount of the line that you use. There is usually an annual fee associated with a home equity line of credit. This type of home improvement loan is good for people who are not sure of the amount they want to spend or are going to spend the money over a longer period of time.
With both types of home equity loans the rate that you will be given is going to be significantly lower than any other type of loan. These home improvement loans also have great tax advantages. Generally speaking, if you are able to deduct the interest on your first mortgage on your taxes, you should be able to do the same with the interest on your second.
Another type of home improvement loan is the personal loan. This is an unsecured loan, meaning that there is no collateral securing it. It is sometimes referred to as a signature loan. These loans will always come with a higher interest rate than a loan that is secured, since the risk of default to the lender is greater. These also come in a loan and line of credit form. Personal loans do not afford you any tax advantages.
You can also look into what is known specifically as a home improvement loan. These are typically unsecured loans that are designated specifically for home improvements. Sometimes, however, these loans will be secured by the home itself. They normally have a higher interest rate than a home equity loan.
Another option is to roll your home improvement costs into your first mortgage and completely refinance your home. You will get the lowest overall rate and have the advantages of only one payment You should consider whether or not you have a prepayment penalty on your current mortgage and whether the new loan will be a higher or lower rate overall. If you have enough equity in your home, this could be something to consider for many reasons, including the tax advantages.
These are just some of the considerations that you should make when searching for the right home improvement loan. Think about what kind of payment you can afford and when all of the money will be spent. Choosing a loan with tax advantages is going to be the smartest way to go, but the other options may work great in your situation.
www.personalloantips.com
2007-09-23
Real Estate Financing - Tips For New Or Not-So-New Home Buyers
by Helen Hecker
This year alone, Americans are expected to borrow about $1.33 trillion in acquiring 7.4 million houses, condominiums and co-ops. Real estate financing has its secrets and you'll gradually learn them by continuing to research everything you can find online and offline about home mortgages, mortgage loans, commercial mortgages or investment mortgages, current interest rates and get quotes when you can too. Before you apply for any real estate financing, if you have a lot of bad credit because of consumer debt for credit cards or personal loans, you'll want to try to eliminate or reduce this debt. It may affect your ability to qualify for a home mortgage and make the estimated monthly payment.
An adjustable rate mortgage may be a good choice if the market is good or appears to be good for a few years, because on the average, most people move or refinance within seven years. But interest rates can go up if a rosy picture is painted that the economy is flourishing - like more jobs being available. This can lead to inflation, which will send the interest rates up. Finding the best loan program for your needs depends on a number of factors, including: how long you think you'll stay in the home, how much money you have to put down, how you'll finance the closing costs.
When financing real estate it's important to know that a low FICO credit score does not always mean you won't qualify for a home loan or home mortgage. 30-year fixed-rate mortgages offer consistent monthly payments for all of the 30 years you have the mortgage and if the market is good, you can benefit from locking in a lower rate for the full term of the loan. If you're having a problem getting a home mortgage and the seller still owes money on the home, you can check with your lender and see if you can get a wraparound mortgage. Although it's not legal in all states, it will allow you to pay the monthly payment on the existing mortgage and an additional payment to pay the difference, but make sure that a wraparound mortgage will not trigger a due-on-sale clause.
An adjustable-rate mortgage (called ARM) means that the interest rate changes over the life of the loan, according to terms that are specified ahead of time. If you're having a problem getting a loan or home mortgage why not consider a lease-option on a property. A lease-option on the real property will allow you to set a good purchase price now, and then apply a portion of the rent each month toward your down payment, building up equity in the process.
Borrowers can submit information to the lender about income, assets and equity to determine how much a down payment should be, which is usually processed through an automated underwriting system.
And keep in mind that adjustable rate mortgages are best for homeowners who aren't planning on staying with a property for a long time. A fixed-rate mortgage means the interest rate and principal payments remain the same for the life of the loan but the taxes will probably change. People usually are not aware that they may be able to customize their loans. Just ask the mortgage broker or lender if this is possible. Although lenders advertise 15-year loans and 30-year fixed rate mortgages, applicants can ask for 20 years, 25 years or any other number of years that may be more suitable. This may allow borrowers to build up equity faster but keep their monthly payments affordable.
The 30-year loan could be your best choice if you're looking for a long-term stable loan, for instance, if you're planning to stay in your house for a long time. Some lenders may impose limits on how much of your down payment can come from money borrowed from other sources. The disadvantages of a fixed-rate mortgage compared to an adjustable rate mortgage include a possibly higher cost. These loans are almost always priced higher than an adjustable-rate mortgage.
A range of mortgage options are available. Some home loans require little money down. And if you're on a fixed income, an adjustable rate mortgage, especially a short-term ARM, may not be your best choice.
Also keep in mind that low credit scores do not mean you cannot buy a home or other real property. Continue to explore the options and you'll come up with the best real estate financing. And thinking positive about real estate financing is important but so is being realistic. Make sure you can make the mortgage payments for a reasonable length of time to build up plenty of equity, so if you do get sick or lose your job you can easily sell your house or any other real property before you get into a foreclosure situation; try to plan ahead.
http://www.Real-Estate-Financing-Tips.com
This year alone, Americans are expected to borrow about $1.33 trillion in acquiring 7.4 million houses, condominiums and co-ops. Real estate financing has its secrets and you'll gradually learn them by continuing to research everything you can find online and offline about home mortgages, mortgage loans, commercial mortgages or investment mortgages, current interest rates and get quotes when you can too. Before you apply for any real estate financing, if you have a lot of bad credit because of consumer debt for credit cards or personal loans, you'll want to try to eliminate or reduce this debt. It may affect your ability to qualify for a home mortgage and make the estimated monthly payment.
An adjustable rate mortgage may be a good choice if the market is good or appears to be good for a few years, because on the average, most people move or refinance within seven years. But interest rates can go up if a rosy picture is painted that the economy is flourishing - like more jobs being available. This can lead to inflation, which will send the interest rates up. Finding the best loan program for your needs depends on a number of factors, including: how long you think you'll stay in the home, how much money you have to put down, how you'll finance the closing costs.
When financing real estate it's important to know that a low FICO credit score does not always mean you won't qualify for a home loan or home mortgage. 30-year fixed-rate mortgages offer consistent monthly payments for all of the 30 years you have the mortgage and if the market is good, you can benefit from locking in a lower rate for the full term of the loan. If you're having a problem getting a home mortgage and the seller still owes money on the home, you can check with your lender and see if you can get a wraparound mortgage. Although it's not legal in all states, it will allow you to pay the monthly payment on the existing mortgage and an additional payment to pay the difference, but make sure that a wraparound mortgage will not trigger a due-on-sale clause.
An adjustable-rate mortgage (called ARM) means that the interest rate changes over the life of the loan, according to terms that are specified ahead of time. If you're having a problem getting a loan or home mortgage why not consider a lease-option on a property. A lease-option on the real property will allow you to set a good purchase price now, and then apply a portion of the rent each month toward your down payment, building up equity in the process.
Borrowers can submit information to the lender about income, assets and equity to determine how much a down payment should be, which is usually processed through an automated underwriting system.
And keep in mind that adjustable rate mortgages are best for homeowners who aren't planning on staying with a property for a long time. A fixed-rate mortgage means the interest rate and principal payments remain the same for the life of the loan but the taxes will probably change. People usually are not aware that they may be able to customize their loans. Just ask the mortgage broker or lender if this is possible. Although lenders advertise 15-year loans and 30-year fixed rate mortgages, applicants can ask for 20 years, 25 years or any other number of years that may be more suitable. This may allow borrowers to build up equity faster but keep their monthly payments affordable.
The 30-year loan could be your best choice if you're looking for a long-term stable loan, for instance, if you're planning to stay in your house for a long time. Some lenders may impose limits on how much of your down payment can come from money borrowed from other sources. The disadvantages of a fixed-rate mortgage compared to an adjustable rate mortgage include a possibly higher cost. These loans are almost always priced higher than an adjustable-rate mortgage.
A range of mortgage options are available. Some home loans require little money down. And if you're on a fixed income, an adjustable rate mortgage, especially a short-term ARM, may not be your best choice.
Also keep in mind that low credit scores do not mean you cannot buy a home or other real property. Continue to explore the options and you'll come up with the best real estate financing. And thinking positive about real estate financing is important but so is being realistic. Make sure you can make the mortgage payments for a reasonable length of time to build up plenty of equity, so if you do get sick or lose your job you can easily sell your house or any other real property before you get into a foreclosure situation; try to plan ahead.
http://www.Real-Estate-Financing-Tips.com
2007-09-21
Home Refinancing - What you Should Know
Terry Edwards
If you own a home and are drowning in credit card or medical bills, home refinance may be a good idea for you. Maybe your home needs some repairs or upgrades and you don't have the cash. Consider a home refinance to get the cash that you need to improve your home. Read on and discover why refinancing your home may be the answer to your cash flow problems.
First of all, examine what type of home loan you currently have. Do you have a fixed rate or an adjustable rate mortgage? If you have an adjustable rate mortgage, it would probably be a good idea to refinance with a fixed rate mortgage. The market is very volatile right now and you really don't know what is going to happen with adjustable rate mortgages.
The next decision you have to make is how long you want the term of your home refinance loan to be. This is where you need to examine your budget and run the numbers to see if you can swing a mortgage payment on a 15 year loan or if you will have to go 30 years to be able to make the payment.
Obviously the faster you are able to pay off your mortgage the less you will pay in interest. But be careful and don't lock yourself into a monthly payment that is going to be difficult to make. You don't want to refinance your home and then risk losing it to foreclosure.
Once you have decided on the type and length of your refinance loan, don't forget to take a close look at your interest rate. You want to make sure that the interest rate on your home refinance is lower than the original mortgage loan. If it's higher don't commit to this loan. You are trying to put yourself in a better position, not get yourself deeper into debt.
Do some shopping around. Find a company that is reputable and willing to give you a great home refinance loan at a great interest rate. But beware of predatory lenders. These types of lenders will promise you a great deal, but when it comes down to it, they will pull the rug out from under you.
Predatory lenders will not give you a good interest rate based on your credit, they will loan you money based on the equity of your home and not your ability to pay and they will add excessive fees and roll them into the loan, increasing the amount that you owe. Many people who have been the victims of predatory lending have lost their homes to foreclosure.
The most important thing to remember is if you refinance your home to get cash to pay off those high interest bills, do it. Don't use the cash for something else. The goal is to take care of the bills that are draining you dry and to have extra money left over at the end of the month. Don't give into the temptation to use the money for something frivolous.
http://www.articlesbase.com/mortgage-articles/home-refinancing-what-you-should-know-212080.html
If you own a home and are drowning in credit card or medical bills, home refinance may be a good idea for you. Maybe your home needs some repairs or upgrades and you don't have the cash. Consider a home refinance to get the cash that you need to improve your home. Read on and discover why refinancing your home may be the answer to your cash flow problems.
First of all, examine what type of home loan you currently have. Do you have a fixed rate or an adjustable rate mortgage? If you have an adjustable rate mortgage, it would probably be a good idea to refinance with a fixed rate mortgage. The market is very volatile right now and you really don't know what is going to happen with adjustable rate mortgages.
The next decision you have to make is how long you want the term of your home refinance loan to be. This is where you need to examine your budget and run the numbers to see if you can swing a mortgage payment on a 15 year loan or if you will have to go 30 years to be able to make the payment.
Obviously the faster you are able to pay off your mortgage the less you will pay in interest. But be careful and don't lock yourself into a monthly payment that is going to be difficult to make. You don't want to refinance your home and then risk losing it to foreclosure.
Once you have decided on the type and length of your refinance loan, don't forget to take a close look at your interest rate. You want to make sure that the interest rate on your home refinance is lower than the original mortgage loan. If it's higher don't commit to this loan. You are trying to put yourself in a better position, not get yourself deeper into debt.
Do some shopping around. Find a company that is reputable and willing to give you a great home refinance loan at a great interest rate. But beware of predatory lenders. These types of lenders will promise you a great deal, but when it comes down to it, they will pull the rug out from under you.
Predatory lenders will not give you a good interest rate based on your credit, they will loan you money based on the equity of your home and not your ability to pay and they will add excessive fees and roll them into the loan, increasing the amount that you owe. Many people who have been the victims of predatory lending have lost their homes to foreclosure.
The most important thing to remember is if you refinance your home to get cash to pay off those high interest bills, do it. Don't use the cash for something else. The goal is to take care of the bills that are draining you dry and to have extra money left over at the end of the month. Don't give into the temptation to use the money for something frivolous.
http://www.articlesbase.com/mortgage-articles/home-refinancing-what-you-should-know-212080.html
2007-09-20
Home Equity Loans - Tips To Get Out Of Debt
by Terry Edwards
Home equity loans can be an excellent source of funds when used wisely. One of the ways in using the cash from a home equity loan is to consolidate your debts.
Why is it wise to consolidate your debt with the money from your home equity? There are several good reasons which include:
-Paying a much lower interest rate than you pay on your credit cards. In some cases it can be a third of what a credit card company is charging.
-You can most likely deduct the interest expense on your home equity loan whereas you can not on credit cards. This is a huge benefit.
-All your debts are consolidated into one monthly loan payment.
So, what are your options when it comes to using your home equity to pay off your debts? Again, you have choices you can take advantage of including:
Home Equity Loan
Also known as a second mortgage, you can take the equity in your home and borrow against it at a favorable rate of interest. You get the cash in one lump sum and can then pay off your debts or use it how you wish.
Home Equity Line Of Credit
Similar in nature to a credit card, HELOC allows you to draw funds from your home equity and only make payments on that amount, not on an entire loan.
Cash-Out Refinance
This is the third option you have and involves refinancing your existing home mortgage. You would refinance the new mortgage at a greater amount and take the extra money in cash. For example, you want to pay off $25,000 in credit card debt and owe $150,000 on your current mortgage. You could do a cash-out refinance to a new loan amount of $175,000.
Using your home equity to pay off high interest debts can be a wise decision if done right. Just be careful to not start using those credit cards again.
www.HomeEquityLoansA-z.com
Home equity loans can be an excellent source of funds when used wisely. One of the ways in using the cash from a home equity loan is to consolidate your debts.
Why is it wise to consolidate your debt with the money from your home equity? There are several good reasons which include:
-Paying a much lower interest rate than you pay on your credit cards. In some cases it can be a third of what a credit card company is charging.
-You can most likely deduct the interest expense on your home equity loan whereas you can not on credit cards. This is a huge benefit.
-All your debts are consolidated into one monthly loan payment.
So, what are your options when it comes to using your home equity to pay off your debts? Again, you have choices you can take advantage of including:
Home Equity Loan
Also known as a second mortgage, you can take the equity in your home and borrow against it at a favorable rate of interest. You get the cash in one lump sum and can then pay off your debts or use it how you wish.
Home Equity Line Of Credit
Similar in nature to a credit card, HELOC allows you to draw funds from your home equity and only make payments on that amount, not on an entire loan.
Cash-Out Refinance
This is the third option you have and involves refinancing your existing home mortgage. You would refinance the new mortgage at a greater amount and take the extra money in cash. For example, you want to pay off $25,000 in credit card debt and owe $150,000 on your current mortgage. You could do a cash-out refinance to a new loan amount of $175,000.
Using your home equity to pay off high interest debts can be a wise decision if done right. Just be careful to not start using those credit cards again.
www.HomeEquityLoansA-z.com
2007-09-19
Online All The Time With California Home Loan Mortgage Refinancing?
by Rony Walker
Yes, getting a home loan mortgage refinancing in California is quick and convenient and can safeguard your present investments. Bet you want to know more now, don't you? Read on.
Welcome to sunny California
Everybody loves California and relocating to the place is just as easy. Getting a California home loan mortgage refinancing is convenient too. A home purchase on loan mortgage refinancing will not require origination points. There are no hidden costs and everything will be charged up front. In addition, your loan is confidential, so there's no need to keep looking over your shoulder.
For your dream California home, loan mortgage refinancing companies will give you their decision immediately. No more twiddling your thumbs, waiting and hoping. They provide personal service. You can even track your loan anytime online right in the comfort of your own home, whether you're in Kansas or Timbuktu.
Homeowners burdened with current debts find California home loan mortgage refinancing the best solution to their financial problems. They can get quick loan mortgage refinancing online. They can compare rates and calculate the savings they're potentially earning if they consolidate their loans and save their homes from repossession.
Smarter moves in refinancing
California home loan mortgage refinancing companies have broken from the mold of traditional loan programs. They have come up with loan packages to suit changing needs. One of the best deals offered by the mortgage refinancing companies is slashing 30% off from your mortgage payments.
Another advantage offered is the Adjustable Rate Mortgage, also known as ARM. With ARM, you can have lower payments compared to the conventional loan programs. Homeowners opting for the fixed rate mortgage can have interest-only mortgage with a fixed rate. The 5-year ARM offers an interest-only payment for the first 10 years. This will be a fixed rate. After the period, the payments on the principal and interest are due and adjusted every six months. The 10-year interest-only loan is a fixed mortgage that will run for 30 years. Similar to the 5-year ARM, the interest payments will be paid during the first 10 years. The interest and the principal are subsequently collected. For the 30-year mortgage at a fixed rate, the borrower will make equal installments for 360 months - including principal and interest. Depending on the type of loan you may be paying $1,200 to $1,500 a month for the predetermined period of years.
California home loan mortgage refinancing companies also specialize on debt consolidation and their loan programs pay off high interest debts. When shopping for a California home loan mortgage refinancing online, use the refinance calculator to do the math. Calculate the monthly installment, the entire amount of interest paid, the total amount paid, and the cost of points for your type of loan. If you need more clarification on the different loans, talk to the refinance experts.
Making the decision for home loan mortgage refinancing
If the California home loan mortgage refinancing companies can lower your monthly bills from your current loan, then go for it. Why pay more when you can get the same benefits from loan mortgage refinancing? But look closely at the bills you will be paying in later years and check out if you will indeed have a better deal for a home loan mortgage refinancing. After all, you just can't be too careful with your finances.
http://www.whataboutloans.com/state/mortgage/california.html
Yes, getting a home loan mortgage refinancing in California is quick and convenient and can safeguard your present investments. Bet you want to know more now, don't you? Read on.
Welcome to sunny California
Everybody loves California and relocating to the place is just as easy. Getting a California home loan mortgage refinancing is convenient too. A home purchase on loan mortgage refinancing will not require origination points. There are no hidden costs and everything will be charged up front. In addition, your loan is confidential, so there's no need to keep looking over your shoulder.
For your dream California home, loan mortgage refinancing companies will give you their decision immediately. No more twiddling your thumbs, waiting and hoping. They provide personal service. You can even track your loan anytime online right in the comfort of your own home, whether you're in Kansas or Timbuktu.
Homeowners burdened with current debts find California home loan mortgage refinancing the best solution to their financial problems. They can get quick loan mortgage refinancing online. They can compare rates and calculate the savings they're potentially earning if they consolidate their loans and save their homes from repossession.
Smarter moves in refinancing
California home loan mortgage refinancing companies have broken from the mold of traditional loan programs. They have come up with loan packages to suit changing needs. One of the best deals offered by the mortgage refinancing companies is slashing 30% off from your mortgage payments.
Another advantage offered is the Adjustable Rate Mortgage, also known as ARM. With ARM, you can have lower payments compared to the conventional loan programs. Homeowners opting for the fixed rate mortgage can have interest-only mortgage with a fixed rate. The 5-year ARM offers an interest-only payment for the first 10 years. This will be a fixed rate. After the period, the payments on the principal and interest are due and adjusted every six months. The 10-year interest-only loan is a fixed mortgage that will run for 30 years. Similar to the 5-year ARM, the interest payments will be paid during the first 10 years. The interest and the principal are subsequently collected. For the 30-year mortgage at a fixed rate, the borrower will make equal installments for 360 months - including principal and interest. Depending on the type of loan you may be paying $1,200 to $1,500 a month for the predetermined period of years.
California home loan mortgage refinancing companies also specialize on debt consolidation and their loan programs pay off high interest debts. When shopping for a California home loan mortgage refinancing online, use the refinance calculator to do the math. Calculate the monthly installment, the entire amount of interest paid, the total amount paid, and the cost of points for your type of loan. If you need more clarification on the different loans, talk to the refinance experts.
Making the decision for home loan mortgage refinancing
If the California home loan mortgage refinancing companies can lower your monthly bills from your current loan, then go for it. Why pay more when you can get the same benefits from loan mortgage refinancing? But look closely at the bills you will be paying in later years and check out if you will indeed have a better deal for a home loan mortgage refinancing. After all, you just can't be too careful with your finances.
http://www.whataboutloans.com/state/mortgage/california.html
2007-09-18
Easy Home Mortgage Refinancing - eliminate high mortgage payments smoothly
by John Marshall
You should not be paying those high interest rate installments involving high payments each month on your existing home mortgage as you have the option of switching mortgage easily. An Easy Home Mortgage Refinancing means you get rid of high rate current home mortgage and thus you are relieved of the burden.
Home mortgage refinancing replaces your existing mortgage with a new mortgage which comes at lower rate of interest. Thus you are no longer making high payments towards mortgage and so you save lots of money. But it is not just lower interest rate that you opt for home mortgage refinancing. The reasons for mortgage refinancing vary from borrower to borrower.
Apart from seeking lower interest rate, one reason for home mortgage refinancing may be that you want to release equity up in your home. You surely get extra cash from the refinancing which can be used for any purpose like home improvements or paying off debts. You also can use home mortgage refinancing for lowering your monthly outgo towards the loan installments. For instance, you may have repayment duration of 30 years and want to shorten it for early clearing of the mortgage burden. You can avail home mortgage refinancing of a shorter duration. This way you get rid of your mortgage payments soon.
But when should you opt for home mortgage refinancing? The best time to do so is when current market interest rates have dropped at least two percentage points than the rate on your existing mortgage. Also you should opt when your credit score has improved so that you can have a mortgage refinancing at lower rate of interest.
While searching for home mortgage refinancing, look for the lender who is ready to refinance your home mortgage at lower interest rate. And make sure that your personal circumstances like bad credit is well taken into account by the lender. You should also be clear in your aim behind taking home mortgage refinancing so that you can find a suitable lender easily.
www.easyhomemortgagerefinancing.com/
You should not be paying those high interest rate installments involving high payments each month on your existing home mortgage as you have the option of switching mortgage easily. An Easy Home Mortgage Refinancing means you get rid of high rate current home mortgage and thus you are relieved of the burden.
Home mortgage refinancing replaces your existing mortgage with a new mortgage which comes at lower rate of interest. Thus you are no longer making high payments towards mortgage and so you save lots of money. But it is not just lower interest rate that you opt for home mortgage refinancing. The reasons for mortgage refinancing vary from borrower to borrower.
Apart from seeking lower interest rate, one reason for home mortgage refinancing may be that you want to release equity up in your home. You surely get extra cash from the refinancing which can be used for any purpose like home improvements or paying off debts. You also can use home mortgage refinancing for lowering your monthly outgo towards the loan installments. For instance, you may have repayment duration of 30 years and want to shorten it for early clearing of the mortgage burden. You can avail home mortgage refinancing of a shorter duration. This way you get rid of your mortgage payments soon.
But when should you opt for home mortgage refinancing? The best time to do so is when current market interest rates have dropped at least two percentage points than the rate on your existing mortgage. Also you should opt when your credit score has improved so that you can have a mortgage refinancing at lower rate of interest.
While searching for home mortgage refinancing, look for the lender who is ready to refinance your home mortgage at lower interest rate. And make sure that your personal circumstances like bad credit is well taken into account by the lender. You should also be clear in your aim behind taking home mortgage refinancing so that you can find a suitable lender easily.
www.easyhomemortgagerefinancing.com/
2007-09-17
Choose A Home Based Business - How To Protect Yourself
by Brian McCoy
To have the greatest success while working from home, it is imperative that you choose a reputable company. You can make a lot of money from home, but you need to take some time and search for just the right company for you.
In this article you will be taught some important tactics you can use to prevent yourself from being ripped off by work from home business opportunities.
Here are simple steps you should follow while investigating each and every company that you are interested in doing business with.
1) Do Your Research On The Company
Take some time to research the company that you are interested in getting involved with. What is the reputation of the founder? What is the longevity of the company? Is the corporate website professionally done? Do some research on the internet by "googling" the company name. While there is usually always something negative about every company available online, how many people have good things to say? A lot can be determined by some good research, if you focus in on the right things.
2) Chat With People In Forums
Search for quality forums about the company that you are interested in and chat with other people working the business. You can also learn a lot by just sitting back and reading what other people are chatting about the company. If the people are not having success and earning money, then that is likely to show through.
3) Contact The Person That You Are Planning On Joining
The first thing you should do before purchasing any program is to contact the person that you are wanting to join. They should list their phone number or at least an email address on their website so that you can reach them directly.
If the person that you wish to join with does not respond, then do not sign up with them. Now there are exceptions to this, for example if they are on vacation or have a family emergency. But by and large, if you give them a reasonable amount of time to contact you back and they don't, you do not want to do business with them. A person running a successful business will make sure that they are following up on contacts. If the person that you are wanting to join with does not respond to your attempts at contact, find someone else who is willing to give you the highest customer service that you due.
If they can't make that initial contact, then you can guarantee that they will not contact you once you have paid them the fee to join. Find someone else who is willing to give you some customer service. Finding a trustworthy, quality person to join could be the key to your success.
4) Don't Refinance Your Home For Any Program
Start out small. Purchase the lowest price package available from the company and give it a try first before buying into the highest price package.
Go for the low cost package, check out sponsor's customer service, quality of the product, and find out if it's a good fit for you before going for the most expensive package.
Taking the time to make sure that the company and person that you are joining with are reputable, will save you precious time, money, and a lot of heartache.
www.1StepSystemRiches.com
To have the greatest success while working from home, it is imperative that you choose a reputable company. You can make a lot of money from home, but you need to take some time and search for just the right company for you.
In this article you will be taught some important tactics you can use to prevent yourself from being ripped off by work from home business opportunities.
Here are simple steps you should follow while investigating each and every company that you are interested in doing business with.
1) Do Your Research On The Company
Take some time to research the company that you are interested in getting involved with. What is the reputation of the founder? What is the longevity of the company? Is the corporate website professionally done? Do some research on the internet by "googling" the company name. While there is usually always something negative about every company available online, how many people have good things to say? A lot can be determined by some good research, if you focus in on the right things.
2) Chat With People In Forums
Search for quality forums about the company that you are interested in and chat with other people working the business. You can also learn a lot by just sitting back and reading what other people are chatting about the company. If the people are not having success and earning money, then that is likely to show through.
3) Contact The Person That You Are Planning On Joining
The first thing you should do before purchasing any program is to contact the person that you are wanting to join. They should list their phone number or at least an email address on their website so that you can reach them directly.
If the person that you wish to join with does not respond, then do not sign up with them. Now there are exceptions to this, for example if they are on vacation or have a family emergency. But by and large, if you give them a reasonable amount of time to contact you back and they don't, you do not want to do business with them. A person running a successful business will make sure that they are following up on contacts. If the person that you are wanting to join with does not respond to your attempts at contact, find someone else who is willing to give you the highest customer service that you due.
If they can't make that initial contact, then you can guarantee that they will not contact you once you have paid them the fee to join. Find someone else who is willing to give you some customer service. Finding a trustworthy, quality person to join could be the key to your success.
4) Don't Refinance Your Home For Any Program
Start out small. Purchase the lowest price package available from the company and give it a try first before buying into the highest price package.
Go for the low cost package, check out sponsor's customer service, quality of the product, and find out if it's a good fit for you before going for the most expensive package.
Taking the time to make sure that the company and person that you are joining with are reputable, will save you precious time, money, and a lot of heartache.
www.1StepSystemRiches.com
California Refinance Mortgage
California Refinance Mortgage by http://www.iloanresource.com, helps you to pay off either the first or second mortgage taken on your property. Mortgage refinancing would reduce your EMI substantially. You can avail mortgage refinancing for an existing property, even your property is secured for some mortgages already.
A Refinance mortgage would help you if have taken a mortgage loan and unable to pay the monthly installments. Refinance mortgage loans are short- term loans, which are of significantly lower rates of interest and EMI, as compared to that of traditional mortgage loans. Refinance loans would also help you to release your property, which is being held as collateral, in order to give your property for rent or lease. Since there are different types of loans available in California Refinance Mortgage market, http://www.iloanresource.com, would be able to help you to decide upon the best interest rates and refinancing options suitable for you in California.
Despite the recent slow down in the US housing market, real estate prices have risen significantly over the recent years, which led to an increase in potential savings through mortgage refinancing. California refinance mortgage has become easier, since equity ratio has increased. Lenders in California tend to offer low rates for mortgage refinancing, given the larger home equity base. This would help you to consolidate your high-interest debt, finance your education or renovate your home. You can also use mortgage refinancing as one of the means of tax reduction.
Lenders across the California Refinance Mortgage market are competing with each other to get mortgage refinancing business from you. You need to consider some important aspects before closing in on a home mortgage program. They are:
· If you are going for mortgage refinancing primarily to reduce your interest rates and monthly payments, you may opt for a low fixed-rate mortgage loan. However, if you intend to move from your house within the next five years, an Adjustable Rate Mortgage (ARM) with low initial rate would be suitable for you. · If you are opting for mortgage refinancing to cash out your home equity, you may go for a California refinance loan. You can do this without increasing your monthly payment. · You can also consolidate your high-interest debts, such as credit cards, car loans or student loans, by cashing out your home equity through mortgage refinancing.
In California refinance mortgage market online lenders offer you free quotes and would help you in finding the best rates possible option. http://www.iloanresource.com is one of the best online destinations, where you can get expert guidance on getting better mortgage refinancing options in California.
A Refinance mortgage would help you if have taken a mortgage loan and unable to pay the monthly installments. Refinance mortgage loans are short- term loans, which are of significantly lower rates of interest and EMI, as compared to that of traditional mortgage loans. Refinance loans would also help you to release your property, which is being held as collateral, in order to give your property for rent or lease. Since there are different types of loans available in California Refinance Mortgage market, http://www.iloanresource.com, would be able to help you to decide upon the best interest rates and refinancing options suitable for you in California.
Despite the recent slow down in the US housing market, real estate prices have risen significantly over the recent years, which led to an increase in potential savings through mortgage refinancing. California refinance mortgage has become easier, since equity ratio has increased. Lenders in California tend to offer low rates for mortgage refinancing, given the larger home equity base. This would help you to consolidate your high-interest debt, finance your education or renovate your home. You can also use mortgage refinancing as one of the means of tax reduction.
Lenders across the California Refinance Mortgage market are competing with each other to get mortgage refinancing business from you. You need to consider some important aspects before closing in on a home mortgage program. They are:
· If you are going for mortgage refinancing primarily to reduce your interest rates and monthly payments, you may opt for a low fixed-rate mortgage loan. However, if you intend to move from your house within the next five years, an Adjustable Rate Mortgage (ARM) with low initial rate would be suitable for you. · If you are opting for mortgage refinancing to cash out your home equity, you may go for a California refinance loan. You can do this without increasing your monthly payment. · You can also consolidate your high-interest debts, such as credit cards, car loans or student loans, by cashing out your home equity through mortgage refinancing.
In California refinance mortgage market online lenders offer you free quotes and would help you in finding the best rates possible option. http://www.iloanresource.com is one of the best online destinations, where you can get expert guidance on getting better mortgage refinancing options in California.
2007-09-16
Home Financing: How to Find the Best Deals
by Nathalie Fiset M.D.
When it is about time to take the idea of buying a house through home financing seriously, you surely would want to get everything right and make sure that you are able to find the best deal without going through difficulties. But how would you do it?
Here's how...
Shop around. Do not settle with the first financial institution you come across.
There are lots of financial institutions you can apply from. Each promising unique deals that will surely attract you - each, promising a deal that perfectly works for you. If you do not know what you are doing, you will be easily persuaded by the first home financing representative you talk to. Avoid this at all cost, especially if it is very apparent that the deal is going on your best interest. Remember, you are not obliged to make a final arrangement with any financial advisor. What you have to do is to talk to several home financing companies and discuss your plan for home financing. Competition is stiff in this business so companies try to offer competitive deals, including lower interest rates and better terms. If you look around, you will be able to find the best deal.
Remember: there is no such thing as universal home financing term fit for everyone.
You are the only one who knows what type of home financing term fits you. Coordinate with your loan advisor which type of loan is perfect for you. In the end, if choose correctly, the loan you took is the least of your problems.
Do your research.
Borrowing money is not a favor you ask to lenders. Take note that they also profit from you. If you end up taking loan with a wrong company, you may have to suffer severe consequences resulting from hidden charges and missed repayments. Making sure that you find the most reputable lending should be in your high priority list. Compare different lender and identify which among them is the most reputable one. Consider your future plans.
Are you planning to stay at your home for a very long time? Or, are you planning to refinance your home or move out after several year? Do you have enough money to pay for higher mortgage for a shorter period of time?
Home mortgage can be 15- or 30-year fixed rate mortgage or adjustable rate mortgage or ARM. These two have their own pros and cons. To get the best deal, consider your future plans. A fixed rate mortgage will let you plan for the monthly payment of the house better since the amount you pay will not change throughout the loan term. Taking a 30-year fixed rate mortgage will work for you if are planning to stay at the house indefinitely. A 15-year fixed rate mortgage on the other hand is ideal for people who can afford higher mortgage and want to significantly reduce the interest rate they pay.
The adjustable rate mortgage or sometimes called hybrid loan adopts the fixed rate mortgage at the beginning of the loan and will adjust after the fixed rate period expires. For example: the 5/1 loan has a fixed interest rate for the first 5 years. The rate will adjust every year after that. People who plan to move out or refinance the home after several years within the loan period often find ARM effective.
Anticipate the interest rate adjustment.
Getting the best deal also lies on your anticipation on the future interest rate basing on the current trend. During recession, the interest rate can go down which is very advantageous for those who take ARM. Still, taking ARM has a great risk involved. The interest rate can jump by several percent in just one year. But those who take the fixed rate mortgage will enjoy the same amount of mortgage regardless of the jump of interest rate. The point is, you can capitalize on looking at the trend interest rate to get an idea of what type of loan to take.
Finally, negotiate.
We mentioned a while ago that the competition is stiff in this business. Use it as your advantage and negotiate your terms to every lender representative you talked to. Do not get tired of this. Persistence is the key. And before you know it, you have found the best home financing deal that fits you best.
http://www.homefinancingalert.com/index.html
When it is about time to take the idea of buying a house through home financing seriously, you surely would want to get everything right and make sure that you are able to find the best deal without going through difficulties. But how would you do it?
Here's how...
Shop around. Do not settle with the first financial institution you come across.
There are lots of financial institutions you can apply from. Each promising unique deals that will surely attract you - each, promising a deal that perfectly works for you. If you do not know what you are doing, you will be easily persuaded by the first home financing representative you talk to. Avoid this at all cost, especially if it is very apparent that the deal is going on your best interest. Remember, you are not obliged to make a final arrangement with any financial advisor. What you have to do is to talk to several home financing companies and discuss your plan for home financing. Competition is stiff in this business so companies try to offer competitive deals, including lower interest rates and better terms. If you look around, you will be able to find the best deal.
Remember: there is no such thing as universal home financing term fit for everyone.
You are the only one who knows what type of home financing term fits you. Coordinate with your loan advisor which type of loan is perfect for you. In the end, if choose correctly, the loan you took is the least of your problems.
Do your research.
Borrowing money is not a favor you ask to lenders. Take note that they also profit from you. If you end up taking loan with a wrong company, you may have to suffer severe consequences resulting from hidden charges and missed repayments. Making sure that you find the most reputable lending should be in your high priority list. Compare different lender and identify which among them is the most reputable one. Consider your future plans.
Are you planning to stay at your home for a very long time? Or, are you planning to refinance your home or move out after several year? Do you have enough money to pay for higher mortgage for a shorter period of time?
Home mortgage can be 15- or 30-year fixed rate mortgage or adjustable rate mortgage or ARM. These two have their own pros and cons. To get the best deal, consider your future plans. A fixed rate mortgage will let you plan for the monthly payment of the house better since the amount you pay will not change throughout the loan term. Taking a 30-year fixed rate mortgage will work for you if are planning to stay at the house indefinitely. A 15-year fixed rate mortgage on the other hand is ideal for people who can afford higher mortgage and want to significantly reduce the interest rate they pay.
The adjustable rate mortgage or sometimes called hybrid loan adopts the fixed rate mortgage at the beginning of the loan and will adjust after the fixed rate period expires. For example: the 5/1 loan has a fixed interest rate for the first 5 years. The rate will adjust every year after that. People who plan to move out or refinance the home after several years within the loan period often find ARM effective.
Anticipate the interest rate adjustment.
Getting the best deal also lies on your anticipation on the future interest rate basing on the current trend. During recession, the interest rate can go down which is very advantageous for those who take ARM. Still, taking ARM has a great risk involved. The interest rate can jump by several percent in just one year. But those who take the fixed rate mortgage will enjoy the same amount of mortgage regardless of the jump of interest rate. The point is, you can capitalize on looking at the trend interest rate to get an idea of what type of loan to take.
Finally, negotiate.
We mentioned a while ago that the competition is stiff in this business. Use it as your advantage and negotiate your terms to every lender representative you talked to. Do not get tired of this. Persistence is the key. And before you know it, you have found the best home financing deal that fits you best.
http://www.homefinancingalert.com/index.html
What is the Difference Between Refinancing and a Reverse Mortgage
by Barry Waxler
There are several different ways to get monetary payments based on your home's equity - but what is the difference between refinancing and reverse mortgage, two of the most popular?
Refinancing your home, essentially getting a second mortgage, has been a popular option for decades. Homeowners who want to get money in a lump sum, based on the equity of their home (their home's value minus the amount owed on their first mortgage), often choose to refinance. This allows them to get a second loan on their home, and requires that the loan be paid back, along with the original mortgage, or instead of the original mortgage (depending on the terms of your second mortgage).
So, what is the difference between refinancing and reverse mortgage? Reverse mortgages do not require that you take out a second loan on the equity of your home. Instead, you can actually get payments based on that equity, and you are not required to pay back the reverse mortgage until you either pass away or move out of your home for good. These payments (which can also be used as a line of credit, with unscheduled payments) are tax free and can actually be used as income for living.
Another difference with a reverse mortgage is the age requirement. People who apply for a reverse mortgage must be at least 62 years old or older, and payments may be based on this - along with the value of your home and current interest rates. This means that you can't be turned down for a reverse mortgage because of bad credit or your debt to equity ratio. You also can't lose your home if you outlive your loan - as long as you use the home as your residence, you can't be evicted, as you do not owe more than your home is worth.
There are some negative aspects associated with both refinancing and reverse mortgages. The cost of both is high, just in different ways. The interest rate encountered when paying back a second mortgage can be very elevated, costing you a lot of money in the long run. Reverse mortgages can also cost money - fees for the broker when getting your reverse mortgage, as well as interest due from your beneficiaries when you pass on or leave your residence.
What is the difference between refinancing and reverse mortgage? There are several differences, considering the fundamental way they work, so being sure to research and choose the right one for you is key.
http://www.ufcamerica.com/disadvantages-reverse-mortgage
There are several different ways to get monetary payments based on your home's equity - but what is the difference between refinancing and reverse mortgage, two of the most popular?
Refinancing your home, essentially getting a second mortgage, has been a popular option for decades. Homeowners who want to get money in a lump sum, based on the equity of their home (their home's value minus the amount owed on their first mortgage), often choose to refinance. This allows them to get a second loan on their home, and requires that the loan be paid back, along with the original mortgage, or instead of the original mortgage (depending on the terms of your second mortgage).
So, what is the difference between refinancing and reverse mortgage? Reverse mortgages do not require that you take out a second loan on the equity of your home. Instead, you can actually get payments based on that equity, and you are not required to pay back the reverse mortgage until you either pass away or move out of your home for good. These payments (which can also be used as a line of credit, with unscheduled payments) are tax free and can actually be used as income for living.
Another difference with a reverse mortgage is the age requirement. People who apply for a reverse mortgage must be at least 62 years old or older, and payments may be based on this - along with the value of your home and current interest rates. This means that you can't be turned down for a reverse mortgage because of bad credit or your debt to equity ratio. You also can't lose your home if you outlive your loan - as long as you use the home as your residence, you can't be evicted, as you do not owe more than your home is worth.
There are some negative aspects associated with both refinancing and reverse mortgages. The cost of both is high, just in different ways. The interest rate encountered when paying back a second mortgage can be very elevated, costing you a lot of money in the long run. Reverse mortgages can also cost money - fees for the broker when getting your reverse mortgage, as well as interest due from your beneficiaries when you pass on or leave your residence.
What is the difference between refinancing and reverse mortgage? There are several differences, considering the fundamental way they work, so being sure to research and choose the right one for you is key.
http://www.ufcamerica.com/disadvantages-reverse-mortgage
2007-09-15
Home Refinancing Q & a
Terry Edwards
Are you trying to figure out if home refinancing is right for you? Here are some of the most common questions people have when it comes to refinancing a home mortgage.
Q. I have an adjustable rate mortgage. Should I refinance to a fixed rate mortgage now?
A. The answer is yes in nearly all cases unless you plan on moving in the next 1-3 years. If you currently have an ARM and you know it's going to go up (which in today's market it most likely is) then you should definitely be looking for a fixed rate mortgage.
Q. How do I know if I should refinance my loan?
A. This is different for everyone, but generally, you should ask yourself:
-How long do I plan to live in my home?
-How much lower of a rate can I get?
-Will the lower payments make up the costs involved in doing a refinance?
By knowing the answers, you can then better determine whether you should refinance your home loan or not.
Q. Is paying points for a lower APR a smart strategy?
A. In most cases the answer is no in refinancing. While it is true you can deduct the points paid on your income taxes, it is only throughout the life of the loan. So it can easily be years down the road before the monetary gains of a lower APR offset the cost of the points.
Q. How long will it take for a home refinance loan to close?
A. Depending upon whether your home will need a new appraisal, you will be looking at 3-4 weeks in most cases. If appraisers are backed up with work, then it could be longer. Unfortunately, you can be at their mercy when there is a glut of refinancing going on.
Q. What about those "no closing costs" loans?
A. As with most everything in life, there is no free lunch so to speak. Keep in mind that the no closing costs loans may actually come with a higher interest rate or even have extra fees put into the total amount of the loan. You really need to watch the fine print and do your due diligence here.
http://www.articlesbase.com/mortgage-articles/home-refinancing-q-a-214513.html
Are you trying to figure out if home refinancing is right for you? Here are some of the most common questions people have when it comes to refinancing a home mortgage.
Q. I have an adjustable rate mortgage. Should I refinance to a fixed rate mortgage now?
A. The answer is yes in nearly all cases unless you plan on moving in the next 1-3 years. If you currently have an ARM and you know it's going to go up (which in today's market it most likely is) then you should definitely be looking for a fixed rate mortgage.
Q. How do I know if I should refinance my loan?
A. This is different for everyone, but generally, you should ask yourself:
-How long do I plan to live in my home?
-How much lower of a rate can I get?
-Will the lower payments make up the costs involved in doing a refinance?
By knowing the answers, you can then better determine whether you should refinance your home loan or not.
Q. Is paying points for a lower APR a smart strategy?
A. In most cases the answer is no in refinancing. While it is true you can deduct the points paid on your income taxes, it is only throughout the life of the loan. So it can easily be years down the road before the monetary gains of a lower APR offset the cost of the points.
Q. How long will it take for a home refinance loan to close?
A. Depending upon whether your home will need a new appraisal, you will be looking at 3-4 weeks in most cases. If appraisers are backed up with work, then it could be longer. Unfortunately, you can be at their mercy when there is a glut of refinancing going on.
Q. What about those "no closing costs" loans?
A. As with most everything in life, there is no free lunch so to speak. Keep in mind that the no closing costs loans may actually come with a higher interest rate or even have extra fees put into the total amount of the loan. You really need to watch the fine print and do your due diligence here.
http://www.articlesbase.com/mortgage-articles/home-refinancing-q-a-214513.html
2007-09-14
Mortgage Refinancing - Things To Bear In Mind
by Allison Thompson
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.
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.
However before or as you are carrying out your search for the best possible loan deal you need to work out just how much it is you can afford to pay each month. Remember you need to be able to pay back the loan you have taken out comfortably for the next 15 years. If you can not then not only will you find that you are putting all the other financial obligations at risk so take time and consider everything before making the final decision.
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://allstaterefinance.com/
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.
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.
However before or as you are carrying out your search for the best possible loan deal you need to work out just how much it is you can afford to pay each month. Remember you need to be able to pay back the loan you have taken out comfortably for the next 15 years. If you can not then not only will you find that you are putting all the other financial obligations at risk so take time and consider everything before making the final decision.
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://allstaterefinance.com/
Home Mortgage Refinance - Sub Prime Market Trends
By Alan Lim
Rising delinquencies, bankruptcies and foreclosures are making home mortgage refinance a less lucrative than before. Are you part of the sub-prime home mortgage refinance scenario? Then it's time to take a good hard look at current trends.
Rising real estate costs
The real estate market has seen a steep rise in the price of houses - with the result that the average home buyer cannot afford to spend such a high sum on owning a new home. Even those persons who are making monthly payments towards the home mortgage refinance are finding it increasingly difficult to cope with rising prices. Interest rates have shot up, further tipping the scales against the homeowner’s favor.
Why the sudden rise?
There are many reasons why interest rates and associated real estate expenses have escalated. For starters, the sub prime market borrowers typically comprise those who have already been rejected as per other more stringent eligibility criteria in the prime market. This means the sub prime home mortgage refinance lenders offer them loans at relatively easier criteria – some of them may even imply lesser documentation and background checks on the borrower. Even those borrowers who have a relatively lower credit score maybe approved under the sub prime market home mortgage refinance lending process.
The real estate segment is hurting
Delinquencies and default patterns are at an all time high. Foreclosure and Real Estate Owned is a common phenomenon these days in the home mortgage refinance scenario. Why this is happening can be predominantly attributed to the re-adjustment in rates. Usually the sub prime home mortgage refinance lenders attract borrowers with a low promotional rate. When this rate shoots up after the promotional stage, it’s a nightmarish situation for borrowers and lenders. The borrower finds it impossible to pay up and the lender finds it virtually impossible to recover the money.
This is also known as predatory lending – it’s quite similar to hunting for a prey by luring with attractive rates of interest. Once the unsuspecting customer has been caught in the web, there’s no escape and the home mortgage refinance lender extract every possible penny from the borrower. What this means from a long term perspective is that investors lose trust in the home mortgage refinance lending company. This can affect the prime market and potentially qualifying borrowers may not qualify in the prime market. This way home sales deteriorate and real estate suffers.
Growing competition
With the recent decline in home sales, most home mortgage refinance lenders are skeptical on future profit margins. They prefer to be less optimistic about the future trends in the sub prime market. However this has not stopped lenders from fiercely competing with each other. In fact, competition has now escalated because in the dwindling home mortgage refinance market, every lender wants to make a quick buck or two.
http://EzineArticles.com/?expert=Alan_Lim
Rising delinquencies, bankruptcies and foreclosures are making home mortgage refinance a less lucrative than before. Are you part of the sub-prime home mortgage refinance scenario? Then it's time to take a good hard look at current trends.
Rising real estate costs
The real estate market has seen a steep rise in the price of houses - with the result that the average home buyer cannot afford to spend such a high sum on owning a new home. Even those persons who are making monthly payments towards the home mortgage refinance are finding it increasingly difficult to cope with rising prices. Interest rates have shot up, further tipping the scales against the homeowner’s favor.
Why the sudden rise?
There are many reasons why interest rates and associated real estate expenses have escalated. For starters, the sub prime market borrowers typically comprise those who have already been rejected as per other more stringent eligibility criteria in the prime market. This means the sub prime home mortgage refinance lenders offer them loans at relatively easier criteria – some of them may even imply lesser documentation and background checks on the borrower. Even those borrowers who have a relatively lower credit score maybe approved under the sub prime market home mortgage refinance lending process.
The real estate segment is hurting
Delinquencies and default patterns are at an all time high. Foreclosure and Real Estate Owned is a common phenomenon these days in the home mortgage refinance scenario. Why this is happening can be predominantly attributed to the re-adjustment in rates. Usually the sub prime home mortgage refinance lenders attract borrowers with a low promotional rate. When this rate shoots up after the promotional stage, it’s a nightmarish situation for borrowers and lenders. The borrower finds it impossible to pay up and the lender finds it virtually impossible to recover the money.
This is also known as predatory lending – it’s quite similar to hunting for a prey by luring with attractive rates of interest. Once the unsuspecting customer has been caught in the web, there’s no escape and the home mortgage refinance lender extract every possible penny from the borrower. What this means from a long term perspective is that investors lose trust in the home mortgage refinance lending company. This can affect the prime market and potentially qualifying borrowers may not qualify in the prime market. This way home sales deteriorate and real estate suffers.
Growing competition
With the recent decline in home sales, most home mortgage refinance lenders are skeptical on future profit margins. They prefer to be less optimistic about the future trends in the sub prime market. However this has not stopped lenders from fiercely competing with each other. In fact, competition has now escalated because in the dwindling home mortgage refinance market, every lender wants to make a quick buck or two.
http://EzineArticles.com/?expert=Alan_Lim
Looking Around When Deciding To Refinance
By Greg Wadel
Many homeowners that are refinancing their home for the first time or even the second time or third time should completely check out all of the available choices to guarantee the best possible interest rate and the terms are secured. Now homeowners are sometimes a little lazy when it comes to refinancing there homes. There may a huge drop in interest rates or a change in the financial situation which requires a refinance. But the homeowner may be aware that a refinance is necessary, the homeowner may not be aware that it sometimes takes a great deal of work to find the best possible interest rates and terms.
Now homeowners are often drawn to refinance with the same lender or bank who gave the first original mortgage loan or with the same lender or bank who took care of there previous refinances. The reason behind this is along the same lines as, if its not broke, leave it alone. These homeowners figure their current mortgage is just fine and they are happy with the current bank or lender so there is no need to check for further options. However, this easy attitude can cost the homeowners alot of money in the long run.
1. You Should Try All the Options, and weigh the Good and the Bad.
Many homeowners who are thinking about refinancing their home should get a hold of many lenders and receive rate quotes from each and every one of them. When getting quotes the homeowners should think about all of their available options but should limit these options to gain a good lender. While a different lender may be giving you great rates and loan terms it is considered high risk to go with this type of bank or lender as opposed to a more well known lender.
Homeowners who wish to further investigate smaller lenders who do not have an established history should proceed with caution. Unless the lender has trusted friends or family members who are willing to vouch for the lender, the homeowner should investigate these smaller lenders carefully. Visiting a website address is not the best way to ensure credibility. Designing a professional looking website is a fairly simple process. Most website designers could design and upload such a website in less than a day.
2. Theres Nothing Wrong With Friendly Competition.
When checking for the most favorable rates, homeowners should make it very well known that they are checking around for rate prices and are not making a decision right away. Lenders that know they have some other competition may be more wiling to offer you a lower interest rate than they would if they did not know or think the homeowner was checking other options. In many cases this may not seem to be fair to the lender, the business of refinancing is a very competitive business. Just like a builder just might offer his most competitive rate if he knows the homeowner has other estimates from a number of different contractors, lenders are probably going to do the same. They also make their money from homeowners and having you refinance your mortgage does not help them out at all financially.
Some banks and lenders may think the homeowner is just playing games and may not give the best rate right off the bat. However, if the homeowner turns down the offer and says they have a much better offer with another bank or lender, the first lender may be willing to offer an even lower interest rate just to see if they can sway you the homeowner. Many times cost is certainly important, it is not the only decision to think about. Some homeowners might refinance with a bank or lender who gives a little higher rates if the homeowner feels as if this bank or lender is more prone to his needs.So a good service can factor into the equation also. You can find some great advice at the site on all types of mortgages and refinancing.
http://EzineArticles.com/?expert=Greg_Wadel
Many homeowners that are refinancing their home for the first time or even the second time or third time should completely check out all of the available choices to guarantee the best possible interest rate and the terms are secured. Now homeowners are sometimes a little lazy when it comes to refinancing there homes. There may a huge drop in interest rates or a change in the financial situation which requires a refinance. But the homeowner may be aware that a refinance is necessary, the homeowner may not be aware that it sometimes takes a great deal of work to find the best possible interest rates and terms.
Now homeowners are often drawn to refinance with the same lender or bank who gave the first original mortgage loan or with the same lender or bank who took care of there previous refinances. The reason behind this is along the same lines as, if its not broke, leave it alone. These homeowners figure their current mortgage is just fine and they are happy with the current bank or lender so there is no need to check for further options. However, this easy attitude can cost the homeowners alot of money in the long run.
1. You Should Try All the Options, and weigh the Good and the Bad.
Many homeowners who are thinking about refinancing their home should get a hold of many lenders and receive rate quotes from each and every one of them. When getting quotes the homeowners should think about all of their available options but should limit these options to gain a good lender. While a different lender may be giving you great rates and loan terms it is considered high risk to go with this type of bank or lender as opposed to a more well known lender.
Homeowners who wish to further investigate smaller lenders who do not have an established history should proceed with caution. Unless the lender has trusted friends or family members who are willing to vouch for the lender, the homeowner should investigate these smaller lenders carefully. Visiting a website address is not the best way to ensure credibility. Designing a professional looking website is a fairly simple process. Most website designers could design and upload such a website in less than a day.
2. Theres Nothing Wrong With Friendly Competition.
When checking for the most favorable rates, homeowners should make it very well known that they are checking around for rate prices and are not making a decision right away. Lenders that know they have some other competition may be more wiling to offer you a lower interest rate than they would if they did not know or think the homeowner was checking other options. In many cases this may not seem to be fair to the lender, the business of refinancing is a very competitive business. Just like a builder just might offer his most competitive rate if he knows the homeowner has other estimates from a number of different contractors, lenders are probably going to do the same. They also make their money from homeowners and having you refinance your mortgage does not help them out at all financially.
Some banks and lenders may think the homeowner is just playing games and may not give the best rate right off the bat. However, if the homeowner turns down the offer and says they have a much better offer with another bank or lender, the first lender may be willing to offer an even lower interest rate just to see if they can sway you the homeowner. Many times cost is certainly important, it is not the only decision to think about. Some homeowners might refinance with a bank or lender who gives a little higher rates if the homeowner feels as if this bank or lender is more prone to his needs.So a good service can factor into the equation also. You can find some great advice at the site on all types of mortgages and refinancing.
http://EzineArticles.com/?expert=Greg_Wadel
2007-09-13
Mortgage Refinance-The Easy Way To Get The Adjustable Rate Monkey Off Your Back
by Albert Alexander
The biggest benefit to refinancing your house is that it allows you to get a lower interest rate resulting in you paying less money per month than you currently do. Mortgage refinance has developed into an exceptionally popular way to go in today's age with the obstacles of home finance.
Mortgage refinance, or home mortgage refinance, works on the fundamental attitude of getting a second loan on the property that substitutes any previous loan on the home. In addition to a lower interest rate, refinancing your house can also be a great way to cut the term of your loan repayment, even while you still lower your mortgage payment. For the majority of people, however, it's merely an approach to help you get back on your feet even as it improves your monthly cash flow.
For someone with an adjustable rate mortgage, the inevitability of a refinance sometime is a fact. Even though refinancing a fixed rate mortgage is usually only recommended in the event that interest rates fall, there is the chance to save money off your current fixed rate too. This can be accomplished because of the better rate or by actually extending your loan terms.
For individuals locked into either an adjustable rate (ARM) or a fixed rate mortgage, rates are nonetheless at relative lows and most homeowners will benefit from a refinance whether it's for the purposes of cash out, debt consolidation or to change from an ARM to fixed rate.
While refinancing doesn't always save you that much money, the opportunity for improved loan terms, and weighing the potential benefits of debt consolidation make it without a doubt worth considering. In addition to the advantages of lower interest rates or shorter loan payoff times, a lot of homeowners use refinancing as a means to use the money to buy a new car or even a second home.
Many of the mortgage refinance rates that you will get, just like your initial home loan, are going to depend upon multiple market factors in addition to your overall credit risk as a borrower. The amount of equity in your home is a top factor. Keep in mind, equity is the difference between the remaining home loan balance and its current market value. So what can of rate is possible?
All of the mortgage providers have access to comparable rates in the market. On account of this, the answer is to work with a provider who has a name you recognize and not a small-time operation. For people who don't necessarily have to refinance to increase cash flow, they have the additional benefit of refinancing to shorten the loan terms from 30 years to 15 years and the ability to build equity in your home at a considerably faster rate.
Refinancing your mortgage can be a financially advantageous move, especially for those who need to go from an ARM to a fixed interest rate. Refinancing your home presents a straightforward approach to cash out or consolidate debts with high interest rates. Though it's not something to be done annually, refinancing your home is one of the most important things you should think about, at least ever few years, experts say.
http://www.loanthemoney.com/
The biggest benefit to refinancing your house is that it allows you to get a lower interest rate resulting in you paying less money per month than you currently do. Mortgage refinance has developed into an exceptionally popular way to go in today's age with the obstacles of home finance.
Mortgage refinance, or home mortgage refinance, works on the fundamental attitude of getting a second loan on the property that substitutes any previous loan on the home. In addition to a lower interest rate, refinancing your house can also be a great way to cut the term of your loan repayment, even while you still lower your mortgage payment. For the majority of people, however, it's merely an approach to help you get back on your feet even as it improves your monthly cash flow.
For someone with an adjustable rate mortgage, the inevitability of a refinance sometime is a fact. Even though refinancing a fixed rate mortgage is usually only recommended in the event that interest rates fall, there is the chance to save money off your current fixed rate too. This can be accomplished because of the better rate or by actually extending your loan terms.
For individuals locked into either an adjustable rate (ARM) or a fixed rate mortgage, rates are nonetheless at relative lows and most homeowners will benefit from a refinance whether it's for the purposes of cash out, debt consolidation or to change from an ARM to fixed rate.
While refinancing doesn't always save you that much money, the opportunity for improved loan terms, and weighing the potential benefits of debt consolidation make it without a doubt worth considering. In addition to the advantages of lower interest rates or shorter loan payoff times, a lot of homeowners use refinancing as a means to use the money to buy a new car or even a second home.
Many of the mortgage refinance rates that you will get, just like your initial home loan, are going to depend upon multiple market factors in addition to your overall credit risk as a borrower. The amount of equity in your home is a top factor. Keep in mind, equity is the difference between the remaining home loan balance and its current market value. So what can of rate is possible?
All of the mortgage providers have access to comparable rates in the market. On account of this, the answer is to work with a provider who has a name you recognize and not a small-time operation. For people who don't necessarily have to refinance to increase cash flow, they have the additional benefit of refinancing to shorten the loan terms from 30 years to 15 years and the ability to build equity in your home at a considerably faster rate.
Refinancing your mortgage can be a financially advantageous move, especially for those who need to go from an ARM to a fixed interest rate. Refinancing your home presents a straightforward approach to cash out or consolidate debts with high interest rates. Though it's not something to be done annually, refinancing your home is one of the most important things you should think about, at least ever few years, experts say.
http://www.loanthemoney.com/
The Time is Right for Investment Property Mortgage Refinance
Terry Edwards
If you own investment properties, then you may want to consider refinancing them and get a lower interest rate. This may lower your payments, which can mean more money in your pocket. Even though the housing market may be in a slump right now, it is still a good time to refinance while interest rates are still low. Read on to discover how to get the most from your investment property mortgage refinance.
The first thing you should do is to shop around for a good mortgage broker. They are the professionals when it comes to financing matters. A good mortgage broker can hook you up with the right lender to help you get the best loan for your circumstances.
A very important point to remember is to do your research before you do anything. Learn everything that you can about the loan refinance process and interest rates. Make sure that you check out the mortgage broker thoroughly before committing to anything. Most are honest, but as with any business, there can be a few unsavory characters out there.
If you go into this venture knowledgeable and fully prepared, the process will go a lot smoother and you have less of a chance of being taken advantage of. The goal is to get the best interest rate that you possibly can. Make sure that you are keeping current on the changing interests rates.
Another good idea is to buy down. What this means is that, if the current interest rate on your mortgage is 7%, you could pay a few thousand at closing and end up with a 6.5% interest rate. This is sometimes known as paying points. It is a good way to save thousands of dollars over the term of your loan and end up with a lower monthly payment to boot.
Never be afraid to walk away from a deal if you can't get the interest rate that you want. If you have studied the market and you know what the current rates are, then you have the ammunition that you need to negotiate a great deal.
There is nothing that says you can't use more than one mortgage broker or more than one lending service. Don't be shy about using them against each other for competition. If ABC mortgage broker says he can give you a 7% interest rate, call up XYZ mortgage broker and ask them if they can beat it. You may be surprised at the results.
The bottom line is to never go into any type of business deal blind. Research, research, and then research some more. Become familiar with the investment property mortgage refinancing business. Then, negotiate for the best interest rates. Pay down your points and come out a winner!
www.HomeRefinancingA-Z.com
If you own investment properties, then you may want to consider refinancing them and get a lower interest rate. This may lower your payments, which can mean more money in your pocket. Even though the housing market may be in a slump right now, it is still a good time to refinance while interest rates are still low. Read on to discover how to get the most from your investment property mortgage refinance.
The first thing you should do is to shop around for a good mortgage broker. They are the professionals when it comes to financing matters. A good mortgage broker can hook you up with the right lender to help you get the best loan for your circumstances.
A very important point to remember is to do your research before you do anything. Learn everything that you can about the loan refinance process and interest rates. Make sure that you check out the mortgage broker thoroughly before committing to anything. Most are honest, but as with any business, there can be a few unsavory characters out there.
If you go into this venture knowledgeable and fully prepared, the process will go a lot smoother and you have less of a chance of being taken advantage of. The goal is to get the best interest rate that you possibly can. Make sure that you are keeping current on the changing interests rates.
Another good idea is to buy down. What this means is that, if the current interest rate on your mortgage is 7%, you could pay a few thousand at closing and end up with a 6.5% interest rate. This is sometimes known as paying points. It is a good way to save thousands of dollars over the term of your loan and end up with a lower monthly payment to boot.
Never be afraid to walk away from a deal if you can't get the interest rate that you want. If you have studied the market and you know what the current rates are, then you have the ammunition that you need to negotiate a great deal.
There is nothing that says you can't use more than one mortgage broker or more than one lending service. Don't be shy about using them against each other for competition. If ABC mortgage broker says he can give you a 7% interest rate, call up XYZ mortgage broker and ask them if they can beat it. You may be surprised at the results.
The bottom line is to never go into any type of business deal blind. Research, research, and then research some more. Become familiar with the investment property mortgage refinancing business. Then, negotiate for the best interest rates. Pay down your points and come out a winner!
www.HomeRefinancingA-Z.com
Home Mortgage Refinance: Problems That Arise
Alan Lim |
Common problems
There are the honest lenders and then there are the unscrupulous bad ones. While the prospect of owning your home may prompt you to make timely and accurate payments towards the home mortgage refinance payment, even the lender will try to keep your current mortgage strong enough. After all, he wouldn’t want to lose out on your money! Nothing in life is certain – employment conditions change, your place of stay may change unexpectedly and you may have the bad luck to be dealing with an unscrupulous lender out to get your hard earned money!
Insufficient funds
Many people face this problem especially when they are suddenly out of work or have been laid off. This can significantly impact the payment towards your home mortgage refinance and then it becomes very difficult to get out of this vicious cycle. One of the best things you can do in order to avoid this situation is to assess if you either have a secure job or whether you have set aside sufficient funds for crisis situations in future. Therefore it’s best to go for a home mortgage refinance only when you are absolutely sure that your job is secure enough to support you for a long time. After all mortgage payments are typically made over several years. Settle for a home mortgage refinance only when you’re sure of these conditions.
Change of place
There maybe times when you might have to move out of your existing home. It could be because of a transferable job, a bitter divorce or some other condition. Usually in the case of a situation like a divorce, once one partner has moved out, the other one is forced to pay all the bills. This can really eat into the income levels of that person. That means the home mortgage refinance payment too takes a beating. There might even be legal consequences of not being able to make payments on time and within the due date. There is certainly no guarantee on the strength of a relationship but when going for a home mortgage refinance it’s best to go for it only when the couple is committed to each other for long term.
Getting a raw deal
There maybe situations when you’re caught in a home mortgage refinance deal that’s actually costing you more, rather than helping you save! This could be due to scams and other such false promises on the part of lenders. In such situations it is in one’s best interest to get a home mortgage refinance from a bank with whom one has an account for several years. This is because over a period of time a relationship of trust is formed and hence the bank will be more willing to offer a better rate on the home mortgage refinance.
http://www.articlesbase.com/mortgage-articles/home-mortgage-refinance-problems-that-arise-210267.html
Common problems
There are the honest lenders and then there are the unscrupulous bad ones. While the prospect of owning your home may prompt you to make timely and accurate payments towards the home mortgage refinance payment, even the lender will try to keep your current mortgage strong enough. After all, he wouldn’t want to lose out on your money! Nothing in life is certain – employment conditions change, your place of stay may change unexpectedly and you may have the bad luck to be dealing with an unscrupulous lender out to get your hard earned money!
Insufficient funds
Many people face this problem especially when they are suddenly out of work or have been laid off. This can significantly impact the payment towards your home mortgage refinance and then it becomes very difficult to get out of this vicious cycle. One of the best things you can do in order to avoid this situation is to assess if you either have a secure job or whether you have set aside sufficient funds for crisis situations in future. Therefore it’s best to go for a home mortgage refinance only when you are absolutely sure that your job is secure enough to support you for a long time. After all mortgage payments are typically made over several years. Settle for a home mortgage refinance only when you’re sure of these conditions.
Change of place
There maybe times when you might have to move out of your existing home. It could be because of a transferable job, a bitter divorce or some other condition. Usually in the case of a situation like a divorce, once one partner has moved out, the other one is forced to pay all the bills. This can really eat into the income levels of that person. That means the home mortgage refinance payment too takes a beating. There might even be legal consequences of not being able to make payments on time and within the due date. There is certainly no guarantee on the strength of a relationship but when going for a home mortgage refinance it’s best to go for it only when the couple is committed to each other for long term.
Getting a raw deal
There maybe situations when you’re caught in a home mortgage refinance deal that’s actually costing you more, rather than helping you save! This could be due to scams and other such false promises on the part of lenders. In such situations it is in one’s best interest to get a home mortgage refinance from a bank with whom one has an account for several years. This is because over a period of time a relationship of trust is formed and hence the bank will be more willing to offer a better rate on the home mortgage refinance.
http://www.articlesbase.com/mortgage-articles/home-mortgage-refinance-problems-that-arise-210267.html
2007-09-12
Lock And Load With The Best Mortgage Refinance Rates
by Rony Walker
Cashing in on the decline of interest rates can give you the best mortgage refinance deals, but can this happen all the time?
Lock and luck
The interest rates of mortgages saw a decline in four successive weeks in August of 2007. If you were waiting to lock in your interest rate for your mortgage refinance loan, this was the best time to do it. Bear in mind that the market will always be fickle and there is no singular best mortgage refinance interest rate.
If you are home buyer and already purchased a house, you're just in time to cash in for the lock. You would have gotten savings with the best mortgage refinance interest rate for as much as 5.81%, which is lower by .53% than last year's average high of 6.34%. The borrowers were in luck to lock their interest rates at that very opportune time and if that fates smile down on you, you just might be next. You could lock in a low interest rate during the first 30-45 day period of your mortgage refinance loan, only to find out there is a much lower rate the next month. Currently, the trend is showing a decline but market analysts are predicting a rise after 12 months.
What good is locking in?
A rate lock guarantees the borrower that his or her mortgage will have a definite interest rate, set points, and other preset fees. If you were unable to purchase your new home during the period, you are going to pay the higher rate when the interest rises. Borrowers are then advised not to lock in immediately after a week of the loan if they haven't found a property yet. They must know that the 30-45 days provided for allows for additional processing, contingencies, and some settlements, so take your time before you lock in.
Fortunately, there are lenders who automatically extend the lock. But some charge a fee to extend the period and the rate lock costs are not uniform. The fees are either charged up front, or added to the loan rate; the longer the lock period, higher fees will be applied.
To protect your interests, have the locking agreement in writing. A verbal one may not hold water and you cannot present any proof when the time comes. For the lock contract, have all the specifics outlined. The first lock date, the lock period, lock cost and fees, and the post lock details should also be specific in the document. Most documents include interest rate and points at best. Mortgage refinance companies will also allow you to put a lock to your application when the things are looking bleak.
Looking for the best mortgage refinance deals?
The main reason why you are looking for the best mortgage refinance deal is to save money. So look around to see what the lending companies have to offer. Work out the math before signing the loan application because some unscrupulous lenders may spring some nasty surprises despite their advertisements of low interest rates.
Picture this, if your present debts are wiping you out at 20% each year, the best mortgage refinance package will cost you little at 6% if you just know how to maneuver your way through the jargon and the figures. Get a money counselor to walk you through the maze. Who says you need to make a go at it alone?
http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html
Cashing in on the decline of interest rates can give you the best mortgage refinance deals, but can this happen all the time?
Lock and luck
The interest rates of mortgages saw a decline in four successive weeks in August of 2007. If you were waiting to lock in your interest rate for your mortgage refinance loan, this was the best time to do it. Bear in mind that the market will always be fickle and there is no singular best mortgage refinance interest rate.
If you are home buyer and already purchased a house, you're just in time to cash in for the lock. You would have gotten savings with the best mortgage refinance interest rate for as much as 5.81%, which is lower by .53% than last year's average high of 6.34%. The borrowers were in luck to lock their interest rates at that very opportune time and if that fates smile down on you, you just might be next. You could lock in a low interest rate during the first 30-45 day period of your mortgage refinance loan, only to find out there is a much lower rate the next month. Currently, the trend is showing a decline but market analysts are predicting a rise after 12 months.
What good is locking in?
A rate lock guarantees the borrower that his or her mortgage will have a definite interest rate, set points, and other preset fees. If you were unable to purchase your new home during the period, you are going to pay the higher rate when the interest rises. Borrowers are then advised not to lock in immediately after a week of the loan if they haven't found a property yet. They must know that the 30-45 days provided for allows for additional processing, contingencies, and some settlements, so take your time before you lock in.
Fortunately, there are lenders who automatically extend the lock. But some charge a fee to extend the period and the rate lock costs are not uniform. The fees are either charged up front, or added to the loan rate; the longer the lock period, higher fees will be applied.
To protect your interests, have the locking agreement in writing. A verbal one may not hold water and you cannot present any proof when the time comes. For the lock contract, have all the specifics outlined. The first lock date, the lock period, lock cost and fees, and the post lock details should also be specific in the document. Most documents include interest rate and points at best. Mortgage refinance companies will also allow you to put a lock to your application when the things are looking bleak.
Looking for the best mortgage refinance deals?
The main reason why you are looking for the best mortgage refinance deal is to save money. So look around to see what the lending companies have to offer. Work out the math before signing the loan application because some unscrupulous lenders may spring some nasty surprises despite their advertisements of low interest rates.
Picture this, if your present debts are wiping you out at 20% each year, the best mortgage refinance package will cost you little at 6% if you just know how to maneuver your way through the jargon and the figures. Get a money counselor to walk you through the maze. Who says you need to make a go at it alone?
http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html
2007-09-11
Home Refinancing - What You Should Know
by Terry Edwards
If you own a home and are drowning in credit card or medical bills, home refinance may be a good idea for you. Maybe your home needs some repairs or upgrades and you don't have the cash. Consider a home refinance to get the cash that you need to improve your home. Read on and discover why refinancing your home may be the answer to your cash flow problems.
First of all, examine what type of home loan you currently have. Do you have a fixed rate or an adjustable rate mortgage? If you have an adjustable rate mortgage, it would probably be a good idea to refinance with a fixed rate mortgage. The market is very volatile right now and you really don't know what is going to happen with adjustable rate mortgages.
The next decision you have to make is how long you want the term of your home refinance loan to be. This is where you need to examine your budget and run the numbers to see if you can swing a mortgage payment on a 15 year loan or if you will have to go 30 years to be able to make the payment.
Obviously the faster you are able to pay off your mortgage the less you will pay in interest. But be careful and don't lock yourself into a monthly payment that is going to be difficult to make. You don't want to refinance your home and then risk losing it to foreclosure.
Once you have decided on the type and length of your refinance loan, don't forget to take a close look at your interest rate. You want to make sure that the interest rate on your home refinance is lower than the original mortgage loan. If it's higher don't commit to this loan. You are trying to put yourself in a better position, not get yourself deeper into debt.
Do some shopping around. Find a company that is reputable and willing to give you a great home refinance loan at a great interest rate. But beware of predatory lenders. These types of lenders will promise you a great deal, but when it comes down to it, they will pull the rug out from under you.
Predatory lenders will not give you a good interest rate based on your credit, they will loan you money based on the equity of your home and not your ability to pay and they will add excessive fees and roll them into the loan, increasing the amount that you owe. Many people who have been the victims of predatory lending have lost their homes to foreclosure.
The most important thing to remember is if you refinance your home to get cash to pay off those high interest bills, do it. Don't use the cash for something else. The goal is to take care of the bills that are draining you dry and to have extra money left over at the end of the month. Don't give into the temptation to use the money for something frivolous.
www.HomeRefinancingA-Z.com
If you own a home and are drowning in credit card or medical bills, home refinance may be a good idea for you. Maybe your home needs some repairs or upgrades and you don't have the cash. Consider a home refinance to get the cash that you need to improve your home. Read on and discover why refinancing your home may be the answer to your cash flow problems.
First of all, examine what type of home loan you currently have. Do you have a fixed rate or an adjustable rate mortgage? If you have an adjustable rate mortgage, it would probably be a good idea to refinance with a fixed rate mortgage. The market is very volatile right now and you really don't know what is going to happen with adjustable rate mortgages.
The next decision you have to make is how long you want the term of your home refinance loan to be. This is where you need to examine your budget and run the numbers to see if you can swing a mortgage payment on a 15 year loan or if you will have to go 30 years to be able to make the payment.
Obviously the faster you are able to pay off your mortgage the less you will pay in interest. But be careful and don't lock yourself into a monthly payment that is going to be difficult to make. You don't want to refinance your home and then risk losing it to foreclosure.
Once you have decided on the type and length of your refinance loan, don't forget to take a close look at your interest rate. You want to make sure that the interest rate on your home refinance is lower than the original mortgage loan. If it's higher don't commit to this loan. You are trying to put yourself in a better position, not get yourself deeper into debt.
Do some shopping around. Find a company that is reputable and willing to give you a great home refinance loan at a great interest rate. But beware of predatory lenders. These types of lenders will promise you a great deal, but when it comes down to it, they will pull the rug out from under you.
Predatory lenders will not give you a good interest rate based on your credit, they will loan you money based on the equity of your home and not your ability to pay and they will add excessive fees and roll them into the loan, increasing the amount that you owe. Many people who have been the victims of predatory lending have lost their homes to foreclosure.
The most important thing to remember is if you refinance your home to get cash to pay off those high interest bills, do it. Don't use the cash for something else. The goal is to take care of the bills that are draining you dry and to have extra money left over at the end of the month. Don't give into the temptation to use the money for something frivolous.
www.HomeRefinancingA-Z.com
The Truth About the Mortgage Market
by Kim Curtis
By Kim S. Curtis, Partner, CMP, Life Agent Mortgage One Lending California Mortgage Loans
SAN DIEGO, CA - Subprime mortgages have now been credited for bankrupting well over 110 lenders and seriously damaging operations at many major mortgage firms. They've reportedly wiped out five hedge funds, tens of thousands of jobs, and have led to millions of foreclosures with millions more on the way. And, as if that weren't enough, subprime mortgages are also blamed for massive volatility in the stock, bond, credit, futures, and real estate markets here in the US and around the globe. Some say losses in the mortgage securities market alone could reach hundreds of billions of dollars this year.
This means that, for any Americans looking to buy, sell, or refinance a home, they are confronting a very different market from the one that existed just 6-12 months ago.
How did this happen? The recent real estate boom was fueled by a period of record home appreciation and historically low interest rates. Banks, in order to compete, loosened guidelines and began offering more funding to more borrowers through riskier, non-conforming or "exotic" mortgages.
These ideal lending conditions persisted for several years, supported by high demand, historical real estate data, home prices, and massive trading volume/profits on mortgage-backed securities and other financial instruments on Wall Street.
Then, in 2006, a slowdown in real estate led to a deterioration of home values, an increase in inventories, and ultimately to today's tightening of credit guidelines, leaving many investors unable to sell or refinance out of their existing positions. Many Americans who had tapped into their equity were suddenly tapped-out and overextended as home values fell. Foreclosures followed in record numbers and a re-valuation of mortgage bonds and other financial instruments created the credit/liquidity domino effect we're now experiencing.
Unfortunately, it's going to get a lot worse before it gets better. According to the latest estimates, over 2 million subprime and Alt-A adjustable rate mortgage (ARM) holders will face payment increases of up to 30%-100% when their loans reset in the next 2 to 18 months. These loans make up less than 40% of the total mortgage market, but the negative effects, as we have seen, of increased foreclosure activity can have a ripple effect throughout the industry and around the globe.
What does this mean to you and your mortgage?
Sellers: If you're planning on selling your home, be prepared for an even smaller pool of qualified buyers. While some experts predict a settling of this credit crisis over the coming year, tightened credit guidelines and diminishing mortgage products could knock out as many as 15%-30% of potential qualified buyers. Now is not the time to sit and wait for the best possible price. Have a serious talk with your real estate agent. Having experienced buying/selling transactions in your area, he or she can help you price your home accordingly. He or she can also help ensure that your buyers are pre-approved and stay pre-approved throughout the entire transaction.
Buyers: Get pre-approved by your California mortgage broker. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it's taking longer and longer to complete a transaction. Remember, what you qualify for today could change tomorrow in a volatile market. For those looking to refinance, keep this in mind. There is no time to delay! Communicate with your lender. Don't do anything that could negatively affect your credit, and make sure you get all your documentation in on time.
ARMs Borrowers: If your ARM is scheduled to reset in the next 2-18 months, you need to schedule an appointment and consider mortgage refinancing right away. Whether your ARM is subprime, Alt-A, or even if you have a pre-payment penalty, don't let a default or foreclosure situation sneak up on you. Did you know that your monthly payments can increase anywhere from 30% to 100% once your loan resets? At the very least, give yourself the peace of mind of knowing what your adjusted payment will be.
Borrowers with less-than-perfect credit: Each week it seems lenders are shedding more and more mortgage products making bad credit mortgage refinancing nearly impossible. Many lenders have stopped offering No-Doc loans and are reducing all forms of Stated-Income loans. While it might be challenging, borrowers with credit issues need to see a loan expert. Often they have credit repair resources and other strategies to help you reach your financial goals.
Finally, there's an important concept to embrace: all markets, while cyclical in nature, are self-correcting, be it credit, real estate, stocks, or bonds. For the last 6 or 7 years, real estate was booming and riding high. The correction we're experiencing now - while it seems harsh and could get much worse - is, in a sense, "natural" and directly related to the extremely loose guidelines and perhaps overzealous lending and leveraging during the boom cycle.
http://www.goarticles.com/cgi-bin/showa.cgi?C=610765
By Kim S. Curtis, Partner, CMP, Life Agent Mortgage One Lending California Mortgage Loans
SAN DIEGO, CA - Subprime mortgages have now been credited for bankrupting well over 110 lenders and seriously damaging operations at many major mortgage firms. They've reportedly wiped out five hedge funds, tens of thousands of jobs, and have led to millions of foreclosures with millions more on the way. And, as if that weren't enough, subprime mortgages are also blamed for massive volatility in the stock, bond, credit, futures, and real estate markets here in the US and around the globe. Some say losses in the mortgage securities market alone could reach hundreds of billions of dollars this year.
This means that, for any Americans looking to buy, sell, or refinance a home, they are confronting a very different market from the one that existed just 6-12 months ago.
How did this happen? The recent real estate boom was fueled by a period of record home appreciation and historically low interest rates. Banks, in order to compete, loosened guidelines and began offering more funding to more borrowers through riskier, non-conforming or "exotic" mortgages.
These ideal lending conditions persisted for several years, supported by high demand, historical real estate data, home prices, and massive trading volume/profits on mortgage-backed securities and other financial instruments on Wall Street.
Then, in 2006, a slowdown in real estate led to a deterioration of home values, an increase in inventories, and ultimately to today's tightening of credit guidelines, leaving many investors unable to sell or refinance out of their existing positions. Many Americans who had tapped into their equity were suddenly tapped-out and overextended as home values fell. Foreclosures followed in record numbers and a re-valuation of mortgage bonds and other financial instruments created the credit/liquidity domino effect we're now experiencing.
Unfortunately, it's going to get a lot worse before it gets better. According to the latest estimates, over 2 million subprime and Alt-A adjustable rate mortgage (ARM) holders will face payment increases of up to 30%-100% when their loans reset in the next 2 to 18 months. These loans make up less than 40% of the total mortgage market, but the negative effects, as we have seen, of increased foreclosure activity can have a ripple effect throughout the industry and around the globe.
What does this mean to you and your mortgage?
Sellers: If you're planning on selling your home, be prepared for an even smaller pool of qualified buyers. While some experts predict a settling of this credit crisis over the coming year, tightened credit guidelines and diminishing mortgage products could knock out as many as 15%-30% of potential qualified buyers. Now is not the time to sit and wait for the best possible price. Have a serious talk with your real estate agent. Having experienced buying/selling transactions in your area, he or she can help you price your home accordingly. He or she can also help ensure that your buyers are pre-approved and stay pre-approved throughout the entire transaction.
Buyers: Get pre-approved by your California mortgage broker. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it's taking longer and longer to complete a transaction. Remember, what you qualify for today could change tomorrow in a volatile market. For those looking to refinance, keep this in mind. There is no time to delay! Communicate with your lender. Don't do anything that could negatively affect your credit, and make sure you get all your documentation in on time.
ARMs Borrowers: If your ARM is scheduled to reset in the next 2-18 months, you need to schedule an appointment and consider mortgage refinancing right away. Whether your ARM is subprime, Alt-A, or even if you have a pre-payment penalty, don't let a default or foreclosure situation sneak up on you. Did you know that your monthly payments can increase anywhere from 30% to 100% once your loan resets? At the very least, give yourself the peace of mind of knowing what your adjusted payment will be.
Borrowers with less-than-perfect credit: Each week it seems lenders are shedding more and more mortgage products making bad credit mortgage refinancing nearly impossible. Many lenders have stopped offering No-Doc loans and are reducing all forms of Stated-Income loans. While it might be challenging, borrowers with credit issues need to see a loan expert. Often they have credit repair resources and other strategies to help you reach your financial goals.
Finally, there's an important concept to embrace: all markets, while cyclical in nature, are self-correcting, be it credit, real estate, stocks, or bonds. For the last 6 or 7 years, real estate was booming and riding high. The correction we're experiencing now - while it seems harsh and could get much worse - is, in a sense, "natural" and directly related to the extremely loose guidelines and perhaps overzealous lending and leveraging during the boom cycle.
http://www.goarticles.com/cgi-bin/showa.cgi?C=610765
2007-09-10
Getting Started With Loan Modification
by James Gunaseelan
If you are interested in loan modification you need to know how to get started. Although you may think that loan modification is right for everybody, there are only certain people who should ever look into this. Generally speaking, loan modification is for those people who are facing foreclosure for one reason or the next. In other words, your everyday homeowner has no reason to look into what the loan modification process has to offer. Sure, you can refinance your loan, but this is not the same as modifying it in order to avoid foreclosure.
To get started with loan modification, you will first want to get in touch with your lender. As you can imagine, you will get a good idea that loan modification is right for you when you begin to miss payments on a regular basis. In most cases, you will have to go through a long process with the lender before you can be approved for loan modification. Remember, they are not going to let just anybody do this; you are going to need to have a legitimate reason. For instance, if you are behind on your payments due to a job loss or major health issue, you will have a much easier time getting your lender to work with you.
Once you are on the same page with your lender, they will then guide you through the process. The way that the actual loan modification works is not as hard as some homeowners think. For the most part, the lender will take your backpayments, plus any interest, and add it back into your loan. This way, they will get paid eventually, and you do not have to worry about getting caught up with the payments that you missed out on in the past.
Remember, if you are going to move forward with loan modification you need to be sure that you can continue to make payments as they come due. There is no point in looking into this if you are only going to start missing payments again. When you are finally back on track, you should do whatever it takes to stay on this path to success. All in all, getting started with loan modification is all about working with your lender. If they are willing to work with you on this, you should do what they say, and then do whatever it takes to pay your mortgage on time every month.
www.bharathrentals.com/browse/all/all/Mumbai
If you are interested in loan modification you need to know how to get started. Although you may think that loan modification is right for everybody, there are only certain people who should ever look into this. Generally speaking, loan modification is for those people who are facing foreclosure for one reason or the next. In other words, your everyday homeowner has no reason to look into what the loan modification process has to offer. Sure, you can refinance your loan, but this is not the same as modifying it in order to avoid foreclosure.
To get started with loan modification, you will first want to get in touch with your lender. As you can imagine, you will get a good idea that loan modification is right for you when you begin to miss payments on a regular basis. In most cases, you will have to go through a long process with the lender before you can be approved for loan modification. Remember, they are not going to let just anybody do this; you are going to need to have a legitimate reason. For instance, if you are behind on your payments due to a job loss or major health issue, you will have a much easier time getting your lender to work with you.
Once you are on the same page with your lender, they will then guide you through the process. The way that the actual loan modification works is not as hard as some homeowners think. For the most part, the lender will take your backpayments, plus any interest, and add it back into your loan. This way, they will get paid eventually, and you do not have to worry about getting caught up with the payments that you missed out on in the past.
Remember, if you are going to move forward with loan modification you need to be sure that you can continue to make payments as they come due. There is no point in looking into this if you are only going to start missing payments again. When you are finally back on track, you should do whatever it takes to stay on this path to success. All in all, getting started with loan modification is all about working with your lender. If they are willing to work with you on this, you should do what they say, and then do whatever it takes to pay your mortgage on time every month.
www.bharathrentals.com/browse/all/all/Mumbai
Using Home Equity To Pay Bills - Is it a Good Idea?
by Stuart Schmal
Home equity can be a terrific tool to use to get rid of other forms of debt. They can include credit card debt, car loans and any other installment type loans you may have.
I refer to this type of debt as non-preferred debt because it is not tax deductible. On the other hand, mortgage interest, in most cases is tax deductible. I consider this preferred debt. So the goal would be to swap non-preferred debt for preferred debt.
With this strategy, you would use either a refinance of your existing mortgage or a 2nd mortgage to access the equity in your home. Then you would use that money to pay off your other bills. It will depend on each person's situation in deciding which of these options is best.
There are many reasons why this can be a good strategy. You can turn non-tax deductible debt into tax-deductible debt. The interest rates on mortgages will be some of the lowest rates you can find, usually much lower than most other forms of debt. Finally, your total monthly payments should go down giving you more cash flow at the end of the month.
There are a few reasons why this can be a bad strategy. The big one is if you go out and charge up a lot of credit card debt again. This will defeat the purpose of the original debt consolidation and put you back into a bad financial position. Also, the amount of debt needs to be large enough to make the new loan cost effective. There will be a transaction cost involved in the new loan. You will need to have a benefits analysis run on your personal situation to see if this strategy will make sense.
Now, one of the keys to this strategy is that you use the money that you save monthly and pay it towards your mortgage principal, or put into a side account where it can grow. By using the money saved, you begin to pay off the credit card debt while enjoying the tax savings.
If home equity is used wisely, it can be a great way to put your financial house in order
www.WatchMyMortgage.com
Home equity can be a terrific tool to use to get rid of other forms of debt. They can include credit card debt, car loans and any other installment type loans you may have.
I refer to this type of debt as non-preferred debt because it is not tax deductible. On the other hand, mortgage interest, in most cases is tax deductible. I consider this preferred debt. So the goal would be to swap non-preferred debt for preferred debt.
With this strategy, you would use either a refinance of your existing mortgage or a 2nd mortgage to access the equity in your home. Then you would use that money to pay off your other bills. It will depend on each person's situation in deciding which of these options is best.
There are many reasons why this can be a good strategy. You can turn non-tax deductible debt into tax-deductible debt. The interest rates on mortgages will be some of the lowest rates you can find, usually much lower than most other forms of debt. Finally, your total monthly payments should go down giving you more cash flow at the end of the month.
There are a few reasons why this can be a bad strategy. The big one is if you go out and charge up a lot of credit card debt again. This will defeat the purpose of the original debt consolidation and put you back into a bad financial position. Also, the amount of debt needs to be large enough to make the new loan cost effective. There will be a transaction cost involved in the new loan. You will need to have a benefits analysis run on your personal situation to see if this strategy will make sense.
Now, one of the keys to this strategy is that you use the money that you save monthly and pay it towards your mortgage principal, or put into a side account where it can grow. By using the money saved, you begin to pay off the credit card debt while enjoying the tax savings.
If home equity is used wisely, it can be a great way to put your financial house in order
www.WatchMyMortgage.com
Should I Refinance My Home...Again?
jeffn
Let's assume you refinanced your home when the rates were really low. You took the equity you had built up and paid off some bills and made a few home improvements. Now you've built up equity again and you're wondering if it makes sense to do another refinance mortgage. As with all mortgages, the right answers and terms all depend on your particular circumstance. We'll help you sort that out, but first let's start with a few questions for you to think about:
? Unless you're in financial trouble and need some extra cash and have no other way to raise it, we'll need to carefully analyze how much you'll save (if anything) by doing another refinance. Sometimes it's your only way out, but if you have to keep taking out new mortgages, you could probably benefit by our financial counseling
? Examine the difference in monthly payments. If you refinance now, is it going to be a real stretch to make your house payment?
? If you're planning to refinance strictly to pay bills, do the math first. For example if you're car will be paid off in two or three years but you want to use equity from your home to pay it off early, are you really gaining anything? Remember that you're signing up to pay off whatever you use the money for over a period of 15 or 30 years. Your car may end up costing you thousands more if you do it that way
? If you're making more improvements and upgrades to your home, do the best you can to estimate what you can sell your house for in 3 to 5 years. Compute what both the refinances will have cost you in interest and fees and make sure that you'll still make a profit. You may do better to sell the home now and buy one that already has the amenities you want
? When you're computing another refinance loan, look at the total cost of borrowing the money, just as you did with your very first mortgage. If you include closing costs and other fees in the new loan, you'll want to be sure that you pay off that portion in three years or less
These are just a few things to look at when you're evaluating the pluses and minuses of a second refinance home loan. We have the experience and knowledge to help you make your decision. We'll look at your options from every angle, but ultimately of course, you have the final say. We take pride in working with our clients in an informative and no-hassle atmosphere. Trusting your mortgage broker is at the top of the list when it comes to home finance. You can definitely count on us for honest and truly helpful advice.
http://www.articlecircle.com/finance/mortgage/should-i-refinance-my-home-again.html
Let's assume you refinanced your home when the rates were really low. You took the equity you had built up and paid off some bills and made a few home improvements. Now you've built up equity again and you're wondering if it makes sense to do another refinance mortgage. As with all mortgages, the right answers and terms all depend on your particular circumstance. We'll help you sort that out, but first let's start with a few questions for you to think about:
? Unless you're in financial trouble and need some extra cash and have no other way to raise it, we'll need to carefully analyze how much you'll save (if anything) by doing another refinance. Sometimes it's your only way out, but if you have to keep taking out new mortgages, you could probably benefit by our financial counseling
? Examine the difference in monthly payments. If you refinance now, is it going to be a real stretch to make your house payment?
? If you're planning to refinance strictly to pay bills, do the math first. For example if you're car will be paid off in two or three years but you want to use equity from your home to pay it off early, are you really gaining anything? Remember that you're signing up to pay off whatever you use the money for over a period of 15 or 30 years. Your car may end up costing you thousands more if you do it that way
? If you're making more improvements and upgrades to your home, do the best you can to estimate what you can sell your house for in 3 to 5 years. Compute what both the refinances will have cost you in interest and fees and make sure that you'll still make a profit. You may do better to sell the home now and buy one that already has the amenities you want
? When you're computing another refinance loan, look at the total cost of borrowing the money, just as you did with your very first mortgage. If you include closing costs and other fees in the new loan, you'll want to be sure that you pay off that portion in three years or less
These are just a few things to look at when you're evaluating the pluses and minuses of a second refinance home loan. We have the experience and knowledge to help you make your decision. We'll look at your options from every angle, but ultimately of course, you have the final say. We take pride in working with our clients in an informative and no-hassle atmosphere. Trusting your mortgage broker is at the top of the list when it comes to home finance. You can definitely count on us for honest and truly helpful advice.
http://www.articlecircle.com/finance/mortgage/should-i-refinance-my-home-again.html
2007-09-09
Your Home Improvement Loan
by Freddy Mason
When you need cash, you borrow some from a bank or any other lending institution. These days it's a little bit more complicated than before. There are personal loans, secured loans, credit loan, car purchase plans, and home improvement loans, flexible loans, all of which are available from a wide range of lenders and at dramatically different interest rates.
Home improvement loans will provide you with a dependable groundwork to build on the home you have been dreaming of home improvement loans play a very important function when your financial position is tight and you want Home improvement to be done.
Home improvement loans are functional for any kind of improvement or home extension. Home improvement loan can be availed for double glazing, new conservatory, heating system, new kitchen, rewiring and plumbing or any home remodeling that you can think of. The cost of home improvements is generally paid by savings or revolving credits like credit or store cards. Credit cards imply no borrowing. In many ways it is idyllic for there are no repayments to be made. But credit cards can be an expensive option especially if the borrowing extends beyond the credit limit.
So in every circumstance a personal loan for home improvement is a more disciplined and cheaper option. Few important tips before you apply for home improvement loan:-
Spring is the perfect time to start home improvement projects and interest rates make home equity loans attractive, but don't commit to anything until you've done a proper investigation first.
Home improvement loan can add value to your house; however, some improvements pay off more than others. A few facts have to be kept in mind before you decide how much to spend and what part of your house be spend on.
Renovation of your kitchen can add up to 150 % of the cost of the project to your home's resale value. If you add second bathroom your resale value will increase by 90 percent of the project cost, and an addition of room, such as a family room or an extra bedroom, provides a 60 to 80 percent return. Few other improvements, such as new windows and doors or replacing the cooling or heating system, may be practical but they don't necessarily translate into resale profits.
So in every circumstance a personal loan for home improvement is a more disciplined and cheaper option.
A few important tips to keep in mind before you apply for home improvement loan:
Spring is the perfect time to start home improvement projects and interest rates make home improvement loans attractive, but don't commit to anything until you've done a proper investigation first.
Other home improvement loan options:
Home equity lines of credit -- a variable rate line of credit with the ability to lock in up to three fixed rates.
Home equity loans -- a fixed rate loan using the equity in your home for those large home improvement projects.
Personal line of credit -- this revolving line of credit provides quick access to funds and is an intelligent alternative to using a credit card.
Some lenders provide the facility of transferring an existing home improvement loan to a new loan with better interest rate and flexible repayment options. This is also known as refinance of home improvement loan. Some lenders also have insurance cover for their loan through payment protection plan, thereby securing the loan for the borrower and making him stress free from the financial burden. So remember to compare, choose and save! For your best suiting option, before closing down the home improvement loan deal, visit us online.
When you need cash, you borrow some from a bank or any other lending institution. These days it's a little bit more complicated than before. There are personal loans, secured loans, credit loan, car purchase plans, and home improvement loans, flexible loans, all of which are available from a wide range of lenders and at dramatically different interest rates.
Home improvement loans will provide you with a dependable groundwork to build on the home you have been dreaming of home improvement loans play a very important function when your financial position is tight and you want Home improvement to be done.
Home improvement loans are functional for any kind of improvement or home extension. Home improvement loan can be availed for double glazing, new conservatory, heating system, new kitchen, rewiring and plumbing or any home remodeling that you can think of. The cost of home improvements is generally paid by savings or revolving credits like credit or store cards. Credit cards imply no borrowing. In many ways it is idyllic for there are no repayments to be made. But credit cards can be an expensive option especially if the borrowing extends beyond the credit limit.
So in every circumstance a personal loan for home improvement is a more disciplined and cheaper option. Few important tips before you apply for home improvement loan:-
Spring is the perfect time to start home improvement projects and interest rates make home equity loans attractive, but don't commit to anything until you've done a proper investigation first.
Home improvement loan can add value to your house; however, some improvements pay off more than others. A few facts have to be kept in mind before you decide how much to spend and what part of your house be spend on.
Renovation of your kitchen can add up to 150 % of the cost of the project to your home's resale value. If you add second bathroom your resale value will increase by 90 percent of the project cost, and an addition of room, such as a family room or an extra bedroom, provides a 60 to 80 percent return. Few other improvements, such as new windows and doors or replacing the cooling or heating system, may be practical but they don't necessarily translate into resale profits.
So in every circumstance a personal loan for home improvement is a more disciplined and cheaper option.
A few important tips to keep in mind before you apply for home improvement loan:
Spring is the perfect time to start home improvement projects and interest rates make home improvement loans attractive, but don't commit to anything until you've done a proper investigation first.
Other home improvement loan options:
Home equity lines of credit -- a variable rate line of credit with the ability to lock in up to three fixed rates.
Home equity loans -- a fixed rate loan using the equity in your home for those large home improvement projects.
Personal line of credit -- this revolving line of credit provides quick access to funds and is an intelligent alternative to using a credit card.
Some lenders provide the facility of transferring an existing home improvement loan to a new loan with better interest rate and flexible repayment options. This is also known as refinance of home improvement loan. Some lenders also have insurance cover for their loan through payment protection plan, thereby securing the loan for the borrower and making him stress free from the financial burden. So remember to compare, choose and save! For your best suiting option, before closing down the home improvement loan deal, visit us online.
Subscribe to:
Posts (Atom)
