by Alan Lim
It is often said that your home is the biggest investment you will ever make. Finding just the right one is the hard part. Making sure it gets paid for is life. Not taking advantage of it is silly. A home loan refinance program can make sure it lives up to all the advantages it is supposed to offer.
Taking advantage
If you have been paying off your home on a regular basis you are building an investment in your future. You have heard it from the time you were younger. Buy a home and invest in your future. After a while you are perhaps wondering when that future will come to pass. When can you take advantage of all your hard work and diligence? Most people think retirement is the time to take advantage. If they choose retirement time to take advantage this is fine, but what about now? A home loan refinance program may be just right for you. Take the savings from a home loan refinance and pay off outstanding debt or make the repairs to your home that will ultimately increase its value.
Is the timing right for you?
New money has been pumped into the system, by the government, to make home loan refinance more accessible. If you're considering some new additions to your property, a long needed vacation or help paying for a child's education, home loan refinance may be for you. Pay less and use the saved money more productively
Expand your holdings
Paying into your home means that that money is just sitting there working for the bank. Why should they be able to take advantage of the money when you can? A home loan refinance program could let you expand your investment portfolio with saved income. Home loan refinance can let you invest in other properties to diversify your holdings. A property investment in your primary residence was a smart move. If one piece of property was wise, two may be better. Make the first investment work even harder with a home loan refinance program by buying a second property.
A buyers market
In many regions, the real estate market has finally topped out. Prices are actually beginning to come down. Everybody knew it had to happen at some point. That's just the way the economy works, in cycles. Being ready to pounce at the right time is critical to finding just the right second property for your needs. A home loan refinance program will let you make your move when you are ready. A home loan refinance program will enable you to act fast if you need to.
The market is in a state of flux. Taking your bargain shot could be here now. Don't let that one opportunity slip past and consider your finance options ahead of time.
http://www.homemortgageloan-refinance.com/
2007-10-31
Making Life Easier with Home Loan Refinance
by Alan Lim
The bills just seem to keep coming. The roofer says that you'll need a new one soon. College is just a year away and moms' senior center is increasing rates. A home loan refinance option may be what is needed to pull it all together into a neat package designed to make your life easier.
Investing to make it work
Paying off the mortgage was always thought to be one of those defining moments. As it turns out it is defining. Unfortunately, the moment is not the one you may have thought about originally. Paying off your mortgage means that you let the bank take advantage of your money. Instead, think about home loan refinance and saving some money meant for the bank. This option lets you use your money to fullest advantage instead of letting the bank use it to theirs. Home loan refinance can make your life easier to deal with by paying down all those high interest rates.
Pulling it all together
One way or the other that roof is going to need to be upgraded. There is little that can be done about that. Junior needs to go to college somehow. Costs are a killer but somehow he needs to get there through a series of scholarships, matches, loans and what not. Mom's care needs to be addressed as well, in one form or another. The bills are and will be coming from everywhere. A home loan refinance program may be just the ticket to pull everything together. A home loan refinance program would mean lower or nonexistent bills.
Is now the time
Whether you opt for a home loan refinance option at this point in time is really a life and regional choice. If your plans entail staying in the same home for the longer term it is the perfect time to consider a home loan refinance option. Rates are being reset so a solid indication of where they will be for an extended period is available. Prices have begun to fall on homes but they have yet to go anywhere near where they could have gone considering the situation. If you are sticking around for a while the values will come back in a few years, so a home loan refinance program should be ok at this point.
Everything ages
Home loan refinance is one way of looking at the aging process of your home and life, everything ages. You bought your home with old dollars. The roof with aging wood and the child is just like you some time ago. At some point they all need to go to the health club for a reshaping, something to get them back on, or continuing on a healthy track. New dollars can get them to the next step and moving forward. Everything needs a booster now and again to pull it all together. A refinance program is just that.
The bills just seem to keep coming. The roofer says that you'll need a new one soon. College is just a year away and moms' senior center is increasing rates. A home loan refinance option may be what is needed to pull it all together into a neat package designed to make your life easier.
Investing to make it work
Paying off the mortgage was always thought to be one of those defining moments. As it turns out it is defining. Unfortunately, the moment is not the one you may have thought about originally. Paying off your mortgage means that you let the bank take advantage of your money. Instead, think about home loan refinance and saving some money meant for the bank. This option lets you use your money to fullest advantage instead of letting the bank use it to theirs. Home loan refinance can make your life easier to deal with by paying down all those high interest rates.
Pulling it all together
One way or the other that roof is going to need to be upgraded. There is little that can be done about that. Junior needs to go to college somehow. Costs are a killer but somehow he needs to get there through a series of scholarships, matches, loans and what not. Mom's care needs to be addressed as well, in one form or another. The bills are and will be coming from everywhere. A home loan refinance program may be just the ticket to pull everything together. A home loan refinance program would mean lower or nonexistent bills.
Is now the time
Whether you opt for a home loan refinance option at this point in time is really a life and regional choice. If your plans entail staying in the same home for the longer term it is the perfect time to consider a home loan refinance option. Rates are being reset so a solid indication of where they will be for an extended period is available. Prices have begun to fall on homes but they have yet to go anywhere near where they could have gone considering the situation. If you are sticking around for a while the values will come back in a few years, so a home loan refinance program should be ok at this point.
Everything ages
Home loan refinance is one way of looking at the aging process of your home and life, everything ages. You bought your home with old dollars. The roof with aging wood and the child is just like you some time ago. At some point they all need to go to the health club for a reshaping, something to get them back on, or continuing on a healthy track. New dollars can get them to the next step and moving forward. Everything needs a booster now and again to pull it all together. A refinance program is just that.
2007-10-30
Is It Getting Any Easier To Qualify For Mortgage Loans?
by Kathy Shin
Our introduction to this topic will include the basics, which will be followed by a more in depth look at this topic.
Everybody who has been around in the last two to three living understands right what the advertise is leaving through. If you are a first time home buyer and you have had worry getting mortgage advances to obtain that house, then you feel the pest of many others who are in the same craft. The unfeigned estate advertise is in a down time, as providers just aren't near as prepared to give out mortgage advances as they worn to. In the onwards, practically any self with a form of identification could go up to a tier and get a mortgage advance. That has distorted, although. Now, providers are being more thorough with whom they provide and it doesn't look like this is shifting anytime hastily.
Because providers were engaged handing out advances to people who shouldn't have had them, there became a titanic challenge. The scroungers, who became known as "sub foremost" home buyers, hastily became a bigger expose than the tier had anticipated. Their onwards tribute challenges reared their horrible proceed and bit the tiers straight in the rear end. After a while, those mortgage advances which the tier was so excited to hand out had hastily curved into a foreclosure for people with fewer than solar tribute. They didn't have the money, wish, or capability to make any of the payments on their trademark new house. That left the providers with only one variety. They had to stretch up their values for mortgage advances.
Making that certitude was practical and smart by the providers, as they had to launch to shield themselves from titanic failures. The challenge is that they have stretched up their regulations a bit too greatly. Now, instead of locking out those people who would be considered "expose", they are locking out each with a petty tarnish on the tribute statement. In unfeigned, tiers have no variety, although. When foreclosure occurs, they take a big failure. After a while, those failures unfeigned add up.
What we have explored up to now is the most important information you need to know. Now, let's dig a little deeper.
The material that many mortgage advances seekers want to know is whether or not this is leaving to finish any time hastily? Are people leaving to be able to get an advance when they hunt for a new home? More importantly for some people, is relevance charge leaving to decline to a height where it makes discern to refinance or take out mortgage advances? This is important information for not only home buyers, but also home sellers, who are in a combine because of the require of eligible buyers.
Although there is no filmy answer in view, there are some indications that a little bit of change may be emergence. Last week, the central keep slat announced that it would be bitter central relevance charge by a half of a spot. Although this does not have an immediate bang on mortgage advances, it is an appealing good indicator of which way the advertise might proceed. By making that certitude the government is deciding that they must providers to hop off of the high steed. They are relevance in making it easier for tiers to locked funding, so that they might accept that along to clients. Although the idea behind this move makes heaps of discern, there are some indications that providers might not be so swift to chase.
Having already been burned once by sub foremost providers who had no subject getting advances, tiers have made widespread rule changes in regards to who is allowable to scrounge money. Even with these changes, they won't be bountiful out mortgage advances to just anybody with a pen and member of paper. On the difficult, their rigid values are probable to holiday in place for the next team of living, regard fewer of what immediate ion the advertise takes. If providers are smart, they will never reitequotient their actions of bountiful advances to the worthless. Those actions played a main function in putting the advertise where it is nowadays.
For those looking for relief from high relevance charge, some help might be on the way, although. Because previous this summer, mortgage advances have already seen a relevance quotient reduce. Although it has not been radical, the small change may be an indication that providers are loosening up a little bit. That is leaving to be absolutely decisive if the unfeigned estate advertise is to harvest itself up off of the story and revisit to prominence like it was on a few concise living ago.
The best guidance for home buyers and mortgage advances seekers is to keep your tribute rating high and your memoirs filmy. This way, you won't have any worry qualifying, no material what moves the advertise makes. You can't depend ahead providers to make a variety when they are so filmily in a combine.
If we have failed to answer all of your questions, be sure to check into other resources on this interesting topic.
www.presyomortgage.com
Our introduction to this topic will include the basics, which will be followed by a more in depth look at this topic.
Everybody who has been around in the last two to three living understands right what the advertise is leaving through. If you are a first time home buyer and you have had worry getting mortgage advances to obtain that house, then you feel the pest of many others who are in the same craft. The unfeigned estate advertise is in a down time, as providers just aren't near as prepared to give out mortgage advances as they worn to. In the onwards, practically any self with a form of identification could go up to a tier and get a mortgage advance. That has distorted, although. Now, providers are being more thorough with whom they provide and it doesn't look like this is shifting anytime hastily.
Because providers were engaged handing out advances to people who shouldn't have had them, there became a titanic challenge. The scroungers, who became known as "sub foremost" home buyers, hastily became a bigger expose than the tier had anticipated. Their onwards tribute challenges reared their horrible proceed and bit the tiers straight in the rear end. After a while, those mortgage advances which the tier was so excited to hand out had hastily curved into a foreclosure for people with fewer than solar tribute. They didn't have the money, wish, or capability to make any of the payments on their trademark new house. That left the providers with only one variety. They had to stretch up their values for mortgage advances.
Making that certitude was practical and smart by the providers, as they had to launch to shield themselves from titanic failures. The challenge is that they have stretched up their regulations a bit too greatly. Now, instead of locking out those people who would be considered "expose", they are locking out each with a petty tarnish on the tribute statement. In unfeigned, tiers have no variety, although. When foreclosure occurs, they take a big failure. After a while, those failures unfeigned add up.
What we have explored up to now is the most important information you need to know. Now, let's dig a little deeper.
The material that many mortgage advances seekers want to know is whether or not this is leaving to finish any time hastily? Are people leaving to be able to get an advance when they hunt for a new home? More importantly for some people, is relevance charge leaving to decline to a height where it makes discern to refinance or take out mortgage advances? This is important information for not only home buyers, but also home sellers, who are in a combine because of the require of eligible buyers.
Although there is no filmy answer in view, there are some indications that a little bit of change may be emergence. Last week, the central keep slat announced that it would be bitter central relevance charge by a half of a spot. Although this does not have an immediate bang on mortgage advances, it is an appealing good indicator of which way the advertise might proceed. By making that certitude the government is deciding that they must providers to hop off of the high steed. They are relevance in making it easier for tiers to locked funding, so that they might accept that along to clients. Although the idea behind this move makes heaps of discern, there are some indications that providers might not be so swift to chase.
Having already been burned once by sub foremost providers who had no subject getting advances, tiers have made widespread rule changes in regards to who is allowable to scrounge money. Even with these changes, they won't be bountiful out mortgage advances to just anybody with a pen and member of paper. On the difficult, their rigid values are probable to holiday in place for the next team of living, regard fewer of what immediate ion the advertise takes. If providers are smart, they will never reitequotient their actions of bountiful advances to the worthless. Those actions played a main function in putting the advertise where it is nowadays.
For those looking for relief from high relevance charge, some help might be on the way, although. Because previous this summer, mortgage advances have already seen a relevance quotient reduce. Although it has not been radical, the small change may be an indication that providers are loosening up a little bit. That is leaving to be absolutely decisive if the unfeigned estate advertise is to harvest itself up off of the story and revisit to prominence like it was on a few concise living ago.
The best guidance for home buyers and mortgage advances seekers is to keep your tribute rating high and your memoirs filmy. This way, you won't have any worry qualifying, no material what moves the advertise makes. You can't depend ahead providers to make a variety when they are so filmily in a combine.
If we have failed to answer all of your questions, be sure to check into other resources on this interesting topic.
www.presyomortgage.com
Be Sure You Have The Right Reason To Get A Home Refinance
by Rony Walker
"Come into my parlor", said the spider to the fly. "We've got the lowest interest only loan. Just put up your house as equity." The fly immediately put up his house and went into the parlor, only to be devoured as a savory dinner. Are you that unfortunate fly?
Why are you getting a home refinance?
There are many reasons to get a home refinance, and 99.9% of these reasons are to pay off debts. Experts would advise to consider carefully your reason to refinance and stake your home.
Another reason to refinance is to get investment money for a business. This sounds good, but the risk is great. Would you dare navigate un-chartered depths at the risk of losing your home?
Perhaps you've got this zany idea to earn tax deductions so you took out a home refinance loan. In principle, you are paying a dollar to earn 30 cents, and for this you put your home.
Not all these reasons for home refinance are recommended. Your house is the biggest investment of your lifetime and putting it up for these flimsy reasons is nothing to crow about.
Better reasons to home refinance
Just because everybody has lined up for a home loan does not mean it will work according to your expectations. Loans have to be paid back. To be able to do so on the same amount of cash inflow for a number of years means changing your lifestyles and spending habits. Or like the fly, you will be dinner for the spider.
It is not easy to lose a home. Apart from destroying your credit score, you'll have to uproot your family from all that is dear. So play smart when you are getting a loan.
A bankable reason to home refinance is to get additional cash flow for your business expansion or fund a wife's last year in college. Both ways you see an end goal towards increased revenues and income.
How to get a better deal
Depending on your financial motivation like cash flow flexibility, you are looking at more savings in a year's time from a lowered monthly payments compared to your current mortgage.
Remember that the longer the loan term, the lower the monthly payment. If you add up all your expenses in 30 years time, you'll have paid more than double the loan amount. So get a lower interest rate and be sure there are no additional or hidden costs.
If you have a $200,000 30-year mortgage loaned on an interest rate of 8%, you'll have paid $440,400 at $1,468 a month. If you refinance at 6% you will be paying $1,199 a month or a total of $359,700. But wait, there's more. Depending on the closing costs, it will take months before you can break even.
If you are staying in the house for more than 10 years get the fixed rate but if you are going to sell the house in five year's time better get the adjustable rate mortgage.
Never rush into a home refinance. Take your time until you have understood all the workings of your target refinance program. Read the contract carefully.
Be ready to pay and change your lifestyle. No matter the advantages of your home refinance, if you fail keeping up with the payments you'll get the short end of the stick.
"Come into my parlor", said the spider to the fly. "We've got the lowest interest only loan. Just put up your house as equity." The fly immediately put up his house and went into the parlor, only to be devoured as a savory dinner. Are you that unfortunate fly?
Why are you getting a home refinance?
There are many reasons to get a home refinance, and 99.9% of these reasons are to pay off debts. Experts would advise to consider carefully your reason to refinance and stake your home.
Another reason to refinance is to get investment money for a business. This sounds good, but the risk is great. Would you dare navigate un-chartered depths at the risk of losing your home?
Perhaps you've got this zany idea to earn tax deductions so you took out a home refinance loan. In principle, you are paying a dollar to earn 30 cents, and for this you put your home.
Not all these reasons for home refinance are recommended. Your house is the biggest investment of your lifetime and putting it up for these flimsy reasons is nothing to crow about.
Better reasons to home refinance
Just because everybody has lined up for a home loan does not mean it will work according to your expectations. Loans have to be paid back. To be able to do so on the same amount of cash inflow for a number of years means changing your lifestyles and spending habits. Or like the fly, you will be dinner for the spider.
It is not easy to lose a home. Apart from destroying your credit score, you'll have to uproot your family from all that is dear. So play smart when you are getting a loan.
A bankable reason to home refinance is to get additional cash flow for your business expansion or fund a wife's last year in college. Both ways you see an end goal towards increased revenues and income.
How to get a better deal
Depending on your financial motivation like cash flow flexibility, you are looking at more savings in a year's time from a lowered monthly payments compared to your current mortgage.
Remember that the longer the loan term, the lower the monthly payment. If you add up all your expenses in 30 years time, you'll have paid more than double the loan amount. So get a lower interest rate and be sure there are no additional or hidden costs.
If you have a $200,000 30-year mortgage loaned on an interest rate of 8%, you'll have paid $440,400 at $1,468 a month. If you refinance at 6% you will be paying $1,199 a month or a total of $359,700. But wait, there's more. Depending on the closing costs, it will take months before you can break even.
If you are staying in the house for more than 10 years get the fixed rate but if you are going to sell the house in five year's time better get the adjustable rate mortgage.
Never rush into a home refinance. Take your time until you have understood all the workings of your target refinance program. Read the contract carefully.
Be ready to pay and change your lifestyle. No matter the advantages of your home refinance, if you fail keeping up with the payments you'll get the short end of the stick.
www.goarticles.com
"Come into my parlor", said the spider to the fly. "We've got the lowest interest only loan. Just put up your house as equity." The fly immediately put up his house and went into the parlor, only to be devoured as a savory dinner. Are you that unfortunate fly?
Why are you getting a home refinance?
There are many reasons to get a home refinance, and 99.9% of these reasons are to pay off debts. Experts would advise to consider carefully your reason to refinance and stake your home.
Another reason to refinance is to get investment money for a business. This sounds good, but the risk is great. Would you dare navigate un-chartered depths at the risk of losing your home?
Perhaps you've got this zany idea to earn tax deductions so you took out a home refinance loan. In principle, you are paying a dollar to earn 30 cents, and for this you put your home.
Not all these reasons for home refinance are recommended. Your house is the biggest investment of your lifetime and putting it up for these flimsy reasons is nothing to crow about.
Better reasons to home refinance
Just because everybody has lined up for a home loan does not mean it will work according to your expectations. Loans have to be paid back. To be able to do so on the same amount of cash inflow for a number of years means changing your lifestyles and spending habits. Or like the fly, you will be dinner for the spider.
It is not easy to lose a home. Apart from destroying your credit score, you'll have to uproot your family from all that is dear. So play smart when you are getting a loan.
A bankable reason to home refinance is to get additional cash flow for your business expansion or fund a wife's last year in college. Both ways you see an end goal towards increased revenues and income.
How to get a better deal
Depending on your financial motivation like cash flow flexibility, you are looking at more savings in a year's time from a lowered monthly payments compared to your current mortgage.
Remember that the longer the loan term, the lower the monthly payment. If you add up all your expenses in 30 years time, you'll have paid more than double the loan amount. So get a lower interest rate and be sure there are no additional or hidden costs.
If you have a $200,000 30-year mortgage loaned on an interest rate of 8%, you'll have paid $440,400 at $1,468 a month. If you refinance at 6% you will be paying $1,199 a month or a total of $359,700. But wait, there's more. Depending on the closing costs, it will take months before you can break even.
If you are staying in the house for more than 10 years get the fixed rate but if you are going to sell the house in five year's time better get the adjustable rate mortgage.
Never rush into a home refinance. Take your time until you have understood all the workings of your target refinance program. Read the contract carefully.
Be ready to pay and change your lifestyle. No matter the advantages of your home refinance, if you fail keeping up with the payments you'll get the short end of the stick.
"Come into my parlor", said the spider to the fly. "We've got the lowest interest only loan. Just put up your house as equity." The fly immediately put up his house and went into the parlor, only to be devoured as a savory dinner. Are you that unfortunate fly?
Why are you getting a home refinance?
There are many reasons to get a home refinance, and 99.9% of these reasons are to pay off debts. Experts would advise to consider carefully your reason to refinance and stake your home.
Another reason to refinance is to get investment money for a business. This sounds good, but the risk is great. Would you dare navigate un-chartered depths at the risk of losing your home?
Perhaps you've got this zany idea to earn tax deductions so you took out a home refinance loan. In principle, you are paying a dollar to earn 30 cents, and for this you put your home.
Not all these reasons for home refinance are recommended. Your house is the biggest investment of your lifetime and putting it up for these flimsy reasons is nothing to crow about.
Better reasons to home refinance
Just because everybody has lined up for a home loan does not mean it will work according to your expectations. Loans have to be paid back. To be able to do so on the same amount of cash inflow for a number of years means changing your lifestyles and spending habits. Or like the fly, you will be dinner for the spider.
It is not easy to lose a home. Apart from destroying your credit score, you'll have to uproot your family from all that is dear. So play smart when you are getting a loan.
A bankable reason to home refinance is to get additional cash flow for your business expansion or fund a wife's last year in college. Both ways you see an end goal towards increased revenues and income.
How to get a better deal
Depending on your financial motivation like cash flow flexibility, you are looking at more savings in a year's time from a lowered monthly payments compared to your current mortgage.
Remember that the longer the loan term, the lower the monthly payment. If you add up all your expenses in 30 years time, you'll have paid more than double the loan amount. So get a lower interest rate and be sure there are no additional or hidden costs.
If you have a $200,000 30-year mortgage loaned on an interest rate of 8%, you'll have paid $440,400 at $1,468 a month. If you refinance at 6% you will be paying $1,199 a month or a total of $359,700. But wait, there's more. Depending on the closing costs, it will take months before you can break even.
If you are staying in the house for more than 10 years get the fixed rate but if you are going to sell the house in five year's time better get the adjustable rate mortgage.
Never rush into a home refinance. Take your time until you have understood all the workings of your target refinance program. Read the contract carefully.
Be ready to pay and change your lifestyle. No matter the advantages of your home refinance, if you fail keeping up with the payments you'll get the short end of the stick.
www.goarticles.com
2007-10-29
THE COLD HARD TRUTH ABOUT MORTGAGE PROPERTY APPRAISALS
by ROB LAWRENCE
With the present downturn in the market and home prices dropping faster than a lead balloon, I thought it best to share with you what I've learned regarding property appraisals.
Here is the cold, hard truth on valuations and what appraisers will NEVER tell you. Keep these points in mind on every loan you do.
1. Cosmetic stuff such as paint, new carpets, window treatments, etc. do not increase appraised value, they only increase the perceived value of the property from the viewpoint of the buyer. Yes, cosmetics will affect your asking price and what the buyer is willing to pay, but it will NOT increase the intrinsic value of the house on the appraisal report. It also won't get a customer out of PMI if you try to refinance him and all he has done to improve the property is wallpaper and paint. Lenders are much savvier than this and (if the time period has only been a year or two and prices haven't increased) will require "significant" property upgrades to kick off PMI, not just cosmetic effects. Remember this.
2. Also, high end appliances such as sub-zero freezers and granite counter top upgrades do nothing to increase value on the actual appraisal report. And even if by chance they do, it will be very, very low and insignificant. Yes, some appraisers will try to tell you that they took the upgrades into account when determining value, when the real reason is they didn't. Appraisers just say that, because it's the borrowers who belly ache with "well I put all this work into the house, and surely my shiny new stainless steel appliances added some value, didn't they?" Of course they did. *wink* *wink*. ;-)
3. On condo's, the appraiser must first look within the same complex development for comparable properties BEFORE looking elsewhere to justify a value. That's because lenders want to know what other units next to it have sold for, and most likely, these units are all similar in nature and have a common historical precedence for valuation.
4. If the appraiser goes outside the normal mileage boundaries of the area to search for comparable properties, there must be a valid and overriding reason given. And this reason must be CLEARLY articulated and stated on the appraisal report. Failure to do this and you risk having the appraisal report kicked back to you from underwriting and requesting additional comparables. (This delays the closing, risks your interest rate lock and may even kill the whole deal!)
5. Carefully watch your hits and adjustments on the rate sheet and beware of pricing bumps because of a low appraisal. If the "loan to value" on the property is too high and the customer is taking cash-out, then this WILL affect the interest rate and--more importantly--your income! On the other hand, if the appraisal comes in higher making the "loan to value" lower, you can either keep the extra yield spread you earn or pass the savings onto the customer and lower their interest rate or reduce some of the closing costs. If you do nothing, you can simply use this additional "found capital" as additional leverage to make yourself more competitive with the borrower. As the deal progresses, you may have to bargain and cut your fees to save the loan. Keeping a bit of padding, gives you a way to make amends without losing your shirt!
6. Keep in mind that appraisal values are a moving target and that the appraiser can only go back so far to pull out comparable properties, typically no more than 3 to 4 months. Anything longer and the bank will condition you for it and ask for more comps. Again, you don't want to delay the closing and risk losing your commission.
7. Any value that is given to a home is only as good as the value of the other properties surrounding it. If the market is in a downward trend (as we are today), then the prevailing prices will be downward. Duh?! Customers don't like to hear this. Everyone thinks they are sitting on a "goldmine" and I can't even tell you how many BBQ's I've been at where so-and-so is bragging about how much their house is worth. You can imagine the shock on their face when they try to refinance and get the appraisal report. That alone is enough to deflate their enthusiasm. Sorry to spoil the party, Mr. Customer, but all value is subjective and only as good as what someone else is willing to pay.
8. Tell customers, that no matter what the property value comes in at, you have absolutely no control over it. Appraisers are independent third parties and their opinion is usually firm. They are bound by legal, ethical and moral obligations and could lose their license if they stray too far beyond the guidelines. They could lose their job!!!
9. If customers doubt the appraised value and think it should be higher (again the goldmine mentality), tell them that it is up to them to get a second opinion if they choose too. However, be sure to tell them that it will cost them another appraisal fee (this usually is enough to stop them cold in their tracks!). Reiterate the points mentioned above. You are acting as their trusted advisor so they should heed your advice.
10. As a last resort, you could call the appraiser and see if they may have overlooked something on the report such as significant upgrades (meaning finished basements, porches, attics, additional rooms, etc.) Also, are there any other recent sales in the area that you know of? Could the appraiser use one of those comparable properties instead? Maybe this will help you get to the value you are looking for. Maybe not.
Remember when working on loans you need to set expectations with the borrower. I always tell customers that no matter what they "think" the property is worth we actually have no idea until an independent third party takes an objective look at it. It's no use trying to guess and speculate!
When someone tells me the value of their home I take it with a grain of salt because I know that most likely the appraisal will come in far less than they think...and I price my loans accordingly. I suggest you do the same. Listen to your gut instinct and never just take the borrowers word for it.
I hope the above tips regarding appraisals help you in this ever changing market. If you want to survive you'll need to adapt and become your customer's best friend. The better educated you are about the mortgage process, the less fall-out you'll have and the more loans you'll ultimately close.
http://www.goarticles.com/cgi-bin/showa.cgi?C=664251
With the present downturn in the market and home prices dropping faster than a lead balloon, I thought it best to share with you what I've learned regarding property appraisals.
Here is the cold, hard truth on valuations and what appraisers will NEVER tell you. Keep these points in mind on every loan you do.
1. Cosmetic stuff such as paint, new carpets, window treatments, etc. do not increase appraised value, they only increase the perceived value of the property from the viewpoint of the buyer. Yes, cosmetics will affect your asking price and what the buyer is willing to pay, but it will NOT increase the intrinsic value of the house on the appraisal report. It also won't get a customer out of PMI if you try to refinance him and all he has done to improve the property is wallpaper and paint. Lenders are much savvier than this and (if the time period has only been a year or two and prices haven't increased) will require "significant" property upgrades to kick off PMI, not just cosmetic effects. Remember this.
2. Also, high end appliances such as sub-zero freezers and granite counter top upgrades do nothing to increase value on the actual appraisal report. And even if by chance they do, it will be very, very low and insignificant. Yes, some appraisers will try to tell you that they took the upgrades into account when determining value, when the real reason is they didn't. Appraisers just say that, because it's the borrowers who belly ache with "well I put all this work into the house, and surely my shiny new stainless steel appliances added some value, didn't they?" Of course they did. *wink* *wink*. ;-)
3. On condo's, the appraiser must first look within the same complex development for comparable properties BEFORE looking elsewhere to justify a value. That's because lenders want to know what other units next to it have sold for, and most likely, these units are all similar in nature and have a common historical precedence for valuation.
4. If the appraiser goes outside the normal mileage boundaries of the area to search for comparable properties, there must be a valid and overriding reason given. And this reason must be CLEARLY articulated and stated on the appraisal report. Failure to do this and you risk having the appraisal report kicked back to you from underwriting and requesting additional comparables. (This delays the closing, risks your interest rate lock and may even kill the whole deal!)
5. Carefully watch your hits and adjustments on the rate sheet and beware of pricing bumps because of a low appraisal. If the "loan to value" on the property is too high and the customer is taking cash-out, then this WILL affect the interest rate and--more importantly--your income! On the other hand, if the appraisal comes in higher making the "loan to value" lower, you can either keep the extra yield spread you earn or pass the savings onto the customer and lower their interest rate or reduce some of the closing costs. If you do nothing, you can simply use this additional "found capital" as additional leverage to make yourself more competitive with the borrower. As the deal progresses, you may have to bargain and cut your fees to save the loan. Keeping a bit of padding, gives you a way to make amends without losing your shirt!
6. Keep in mind that appraisal values are a moving target and that the appraiser can only go back so far to pull out comparable properties, typically no more than 3 to 4 months. Anything longer and the bank will condition you for it and ask for more comps. Again, you don't want to delay the closing and risk losing your commission.
7. Any value that is given to a home is only as good as the value of the other properties surrounding it. If the market is in a downward trend (as we are today), then the prevailing prices will be downward. Duh?! Customers don't like to hear this. Everyone thinks they are sitting on a "goldmine" and I can't even tell you how many BBQ's I've been at where so-and-so is bragging about how much their house is worth. You can imagine the shock on their face when they try to refinance and get the appraisal report. That alone is enough to deflate their enthusiasm. Sorry to spoil the party, Mr. Customer, but all value is subjective and only as good as what someone else is willing to pay.
8. Tell customers, that no matter what the property value comes in at, you have absolutely no control over it. Appraisers are independent third parties and their opinion is usually firm. They are bound by legal, ethical and moral obligations and could lose their license if they stray too far beyond the guidelines. They could lose their job!!!
9. If customers doubt the appraised value and think it should be higher (again the goldmine mentality), tell them that it is up to them to get a second opinion if they choose too. However, be sure to tell them that it will cost them another appraisal fee (this usually is enough to stop them cold in their tracks!). Reiterate the points mentioned above. You are acting as their trusted advisor so they should heed your advice.
10. As a last resort, you could call the appraiser and see if they may have overlooked something on the report such as significant upgrades (meaning finished basements, porches, attics, additional rooms, etc.) Also, are there any other recent sales in the area that you know of? Could the appraiser use one of those comparable properties instead? Maybe this will help you get to the value you are looking for. Maybe not.
Remember when working on loans you need to set expectations with the borrower. I always tell customers that no matter what they "think" the property is worth we actually have no idea until an independent third party takes an objective look at it. It's no use trying to guess and speculate!
When someone tells me the value of their home I take it with a grain of salt because I know that most likely the appraisal will come in far less than they think...and I price my loans accordingly. I suggest you do the same. Listen to your gut instinct and never just take the borrowers word for it.
I hope the above tips regarding appraisals help you in this ever changing market. If you want to survive you'll need to adapt and become your customer's best friend. The better educated you are about the mortgage process, the less fall-out you'll have and the more loans you'll ultimately close.
http://www.goarticles.com/cgi-bin/showa.cgi?C=664251
2007-10-28
A Guide To Home Refinancing
by Debbie Groves
If the interest rates on your existing mortgage loan are driving you wild, then you can always use home refinancing. Home refinancing allows you to take a second loan against the same property to pay off the first one.
Is refinancing a better option?
The declining interest mortgage rate makes refinancing your home quite lucrative. Suppose you mortgage your property and take on loan. If the interest rate plummets, you take a second loan to pay off the first loan. However, when you are going for the home refinancing option, you consider the fact that whether the amount you save on the interest equals the amount you pay during the time of refinancing.
The Advantages of Home Refinancing,
The major advantage of home refinancing is that the process is very lucrative and allows saving extra bucks. At the same time, the monthly mortgage budget will tend to decrease letting you have access to extra cash.
When you purchase the house of your dream, the financial environment actually decides the interest rate, such as credit rating, amount of down payment and the most important of all, the prevailing market rate. However, the interest rate tends to fluctuate and therefore the interest rate may plummet significantly rendering you the urge to seek a second loan. Hence, at the time of home refinancing, you can exchange a higher rate for a lower one, which will enable you to lower your monthly payment.
The most important benefit of home refinancing is that it gives you the ability to reduce the tenure of your loan. If the mortgage period was 40 years, then the home refinancing will help you to shorten the term to 15 or 20 years. Another benefit is that, you can add extra money to your pocket. For example, you can refinance an amount much higher than the current principal balance. Firstly, the amount conjugated with lower interest rate will help you in the future. You can also use the extra amount to remodel your house or for miscellaneous expenses.
Refinancing your home is tax deductible. This means you will receive tax advantage for the closing cost associated with refinancing, even in times of bankruptcy.
Important procedures of refinancing,
First, you have to understand, why you want to refinance your home. There can be thousands of reasons for refinancing your house like for home improvements, debt consolidation, or shortening of your loan term. Hence, first get it clear, what are the reasons and purpose of refinancing. Then, decide what type of loan you want, whether for ARM (adjustable rate mortgages) or a fixed rate and what will be the loan term.
However, prior to seeking the loan, you need to fill up a form that will decide whether you qualify for having the loan. Once your eligibility is established, you will need to submit all the requisite documents.
When you are contemplating for a home refinancing, it is important to have your home appraised. As part of the process of refinancing, you need to appraise your home, as this will enable the lender to know your property's worth.
As part of the formality, you need to sign with a notary, to fund your home mortgage refinance loan. This part of the procedure ensures that an official bears witness to yoursigning.
Upon completion of the documents and the notarization process, the lender releases your home refinance loan.
www.homerefinancingpeople.com
If the interest rates on your existing mortgage loan are driving you wild, then you can always use home refinancing. Home refinancing allows you to take a second loan against the same property to pay off the first one.
Is refinancing a better option?
The declining interest mortgage rate makes refinancing your home quite lucrative. Suppose you mortgage your property and take on loan. If the interest rate plummets, you take a second loan to pay off the first loan. However, when you are going for the home refinancing option, you consider the fact that whether the amount you save on the interest equals the amount you pay during the time of refinancing.
The Advantages of Home Refinancing,
The major advantage of home refinancing is that the process is very lucrative and allows saving extra bucks. At the same time, the monthly mortgage budget will tend to decrease letting you have access to extra cash.
When you purchase the house of your dream, the financial environment actually decides the interest rate, such as credit rating, amount of down payment and the most important of all, the prevailing market rate. However, the interest rate tends to fluctuate and therefore the interest rate may plummet significantly rendering you the urge to seek a second loan. Hence, at the time of home refinancing, you can exchange a higher rate for a lower one, which will enable you to lower your monthly payment.
The most important benefit of home refinancing is that it gives you the ability to reduce the tenure of your loan. If the mortgage period was 40 years, then the home refinancing will help you to shorten the term to 15 or 20 years. Another benefit is that, you can add extra money to your pocket. For example, you can refinance an amount much higher than the current principal balance. Firstly, the amount conjugated with lower interest rate will help you in the future. You can also use the extra amount to remodel your house or for miscellaneous expenses.
Refinancing your home is tax deductible. This means you will receive tax advantage for the closing cost associated with refinancing, even in times of bankruptcy.
Important procedures of refinancing,
First, you have to understand, why you want to refinance your home. There can be thousands of reasons for refinancing your house like for home improvements, debt consolidation, or shortening of your loan term. Hence, first get it clear, what are the reasons and purpose of refinancing. Then, decide what type of loan you want, whether for ARM (adjustable rate mortgages) or a fixed rate and what will be the loan term.
However, prior to seeking the loan, you need to fill up a form that will decide whether you qualify for having the loan. Once your eligibility is established, you will need to submit all the requisite documents.
When you are contemplating for a home refinancing, it is important to have your home appraised. As part of the process of refinancing, you need to appraise your home, as this will enable the lender to know your property's worth.
As part of the formality, you need to sign with a notary, to fund your home mortgage refinance loan. This part of the procedure ensures that an official bears witness to yoursigning.
Upon completion of the documents and the notarization process, the lender releases your home refinance loan.
www.homerefinancingpeople.com
Mortgage Refinance Does Wonders for You
By: John Smith
Perhaps you have seen yourself clamoring for more money. This may be because you can hardly afford to pay your mortgages and all of your outstanding debts. But before you decide to sell some of your properties or, worse, opt for foreclosure, you should know that there is definitely something that you can do: mortgage refinance.
There are many benefits that you can derive from mortgage refinancing. For one, you can absolutely reduce the amount that you are going to pay for your monthly amortization. All you need to do is scour the market for those refinancing services with the lowest interest rate—even far lower than the rate you have with your present mortgage. In fact, that’s how you can make the most out of your mortgage refinance. The thousands of dollars that you can save every month or year will go a long way.
When you refinance your mortgage, there’s big possibility that you can also decrease the loan payment term. Perhaps you’re asking, how is it possible? Isn’t it that when you bring down your 25-year mortgage to 10, you will likely increase your payment per month? This might be true, but then again, you will also be able to reduce your interest rate. It will also spell another savings in your part. It will also help you speed up in building equity for your home or other real estate property.
It’s not unusual to be facing too many debts at one time. They may come in different forms, such as credit cards, housing loans, auto loans, and, if you’re still in school, student loans. Indeed, they can cause major headache. You can, however, lessen the burden by choosing to consolidate all of your debts and go for refinancing. This way, you can actually select a much lower interest rate and a more comfortable payment term for all of your present bills. What’s more, you can add more cash in your wallet because of your monthly savings.
One of the major reasons why there are so many properties that are already declared foreclosed is because they opt for an adjustable mortgage rate, believing that the trend will actually bring it lower. The truth is there’s no stability and, as a matter of fact, security to it. If you like to make sure that you are protected with the fluctuations of mortgage rates, you have to decide on fixed rates. But what if you’re stuck with the adjustable mortgage rate? Well, mortgage refinancing can help you solve your problem. This means that if you have chosen for a very low rate for your mortgage interest, you can enjoy it for the length of your mortgage.
In the end, the decision will still be yours. Keep in mind that what works for one may not entirely work for the other. Generally, mortgage refinancing is good, but it may not be what you need. To come up with a sounder and more comfortable judgment, seek help from mortgage experts and counselors.
Article Source: http://www.ArticleBiz.com
Perhaps you have seen yourself clamoring for more money. This may be because you can hardly afford to pay your mortgages and all of your outstanding debts. But before you decide to sell some of your properties or, worse, opt for foreclosure, you should know that there is definitely something that you can do: mortgage refinance.
There are many benefits that you can derive from mortgage refinancing. For one, you can absolutely reduce the amount that you are going to pay for your monthly amortization. All you need to do is scour the market for those refinancing services with the lowest interest rate—even far lower than the rate you have with your present mortgage. In fact, that’s how you can make the most out of your mortgage refinance. The thousands of dollars that you can save every month or year will go a long way.
When you refinance your mortgage, there’s big possibility that you can also decrease the loan payment term. Perhaps you’re asking, how is it possible? Isn’t it that when you bring down your 25-year mortgage to 10, you will likely increase your payment per month? This might be true, but then again, you will also be able to reduce your interest rate. It will also spell another savings in your part. It will also help you speed up in building equity for your home or other real estate property.
It’s not unusual to be facing too many debts at one time. They may come in different forms, such as credit cards, housing loans, auto loans, and, if you’re still in school, student loans. Indeed, they can cause major headache. You can, however, lessen the burden by choosing to consolidate all of your debts and go for refinancing. This way, you can actually select a much lower interest rate and a more comfortable payment term for all of your present bills. What’s more, you can add more cash in your wallet because of your monthly savings.
One of the major reasons why there are so many properties that are already declared foreclosed is because they opt for an adjustable mortgage rate, believing that the trend will actually bring it lower. The truth is there’s no stability and, as a matter of fact, security to it. If you like to make sure that you are protected with the fluctuations of mortgage rates, you have to decide on fixed rates. But what if you’re stuck with the adjustable mortgage rate? Well, mortgage refinancing can help you solve your problem. This means that if you have chosen for a very low rate for your mortgage interest, you can enjoy it for the length of your mortgage.
In the end, the decision will still be yours. Keep in mind that what works for one may not entirely work for the other. Generally, mortgage refinancing is good, but it may not be what you need. To come up with a sounder and more comfortable judgment, seek help from mortgage experts and counselors.
Article Source: http://www.ArticleBiz.com
2007-10-27
Mortgage Refinance Online
By: Steve Wheeler
If you wish to refinance your mortgage, also called remortgaging, you can mortgage refinance online. There is no need to ring many different lenders in order to obtain the best remortgage deal. You need only go online to find the best mortgage option available for you.
There are many different reasons people choose to refinance their mortgages. These reasons range from a desire to get lower mortgage payments, to draw money from their equity to use for home improvements or to consolidate debt, to gain flexibility, or to change from a variable rate to a fixed rate.
To get the lowest mortgage payment you can mortgage re finance online. Here you can see which option is right for you. If you want the lowest monthly payment possible, choose an interest only mortgage with a variable rate. An interest only mortgage requires you to pay only the interest, instead of capital and interest one pays for a repayment mortgage. A variable rate is generally lower than a fixed rate, but the rate does not stay the same for the entire period of the loan. If you are planning on getting additional money in the future, either by getting a different job or inheriting money, an interest only variable rate mortgage is a good refinance option.
If you want to consolidate debt or get cash to pay for home improvements, you can apply for a mortgage refinance online that offers you a cash back option, or equity release. The equity in your home is determined by the value of your property less the amount you owe. Many people do not even realise that their home has increased substantially in value since their purchase. With an equity release remortgage you can receive a certain percentage of equity back to use however you choose.
To gain flexibility, you can get a mortgage that offers you the option of holiday payments. Holiday payments mean that you can go for a period of time without making payments. This is especially helpful to those who have jobs that pay hourly and do not pay if someone goes on holiday or becomes ill for a brief period of time. Other flexible mortgages offer the borrower a chance to pay extra towards the capital without incurring a fee.
With mortgage rates at an all time low in the United Kingdom, many people with variable rates are choosing to refinance to obtain a steady fixed rate. A fixed rate mortgage maintains the same interest rate during the term of the loan. No matter what your needs or circumstances, there is a refinance option designed to make certain that you get what you need. Even those with CCJs or poor credit are able to refinance at a competitive rate.
To mortgage re finance online, visit Finance Tracker. Here you can learn all about the different rates available today, as well as the different terms offered, all within the comfort of your own home. It is very simple to mortgage refinance online and is very convenient. Whatever your circumstances, there is a refinance option available to help you.
http://www.articleclick.com/Article/Mortgage-Refinance-Online/932918
If you wish to refinance your mortgage, also called remortgaging, you can mortgage refinance online. There is no need to ring many different lenders in order to obtain the best remortgage deal. You need only go online to find the best mortgage option available for you.
There are many different reasons people choose to refinance their mortgages. These reasons range from a desire to get lower mortgage payments, to draw money from their equity to use for home improvements or to consolidate debt, to gain flexibility, or to change from a variable rate to a fixed rate.
To get the lowest mortgage payment you can mortgage re finance online. Here you can see which option is right for you. If you want the lowest monthly payment possible, choose an interest only mortgage with a variable rate. An interest only mortgage requires you to pay only the interest, instead of capital and interest one pays for a repayment mortgage. A variable rate is generally lower than a fixed rate, but the rate does not stay the same for the entire period of the loan. If you are planning on getting additional money in the future, either by getting a different job or inheriting money, an interest only variable rate mortgage is a good refinance option.
If you want to consolidate debt or get cash to pay for home improvements, you can apply for a mortgage refinance online that offers you a cash back option, or equity release. The equity in your home is determined by the value of your property less the amount you owe. Many people do not even realise that their home has increased substantially in value since their purchase. With an equity release remortgage you can receive a certain percentage of equity back to use however you choose.
To gain flexibility, you can get a mortgage that offers you the option of holiday payments. Holiday payments mean that you can go for a period of time without making payments. This is especially helpful to those who have jobs that pay hourly and do not pay if someone goes on holiday or becomes ill for a brief period of time. Other flexible mortgages offer the borrower a chance to pay extra towards the capital without incurring a fee.
With mortgage rates at an all time low in the United Kingdom, many people with variable rates are choosing to refinance to obtain a steady fixed rate. A fixed rate mortgage maintains the same interest rate during the term of the loan. No matter what your needs or circumstances, there is a refinance option designed to make certain that you get what you need. Even those with CCJs or poor credit are able to refinance at a competitive rate.
To mortgage re finance online, visit Finance Tracker. Here you can learn all about the different rates available today, as well as the different terms offered, all within the comfort of your own home. It is very simple to mortgage refinance online and is very convenient. Whatever your circumstances, there is a refinance option available to help you.
http://www.articleclick.com/Article/Mortgage-Refinance-Online/932918
2007-10-26
Single Again And Starting Over With A Refinance Home Loan
Rony Walker
The divorce was amicable on the surface, but you're seething and hurting inside. After the dust has settled, you'll find yourself staring into space, wondering what do with the rest of your life. At least you still have the house - that's for starters on the road to sanity.
Jumpstart your race
Divorcing couples have to contend with several problems before an amicable settlement is reached. One thorny issue is the home. Women in different difficult circumstances are always concerned about their homes and the decrease in their standard of living by 45%.
Knowing your rights and limitations to the home shared with your husband for years can jumpstart your bid for a roof over your head, stability and security for yourself and your children. Your efforts will downplay the emotional upheavals you are riding on.
Property - both yours or just his?
During the divorce process, stay level-headed. You owe it to yourself and your kids to stay calm while calculating how much you can salvage from your divorce.
Your first target should be your home, not shopping until you drop just to forget the pain and the blow to your self-esteem. If you bought the house together and a year later got a refinance home loan, you will be wondering what in Adam's name are you going to do?
If the mortgage is in your name alone, but the title and the deed to the house are both in your names, the court will simply divide the marital property and your debt. One will stay in the house and the other gets some loot elsewhere. He could get the car, the grandfather clock, and the dog.
But if the house was bought by your mate before you got married, that house is his and unless he gave it to you as a gift and had your name in the title and the deed, then it is rightfully yours. What to do now if it is still in his name?
Your husband can kick you out, it his house; you can stay there until he does. But if you contributed to the mortgage payments, you are entitled to some of the equity and the courts will also allow you to live in the house for a period.
It is the same story when the situation is reversed. Better still get a lawyer to avoid the legal loopholes regarding your situation and the possibilities for a refinance home loan considering the pickle you're in.
Preparing for a future without him with refinance home loan
If you are getting a refinance home loan to start a home business, you can try making your own fruity facial treatments or grow choice vegetables all year round. In-between you can specialize in children's parties if you love to cook.
Check out the business ideas online for a match to your capabilities and your capital investment. As always, you need the discipline and the drive to survive on your own after the break-up. A refinance home loan will give you the break towards financial freedom and security.
You'll be surprised at the turn of events. Life begins, you're single again, and financially and emotionally on the mend.
www.whataboutloans.com
The divorce was amicable on the surface, but you're seething and hurting inside. After the dust has settled, you'll find yourself staring into space, wondering what do with the rest of your life. At least you still have the house - that's for starters on the road to sanity.
Jumpstart your race
Divorcing couples have to contend with several problems before an amicable settlement is reached. One thorny issue is the home. Women in different difficult circumstances are always concerned about their homes and the decrease in their standard of living by 45%.
Knowing your rights and limitations to the home shared with your husband for years can jumpstart your bid for a roof over your head, stability and security for yourself and your children. Your efforts will downplay the emotional upheavals you are riding on.
Property - both yours or just his?
During the divorce process, stay level-headed. You owe it to yourself and your kids to stay calm while calculating how much you can salvage from your divorce.
Your first target should be your home, not shopping until you drop just to forget the pain and the blow to your self-esteem. If you bought the house together and a year later got a refinance home loan, you will be wondering what in Adam's name are you going to do?
If the mortgage is in your name alone, but the title and the deed to the house are both in your names, the court will simply divide the marital property and your debt. One will stay in the house and the other gets some loot elsewhere. He could get the car, the grandfather clock, and the dog.
But if the house was bought by your mate before you got married, that house is his and unless he gave it to you as a gift and had your name in the title and the deed, then it is rightfully yours. What to do now if it is still in his name?
Your husband can kick you out, it his house; you can stay there until he does. But if you contributed to the mortgage payments, you are entitled to some of the equity and the courts will also allow you to live in the house for a period.
It is the same story when the situation is reversed. Better still get a lawyer to avoid the legal loopholes regarding your situation and the possibilities for a refinance home loan considering the pickle you're in.
Preparing for a future without him with refinance home loan
If you are getting a refinance home loan to start a home business, you can try making your own fruity facial treatments or grow choice vegetables all year round. In-between you can specialize in children's parties if you love to cook.
Check out the business ideas online for a match to your capabilities and your capital investment. As always, you need the discipline and the drive to survive on your own after the break-up. A refinance home loan will give you the break towards financial freedom and security.
You'll be surprised at the turn of events. Life begins, you're single again, and financially and emotionally on the mend.
www.whataboutloans.com
The Top Three Reasons To Refinance Your Home Loan
Marcus Masters
The majority of families living in the modern world devote a significant portion of their monthly income to paying a mortgage.
It is possible to save money through refinancing your mortgage, sometimes over 5-figures a year (depending on the size of the mortgage), and below you will find the top three reasons why an individual or family chooses to refinance their home mortgage.
Before I get into the three reasons, let me first say that usually the primary motivation for refinancing a home mortgage is to secure a lower interest rate. The three reasons that I want to discuss go beyond simply trying to lower the interest rate, since it kind of goes without saying that everybody wants a lower interest rate.
The first reason that people choose to refinance is to reduce or eliminate the risk of an increasing interest rate by switching from an adjustable rate mortgage to a fixed rate mortgage.
Most people sign up for an adjustable rate when they are first getting their home loan because of the tempting lower introductory rate. What they fail to take into account at this time is that a few years down the road, their rate will have adjusted to a point where it is as high as 1-2% above the normal fixed rate.
When interest rates adjust, more times then not they adjust up and not down. This can be risky, especially if the adjustment period is short, and a good way to offset or eliminate this risk is refinance to a new mortgage with a fixed interest rate.
The second reason people tend to refinance their mortgage is to get a lump-sum of cash left over. They will work with a bank or a lender to pay off their existing mortgage, then take out a new mortgage that is greater than the value to be repaid on their home. That way they are left with a certain amount of money left over, whether it is $5,000 or $100,000. The term for this is 'cash-out refinancing.'
Cash-out refinancing can be a good idea for funding something like a large home improvement or a new car. A poential downside is that it will usually be difficult to get the same low interest rate with cash-out refinancing as you would have gotten by simply refinancing the home and nothing more.
The third reason that most people will refinance their mortgage is to switch from a subprime loan to a prime loan. The entire premise behind the subprime lending market is to provide an option for the majority of potential borrowers who do not fit the stringent qualifications for the prime loan market.
A person who agrees to a subprime mortgage usually does so without regard to the high interest rate they will have to pay, and are only concerned with getting the money for their house as soon as possible.
By switching from a subprime mortgage to a prime mortgage, you will usually be able to save 1-4% on your interest rate, and the lender will be more willing to come to agreeable repayment terms because you will be so well-qualified.
http://www.articlesbase.com/non-fiction-articles/the-top-three-reasons-to-refinance-your-home-loan-244058.html
The majority of families living in the modern world devote a significant portion of their monthly income to paying a mortgage.
It is possible to save money through refinancing your mortgage, sometimes over 5-figures a year (depending on the size of the mortgage), and below you will find the top three reasons why an individual or family chooses to refinance their home mortgage.
Before I get into the three reasons, let me first say that usually the primary motivation for refinancing a home mortgage is to secure a lower interest rate. The three reasons that I want to discuss go beyond simply trying to lower the interest rate, since it kind of goes without saying that everybody wants a lower interest rate.
The first reason that people choose to refinance is to reduce or eliminate the risk of an increasing interest rate by switching from an adjustable rate mortgage to a fixed rate mortgage.
Most people sign up for an adjustable rate when they are first getting their home loan because of the tempting lower introductory rate. What they fail to take into account at this time is that a few years down the road, their rate will have adjusted to a point where it is as high as 1-2% above the normal fixed rate.
When interest rates adjust, more times then not they adjust up and not down. This can be risky, especially if the adjustment period is short, and a good way to offset or eliminate this risk is refinance to a new mortgage with a fixed interest rate.
The second reason people tend to refinance their mortgage is to get a lump-sum of cash left over. They will work with a bank or a lender to pay off their existing mortgage, then take out a new mortgage that is greater than the value to be repaid on their home. That way they are left with a certain amount of money left over, whether it is $5,000 or $100,000. The term for this is 'cash-out refinancing.'
Cash-out refinancing can be a good idea for funding something like a large home improvement or a new car. A poential downside is that it will usually be difficult to get the same low interest rate with cash-out refinancing as you would have gotten by simply refinancing the home and nothing more.
The third reason that most people will refinance their mortgage is to switch from a subprime loan to a prime loan. The entire premise behind the subprime lending market is to provide an option for the majority of potential borrowers who do not fit the stringent qualifications for the prime loan market.
A person who agrees to a subprime mortgage usually does so without regard to the high interest rate they will have to pay, and are only concerned with getting the money for their house as soon as possible.
By switching from a subprime mortgage to a prime mortgage, you will usually be able to save 1-4% on your interest rate, and the lender will be more willing to come to agreeable repayment terms because you will be so well-qualified.
http://www.articlesbase.com/non-fiction-articles/the-top-three-reasons-to-refinance-your-home-loan-244058.html
Bankruptcy And Home Loan Refinance Options
Tom Houser
After a bankruptcy, home loan refinance options can be tricky. Your lender may or may not work with you in your quest for a better financial security. You will need to investigate your options for a suitable program. It may serve your best interest not to use the particular program that your lender provides.
A bankruptcy home loan refinance program can be a wonderful option if the lender is willing to work with you. It can be a nightmare if the program has hidden surprises along the way. In some cases, it would be best not to pursue a loan at all. In some instances, you may feel as if your lender is trying to push you into a program that you do not want. This should send up some red flags to you and you may want to find another lender who specializes in refinancing options. It may be that your lender just does not want to work with you anymore. It is better to find a new one than try to salvage a relationship that will make you miserable for years to come.
If your lender is making the option of a bankruptcy home loan refinance painful, you will want to search for another lender. There are always other options for refinancing. There are many finance companies just waiting to serve you and they will offer you a package that is more attractive. They will come with both good and bad. Your interest rate will be higher in a package from a finance company.
It is always important to do a little research when looking for a bankruptcy home loan refinance program that will work for you. The differences in programs can be like night and day. Some programs may seem like a good idea in the short term. These will often lower your payments and that may be the option you choose. However, some refinancing can make it seem as if you are starting over and your loan will take another thirty to forty years to pay off. This is not a good option to have if you have already been paying on your home for several years. It would be a good option if you have only been paying on your home for less than five years. You will have to make that determination for yourself.
As you can see, a bankruptcy home loan refinance program can have both good and bad outcomes. You as the consumer are ultimately responsible for the program that you choose or do not choose to take. Remember, a troubled financial past should not prevent you from affordably owning your own home. However, many lenders will make it as difficult and as costly as possible for you. Perform an internet search and look for specialists that know how to seek out premium deals and that will present them to you without any pressure. Make sure that you ask them plenty of questions and have a lawyer look over any documents before you sign anything.
http://www.articlesbase.com/finance-articles/bankruptcy-and-home-loan-refinance-options-244512.html
After a bankruptcy, home loan refinance options can be tricky. Your lender may or may not work with you in your quest for a better financial security. You will need to investigate your options for a suitable program. It may serve your best interest not to use the particular program that your lender provides.
A bankruptcy home loan refinance program can be a wonderful option if the lender is willing to work with you. It can be a nightmare if the program has hidden surprises along the way. In some cases, it would be best not to pursue a loan at all. In some instances, you may feel as if your lender is trying to push you into a program that you do not want. This should send up some red flags to you and you may want to find another lender who specializes in refinancing options. It may be that your lender just does not want to work with you anymore. It is better to find a new one than try to salvage a relationship that will make you miserable for years to come.
If your lender is making the option of a bankruptcy home loan refinance painful, you will want to search for another lender. There are always other options for refinancing. There are many finance companies just waiting to serve you and they will offer you a package that is more attractive. They will come with both good and bad. Your interest rate will be higher in a package from a finance company.
It is always important to do a little research when looking for a bankruptcy home loan refinance program that will work for you. The differences in programs can be like night and day. Some programs may seem like a good idea in the short term. These will often lower your payments and that may be the option you choose. However, some refinancing can make it seem as if you are starting over and your loan will take another thirty to forty years to pay off. This is not a good option to have if you have already been paying on your home for several years. It would be a good option if you have only been paying on your home for less than five years. You will have to make that determination for yourself.
As you can see, a bankruptcy home loan refinance program can have both good and bad outcomes. You as the consumer are ultimately responsible for the program that you choose or do not choose to take. Remember, a troubled financial past should not prevent you from affordably owning your own home. However, many lenders will make it as difficult and as costly as possible for you. Perform an internet search and look for specialists that know how to seek out premium deals and that will present them to you without any pressure. Make sure that you ask them plenty of questions and have a lawyer look over any documents before you sign anything.
http://www.articlesbase.com/finance-articles/bankruptcy-and-home-loan-refinance-options-244512.html
Home Equity Loans For People With Bad Credit
by Joseph Kenny
Having bad credit is not the end of the line - especially if you have a home that has some equity in it. There still are lenders who will be glad to talk to you. In fact, they know that this kind of loan may be just what you need to help you consolidate your debt and get off to a better start. Your equity is valuable to you and can enable you to get the cash you need. Here is what you need to know.
It is important that you understand that a home equity loan is a loan against your home. This means that should you default on your payments, you could lose the house - plain and simple. So, before you decide to proceed with applying for a home equity loan, it is important that you make sure your own present financial situation can adequately handle it. Sit down and calculate how much you can afford and how much you need.
Bad credit will limit your loan, so you may want to take the needed time to repair your credit rating. Having better credit will allow you to get a larger loan, have lower interest rates, and more time to repay the loan. So, if your loan can wait until then, it would be a good idea in order to get more desirable terms.
A home equity loan can be either fixed rate or adjustable rate, enabling you to make a choice here according to your needs and the economy. Keeping an eye on the market rates will enable you to know when you should get your loan.
You will be able to get a home equity loan as either a cash out mortgage, or as a typical second mortgage. A cash out mortgage means refinancing your first mortgage and taking out the equity you need. The more equity you have in the home means the more that will be available to you - as long as your current finances are able to handle the loan. Getting a new first mortgage can help you get better terms if the interest rates are lower and if you have been working on your credit score.
When you get a home equity loan as a second mortgage, you finance less, and it will add a second payment each month. The terms generally go up to 15 years.
If you choose to use the money as a means to consolidate some debts - it is an excellent way to do it. The interest rates will be high, but probably not as high as a credit card, or other personal loan. If you also look at the home equity loan as a means to restore your credit rating, it can become a good tool to do so. Making payments on time each month will eventually bring your credit score up to where you want it to be, and then, if you want, you could refinance for a better deal.
While you are looking to get your home equity loan and find the best terms available for your situation, you want to be sure to get several quotes. There is competition between lenders - even for people with bad credit. By shopping around, you will soon have a loan suitable for your needs. Take your time, and learn about mortgages first, and keep a sharp eye out for the best deals.
http://www.goarticles.com/cgi-bin/showa.cgi?C=661350
Having bad credit is not the end of the line - especially if you have a home that has some equity in it. There still are lenders who will be glad to talk to you. In fact, they know that this kind of loan may be just what you need to help you consolidate your debt and get off to a better start. Your equity is valuable to you and can enable you to get the cash you need. Here is what you need to know.
It is important that you understand that a home equity loan is a loan against your home. This means that should you default on your payments, you could lose the house - plain and simple. So, before you decide to proceed with applying for a home equity loan, it is important that you make sure your own present financial situation can adequately handle it. Sit down and calculate how much you can afford and how much you need.
Bad credit will limit your loan, so you may want to take the needed time to repair your credit rating. Having better credit will allow you to get a larger loan, have lower interest rates, and more time to repay the loan. So, if your loan can wait until then, it would be a good idea in order to get more desirable terms.
A home equity loan can be either fixed rate or adjustable rate, enabling you to make a choice here according to your needs and the economy. Keeping an eye on the market rates will enable you to know when you should get your loan.
You will be able to get a home equity loan as either a cash out mortgage, or as a typical second mortgage. A cash out mortgage means refinancing your first mortgage and taking out the equity you need. The more equity you have in the home means the more that will be available to you - as long as your current finances are able to handle the loan. Getting a new first mortgage can help you get better terms if the interest rates are lower and if you have been working on your credit score.
When you get a home equity loan as a second mortgage, you finance less, and it will add a second payment each month. The terms generally go up to 15 years.
If you choose to use the money as a means to consolidate some debts - it is an excellent way to do it. The interest rates will be high, but probably not as high as a credit card, or other personal loan. If you also look at the home equity loan as a means to restore your credit rating, it can become a good tool to do so. Making payments on time each month will eventually bring your credit score up to where you want it to be, and then, if you want, you could refinance for a better deal.
While you are looking to get your home equity loan and find the best terms available for your situation, you want to be sure to get several quotes. There is competition between lenders - even for people with bad credit. By shopping around, you will soon have a loan suitable for your needs. Take your time, and learn about mortgages first, and keep a sharp eye out for the best deals.
http://www.goarticles.com/cgi-bin/showa.cgi?C=661350
Refinancing Your Mortgage Or A Home Equity Loan - Which Is Better?
by Joseph Kenny
When it comes time to get the money you need to renovate your home, you have some choices to make concerning the financing of it. Both ways, either refinancing your first mortgage, or a home equity loan, will give you access to your equity. After that, though, a number of differences will clearly stand out. Here is what you need to know about these differences so you can intelligently choose the best one for your needs.
Features Of Refinancing Your First Mortgage
By getting a cash out mortgage, you can replace your first mortgage and obtain your equity. This means that you will have to pay the fees again that you paid when you bought the house in the first place. However, if you wait until the interest rates are down, you can get a better deal than you had before. The amount that you can gain could easily offset the costs of refinancing and save you thousands of dollars over the life of the new mortgage.
The interest rate for a first mortgage is always lower than what you would get for a second mortgage - which makes this the ideal choice. You also will have only one payment each month, which you could even make lower than what you have now by extending the time length on the mortgage. If you already have more than one mortgage, then this is also a good way to consolidate them and get your equity at the same time, as well as reduce your monthly payment.
If you currently have an adjustable rate mortgage that is about to run out of the fixed rate portion, then this should be the way you would want to go. Not only will it give you level payments with a fixed interest rate, assuming you get a fixed rate mortgage, but also your equity for the upcoming renovation project you have in mind. This means you could take care of more than one problem at once.
Features Of A Home Equity Loan
A home equity loan is considered a second mortgage. This means it will give you an additional payment each month. If you can afford the extra payment, this may be the way you want to go. It will also have a higher rate of interest than a first mortgage, and usually has a time frame of up to 15 years for repayment.
You can take out your equity but need to leave enough in there that is equal to 20% of the value of the house. This is true with any kind of mortgage, since you may need to pay private mortgage insurance if you go over this amount.
A home equity loan is mostly fixed rate, but some may also be adjustable. Your loan payments are fully amortizing, and money used for fixing up your home is often tax deductible. This type of loan is seeing some new variations come out recently, so you will want to see what is out there before you choose.
The Choice Is Yours
Obviously, only one of these choices will best meet your needs. After you choose a course to take, you will then want to get a few quotes - whether you choose to refinance, or get a home equity loan. You will need to look them over carefully and consider all aspects in order to find the one that is best for you.
http://www.rebuild.org/refinance.html
When it comes time to get the money you need to renovate your home, you have some choices to make concerning the financing of it. Both ways, either refinancing your first mortgage, or a home equity loan, will give you access to your equity. After that, though, a number of differences will clearly stand out. Here is what you need to know about these differences so you can intelligently choose the best one for your needs.
Features Of Refinancing Your First Mortgage
By getting a cash out mortgage, you can replace your first mortgage and obtain your equity. This means that you will have to pay the fees again that you paid when you bought the house in the first place. However, if you wait until the interest rates are down, you can get a better deal than you had before. The amount that you can gain could easily offset the costs of refinancing and save you thousands of dollars over the life of the new mortgage.
The interest rate for a first mortgage is always lower than what you would get for a second mortgage - which makes this the ideal choice. You also will have only one payment each month, which you could even make lower than what you have now by extending the time length on the mortgage. If you already have more than one mortgage, then this is also a good way to consolidate them and get your equity at the same time, as well as reduce your monthly payment.
If you currently have an adjustable rate mortgage that is about to run out of the fixed rate portion, then this should be the way you would want to go. Not only will it give you level payments with a fixed interest rate, assuming you get a fixed rate mortgage, but also your equity for the upcoming renovation project you have in mind. This means you could take care of more than one problem at once.
Features Of A Home Equity Loan
A home equity loan is considered a second mortgage. This means it will give you an additional payment each month. If you can afford the extra payment, this may be the way you want to go. It will also have a higher rate of interest than a first mortgage, and usually has a time frame of up to 15 years for repayment.
You can take out your equity but need to leave enough in there that is equal to 20% of the value of the house. This is true with any kind of mortgage, since you may need to pay private mortgage insurance if you go over this amount.
A home equity loan is mostly fixed rate, but some may also be adjustable. Your loan payments are fully amortizing, and money used for fixing up your home is often tax deductible. This type of loan is seeing some new variations come out recently, so you will want to see what is out there before you choose.
The Choice Is Yours
Obviously, only one of these choices will best meet your needs. After you choose a course to take, you will then want to get a few quotes - whether you choose to refinance, or get a home equity loan. You will need to look them over carefully and consider all aspects in order to find the one that is best for you.
http://www.rebuild.org/refinance.html
2007-10-25
Learn About Refinance Mortgage
by Micheal Coley
To understand a refinance mortgage loan, we need to clearly understand the meaning of a mortgage loan. A mortgage is a generic term for a loan which is secured against a property. Once the loan is repaid, the lien from the property is removed and the rights of the property are transferred back to the owner. A refinance mortgage is a subsequent mortgage of a property or an asset which has been mortgaged earlier. It is simply the changing of hands of the asset, from one mortgagee to the other or the renewal or change of contract between the parties involved in the covenant.
There are many benefits of a refinance mortgage. First and foremost you can save your self from a bankruptcy situation. In case your adverse situation is reaching a foreclosure; you can immediately chalk out a solution plan with the help of a calculator. Finance home mortgage, refinance mortgage or any other loans can be applied for to pull you out from this solution. Another advantage of refinance mortgage loan is that you can avail cash out money by using the equity in your home. The amount you can avail will depend upon the value of equity worth in your home.
In a mortgage refinance home loan, interest rates of the home loan drops down, but the valuation of the property for the home loan always increases. This too, benefits the borrower. Generally a refinancing is done to allow the borrower to obtain additional and fresh finances against the already mortgaged asset.
Negotiating a refinance mortgage for your property is not something you should take lightly--you should avail all the expert advice you can get because a bad decision can cost you dearly. To avoid making costly mistakes, its best to consult the best remortgage broker you can find.
In times of financial crisis, opting for a refinance is a wise decision. Refinance mortgage is nothing but switching over from your current mortgage to a new creditor to lower your costs. It is also advisable to go for refinance to clear old debts. But you must be smart and alert enough to get the best refinance mortgage rate and avail of the lowest monthly payments possible. Your lender will perform the necessary credit check and provide various choices from which you can choose the one that best suits your needs.
There are many lenders who can offer you a refinance mortgage. It is always advisable to compare what each and every lender can offer you in terms of loan amount, payment options and of course, interest rates. It is also important to find out the kind of services that your lender offers. Online services are quite popular simply because of the conveniences that it offers.
When using an online lender for your refinance mortgage it is crucial to check out the stability and make sure that your lender is reputed. Be careful of submitting private and personal details to any website. You should check that the online lender uses special encryption software in order to protect your information. The benefits of obtaining an online refinance mortgage are quite obvious - the time that is saved from having to go personally to a lending company or lending store is preciously valuable and can be used towards more productive purposes. Another thing is that the hassles and paperwork is much more reduced in comparison to applying with traditional lenders. However, no matter what your decision is (applying with an online lender or with a lending company), your refinance mortgage plan should definitely make payment options easier for you. You can learn more about refinance mortgage and many other types of loans as well.
http://www.wizardloanapproval.com/mortgage-loan/refinance-mortgage.php
To understand a refinance mortgage loan, we need to clearly understand the meaning of a mortgage loan. A mortgage is a generic term for a loan which is secured against a property. Once the loan is repaid, the lien from the property is removed and the rights of the property are transferred back to the owner. A refinance mortgage is a subsequent mortgage of a property or an asset which has been mortgaged earlier. It is simply the changing of hands of the asset, from one mortgagee to the other or the renewal or change of contract between the parties involved in the covenant.
There are many benefits of a refinance mortgage. First and foremost you can save your self from a bankruptcy situation. In case your adverse situation is reaching a foreclosure; you can immediately chalk out a solution plan with the help of a calculator. Finance home mortgage, refinance mortgage or any other loans can be applied for to pull you out from this solution. Another advantage of refinance mortgage loan is that you can avail cash out money by using the equity in your home. The amount you can avail will depend upon the value of equity worth in your home.
In a mortgage refinance home loan, interest rates of the home loan drops down, but the valuation of the property for the home loan always increases. This too, benefits the borrower. Generally a refinancing is done to allow the borrower to obtain additional and fresh finances against the already mortgaged asset.
Negotiating a refinance mortgage for your property is not something you should take lightly--you should avail all the expert advice you can get because a bad decision can cost you dearly. To avoid making costly mistakes, its best to consult the best remortgage broker you can find.
In times of financial crisis, opting for a refinance is a wise decision. Refinance mortgage is nothing but switching over from your current mortgage to a new creditor to lower your costs. It is also advisable to go for refinance to clear old debts. But you must be smart and alert enough to get the best refinance mortgage rate and avail of the lowest monthly payments possible. Your lender will perform the necessary credit check and provide various choices from which you can choose the one that best suits your needs.
There are many lenders who can offer you a refinance mortgage. It is always advisable to compare what each and every lender can offer you in terms of loan amount, payment options and of course, interest rates. It is also important to find out the kind of services that your lender offers. Online services are quite popular simply because of the conveniences that it offers.
When using an online lender for your refinance mortgage it is crucial to check out the stability and make sure that your lender is reputed. Be careful of submitting private and personal details to any website. You should check that the online lender uses special encryption software in order to protect your information. The benefits of obtaining an online refinance mortgage are quite obvious - the time that is saved from having to go personally to a lending company or lending store is preciously valuable and can be used towards more productive purposes. Another thing is that the hassles and paperwork is much more reduced in comparison to applying with traditional lenders. However, no matter what your decision is (applying with an online lender or with a lending company), your refinance mortgage plan should definitely make payment options easier for you. You can learn more about refinance mortgage and many other types of loans as well.
http://www.wizardloanapproval.com/mortgage-loan/refinance-mortgage.php
2007-10-24
Home Refinance Loans and Debt Help Solutions
by Clyde Dennis
If a person faces some financial crisis in their life, it is bound to set them back and cause a stumble in their financial plans. This could also lead to them getting into bad credit standing. This would have a series of implications. Bad credit is when a person fails to meet their payments, or is low on funds and so can't handle any new expenses. A person who is known to have defaulted on multiple payments automatically gets branded and banks and financial institutions hesitate before giving them another loan. The same applies to not just individuals but also companies, which are, when they lose out on money or a big deal they might be driven to a point of declaring insolvency or bankruptcy and it will then take them forever to build their credit.
Sometimes people go in for refinancing to get out of bad debt, which is where they apply for a secured loan in order to replace the one already taken which has been secured by their property or some asset. Mortgage is a form of home refinance offered by banks and financing companies. The main reason why people go in for this is to pay off debt, or extend the repayment period for the loan taken. The bottom line of refinancing is to cut down on amount of money payable every month on loans taken. This helps them build their financial status and might improve their credit standing as well. One aspect people need to do is to analyze their current debt position and get some debt help from professionals. They should understand the amount of debt, how to consolidate it so they can make one payment and be done with the dues.
There are many debt management services available with banks and online where people can seek help pertaining to how to get out bad debts and reestablish their financial standing. This will also help them make a fresh start and start a new venture and make their way forward. There are many individuals who have gained new ground by fighting against their bad debt and going in for home refinancing to come out of the sticky situation they are in and improve their lives.
http://www.stockmarket.nu/homerefinance.php
If a person faces some financial crisis in their life, it is bound to set them back and cause a stumble in their financial plans. This could also lead to them getting into bad credit standing. This would have a series of implications. Bad credit is when a person fails to meet their payments, or is low on funds and so can't handle any new expenses. A person who is known to have defaulted on multiple payments automatically gets branded and banks and financial institutions hesitate before giving them another loan. The same applies to not just individuals but also companies, which are, when they lose out on money or a big deal they might be driven to a point of declaring insolvency or bankruptcy and it will then take them forever to build their credit.
Sometimes people go in for refinancing to get out of bad debt, which is where they apply for a secured loan in order to replace the one already taken which has been secured by their property or some asset. Mortgage is a form of home refinance offered by banks and financing companies. The main reason why people go in for this is to pay off debt, or extend the repayment period for the loan taken. The bottom line of refinancing is to cut down on amount of money payable every month on loans taken. This helps them build their financial status and might improve their credit standing as well. One aspect people need to do is to analyze their current debt position and get some debt help from professionals. They should understand the amount of debt, how to consolidate it so they can make one payment and be done with the dues.
There are many debt management services available with banks and online where people can seek help pertaining to how to get out bad debts and reestablish their financial standing. This will also help them make a fresh start and start a new venture and make their way forward. There are many individuals who have gained new ground by fighting against their bad debt and going in for home refinancing to come out of the sticky situation they are in and improve their lives.
http://www.stockmarket.nu/homerefinance.php
Refinance Your Investment Property
by George Book
This article will take a beginners look at this interesting subject. It will give you the information that you need to know most.
Long-name activity tariff have been at near historic low levels for somewhat some time and hence, more people are looking for chairs to rent, making it calm to promote from these investments. Your investment property advance may have names that were very attractive when you first made the grip, but due to shifting bazaar conditions may no longer be as positive as they could be nowadays. When activity tariff plunge, refinancing the finance on your investment property becomes very attractive because refinancing offers customs to force the justice in your property, drop your monthly payment and growth your coins spring.
Snowball your notes gush
You can drastically growth your coins spring by refinancing the finance on your investment property. If you've built up contradictable justice in the property, you could favor that justice into coins by liability a coins-out refinance. If you refinance to a drop evaluate and/or growth the name of your advance, that could also drop your monthly finance payment and growth your coins spring even more. with the Quicken lends tempo and Payment Calculator can help you find out how greatly justice you have to scrounge against and give you suggestions on what advance may work best for you.
If you liked the first section of this article, stay tuned because we have more to follow in the next section!
Smart30 Home lend
Upgrade your house and introduce the Rent
The home justice in your investment property can be worn to account improvements to your property and boost your coins spring. The great promote of refinancing and making home improvements to your investment property is that it growths its bazaar respect, thus allowing you to growth the total of rent you allege to your tenants. With a coins-out refinance, you could:
* encourage an addition to growth living room
* Upgrade the floors, doors, kitchen appliances and cabinetry
* change the bathroom(s) with nicer gear
* Upgrade the boiler or crucial air
* change the roof
* Paint or re-trait the house to enhance the outdoor appearance
Buy an Additional Investment house
You can use a coins-out refinance out of your investment property to invest extra in genuine estate. Justice in your property growths each year as the finance advance is rewarded down. Any growth in the respect of the property will growth your justice in addition to the principal rewarded. To capitalize on that refavor, you can tap into that added justice, favor it into coins by refinancing and then affect it about accounting extra investment properties. A Quicken lends home advance skilled can help you denameine how to use a home justice advance to finance other properties.
Exhaust Your Money in Other habits
The opportunity to use justice you have earned in your investment property is a main promote of home ownership. The beauty is that you can refinance and adapt the home justice into coins and then use it for suchlike you elect. Making improvements to your property or purchasing additional investment properties are good examples of how refinancing can work to your benefit. The coins from your home justice can also be worn to:
* Boost your retirement savings
* Invest in stocks or other bazaars
* Take the trip of your dreams
* Buy a new car or dinghy
* Consolidate debt
* Help account your children's school schooling
Notes-out refinances offer a calm find of coins and can be a worthy tool for those who invest in genuine estate. With the justice in your investment property can help you growth your investment authority and growth your long-name wealth. A Quicken lends home advance skilled can help you denameine which refinancing options are best for you. Call us at 800-251-9080 to lecture with home advance skilled or impart out our rapid application online and a home advance skilled will friend you.
This article is the perfect way to gain the information that you need to fully appreciate the complexity of this subject.
http://www.goarticles.com/cgi-bin/showa.cgi?C=658883
This article will take a beginners look at this interesting subject. It will give you the information that you need to know most.
Long-name activity tariff have been at near historic low levels for somewhat some time and hence, more people are looking for chairs to rent, making it calm to promote from these investments. Your investment property advance may have names that were very attractive when you first made the grip, but due to shifting bazaar conditions may no longer be as positive as they could be nowadays. When activity tariff plunge, refinancing the finance on your investment property becomes very attractive because refinancing offers customs to force the justice in your property, drop your monthly payment and growth your coins spring.
Snowball your notes gush
You can drastically growth your coins spring by refinancing the finance on your investment property. If you've built up contradictable justice in the property, you could favor that justice into coins by liability a coins-out refinance. If you refinance to a drop evaluate and/or growth the name of your advance, that could also drop your monthly finance payment and growth your coins spring even more. with the Quicken lends tempo and Payment Calculator can help you find out how greatly justice you have to scrounge against and give you suggestions on what advance may work best for you.
If you liked the first section of this article, stay tuned because we have more to follow in the next section!
Smart30 Home lend
Upgrade your house and introduce the Rent
The home justice in your investment property can be worn to account improvements to your property and boost your coins spring. The great promote of refinancing and making home improvements to your investment property is that it growths its bazaar respect, thus allowing you to growth the total of rent you allege to your tenants. With a coins-out refinance, you could:
* encourage an addition to growth living room
* Upgrade the floors, doors, kitchen appliances and cabinetry
* change the bathroom(s) with nicer gear
* Upgrade the boiler or crucial air
* change the roof
* Paint or re-trait the house to enhance the outdoor appearance
Buy an Additional Investment house
You can use a coins-out refinance out of your investment property to invest extra in genuine estate. Justice in your property growths each year as the finance advance is rewarded down. Any growth in the respect of the property will growth your justice in addition to the principal rewarded. To capitalize on that refavor, you can tap into that added justice, favor it into coins by refinancing and then affect it about accounting extra investment properties. A Quicken lends home advance skilled can help you denameine how to use a home justice advance to finance other properties.
Exhaust Your Money in Other habits
The opportunity to use justice you have earned in your investment property is a main promote of home ownership. The beauty is that you can refinance and adapt the home justice into coins and then use it for suchlike you elect. Making improvements to your property or purchasing additional investment properties are good examples of how refinancing can work to your benefit. The coins from your home justice can also be worn to:
* Boost your retirement savings
* Invest in stocks or other bazaars
* Take the trip of your dreams
* Buy a new car or dinghy
* Consolidate debt
* Help account your children's school schooling
Notes-out refinances offer a calm find of coins and can be a worthy tool for those who invest in genuine estate. With the justice in your investment property can help you growth your investment authority and growth your long-name wealth. A Quicken lends home advance skilled can help you denameine which refinancing options are best for you. Call us at 800-251-9080 to lecture with home advance skilled or impart out our rapid application online and a home advance skilled will friend you.
This article is the perfect way to gain the information that you need to fully appreciate the complexity of this subject.
http://www.goarticles.com/cgi-bin/showa.cgi?C=658883
What to Consider Before You Refinance
by George Book
"What is the best way to measure the costs and gains from refinancing so I can be sure I will come out ahead?"
The point of this article is to help you to the next level and show you what this amazing subject has to offer.
The technique I pretty is to rest all rates of your present credit and a new credit over a coming phase. The phase should be your best deduction as to how long you will have the new credit. If the whole rates are junior with the new credit, you should refinance.
This accurate is worn in a credit calculator. It shows all the rates over a specific phase of an untaken and a new credit edge by edge. It also shows the "crack-even phase", which is the tiniest span of time the borrower must support the new credit to make the refinancing pay. So even if you are not sure how long you will have the credit, if you are positive that you will have it longer than the crack-even phase, you know the refinance pays.
I will illus measure with the project of Jane who wrote me freshly. She had a $320,000 advance rest at 6.25% with 300 months to go. Her probable new advance was at 5.25% for 30 existences, with notes payments of 2 points (2% of the advance rest, or $6,400) advantage $2,200 for other settlement rates. Her deduction she would keep the new credit 5 existence.
If you liked the first section of this article, stay tuned because we have more to follow in the next section!
The calculator alienated her rates into three groups:
Blunt rates consisting of points and settlement rates, were $8,600 on the new advance, zilch on the old one.
Monthly payments of principal and pastime were $106,024 on the new advance and $126,657 on the old one. (These actualities are calculated by multiplying the monthly payments by 60).
Flummoxed pastime was $7,057 on the new advance, $7,216 on the old one.
The last piece is the pastime Jane would have earned on open and monthly payments if she had salvaged those dues at 2.24%, her after-tax savings measure. Lend officers sometimes obtain that borrowers don't understand missing pastime. My experience is that most borrowers do understand that money they consume could have earned pastime if they hadn't useless it. Flummoxed pastime, however, can certainly be expelled from the testing by backdrop the savings measure to zilch.
The calculator actualities in two rate offsets:
Tax savings on pastime and points was $23,469 on the new advance, $25,753 on the old one. Jane's tax measure of 25.5% was worn in this calculation.
Discount in advance rest was $25,122 on the new advance, $31,198 on the old one. In both projects, these were unhurried from the initial rest of $320,000.
Deducting the rate offsets from the rates, Jane's new credit had a net rate of $73,089 as rested to $76,922 for the old one. Refinancing would therefore salvage her $3,833 over the 5 existence. The calculator also indicated that her crack-even phase was 39 months.
The actuality that this refinancing made Jane better off doesn't mean it was the best. For example, Jane could have replaced the 30-year 5.25% advance with one for 15 existences at 5%. Haughty everything besides the same, this move to a 15-year would intensify the net profit from refinancing from $3,833 to $6,098, while sinking the crack-even phase from 39 to 35 months.
Many borrowers who refinance nowadays finance the open rates. They add the rates to the credit pretty than pay them in notes. Calculator 3a was freshly upgraded to submit a financing selection.
Those who try the selection find that it reduces the profits from refinancing. This is mainly because the borrower must pay pastime on the rates at the credit measure. If Jane had financed the open rates of her new 30-year advance, the net profit from the refinance would have dropped from $3833 to $1240, while the crack-even phase would have intensified from 39 to 53 months.
Financing the rates, furthermore, can flip the advance total above 80% of chattels merit, which triggers credit indemnity. If the borrower is already paying credit indemnity, it can create the premium. If this had happened with Jane's 30-year advance, the small profit from refinancing would have become a trouncing. Fortunately, she had enough justness to evade credit indemnity altogether. The calculator automatically actualities credit indemnity into the rate calculation, if it arises.
An edge profit from with a calculator is that it services borrowers to save all the information that affects the profitability of a refinance. Once all the germane information is at hand, it is plain that no two projects are just alike. Fortunately, the calculator will control them all.
www.loan4refinanced.com
"What is the best way to measure the costs and gains from refinancing so I can be sure I will come out ahead?"
The point of this article is to help you to the next level and show you what this amazing subject has to offer.
The technique I pretty is to rest all rates of your present credit and a new credit over a coming phase. The phase should be your best deduction as to how long you will have the new credit. If the whole rates are junior with the new credit, you should refinance.
This accurate is worn in a credit calculator. It shows all the rates over a specific phase of an untaken and a new credit edge by edge. It also shows the "crack-even phase", which is the tiniest span of time the borrower must support the new credit to make the refinancing pay. So even if you are not sure how long you will have the credit, if you are positive that you will have it longer than the crack-even phase, you know the refinance pays.
I will illus measure with the project of Jane who wrote me freshly. She had a $320,000 advance rest at 6.25% with 300 months to go. Her probable new advance was at 5.25% for 30 existences, with notes payments of 2 points (2% of the advance rest, or $6,400) advantage $2,200 for other settlement rates. Her deduction she would keep the new credit 5 existence.
If you liked the first section of this article, stay tuned because we have more to follow in the next section!
The calculator alienated her rates into three groups:
Blunt rates consisting of points and settlement rates, were $8,600 on the new advance, zilch on the old one.
Monthly payments of principal and pastime were $106,024 on the new advance and $126,657 on the old one. (These actualities are calculated by multiplying the monthly payments by 60).
Flummoxed pastime was $7,057 on the new advance, $7,216 on the old one.
The last piece is the pastime Jane would have earned on open and monthly payments if she had salvaged those dues at 2.24%, her after-tax savings measure. Lend officers sometimes obtain that borrowers don't understand missing pastime. My experience is that most borrowers do understand that money they consume could have earned pastime if they hadn't useless it. Flummoxed pastime, however, can certainly be expelled from the testing by backdrop the savings measure to zilch.
The calculator actualities in two rate offsets:
Tax savings on pastime and points was $23,469 on the new advance, $25,753 on the old one. Jane's tax measure of 25.5% was worn in this calculation.
Discount in advance rest was $25,122 on the new advance, $31,198 on the old one. In both projects, these were unhurried from the initial rest of $320,000.
Deducting the rate offsets from the rates, Jane's new credit had a net rate of $73,089 as rested to $76,922 for the old one. Refinancing would therefore salvage her $3,833 over the 5 existence. The calculator also indicated that her crack-even phase was 39 months.
The actuality that this refinancing made Jane better off doesn't mean it was the best. For example, Jane could have replaced the 30-year 5.25% advance with one for 15 existences at 5%. Haughty everything besides the same, this move to a 15-year would intensify the net profit from refinancing from $3,833 to $6,098, while sinking the crack-even phase from 39 to 35 months.
Many borrowers who refinance nowadays finance the open rates. They add the rates to the credit pretty than pay them in notes. Calculator 3a was freshly upgraded to submit a financing selection.
Those who try the selection find that it reduces the profits from refinancing. This is mainly because the borrower must pay pastime on the rates at the credit measure. If Jane had financed the open rates of her new 30-year advance, the net profit from the refinance would have dropped from $3833 to $1240, while the crack-even phase would have intensified from 39 to 53 months.
Financing the rates, furthermore, can flip the advance total above 80% of chattels merit, which triggers credit indemnity. If the borrower is already paying credit indemnity, it can create the premium. If this had happened with Jane's 30-year advance, the small profit from refinancing would have become a trouncing. Fortunately, she had enough justness to evade credit indemnity altogether. The calculator automatically actualities credit indemnity into the rate calculation, if it arises.
An edge profit from with a calculator is that it services borrowers to save all the information that affects the profitability of a refinance. Once all the germane information is at hand, it is plain that no two projects are just alike. Fortunately, the calculator will control them all.
www.loan4refinanced.com
2007-10-23
Debt Consolidation Refinance - Go Get It
by Arvind Singh
Harassing phone calls, bad debt or frustrating financial short comings can all be over come when you decide on a debt consolidation. Payback all the different loans in style and be free from the mental stress revolving around the loans.
No doubt, that debt is the biggest cause of worry in one's life. In one or other way very individual is affected from this disease. Most people live from pay check to paycheck trying to make both ends meet. Paying bills is the only activity for these people who are burdened with over due interest from loans or loan installments. What is the solution to this million dollar problem? How can these people be saved from the vultures in the form of loan providers? Well, there is a solution for all these loan repayment problems. The only feasible solution is the debt consolidation refinance option.
How does the debt consolidation refinance work? Many people feel and doubt the authenticity of the refinance option as they fear that they might end up turning themselves in from the frying pan to the fire. They feel they might be caught up in another form of loan or debt. Debt consolidation is fast catching up in relieving people from unnecessary interest payments. Taking into account all the varied loans and debts and their repayment modes debt consolidation refinance is arranged to payback all the loans in a single repayment.
The debt consolidation refinance can take care of all debit and credit consolidation too. The debt consolidation refinance will then provide a feasible repayment method for the financial help it offered through easy payback schemes. With debt consolidation companies also offer secured debt consolidation wherein you must submit some form of security against the finance you receive to payback loans from them and there are no strings attached. It provides timely assistance to payback all the pending loans, consolidation the many loans into one easy repayable loan option.
Whatever be the case choose a debt consolidation refinance that will suit your payment mode comfortably. It should not be another burden every month. Carefully analyze the debt consolidation quotes and after using the debt consolidation calculator to fix your loan payment option, choose the system best suited to you and your budget every month. Not all debt consolidation companies are authentic. So check their credentials online and interact with people who have benefited from these companies. Make sure they offer a fair and trusted scheme which you can rely on. Several non profit debt consolidation companies which are most and prefer these companies to other profit making ones. Whatever is your choice make sure you are out of debts and loans for good.
http://www.goarticles.com/cgi-bin/showa.cgi?C=656379
Harassing phone calls, bad debt or frustrating financial short comings can all be over come when you decide on a debt consolidation. Payback all the different loans in style and be free from the mental stress revolving around the loans.
No doubt, that debt is the biggest cause of worry in one's life. In one or other way very individual is affected from this disease. Most people live from pay check to paycheck trying to make both ends meet. Paying bills is the only activity for these people who are burdened with over due interest from loans or loan installments. What is the solution to this million dollar problem? How can these people be saved from the vultures in the form of loan providers? Well, there is a solution for all these loan repayment problems. The only feasible solution is the debt consolidation refinance option.
How does the debt consolidation refinance work? Many people feel and doubt the authenticity of the refinance option as they fear that they might end up turning themselves in from the frying pan to the fire. They feel they might be caught up in another form of loan or debt. Debt consolidation is fast catching up in relieving people from unnecessary interest payments. Taking into account all the varied loans and debts and their repayment modes debt consolidation refinance is arranged to payback all the loans in a single repayment.
The debt consolidation refinance can take care of all debit and credit consolidation too. The debt consolidation refinance will then provide a feasible repayment method for the financial help it offered through easy payback schemes. With debt consolidation companies also offer secured debt consolidation wherein you must submit some form of security against the finance you receive to payback loans from them and there are no strings attached. It provides timely assistance to payback all the pending loans, consolidation the many loans into one easy repayable loan option.
Whatever be the case choose a debt consolidation refinance that will suit your payment mode comfortably. It should not be another burden every month. Carefully analyze the debt consolidation quotes and after using the debt consolidation calculator to fix your loan payment option, choose the system best suited to you and your budget every month. Not all debt consolidation companies are authentic. So check their credentials online and interact with people who have benefited from these companies. Make sure they offer a fair and trusted scheme which you can rely on. Several non profit debt consolidation companies which are most and prefer these companies to other profit making ones. Whatever is your choice make sure you are out of debts and loans for good.
http://www.goarticles.com/cgi-bin/showa.cgi?C=656379
Easy Home Mortgage Refinancing: Repository of Finance
by John Marshall
People take decisions to sell their houses on the spur of the moment. It can be the influence of desire to live in a beautiful home, or to move for a new job, or the necessity to get a handle on unbridled costs. The reason for taking such decision, individuals are required to do homework before they actually sell their houses. For an easy home mortgage refinancing is the best applying tool. When an individual refinances his home mortgage, he actually replaces it with a new loan. Refinancing home mortgage is often a sound financial choice that can allow an individual to meet a variety of needs.
In doing easy home mortgage refinancing, an individual reduces his monthly payment by taking advantage of lower interest rates or extending the repayment period. Through the process borrowers get into a safer zone i.e., an adjustable-rate to a fixed-rate loan or from a balloon mortgage to a fixed-rate loan. Borrowers pay off their mortgage faster by shortening the term of their loans. An easy home mortgage refinancing gets free up cash for major expenses or to consolidate debts. And, of course, The cost of an Easy Home Mortgage Refinancinge should be considered when making the decision to engage in the process. A traditional refinance can cost between 4% and 6% of the loan amount, but this varies by lender. While this may cancel out any interest rate savings, you can still make up the difference with lowering monthly payments.
Possible costs to consider when easy home mortgage refinancing includes:
* Application fee
* Title search and title insurance fees
* Home appraisal fee
* Loan origination fee
* Closing costs
* Points
* Prepayment penalties
* Other costs
For all that, an application form for easy home mortgage refinancing is filled in by an applicant. To this cause, there are many lenders available online and offline. For better facility and instant result, accessing online proves to be a good step to the easy home mortgage refinancing. Just in a click and there is innumerable sites of lenders regarding easy home mortgage refinancing gets open. Compare the terms and conditions altogether, and make your plan according to your financial feasibility.
http://www.easyhomemortgagerefinancing.com/
People take decisions to sell their houses on the spur of the moment. It can be the influence of desire to live in a beautiful home, or to move for a new job, or the necessity to get a handle on unbridled costs. The reason for taking such decision, individuals are required to do homework before they actually sell their houses. For an easy home mortgage refinancing is the best applying tool. When an individual refinances his home mortgage, he actually replaces it with a new loan. Refinancing home mortgage is often a sound financial choice that can allow an individual to meet a variety of needs.
In doing easy home mortgage refinancing, an individual reduces his monthly payment by taking advantage of lower interest rates or extending the repayment period. Through the process borrowers get into a safer zone i.e., an adjustable-rate to a fixed-rate loan or from a balloon mortgage to a fixed-rate loan. Borrowers pay off their mortgage faster by shortening the term of their loans. An easy home mortgage refinancing gets free up cash for major expenses or to consolidate debts. And, of course, The cost of an Easy Home Mortgage Refinancinge should be considered when making the decision to engage in the process. A traditional refinance can cost between 4% and 6% of the loan amount, but this varies by lender. While this may cancel out any interest rate savings, you can still make up the difference with lowering monthly payments.
Possible costs to consider when easy home mortgage refinancing includes:
* Application fee
* Title search and title insurance fees
* Home appraisal fee
* Loan origination fee
* Closing costs
* Points
* Prepayment penalties
* Other costs
For all that, an application form for easy home mortgage refinancing is filled in by an applicant. To this cause, there are many lenders available online and offline. For better facility and instant result, accessing online proves to be a good step to the easy home mortgage refinancing. Just in a click and there is innumerable sites of lenders regarding easy home mortgage refinancing gets open. Compare the terms and conditions altogether, and make your plan according to your financial feasibility.
http://www.easyhomemortgagerefinancing.com/
Mortgage Refinance Loan Tips
by Kelly Liyakasa
If you're like many homeowners, you dream of better days when your property is paid in full and you don't have to make those dreaded mortgage payments anymore. But, getting back to reality, many are turning to mortgage refinance services in order to cut their monthly loan payments or to extend their loan periods. Keep these hints in mind before choosing a refinance plan:
* When to Refinance: When you already have a mortgage and wish to apply for a second, be sure the amount you save on interest rates balances fees paid during refinancing. Lending Tree is a great resource when debating the 'apply/not to apply' question, as they offer certified lending and allow you to compare multiple offers online.
* Loan Options: Determine whether a fixed rate mortgage or adjustable rate mortgage is in your best interest. Fixed rate mortgage monthly payments tend to remain steady despite market conditions. E-LOAN allows you to compare both loan options and to outweigh the pros vs. cons before you make your decision.
* Cash-out refinances: These allow you to refinance with a loan amount larger than your current mortgage...while you keep the cash difference. The catch? Your home equity must qualify before you can go through with it.
* No Closing Cost Refinances: If you wish to save on up-front fees, this is probably your best choice. Depending on whether or not the prevailing market rate is lower than your existing rate by at least 1.5%, you are sure to reap the benefits.
http://www.6starreviews.com/
If you're like many homeowners, you dream of better days when your property is paid in full and you don't have to make those dreaded mortgage payments anymore. But, getting back to reality, many are turning to mortgage refinance services in order to cut their monthly loan payments or to extend their loan periods. Keep these hints in mind before choosing a refinance plan:
* When to Refinance: When you already have a mortgage and wish to apply for a second, be sure the amount you save on interest rates balances fees paid during refinancing. Lending Tree is a great resource when debating the 'apply/not to apply' question, as they offer certified lending and allow you to compare multiple offers online.
* Loan Options: Determine whether a fixed rate mortgage or adjustable rate mortgage is in your best interest. Fixed rate mortgage monthly payments tend to remain steady despite market conditions. E-LOAN allows you to compare both loan options and to outweigh the pros vs. cons before you make your decision.
* Cash-out refinances: These allow you to refinance with a loan amount larger than your current mortgage...while you keep the cash difference. The catch? Your home equity must qualify before you can go through with it.
* No Closing Cost Refinances: If you wish to save on up-front fees, this is probably your best choice. Depending on whether or not the prevailing market rate is lower than your existing rate by at least 1.5%, you are sure to reap the benefits.
http://www.6starreviews.com/
Online Mortgage Information
by Micheal Coley
There are no limits to needs and wants of people. One after the other the list of things are always there which are tried to be acquired. All this is possible if you have sufficient amount of funds otherwise you have to postpone your expenses. But delaying of certain expenses may not be admissible by the situation you are in. You may own a house or any property which is the blessing for you because in this expensive world to possess a house or any property is not everyone's cup of tea. So no one wants to ever make a distance with their asset or property but when in a need of additional finance you have to do so either willingly or unwillingly. At this hour of financial need online mortgage facility would prove to be the best support.
Mortgage is a facility by which you can obtain finance by keeping any real property as a guarantee against the amount borrowed. Take for an example that you are going through a shaky financial conditions as there is a downfall in your business. So you can acquire the facility of online mortgage and arrange for funds to help your business. Again say for an instance that there is a wedding in your family planned recently and which would take place within a short period of time and you were not at all prepared for the wedding expenses at the moment. You need not worry and opt for an online mortgage which shall take care of your needs.
There are various mortgage loans available in the financial market. It is impossible to list all of them; few among those are home mortgage, bad credit mortgage, refinance mortgage, mortgage quote, fixed rate mortgage, flexible mortgage, etc. You can inquire about the mortgage loans by directly going to the lenders which would take a longer time or through internet which shall be a faster process. So, online mortgage facility being a faster process would be more acceptable by the borrowers. In fixed rate online mortgage policy the rate of interest charged and the installment amount would be fixed throughout the span of the loan taken whereas in flexible online mortgage scheme the rate of interest and the installment amount may vary from time to time.
If you want to avail the policy of online mortgage, it would be a wise decision to conduct a certain amount of investigation in advance so that you get the knowledge of the property market. If you do so you would be able to acquire the maximum amount of loan against your property as the loan amount depends on the value of the property kept as a guarantee. So to acquire the best among all the online mortgage policies available, it would be worthwhile to compare the rates, processing charges as well as other costs associated with them. You would for sure land on the one with the lowest rate and smallest monthly payment so as to make yourself stress free.
Acquiring the facility of online mortgage is not at all time consuming. All you need to do is to fill in the requisite form by logging in with your personal , work and asset details like your address, age proof, contact numbers, documents regarding your asset, email address, etc. Once these details are confirmed by the concerned department the online mortgage loan amount would be sanctioned and the repayment structure also notified. Your lender will perform the necessary credit check and provide various choices from which you can choose the one that best suits your needs
http://www.goarticles.com/cgi-bin/showa.cgi?C=657135
There are no limits to needs and wants of people. One after the other the list of things are always there which are tried to be acquired. All this is possible if you have sufficient amount of funds otherwise you have to postpone your expenses. But delaying of certain expenses may not be admissible by the situation you are in. You may own a house or any property which is the blessing for you because in this expensive world to possess a house or any property is not everyone's cup of tea. So no one wants to ever make a distance with their asset or property but when in a need of additional finance you have to do so either willingly or unwillingly. At this hour of financial need online mortgage facility would prove to be the best support.
Mortgage is a facility by which you can obtain finance by keeping any real property as a guarantee against the amount borrowed. Take for an example that you are going through a shaky financial conditions as there is a downfall in your business. So you can acquire the facility of online mortgage and arrange for funds to help your business. Again say for an instance that there is a wedding in your family planned recently and which would take place within a short period of time and you were not at all prepared for the wedding expenses at the moment. You need not worry and opt for an online mortgage which shall take care of your needs.
There are various mortgage loans available in the financial market. It is impossible to list all of them; few among those are home mortgage, bad credit mortgage, refinance mortgage, mortgage quote, fixed rate mortgage, flexible mortgage, etc. You can inquire about the mortgage loans by directly going to the lenders which would take a longer time or through internet which shall be a faster process. So, online mortgage facility being a faster process would be more acceptable by the borrowers. In fixed rate online mortgage policy the rate of interest charged and the installment amount would be fixed throughout the span of the loan taken whereas in flexible online mortgage scheme the rate of interest and the installment amount may vary from time to time.
If you want to avail the policy of online mortgage, it would be a wise decision to conduct a certain amount of investigation in advance so that you get the knowledge of the property market. If you do so you would be able to acquire the maximum amount of loan against your property as the loan amount depends on the value of the property kept as a guarantee. So to acquire the best among all the online mortgage policies available, it would be worthwhile to compare the rates, processing charges as well as other costs associated with them. You would for sure land on the one with the lowest rate and smallest monthly payment so as to make yourself stress free.
Acquiring the facility of online mortgage is not at all time consuming. All you need to do is to fill in the requisite form by logging in with your personal , work and asset details like your address, age proof, contact numbers, documents regarding your asset, email address, etc. Once these details are confirmed by the concerned department the online mortgage loan amount would be sanctioned and the repayment structure also notified. Your lender will perform the necessary credit check and provide various choices from which you can choose the one that best suits your needs
http://www.goarticles.com/cgi-bin/showa.cgi?C=657135
Do You Have the Personality for a Remortgage
by James Copper
A remortgage isnt for everyone, but how can you best decide whether or not its right for you Take this personality quiz and see if you have what it takes to pursue a remortgage for you and/or your family:
1. Can you accept change
YES - Then youre primed for remortgage! Because it involves switching lenders, youll need to keep an open mind about changing midstream, and with your personality, you shouldnt have a problem with this. You wont feel disloyal about leaving your current financial institution; after all, you have the ability to separate what is business from what is personal.
NO - If you stick with something to the bitter end, you may have difficulty dealing with the fact that a remortgage will necessitate that you use a new lender. Alternately, you may want to choose a refinance instead, which usually takes place using the same lender as you currently have. That way, you wont feel as if youre cheating on your financial institution by seeking a remortgage.
2. Has your credit history changed since you got your first mortgage
YES - For a good number of people and couples, their credit histories improve over time. Thus, the mortgage they took out in 1990 might still carry with it a very high interest rate even though they now have an unblemished credit report. Hence, a remortgage could offer the opportunity to get a significantly lower interest rate that will allow the borrower to save money in the long run.
NO - If your credit history hasnt changed much since you first borrowed money for your mortgage, you may not need to remortgage. After all, one of the primary reasons for a remortgage is to change your payments and perhaps allow you to save considerable sums.
3. Are you good at doing research
YES - You love the thrill of researching and investigating something new, so youll be into hunting for the best remortgage deal available. You also wont get discouraged if you dont find terrifically low interest rates the first time you window shop for a remortgage; youll just wait a few days and try again!
NO - If you dont like researching, you might want to reconsider getting a remortgage. Alternately, why not ask someone else to do your investigating for you That way, you can get the best remortgage deal possible, but without the legwork that isnt your forte.
4. Do you like saving money
YES - Saving here and then really makes you smile, so a remortgage is certain to elicit a wide grin! Many individuals have been able to sock away considerable amounts of money, thanks to taking out a remortgage and pocketing all they would have spent on interest. Youll also be able to pay down your principle rapidly with a remortgage, saving you even further!
NO - Are you really not that interested in saving any moolah Then a remortgage might not mean as much to you but you still should consider it... after all, a penny saved IS a penny earned!
http://www.remortgage-here.co.uk
A remortgage isnt for everyone, but how can you best decide whether or not its right for you Take this personality quiz and see if you have what it takes to pursue a remortgage for you and/or your family:
1. Can you accept change
YES - Then youre primed for remortgage! Because it involves switching lenders, youll need to keep an open mind about changing midstream, and with your personality, you shouldnt have a problem with this. You wont feel disloyal about leaving your current financial institution; after all, you have the ability to separate what is business from what is personal.
NO - If you stick with something to the bitter end, you may have difficulty dealing with the fact that a remortgage will necessitate that you use a new lender. Alternately, you may want to choose a refinance instead, which usually takes place using the same lender as you currently have. That way, you wont feel as if youre cheating on your financial institution by seeking a remortgage.
2. Has your credit history changed since you got your first mortgage
YES - For a good number of people and couples, their credit histories improve over time. Thus, the mortgage they took out in 1990 might still carry with it a very high interest rate even though they now have an unblemished credit report. Hence, a remortgage could offer the opportunity to get a significantly lower interest rate that will allow the borrower to save money in the long run.
NO - If your credit history hasnt changed much since you first borrowed money for your mortgage, you may not need to remortgage. After all, one of the primary reasons for a remortgage is to change your payments and perhaps allow you to save considerable sums.
3. Are you good at doing research
YES - You love the thrill of researching and investigating something new, so youll be into hunting for the best remortgage deal available. You also wont get discouraged if you dont find terrifically low interest rates the first time you window shop for a remortgage; youll just wait a few days and try again!
NO - If you dont like researching, you might want to reconsider getting a remortgage. Alternately, why not ask someone else to do your investigating for you That way, you can get the best remortgage deal possible, but without the legwork that isnt your forte.
4. Do you like saving money
YES - Saving here and then really makes you smile, so a remortgage is certain to elicit a wide grin! Many individuals have been able to sock away considerable amounts of money, thanks to taking out a remortgage and pocketing all they would have spent on interest. Youll also be able to pay down your principle rapidly with a remortgage, saving you even further!
NO - Are you really not that interested in saving any moolah Then a remortgage might not mean as much to you but you still should consider it... after all, a penny saved IS a penny earned!
http://www.remortgage-here.co.uk
2007-10-21
Top 5 Reasons To Refinance Your Mortgage
By Martin W Hayes
The most common reason that people refinance their mortgage is to save money on their monthly payments, however there are a variety of other reasons that refinancing can be beneficial.
1. Refinancing to Lower Your Monthly Payment on Your Existing Mortgage. You can refinance your existing loan at a lower interest rate which can greatly reduce your monthly loan payments. You can find some excellent interest rates in today’s market - sometimes considerably lower than what you are paying on your current mortgage. Refinancing your mortgage when rates are down could save you hundreds of dollars every month and thousands over the life of your loan.
2. Refinancing to Consolidate Debts.
You may choose to refinance in order to consolidate debts and replace high-interest loans with one larger, low rate loan. It is often beneficial to you as the borrower to consolidate high interest loans such as credit cards, auto loans, and even student loans. Consolidating all of your debt into one lower monthly payment can help ease your financial burden and provide you with extra cash in your pocket each month.
3. Refinancing to Reduce the Term of the Loan.
Reducing the term of your loan can help you save money over the life of the loan. For example, refinancing from a 30-year mortgage to a 15-year mortgage might result in higher monthly payments; however these higher payments are offset by the total interest savings over the life of the loan. You will also be able to build up your equity in the home faster. Visit our free loan calculators to see how reducing the term of the loan can result in huge interest savings.
4. Refinancing to Switch From Adjustable to Fixed Rates.
You can also refinance in order to switch from an adjustable (variable) rate mortgage to a fixed rate mortgage. The main reason behind this type of refinance is to obtain the stability and the security of a fixed loan. While variable rates often provide low initial monthly payments, the payments with these loans can often increase dramatically over the life of the loan. A major benefit of refinancing into a fixed rate is the ability to lock in a low interest rate for the duration of your loan.
5. Refinancing to Switch from One Lender to Another.
Rates and terms are not the only reason to refinance your mortgage. Switching to a different lender may prove to be beneficial for many reasons: better customer support services, more flexible loan repayment terms or other options that may be more suitable for your needs. Refinancing your loan can allow you to drop your current lender and switch to a new one with a better overall loan package.
You should carefully weight the savings you can earn by refinancing against the possible costs or penalties. Any homeowner can refinance their mortgage; the key is to weight your options to determine if refinancing is the best option for your situation.
http://www.loanchoicedirect.com
The most common reason that people refinance their mortgage is to save money on their monthly payments, however there are a variety of other reasons that refinancing can be beneficial.
1. Refinancing to Lower Your Monthly Payment on Your Existing Mortgage. You can refinance your existing loan at a lower interest rate which can greatly reduce your monthly loan payments. You can find some excellent interest rates in today’s market - sometimes considerably lower than what you are paying on your current mortgage. Refinancing your mortgage when rates are down could save you hundreds of dollars every month and thousands over the life of your loan.
2. Refinancing to Consolidate Debts.
You may choose to refinance in order to consolidate debts and replace high-interest loans with one larger, low rate loan. It is often beneficial to you as the borrower to consolidate high interest loans such as credit cards, auto loans, and even student loans. Consolidating all of your debt into one lower monthly payment can help ease your financial burden and provide you with extra cash in your pocket each month.
3. Refinancing to Reduce the Term of the Loan.
Reducing the term of your loan can help you save money over the life of the loan. For example, refinancing from a 30-year mortgage to a 15-year mortgage might result in higher monthly payments; however these higher payments are offset by the total interest savings over the life of the loan. You will also be able to build up your equity in the home faster. Visit our free loan calculators to see how reducing the term of the loan can result in huge interest savings.
4. Refinancing to Switch From Adjustable to Fixed Rates.
You can also refinance in order to switch from an adjustable (variable) rate mortgage to a fixed rate mortgage. The main reason behind this type of refinance is to obtain the stability and the security of a fixed loan. While variable rates often provide low initial monthly payments, the payments with these loans can often increase dramatically over the life of the loan. A major benefit of refinancing into a fixed rate is the ability to lock in a low interest rate for the duration of your loan.
5. Refinancing to Switch from One Lender to Another.
Rates and terms are not the only reason to refinance your mortgage. Switching to a different lender may prove to be beneficial for many reasons: better customer support services, more flexible loan repayment terms or other options that may be more suitable for your needs. Refinancing your loan can allow you to drop your current lender and switch to a new one with a better overall loan package.
You should carefully weight the savings you can earn by refinancing against the possible costs or penalties. Any homeowner can refinance their mortgage; the key is to weight your options to determine if refinancing is the best option for your situation.
http://www.loanchoicedirect.com
2007-10-14
Best Mortgage Refinance
By Martin Lukac
Many a times you want to buy something, but you cannot manage doing so with your limited salary, you need some extra cash in your hand. In that case you might think of taking a mortgage loan. But what if you already have one high interest mortgage loan. All you need to do is opt for a mortgage refinance i.e. take a new loan to pay off the present one. Thus through best mortgage refinance you can solve your financial problems.
You can refinance your mortgage even if your credit history is not up to the mark. You just have to tell your personal lender about your credit history so that he can suggest you about what can be the best mortgage refinance terms and conditions for you.
There are many types of mortgage refinance options available in the market. Two of the most popular options for refinancing your mortgage are:
-No closing cost refinance: Through this option you can get very low upfront fees, with little refinancing costs.
-Cash-out refinance: Through cash out refinancing you can get some extra cash in your hand, without having to take a new loan. You can increase your cash liquidity by taking a best mortgage refinance. Through this money you can pay off any high interest debt, you can also reduce your monthly payments and save some money.
If you are able to steal the best mortgage refinance deal you can savor following advantages:
-Save money on Interest Payment: By refinance mortgage you can change your loan from higher to lower interest rate, at the time when the interest rate is low in the mortgage market.
-Shorten the loan term: You can also shorten the mortgage term period by refinancing your mortgage loan. Best refinance mortgage with a low rate of interest will allow you to pay more of the principle amount in the monthly installment. In this way you would be able to repay the loan in a shorter span of time. Thus you can reduce your 30 years mortgage to 15 or even 10 years.
-Get rid of Private Mortgage Insurance: The best mortgage refinance can help reduce many problems in your life. Through refinance those of you who have to pay Private Mortgage Insurance, can be free from this problem as by the time you refinance equity in your home must have risen.
-Shift from an ARM to Fixed rate mortgage: With mortgage refinance loan you can get the opportunity to exchange an adjustable rate mortgage for a fixed rate mortgage. Thus enabling you to have a steadier monthly budget and give you more security in your monthly spending with a fixed low rate of interest.
Before you opt for a mortgage refinance you should know all about the advantages, the market trends in interest rates, and factors affecting your prospects of getting a best mortgage refinance. You should do a small research yourself, and compare different loans or interest rates quoted by different lenders, so that you can get the best mortgage refinance rate.
http://www.mortgagerefinanceempire.com/
Many a times you want to buy something, but you cannot manage doing so with your limited salary, you need some extra cash in your hand. In that case you might think of taking a mortgage loan. But what if you already have one high interest mortgage loan. All you need to do is opt for a mortgage refinance i.e. take a new loan to pay off the present one. Thus through best mortgage refinance you can solve your financial problems.
You can refinance your mortgage even if your credit history is not up to the mark. You just have to tell your personal lender about your credit history so that he can suggest you about what can be the best mortgage refinance terms and conditions for you.
There are many types of mortgage refinance options available in the market. Two of the most popular options for refinancing your mortgage are:
-No closing cost refinance: Through this option you can get very low upfront fees, with little refinancing costs.
-Cash-out refinance: Through cash out refinancing you can get some extra cash in your hand, without having to take a new loan. You can increase your cash liquidity by taking a best mortgage refinance. Through this money you can pay off any high interest debt, you can also reduce your monthly payments and save some money.
If you are able to steal the best mortgage refinance deal you can savor following advantages:
-Save money on Interest Payment: By refinance mortgage you can change your loan from higher to lower interest rate, at the time when the interest rate is low in the mortgage market.
-Shorten the loan term: You can also shorten the mortgage term period by refinancing your mortgage loan. Best refinance mortgage with a low rate of interest will allow you to pay more of the principle amount in the monthly installment. In this way you would be able to repay the loan in a shorter span of time. Thus you can reduce your 30 years mortgage to 15 or even 10 years.
-Get rid of Private Mortgage Insurance: The best mortgage refinance can help reduce many problems in your life. Through refinance those of you who have to pay Private Mortgage Insurance, can be free from this problem as by the time you refinance equity in your home must have risen.
-Shift from an ARM to Fixed rate mortgage: With mortgage refinance loan you can get the opportunity to exchange an adjustable rate mortgage for a fixed rate mortgage. Thus enabling you to have a steadier monthly budget and give you more security in your monthly spending with a fixed low rate of interest.
Before you opt for a mortgage refinance you should know all about the advantages, the market trends in interest rates, and factors affecting your prospects of getting a best mortgage refinance. You should do a small research yourself, and compare different loans or interest rates quoted by different lenders, so that you can get the best mortgage refinance rate.
http://www.mortgagerefinanceempire.com/
2007-10-12
Home Refinance Closing Costs - 4 Hot Tips to Help You Minimize Your Home Refinance Closing Costs
By T Crowley
A mortgage refinance can be a great solution for consumers who want to leverage some of the equity in their home to pay off some debt or complete some home improvement projects. Regardless of your house refinance plans, there is one important thing you should know before securing your loan. That is...you should know how to minimize your home refinance closing costs so you can keep more of your hard earned money. Read the following article to get 4 hot tips for reducing your home refinance closing costs.
1) Get A Good Faith Estimate To Compare Offers (Or Quotes) From Different Lenders Or Brokers
It is good idea to receive different mortgage estimates so you can get an early look on how competitive the lenders or brokers you are working with are from the start. If you submit the same application to several lenders or brokers, and some of the quotes come back much higher than the others, that may be an indication that these lending partners are including some excessive fees that are optional, and that you really do not need to pay. You may be best served not to work with them if you want to save money on your home refinance closing costs.
2) Get Some Background Information on All of the Lending Representatives You Are Working With.
It's important to remember that the lending representatives you work with are going to be focused on getting your business. Although there are some excellent lenders and mortgage brokers available to assist you, there are some that will do just about anything to get your business...including lying, cheating, and fraud. That is why it is so important to do some research, and make sure you are working with an ethical advisor.
Also, when you talk to different lending representatives, it gives you an opportunity to analyze how good the representatives are at answering your questions about the home refinance closing costs that have been quoted. If they are stumbling around trying to justify why their fees are much higher than other quotes you received, it is very possible that they may be inexperienced or untrustworthy, may charge you exorbitant fees, and may even try to bait and switch you to a completely different loan product that is not in your best interest. Although getting background information is a good idea, it is also extremely important that you understand that even though you may receive some great quoted rates or points, until the lender confirms the terms and locks your rates....you can not depend on the quotes.
3) To Minimize Home Refinance Closing Costs...Consider Securing A Zero Point Mortgage Refinance Loan
Points is the term used for the loan origination fee. One point is equal to one percent of your loan amount. So for example: A $200,000 mortgage with a 2 point loan fee, will cost you $4000 If you had a zero point mortgage, on this same $200,000 mortgage you will save $4000.
This can be a great way to reduce your closing costs, but do keep in mind that if you reduce your points, you can expect to pay higher interest rates, as the lenders will need to make a profit from the loan they are providing.
4) Consider Closing Your Loan Late In The Month To Reduce Your Home Refinance Closing Costs
Mortgage Refinance Lenders often collect interest for an entire month at closing.
So if for example, you close on the 27th of the month, and there are only 30 days in the month,the lender would only collect 3 days of interest when you close. This is a great solution to help offset high interest rates.
The bottom line is...to minimize your home refinance closing costs, get competitive quotes from lenders, make sure you get answers to ALL of your questions, and do not commit to working with any lending representative until you feel comfortable that they are working hard to secure the best refinance rates for your needs...not theirs.
Article Source: http://EzineArticles.com/?expert=T_Crowley
A mortgage refinance can be a great solution for consumers who want to leverage some of the equity in their home to pay off some debt or complete some home improvement projects. Regardless of your house refinance plans, there is one important thing you should know before securing your loan. That is...you should know how to minimize your home refinance closing costs so you can keep more of your hard earned money. Read the following article to get 4 hot tips for reducing your home refinance closing costs.
1) Get A Good Faith Estimate To Compare Offers (Or Quotes) From Different Lenders Or Brokers
It is good idea to receive different mortgage estimates so you can get an early look on how competitive the lenders or brokers you are working with are from the start. If you submit the same application to several lenders or brokers, and some of the quotes come back much higher than the others, that may be an indication that these lending partners are including some excessive fees that are optional, and that you really do not need to pay. You may be best served not to work with them if you want to save money on your home refinance closing costs.
2) Get Some Background Information on All of the Lending Representatives You Are Working With.
It's important to remember that the lending representatives you work with are going to be focused on getting your business. Although there are some excellent lenders and mortgage brokers available to assist you, there are some that will do just about anything to get your business...including lying, cheating, and fraud. That is why it is so important to do some research, and make sure you are working with an ethical advisor.
Also, when you talk to different lending representatives, it gives you an opportunity to analyze how good the representatives are at answering your questions about the home refinance closing costs that have been quoted. If they are stumbling around trying to justify why their fees are much higher than other quotes you received, it is very possible that they may be inexperienced or untrustworthy, may charge you exorbitant fees, and may even try to bait and switch you to a completely different loan product that is not in your best interest. Although getting background information is a good idea, it is also extremely important that you understand that even though you may receive some great quoted rates or points, until the lender confirms the terms and locks your rates....you can not depend on the quotes.
3) To Minimize Home Refinance Closing Costs...Consider Securing A Zero Point Mortgage Refinance Loan
Points is the term used for the loan origination fee. One point is equal to one percent of your loan amount. So for example: A $200,000 mortgage with a 2 point loan fee, will cost you $4000 If you had a zero point mortgage, on this same $200,000 mortgage you will save $4000.
This can be a great way to reduce your closing costs, but do keep in mind that if you reduce your points, you can expect to pay higher interest rates, as the lenders will need to make a profit from the loan they are providing.
4) Consider Closing Your Loan Late In The Month To Reduce Your Home Refinance Closing Costs
Mortgage Refinance Lenders often collect interest for an entire month at closing.
So if for example, you close on the 27th of the month, and there are only 30 days in the month,the lender would only collect 3 days of interest when you close. This is a great solution to help offset high interest rates.
The bottom line is...to minimize your home refinance closing costs, get competitive quotes from lenders, make sure you get answers to ALL of your questions, and do not commit to working with any lending representative until you feel comfortable that they are working hard to secure the best refinance rates for your needs...not theirs.
Article Source: http://EzineArticles.com/?expert=T_Crowley
2007-10-10
Cash Out Refinance Loans At 16-Year High
Homeowners continue to prefer cash out refinance loans to other forms of borrowing. Frank Nothaft, Freddie Mac vice president and chief economist, says,
“Mortgage borrowers continue to refinance their mortgages at a higher frequency than historically would have occurred given the rise in mortgage rates over this year. But the wide proliferation of adjustable-rate mortgages (ARMs) originated in the past few years that are nearing their first interest-rate adjustment provides borrowers an incentive to refinance into a lower-cost ARM or fixed-rate mortgage. In addition, borrowers who might have considered a prime rate home equity loan for a home improvement or other need are turning to cash out refinance options now that the prime rate is above 8 percent.”
Beyond just converting an adjustable-rate loan to a fixed-rate loan, borrowers are also cashing out their equity. Almost 90 percent of Freddie Mac refinance loans are for amounts at least 5 percent higher than the original mortgage. The most recent Cash Out Refinance Report from the mortgage giant shows that homes refinanced during the third quarter of 2006 had experienced a median price appreciation of 33 percent since the original loan was made. The median age of the original loan was 3.4 years.
It is this accrued equity that homeowners are tapping into to pay off high-interest credit cards, to fund home improvement projects, or to finance their children’s college education. An added benefit is that interest paid on a mortgage is tax deductible (usually up to $100,000 for taxpayers filing jointly).
Since a cash out refinance loan results in a new mortgage, it incurs closing costs, filing and legal fees, and other expenses that can add up to thousands of dollars. This makes refinancing unwise for people planning to move in the next few years as they will not have time to recoup their refinancing costs.
Bad Credit Refinancing
For borrowers with less than perfect credit, a refinance loan is the smartest way to get needed cash. Bad credit usually means a FICO score below 620. This FICO number reflects credit-worthiness based on borrowing habits, payment history and other financial factors. Creditors use it when deciding whether to make a loan and what interest rate to charge. The lower the credit score, the higher the risk for the lender. But since a refinance loan is secured by real property, the risk is minimized and the interest rate is better.
According to Steven Frank, Senior Vice President at FlexPoint Funding,
“A ‘subprime’ borrower can expect to pay between 1.5 percent and 2 percent higher interest for a mortgage, but there is no shortage of money in the subprime loan market. Most subprime borrowers won’t qualify for a second mortgage or a home equity line of credit. They will have to refinance their first mortgage if they want to cash out some of their equity. Depending on their personal situation, a homeowner may be able to borrow up to 95 percent LTV (loan to value). More likely, it will be in the 80 percent range.”
www.simple-mortgage-refinancing.com
“Mortgage borrowers continue to refinance their mortgages at a higher frequency than historically would have occurred given the rise in mortgage rates over this year. But the wide proliferation of adjustable-rate mortgages (ARMs) originated in the past few years that are nearing their first interest-rate adjustment provides borrowers an incentive to refinance into a lower-cost ARM or fixed-rate mortgage. In addition, borrowers who might have considered a prime rate home equity loan for a home improvement or other need are turning to cash out refinance options now that the prime rate is above 8 percent.”
Beyond just converting an adjustable-rate loan to a fixed-rate loan, borrowers are also cashing out their equity. Almost 90 percent of Freddie Mac refinance loans are for amounts at least 5 percent higher than the original mortgage. The most recent Cash Out Refinance Report from the mortgage giant shows that homes refinanced during the third quarter of 2006 had experienced a median price appreciation of 33 percent since the original loan was made. The median age of the original loan was 3.4 years.
It is this accrued equity that homeowners are tapping into to pay off high-interest credit cards, to fund home improvement projects, or to finance their children’s college education. An added benefit is that interest paid on a mortgage is tax deductible (usually up to $100,000 for taxpayers filing jointly).
Since a cash out refinance loan results in a new mortgage, it incurs closing costs, filing and legal fees, and other expenses that can add up to thousands of dollars. This makes refinancing unwise for people planning to move in the next few years as they will not have time to recoup their refinancing costs.
Bad Credit Refinancing
For borrowers with less than perfect credit, a refinance loan is the smartest way to get needed cash. Bad credit usually means a FICO score below 620. This FICO number reflects credit-worthiness based on borrowing habits, payment history and other financial factors. Creditors use it when deciding whether to make a loan and what interest rate to charge. The lower the credit score, the higher the risk for the lender. But since a refinance loan is secured by real property, the risk is minimized and the interest rate is better.
According to Steven Frank, Senior Vice President at FlexPoint Funding,
“A ‘subprime’ borrower can expect to pay between 1.5 percent and 2 percent higher interest for a mortgage, but there is no shortage of money in the subprime loan market. Most subprime borrowers won’t qualify for a second mortgage or a home equity line of credit. They will have to refinance their first mortgage if they want to cash out some of their equity. Depending on their personal situation, a homeowner may be able to borrow up to 95 percent LTV (loan to value). More likely, it will be in the 80 percent range.”
www.simple-mortgage-refinancing.com
2007-10-09
Four Questions to Ask When you Refinance your House
Charley Hwang
The biggest decisions in life are the ones we think the most about and carefully consider the impact of our choices. If you are contemplating refinancing your home there are four things you need to consider: You need to think about what is your current mortgage rate and the payment amount. You need to think about what the new mortgage rate will be and your approximate costs and fees to refinance as well as how long you will be staying at your current residence.
1. By looking at your most recent monthly mortgage statement you can most often find your current mortgage rate, payment amount as well as the total amount outstanding on your mortgage loan. If you do not see this information, call your lender and get it. At a minimum, the outstanding principal balance should be listed on your statement.
2. Because mortgage interests vary almost hourly, you need to do your homework ahead of time and research what the current mortgage rates are. Up-to-date mortgage rates can be found at www.interest.com or by checking with your local financial institutions. When you refinance you should really consider decreasing the repayment time of the loan. Even a small reduction in mortgage interest can generate enough causal effect and increased cash flow to help you make the same or slightly larger payment than what you were paying previously to reduce the length of the loan.
3. Know exactly what your refinancing cost will be. You should not have any surprises in this area or any other area. The refinancing costs vary from state to state and are dependent upon what outside entities such as appraisers or lawyers need to be involved in the details of your refinance along with your lender. Knowledge allows you to prepare as well as determine if you will be able to recoup the costs fast enough to justify refinancing.
4. Knowing the payback period is essential to determining if you will be in your home long enough to make refinancing a worthwhile investment. You need to be in the home long enough to recover the costs of the refinance at a minimum. Often this is not an easy decision even with the information of the length of the payback period. None of us are capable of knowing exactly what will happen in the future. This knowledge is simply significant so that we can make our best guess or estimate of what will happen based upon predictable factors as well as the probability of the unpredictable (such as a corporate relocation) happening within a certain period of time.
Knowledge and the application of the same determine the ultimate success of the house refinance. If this seems overwhelming, begin interviewing lenders who can discuss your specific needs and give you the answers and solutions you need.
http://www.articlesbase.com/mortgage-articles/four-questions-to-ask-when-you-refinance-your-house-177653.html
The biggest decisions in life are the ones we think the most about and carefully consider the impact of our choices. If you are contemplating refinancing your home there are four things you need to consider: You need to think about what is your current mortgage rate and the payment amount. You need to think about what the new mortgage rate will be and your approximate costs and fees to refinance as well as how long you will be staying at your current residence.
1. By looking at your most recent monthly mortgage statement you can most often find your current mortgage rate, payment amount as well as the total amount outstanding on your mortgage loan. If you do not see this information, call your lender and get it. At a minimum, the outstanding principal balance should be listed on your statement.
2. Because mortgage interests vary almost hourly, you need to do your homework ahead of time and research what the current mortgage rates are. Up-to-date mortgage rates can be found at www.interest.com or by checking with your local financial institutions. When you refinance you should really consider decreasing the repayment time of the loan. Even a small reduction in mortgage interest can generate enough causal effect and increased cash flow to help you make the same or slightly larger payment than what you were paying previously to reduce the length of the loan.
3. Know exactly what your refinancing cost will be. You should not have any surprises in this area or any other area. The refinancing costs vary from state to state and are dependent upon what outside entities such as appraisers or lawyers need to be involved in the details of your refinance along with your lender. Knowledge allows you to prepare as well as determine if you will be able to recoup the costs fast enough to justify refinancing.
4. Knowing the payback period is essential to determining if you will be in your home long enough to make refinancing a worthwhile investment. You need to be in the home long enough to recover the costs of the refinance at a minimum. Often this is not an easy decision even with the information of the length of the payback period. None of us are capable of knowing exactly what will happen in the future. This knowledge is simply significant so that we can make our best guess or estimate of what will happen based upon predictable factors as well as the probability of the unpredictable (such as a corporate relocation) happening within a certain period of time.
Knowledge and the application of the same determine the ultimate success of the house refinance. If this seems overwhelming, begin interviewing lenders who can discuss your specific needs and give you the answers and solutions you need.
http://www.articlesbase.com/mortgage-articles/four-questions-to-ask-when-you-refinance-your-house-177653.html
2007-10-08
Denver Home Mortgage-Revealed: Avoid Option Arms
by Bruce Hunter
Nearly a year ago then Chairman of the Federal Reserve Alan Greenspan warned of the "potential for individual disaster" from newer more flexible mortgages. Although he was referring specifically to "interest only" and "pay option ARMs," which are often conflated, he was concerned that consumers were not being made to understand the true nature of these mortgage products. Toward the end of this past September Federal regulators finally began to address this issue. I am of the opinion that Federal regulators are far too late on this one. They might as well be rearranging the deck-chairs on the Titanic and any regulation that comes will be cold-comfort for many a homeowner as the housing market continues to cool around the country.
I personally do not think that "interest only" ARMs presented nearly as much risk to the consumer as the "pay option ARMs" did and have been of the opinion for some time that this product borders on criminal. Before I delve too much deeper, I'd like to step back and explain specifically how the product works. A typical Option ARM, as we call them in the industry, has up to four payment "options" every month, a minimum payment, an "interest only" payment, a 30-year amortized payment, and a 15-year amortized payment. The last three payment options listed above are calculated based upon a typical ARM structure that being a margin over a specific market index, e.g. "monthly treasury average" plus 2.25%. It is the first option that is the most deceptive since it does not cover the actual amount of interest due what is referred to as negative amortization and I don't think that most people understand this.
My issue with these mortgages is not so much about how they work. It is really about the way they were marketed. Most of these mortgages were marketed by brokers and wholesalers as a way to get into an otherwise unattainable home by keeping the initial payments artificially low. You could not pick up the paper or listen to the radio for a long time without some broker shilling the "1% mortgage." They conveniently left out the part where the 1% does not cover the true interest of the loan and your monthly payment actually increases the amount owed on the loan at the end of the month. For this reason alone I argued in CORE over a year ago that most homeowners should avoid these mortgages, because the risks are far greater than they understand. As delinquencies and foreclosures increase around the country we are just now seeing the tip of this iceberg. Those markets that saw the most speculation are about to take it really hard. Studies have shown that a large number of borrowers with simple ARMs don't understand the terms and underestimate the amount their mortgage payment could increase; nontraditional ARMs are even more complex. By now, it should be evident for nearly everyone that the housing market is coming to a screeching halt in the most overheated markets. Some economists have predicted price fall-offs of up to 15% in some regional markets which is why I feel Option ARMs are so dangerous. I'll illustrate this for the most overheated markets, starting by quoting myself from a CORE article I wrote about a year ago.
"Beware of the 1.00% mortgage. Trust the old saying, 'If it sounds too good to be true it probably is.' This holds just as true in mortgage lending as with anything else in life and I can guarantee you that there is no such thing as a one-percent 30-year fixed-rate mortgage. Furthermore, there is no such thing as a one-percent six-month, one-year, three-year, five-year, or seven-year adjustable rate mortgage or ARM either. So you are asking yourself, 'What was that ad I saw in Sunday's paper talking about then?' The answer is simple; it is an option-ARM and they are great loans for the right type of borrower. (I have since changed my mind on this; I don't think there is a right type of borrower for this product. Too many people use only the minimum payment option. As many as seven out of ten borrowers with these loans use only the minimum payment according to UBS.) They typically allow you the flexibility to make one of four types of payments, a 30-year or 15-year amortized payment, an interest-only payment, or lastly a negatively-amortizing payment. It is the last of these payment options that have the potential to be dangerous if the borrower does not understand how they work and this is the 1.00% that is advertised. So what is the truth, it is a great payment is it not? Yes, it is for a short time, but you are not really getting a 1.00% mortgage. What you are actually getting is a rate based on an index such as the cost of funds index plus a margin and the 1.00% payment you are making is only a portion of the actual interest due, the difference (negative-amortization) is added to the principal balance of the loan thereby increasing the amount you owe. For example, say you have a $200,000 mortgage and your current fully-indexed or actual interest rate is 6.972% the payment should be $1326.00 per month. If you made the 1.00% negative-amortization payment for the same loan of $643.00, the $683.00 shortfall ($1326.00 - $643.00 = $683.00) is added to the principal balance. So after you have made your payment you now owe $200,683 instead of $200,000. What you owe is actually going up not down. Compound that over several months or years and soon you have added thousands of dollars to your mortgage."
Okay, so if the said example above was based on a mortgage of 95% of the value of the home and you're in a market that is seeing any kind of downturn, guess what? You're upside-down on your home very quickly since the unpaid interest is added back to principal. Once principal exceeds 110 percent or 115 percent of the original loan, the minimum-payment option goes away. Borrowers are then faced with a payment double or triple the minimum. The really brutal thing about these mortgages is that most come with a "soft" pre-payment penalty of some sort, meaning they cannot be refinanced without a hefty penalty of some sort, usually two or three percent of the loan amount. And some loans even have what we in the industry refer to as a "hard" pre-payment penalty, meaning you cannot even sell the property without a heft pre-payment penalty. So again, just to hammer home the point, you have a great many homeowners that are already upside-down on the mortgage, the mortgage adjusts upward and they can't afford to refinance or sell because they would have to bring money to closing and they can't afford to make the payment. Although the Denver market did not see that a great many of this type of mortgage I have still spoken with many a prospect lately that was in one and could not refinance out of it. Oh, and did I mention these loans are heavy commission loaded?
So what options do you have as a homeowner if you have one of these loans? The best thing is to make sure you are making more than the minimum payment. If you are not, begin to as soon as you can, preferably the 30-year amortized payment listed on the monthly statement. It might be a stretch at first, but it will begin to nibble away at the principle balance of the loan and put you into a better position if you need to refinance. If it is too much of a stretch to make the 30-year amortized payments try to make at least the interest only payment. If all else fails it might be worth speaking to a mortgage professional about refinancing into something fixed. In many cases actual 30-year fixed rates may be lower than the rate referenced on your monthly statement.
http://www.core-media.org/content/view/303/369/
Nearly a year ago then Chairman of the Federal Reserve Alan Greenspan warned of the "potential for individual disaster" from newer more flexible mortgages. Although he was referring specifically to "interest only" and "pay option ARMs," which are often conflated, he was concerned that consumers were not being made to understand the true nature of these mortgage products. Toward the end of this past September Federal regulators finally began to address this issue. I am of the opinion that Federal regulators are far too late on this one. They might as well be rearranging the deck-chairs on the Titanic and any regulation that comes will be cold-comfort for many a homeowner as the housing market continues to cool around the country.
I personally do not think that "interest only" ARMs presented nearly as much risk to the consumer as the "pay option ARMs" did and have been of the opinion for some time that this product borders on criminal. Before I delve too much deeper, I'd like to step back and explain specifically how the product works. A typical Option ARM, as we call them in the industry, has up to four payment "options" every month, a minimum payment, an "interest only" payment, a 30-year amortized payment, and a 15-year amortized payment. The last three payment options listed above are calculated based upon a typical ARM structure that being a margin over a specific market index, e.g. "monthly treasury average" plus 2.25%. It is the first option that is the most deceptive since it does not cover the actual amount of interest due what is referred to as negative amortization and I don't think that most people understand this.
My issue with these mortgages is not so much about how they work. It is really about the way they were marketed. Most of these mortgages were marketed by brokers and wholesalers as a way to get into an otherwise unattainable home by keeping the initial payments artificially low. You could not pick up the paper or listen to the radio for a long time without some broker shilling the "1% mortgage." They conveniently left out the part where the 1% does not cover the true interest of the loan and your monthly payment actually increases the amount owed on the loan at the end of the month. For this reason alone I argued in CORE over a year ago that most homeowners should avoid these mortgages, because the risks are far greater than they understand. As delinquencies and foreclosures increase around the country we are just now seeing the tip of this iceberg. Those markets that saw the most speculation are about to take it really hard. Studies have shown that a large number of borrowers with simple ARMs don't understand the terms and underestimate the amount their mortgage payment could increase; nontraditional ARMs are even more complex. By now, it should be evident for nearly everyone that the housing market is coming to a screeching halt in the most overheated markets. Some economists have predicted price fall-offs of up to 15% in some regional markets which is why I feel Option ARMs are so dangerous. I'll illustrate this for the most overheated markets, starting by quoting myself from a CORE article I wrote about a year ago.
"Beware of the 1.00% mortgage. Trust the old saying, 'If it sounds too good to be true it probably is.' This holds just as true in mortgage lending as with anything else in life and I can guarantee you that there is no such thing as a one-percent 30-year fixed-rate mortgage. Furthermore, there is no such thing as a one-percent six-month, one-year, three-year, five-year, or seven-year adjustable rate mortgage or ARM either. So you are asking yourself, 'What was that ad I saw in Sunday's paper talking about then?' The answer is simple; it is an option-ARM and they are great loans for the right type of borrower. (I have since changed my mind on this; I don't think there is a right type of borrower for this product. Too many people use only the minimum payment option. As many as seven out of ten borrowers with these loans use only the minimum payment according to UBS.) They typically allow you the flexibility to make one of four types of payments, a 30-year or 15-year amortized payment, an interest-only payment, or lastly a negatively-amortizing payment. It is the last of these payment options that have the potential to be dangerous if the borrower does not understand how they work and this is the 1.00% that is advertised. So what is the truth, it is a great payment is it not? Yes, it is for a short time, but you are not really getting a 1.00% mortgage. What you are actually getting is a rate based on an index such as the cost of funds index plus a margin and the 1.00% payment you are making is only a portion of the actual interest due, the difference (negative-amortization) is added to the principal balance of the loan thereby increasing the amount you owe. For example, say you have a $200,000 mortgage and your current fully-indexed or actual interest rate is 6.972% the payment should be $1326.00 per month. If you made the 1.00% negative-amortization payment for the same loan of $643.00, the $683.00 shortfall ($1326.00 - $643.00 = $683.00) is added to the principal balance. So after you have made your payment you now owe $200,683 instead of $200,000. What you owe is actually going up not down. Compound that over several months or years and soon you have added thousands of dollars to your mortgage."
Okay, so if the said example above was based on a mortgage of 95% of the value of the home and you're in a market that is seeing any kind of downturn, guess what? You're upside-down on your home very quickly since the unpaid interest is added back to principal. Once principal exceeds 110 percent or 115 percent of the original loan, the minimum-payment option goes away. Borrowers are then faced with a payment double or triple the minimum. The really brutal thing about these mortgages is that most come with a "soft" pre-payment penalty of some sort, meaning they cannot be refinanced without a hefty penalty of some sort, usually two or three percent of the loan amount. And some loans even have what we in the industry refer to as a "hard" pre-payment penalty, meaning you cannot even sell the property without a heft pre-payment penalty. So again, just to hammer home the point, you have a great many homeowners that are already upside-down on the mortgage, the mortgage adjusts upward and they can't afford to refinance or sell because they would have to bring money to closing and they can't afford to make the payment. Although the Denver market did not see that a great many of this type of mortgage I have still spoken with many a prospect lately that was in one and could not refinance out of it. Oh, and did I mention these loans are heavy commission loaded?
So what options do you have as a homeowner if you have one of these loans? The best thing is to make sure you are making more than the minimum payment. If you are not, begin to as soon as you can, preferably the 30-year amortized payment listed on the monthly statement. It might be a stretch at first, but it will begin to nibble away at the principle balance of the loan and put you into a better position if you need to refinance. If it is too much of a stretch to make the 30-year amortized payments try to make at least the interest only payment. If all else fails it might be worth speaking to a mortgage professional about refinancing into something fixed. In many cases actual 30-year fixed rates may be lower than the rate referenced on your monthly statement.
http://www.core-media.org/content/view/303/369/
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