by Debbie Groves
If reduced interest rates, monthly payments, longer time for repayment of loans is what you are looking for, then opt for mortgage refinancing. This is the best way to get the benefits that we mentioned above. However, it is crucial that you understand the process in detail. A wrong decision might make you pay more than you wanted to save in the first place.
Be clear about refinancing,
Refinancing is the process of achieving a second loan for paying off the original loan; this leaves you with the new interest rates and the new payment schedule. It helps decrease your monthly loan installment as the new loan would typically have a lower principal than your original loan.
Moreover, refinancing provides you more time to pay off your mortgage, which benefits you when you are soon approaching a huge payment that you cannot really afford or would like to extend your loan.
The best time for refinancing,
How can you denote the ideal time for refinancing? Well, the best time to consider refinancing your mortgage is after you have repaid a large chunk of your original mortgage and have built a good amount of equity. The equity is most likely for securing the refinance loan; therefore, it is crucial to have enough for covering the amount of the loan.
Application for a refinance loan must be made when the interest rates are lower than when you had taken out the mortgage. This enables the lower interest rate to be an additional bonus to refinancing.
The refinance terms you agree upon and your original mortgage balance will determine the amount by which your monthly mortgage installments would decrease.
Other ways to denote the right time for refinancing,
Start reading the finance journals and watch the news carefully; this helps you determine what the national interest rates are set at. Also, try to foresee whether the national interest rates are likely to decrease or increase in the near future.
The loan market will enable you to find lenders providing special rates or promotions for a limited amount of time. Take your time to examine the offers and ensure that they are legal; also it is advisable to consider if the offer will suit your requirements, than waiting for the rates to change.
Knowing the way to go about refinancing,
For mortgage refinancing, primarily you will need a lender who will issue you the refinancing loan. The loan application in this case is almost like the majority of the other applications; with the exception being that the subject of the loan is the original mortgage balance and that the collateral is the equity you have in the house or any other real estate where the mortgage was taken out to purchase.
Usually the lender or the bank, through which you take out the refinance loan, is involved in handling all the payments and transfers of the mortgage. In some cases, however, you have to handle these works yourself; this depends completely on the specific lender that you use
www.mortgagerefinancingpeople.com
Showing posts with label refinance loan. Show all posts
Showing posts with label refinance loan. Show all posts
2007-09-10
Should I Refinance My Home...Again?
jeffn
Let's assume you refinanced your home when the rates were really low. You took the equity you had built up and paid off some bills and made a few home improvements. Now you've built up equity again and you're wondering if it makes sense to do another refinance mortgage. As with all mortgages, the right answers and terms all depend on your particular circumstance. We'll help you sort that out, but first let's start with a few questions for you to think about:
? Unless you're in financial trouble and need some extra cash and have no other way to raise it, we'll need to carefully analyze how much you'll save (if anything) by doing another refinance. Sometimes it's your only way out, but if you have to keep taking out new mortgages, you could probably benefit by our financial counseling
? Examine the difference in monthly payments. If you refinance now, is it going to be a real stretch to make your house payment?
? If you're planning to refinance strictly to pay bills, do the math first. For example if you're car will be paid off in two or three years but you want to use equity from your home to pay it off early, are you really gaining anything? Remember that you're signing up to pay off whatever you use the money for over a period of 15 or 30 years. Your car may end up costing you thousands more if you do it that way
? If you're making more improvements and upgrades to your home, do the best you can to estimate what you can sell your house for in 3 to 5 years. Compute what both the refinances will have cost you in interest and fees and make sure that you'll still make a profit. You may do better to sell the home now and buy one that already has the amenities you want
? When you're computing another refinance loan, look at the total cost of borrowing the money, just as you did with your very first mortgage. If you include closing costs and other fees in the new loan, you'll want to be sure that you pay off that portion in three years or less
These are just a few things to look at when you're evaluating the pluses and minuses of a second refinance home loan. We have the experience and knowledge to help you make your decision. We'll look at your options from every angle, but ultimately of course, you have the final say. We take pride in working with our clients in an informative and no-hassle atmosphere. Trusting your mortgage broker is at the top of the list when it comes to home finance. You can definitely count on us for honest and truly helpful advice.
http://www.articlecircle.com/finance/mortgage/should-i-refinance-my-home-again.html
Let's assume you refinanced your home when the rates were really low. You took the equity you had built up and paid off some bills and made a few home improvements. Now you've built up equity again and you're wondering if it makes sense to do another refinance mortgage. As with all mortgages, the right answers and terms all depend on your particular circumstance. We'll help you sort that out, but first let's start with a few questions for you to think about:
? Unless you're in financial trouble and need some extra cash and have no other way to raise it, we'll need to carefully analyze how much you'll save (if anything) by doing another refinance. Sometimes it's your only way out, but if you have to keep taking out new mortgages, you could probably benefit by our financial counseling
? Examine the difference in monthly payments. If you refinance now, is it going to be a real stretch to make your house payment?
? If you're planning to refinance strictly to pay bills, do the math first. For example if you're car will be paid off in two or three years but you want to use equity from your home to pay it off early, are you really gaining anything? Remember that you're signing up to pay off whatever you use the money for over a period of 15 or 30 years. Your car may end up costing you thousands more if you do it that way
? If you're making more improvements and upgrades to your home, do the best you can to estimate what you can sell your house for in 3 to 5 years. Compute what both the refinances will have cost you in interest and fees and make sure that you'll still make a profit. You may do better to sell the home now and buy one that already has the amenities you want
? When you're computing another refinance loan, look at the total cost of borrowing the money, just as you did with your very first mortgage. If you include closing costs and other fees in the new loan, you'll want to be sure that you pay off that portion in three years or less
These are just a few things to look at when you're evaluating the pluses and minuses of a second refinance home loan. We have the experience and knowledge to help you make your decision. We'll look at your options from every angle, but ultimately of course, you have the final say. We take pride in working with our clients in an informative and no-hassle atmosphere. Trusting your mortgage broker is at the top of the list when it comes to home finance. You can definitely count on us for honest and truly helpful advice.
http://www.articlecircle.com/finance/mortgage/should-i-refinance-my-home-again.html
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