by Terry Edwards
Today, home refinance has been a hot area for lenders and homeowners alike. With much lower interest rates, it only makes sense to refinance a home mortgage that you've been paying on at 10% interest. These lower rates are also ideal for many to refinance a second mortgage. Here are some tips and things to consider with a second mortgage refinance.
Why Consider Refinancing a Second Mortgage?
Of course, getting a lower interest rate is a big part of it, but there is another important reason as well. You will find that in most instances you can refinance your second mortgage for the same monthly payment you currently have, but for a much shorter loan period.
Getting a 10 year second mortgage for what you were paying on a 15 year loan makes good financial sense. Refinancing a high interest rate second mortgage will save you a lot of money over time.
One of the keys in to successfully refinance a second mortgage is finding the right lender or mortgage broker. Look for a lender that will take the time to explain all the details to you. This is in addition to finding a lower interest rate and much more favorable loan terms.
Finally, know upfront what you can expect in refinance closing costs. The last thing you want at your loan closing is a huge surprise in unexpected fees or costs. A good lender will go over all costs with you before closing. And if they don't, start looking for a new one.
You can find lenders who specialize in second mortgage refinanc
http://www.HomeRefinancingA-Z.com
2007-11-15
Refinance or Use Home Equity for a Reverse Mortgage?
Samantha Taylor
Scenario:
I am considering pros and cons of taking a reverse mortgage or refinancing my existing mortgage. I will be 70 in September, and the social security income is one source that I primarily rely on. I do have some savings which I’d like to keep intact in case I need it for medical purposes and the like. Now as I found out a few days ago, if I go for a reverse mortgage, that is going to cost me a lot compared to what I paid for an existing loan. The outstanding balance on the existing loan is around $25000. So which will be the best way to go for – Do a refinance or take out a reverse mortgage?
Solution:
At your age of 70 years, you may find it difficult to qualify for a refinance loan. This is so because the lender or the mortgage company would require you to have a steady flow of income along with a sound credit payment history. And, considering your income source, I guess it’s the social security income that you’re currently relying on.
However, when you go for a reverse mortgage, make sure that you’re paying off any old debt against your home or else you’ll have to pay it down with the proceeds obtained through the loan itself. Moreover, you cannot borrow beyond a certain level of your home equity if you’re going to take a reverse mortgage. This is because the lender offers a loan amount such that the interest on the loan can be included into the value of home equity.
Now, instead of taking a reverse mortgage or a refinance loan, you can also look out for a home equity line of credit that will allow you to withdraw cash as and when required within an allowable credit limit. But here again you will be required to have a certain income limit to get qualified for the loan. So, when it comes to qualifying for a loan, I think a reverse mortgage is the best option for you.
You can select an FHA-insured loan (HECM), a lender-insured or even an un-insured reverse mortgage. It is better that you do some loan shopping in order to compare the costs required for each type of mortgage offer that you are likely to qualify for. However, before you decide to choose a loan program, consider your monthly expenses and any investment option that you’ve been interested in. This will help you to decide whether you can afford to pay off the loan in case it becomes callable.
If you wish to discuss on reverse mortgage and related issues, feel free to ask questions and get the right suggestions through our community forums.
http://www.articlesbase.com/mortgage-articles/refinance-or-use-home-equity-for-a-reverse-mortgage-213931.html
Scenario:
I am considering pros and cons of taking a reverse mortgage or refinancing my existing mortgage. I will be 70 in September, and the social security income is one source that I primarily rely on. I do have some savings which I’d like to keep intact in case I need it for medical purposes and the like. Now as I found out a few days ago, if I go for a reverse mortgage, that is going to cost me a lot compared to what I paid for an existing loan. The outstanding balance on the existing loan is around $25000. So which will be the best way to go for – Do a refinance or take out a reverse mortgage?
Solution:
At your age of 70 years, you may find it difficult to qualify for a refinance loan. This is so because the lender or the mortgage company would require you to have a steady flow of income along with a sound credit payment history. And, considering your income source, I guess it’s the social security income that you’re currently relying on.
However, when you go for a reverse mortgage, make sure that you’re paying off any old debt against your home or else you’ll have to pay it down with the proceeds obtained through the loan itself. Moreover, you cannot borrow beyond a certain level of your home equity if you’re going to take a reverse mortgage. This is because the lender offers a loan amount such that the interest on the loan can be included into the value of home equity.
Now, instead of taking a reverse mortgage or a refinance loan, you can also look out for a home equity line of credit that will allow you to withdraw cash as and when required within an allowable credit limit. But here again you will be required to have a certain income limit to get qualified for the loan. So, when it comes to qualifying for a loan, I think a reverse mortgage is the best option for you.
You can select an FHA-insured loan (HECM), a lender-insured or even an un-insured reverse mortgage. It is better that you do some loan shopping in order to compare the costs required for each type of mortgage offer that you are likely to qualify for. However, before you decide to choose a loan program, consider your monthly expenses and any investment option that you’ve been interested in. This will help you to decide whether you can afford to pay off the loan in case it becomes callable.
If you wish to discuss on reverse mortgage and related issues, feel free to ask questions and get the right suggestions through our community forums.
http://www.articlesbase.com/mortgage-articles/refinance-or-use-home-equity-for-a-reverse-mortgage-213931.html
Mortgage Holders 'Face Rise In Financial Pressures'
by Abbi Rouse
Moves by the Bank of England's monetary policy committee (MPC) to increase the base rate of interest over the course of the summer led to a fall in lending for property purchase in September, new research indicates.
According to a study conducted by the Council of Mortgage Lenders (CML), the impact of the higher cost of repayments on personal loans and other types of borrowing resulted in some 12.7 billion pounds for the purposes of home buying to be issued in September. Consequently this figure was down on the 16.2 billion pounds noted during the previous month and the 13.9 billion pounds from September 2006.
The study also revealed that homeowners are coming under increasing financial pressure as the typical mortgage rate rose from 5.91 to 6.02 per cent from August to September. In turn this caused the CML to assert that the affordability of property has "worsened" for both first-time buyers and those already on the housing ladder, which in turn could impact upon their capacity in making repayments on secured loans and utility bills. Over the course of September, mortgage interest payments accounted for 20.4 and 17.5 per cent of income for people making their initial steps on to the housing ladder and existing homeowners respectively.
In addition, the company pointed out that borrowing from both groups fell during September, as some 28,400 loans were issued to first-time buyers during the month, down from the 34,800 recorded in August. Meanwhile, those already on the property sector took out some 52,400 loans, in comparison to the previous month's total of 68,000.
Such financial difficulties were attributed to the eventual impact of the MPC's decision to increase interest rates in both May and July. However, the effects of the recent credit crunch and stricter lending criteria by loan lenders were not due to impact home lending figures until October.
Overall, home loans for all purposes accounted for 30.6 billion pounds this September, up by 800,000 pounds from the 29.2 billion pounds recorded from the corresponding month last year. However, in August 2007 a grand total of 34 billion pounds was taken out. Meanwhile, other forms of lending, including buy-to-let, remained consistent over the course of August to September standing at 6.8 billion pounds - up by 5.3 billion pounds recorded during September 2006.
Commenting on the statistics, Michael Coogan, director general for the CML, said: "The data shows that higher interest rates are now beginning to slow the housing market, in line with our recently published forecasts. Looking forward, we expect remortgaging to continue to hold up as borrowers coming off fixed-rate deals look to refinance. However, market conditions may mean that mortgage customers see an increase in costs and the Bank of England's decision not to reduce rates earlier this month will have disappointed many borrowers. Looking forward, affordability is likely to continue to constrain buying activity, which we expect to remain subdued."
However, Mr Coogan asserted that the base rate has now reached its "peak", while any moves by the MPC to lower interest rates "will help ease some of the pressure on household finances". One way consumers could reduce levels of financial strain is by taking out a debt consolidation loan, in which money owed to numerous creditors and companies can be reduced into a single monthly amount. Earlier this month, James Caldwell, director of Fairinvestment, reported that those developing money management problems should be proactive in terms of getting back on their fiscal feet and reducing their expenditure.
http://www.allaboutloans.co.uk/
Moves by the Bank of England's monetary policy committee (MPC) to increase the base rate of interest over the course of the summer led to a fall in lending for property purchase in September, new research indicates.
According to a study conducted by the Council of Mortgage Lenders (CML), the impact of the higher cost of repayments on personal loans and other types of borrowing resulted in some 12.7 billion pounds for the purposes of home buying to be issued in September. Consequently this figure was down on the 16.2 billion pounds noted during the previous month and the 13.9 billion pounds from September 2006.
The study also revealed that homeowners are coming under increasing financial pressure as the typical mortgage rate rose from 5.91 to 6.02 per cent from August to September. In turn this caused the CML to assert that the affordability of property has "worsened" for both first-time buyers and those already on the housing ladder, which in turn could impact upon their capacity in making repayments on secured loans and utility bills. Over the course of September, mortgage interest payments accounted for 20.4 and 17.5 per cent of income for people making their initial steps on to the housing ladder and existing homeowners respectively.
In addition, the company pointed out that borrowing from both groups fell during September, as some 28,400 loans were issued to first-time buyers during the month, down from the 34,800 recorded in August. Meanwhile, those already on the property sector took out some 52,400 loans, in comparison to the previous month's total of 68,000.
Such financial difficulties were attributed to the eventual impact of the MPC's decision to increase interest rates in both May and July. However, the effects of the recent credit crunch and stricter lending criteria by loan lenders were not due to impact home lending figures until October.
Overall, home loans for all purposes accounted for 30.6 billion pounds this September, up by 800,000 pounds from the 29.2 billion pounds recorded from the corresponding month last year. However, in August 2007 a grand total of 34 billion pounds was taken out. Meanwhile, other forms of lending, including buy-to-let, remained consistent over the course of August to September standing at 6.8 billion pounds - up by 5.3 billion pounds recorded during September 2006.
Commenting on the statistics, Michael Coogan, director general for the CML, said: "The data shows that higher interest rates are now beginning to slow the housing market, in line with our recently published forecasts. Looking forward, we expect remortgaging to continue to hold up as borrowers coming off fixed-rate deals look to refinance. However, market conditions may mean that mortgage customers see an increase in costs and the Bank of England's decision not to reduce rates earlier this month will have disappointed many borrowers. Looking forward, affordability is likely to continue to constrain buying activity, which we expect to remain subdued."
However, Mr Coogan asserted that the base rate has now reached its "peak", while any moves by the MPC to lower interest rates "will help ease some of the pressure on household finances". One way consumers could reduce levels of financial strain is by taking out a debt consolidation loan, in which money owed to numerous creditors and companies can be reduced into a single monthly amount. Earlier this month, James Caldwell, director of Fairinvestment, reported that those developing money management problems should be proactive in terms of getting back on their fiscal feet and reducing their expenditure.
http://www.allaboutloans.co.uk/
2007-11-14
The loan calculator has become an important tool for home buyer
by Vicky Edema
A number of excellent resource tools are now available on the internet for people in Australia seeking a loan to finance the purchase of a property or refinance an existing mortgage.
One of the most useful and user friendly tools is a loan calculator. Before going too far in the purchase and /or borrowing process it is a worthwhile exercise to quickly gauge your borrowing capacity and also determine how your new mortgage repayments will impact on your personal cash flow.
Establishing your borrowing capacity can be approached in a number of ways and is a relatively quick and simple process using a good loan calculator
For example, most loan calculators will allow you to enter your net income and your current liabilities such as a car loan or credit card debt and will then quickly give you an idea as to the amount you can borrow. In the same calculation you will see your monthly instalment amount for the proposed mortgage which will enable you to determine what surplus income will continue to be available to meet your general cost of living expenses and the repayments on any other debts you may have. Although a loan calculator can give you a guide to your borrowing capacity there are other things that a lender will take into consideration when you apply for a loan. For example the number of dependent children you have will impact on your borrowing capacity.
You can play around with the loan calculator, in that if you feel the monthly repayment is too high you can increase the loan term from the standard 25 years to 30 years (being the maximum generally available in today's market). By increasing the loan term you reduce the monthly repayment amount. A number of borrowers choose to make interest only payments in the first 5 years of their loan to reduce their monthly commitments while they are getting themselves established. You must remember however that by taking an initial interest only period you increase the amount of the principal and interest instalments when they kick in because the loan is being amortised over the remainder of term only.
With the loan calculator you can also compare the difference in your monthly outgoings under your existing situation (for example your new mortgage, a car loan and current monthly credit card repayments) with the repayments that would apply if you combined all your personal debt into your home mortgage. You will invariably improve your cash flow by doing this as the interest rate on car and credit card loans is usually higher than home loan rates. However you should also realise that by including say your car loan with you're your home mortgage you are in effect now paying the car off over 25 or 30 years as opposed to perhaps a 5 year personal loan or lease with nominal residual. If you decide to sell the car after 3 years you will not have built up the same equity in it as you would have under the shorter term financing.
If you are considering a refinance the loan calculator has a feature which enables you to compare the interest rates of your existing lender with those of a new proposed lender. It will show you the amount of interest you will pay under each loan. The comparison loan calculator is quite sophisticated in that it has provision for a number of variables. For example you may compare your existing loan which may have an initial fixed rate term for 3 years @ 8.20% reverting to a 7.75% variable rate at the end of that 3 year period with a proposed loan which may have an initial 5 year fixed period @ 7.95% reverting to a 7.65% variable rate for the remainder loan term. The loan calculator will calculate the fixed interest payable for the first 3 or 5 years plus the interest for the remaining term at the variable rate and give you the total interest amount that you will pay for the full loan term on each mortgage. The loan calculator will also often summarise this in graph form and advise the amount you will save or lose by staying with your existing lender.
When using the loan calculator one should remember that it is only interest rates that are being compared. You may have special features that you wish to include within your mortgage for which you are prepared to pay a small premium in interest rate.
In fact, you may well be better off with a lender who charges a marginally higher interest rate but also offers a 100% offset account with your loan. Such a feature allows you to place any surplus funds you have in your offset account and with 100% offset these funds earn you the same rate of interest as that which you are paying on your mortgage. In other words if you have a loan of $250,000 and a $50,000 balance in your offset account your monthly interest is calculated on $200,000 only. Example: Mortgage: $250,000 paying 8% (interest only) = $20,000 p.a. Offset: $50,000 earning @ 8% = $4000 p.a. Nett result: $200,000 @ 8% (interest only) = you pay $16,000 p.a
Compare this with $250,000 at a lower rate of interest, again on an interest only basis for simplicity:
$250,000 @ 7.75% = $19,375 $250,000 @ 7.50% = $18,750 $250,000 @ 7.00% = $17,500
In reality you would need to have an interest rate of 6.40% (that's 1.6% below the mortgage loan with 100% offset) to have an equivalent rate of the offset package.
In Australia, a loan calculator is a good resource and you should certainly check them out to be confident that you are on the right track in relation to your estimates on borrowing capacity.
http://www.australmortgage.com.au/
A number of excellent resource tools are now available on the internet for people in Australia seeking a loan to finance the purchase of a property or refinance an existing mortgage.
One of the most useful and user friendly tools is a loan calculator. Before going too far in the purchase and /or borrowing process it is a worthwhile exercise to quickly gauge your borrowing capacity and also determine how your new mortgage repayments will impact on your personal cash flow.
Establishing your borrowing capacity can be approached in a number of ways and is a relatively quick and simple process using a good loan calculator
For example, most loan calculators will allow you to enter your net income and your current liabilities such as a car loan or credit card debt and will then quickly give you an idea as to the amount you can borrow. In the same calculation you will see your monthly instalment amount for the proposed mortgage which will enable you to determine what surplus income will continue to be available to meet your general cost of living expenses and the repayments on any other debts you may have. Although a loan calculator can give you a guide to your borrowing capacity there are other things that a lender will take into consideration when you apply for a loan. For example the number of dependent children you have will impact on your borrowing capacity.
You can play around with the loan calculator, in that if you feel the monthly repayment is too high you can increase the loan term from the standard 25 years to 30 years (being the maximum generally available in today's market). By increasing the loan term you reduce the monthly repayment amount. A number of borrowers choose to make interest only payments in the first 5 years of their loan to reduce their monthly commitments while they are getting themselves established. You must remember however that by taking an initial interest only period you increase the amount of the principal and interest instalments when they kick in because the loan is being amortised over the remainder of term only.
With the loan calculator you can also compare the difference in your monthly outgoings under your existing situation (for example your new mortgage, a car loan and current monthly credit card repayments) with the repayments that would apply if you combined all your personal debt into your home mortgage. You will invariably improve your cash flow by doing this as the interest rate on car and credit card loans is usually higher than home loan rates. However you should also realise that by including say your car loan with you're your home mortgage you are in effect now paying the car off over 25 or 30 years as opposed to perhaps a 5 year personal loan or lease with nominal residual. If you decide to sell the car after 3 years you will not have built up the same equity in it as you would have under the shorter term financing.
If you are considering a refinance the loan calculator has a feature which enables you to compare the interest rates of your existing lender with those of a new proposed lender. It will show you the amount of interest you will pay under each loan. The comparison loan calculator is quite sophisticated in that it has provision for a number of variables. For example you may compare your existing loan which may have an initial fixed rate term for 3 years @ 8.20% reverting to a 7.75% variable rate at the end of that 3 year period with a proposed loan which may have an initial 5 year fixed period @ 7.95% reverting to a 7.65% variable rate for the remainder loan term. The loan calculator will calculate the fixed interest payable for the first 3 or 5 years plus the interest for the remaining term at the variable rate and give you the total interest amount that you will pay for the full loan term on each mortgage. The loan calculator will also often summarise this in graph form and advise the amount you will save or lose by staying with your existing lender.
When using the loan calculator one should remember that it is only interest rates that are being compared. You may have special features that you wish to include within your mortgage for which you are prepared to pay a small premium in interest rate.
In fact, you may well be better off with a lender who charges a marginally higher interest rate but also offers a 100% offset account with your loan. Such a feature allows you to place any surplus funds you have in your offset account and with 100% offset these funds earn you the same rate of interest as that which you are paying on your mortgage. In other words if you have a loan of $250,000 and a $50,000 balance in your offset account your monthly interest is calculated on $200,000 only. Example: Mortgage: $250,000 paying 8% (interest only) = $20,000 p.a. Offset: $50,000 earning @ 8% = $4000 p.a. Nett result: $200,000 @ 8% (interest only) = you pay $16,000 p.a
Compare this with $250,000 at a lower rate of interest, again on an interest only basis for simplicity:
$250,000 @ 7.75% = $19,375 $250,000 @ 7.50% = $18,750 $250,000 @ 7.00% = $17,500
In reality you would need to have an interest rate of 6.40% (that's 1.6% below the mortgage loan with 100% offset) to have an equivalent rate of the offset package.
In Australia, a loan calculator is a good resource and you should certainly check them out to be confident that you are on the right track in relation to your estimates on borrowing capacity.
http://www.australmortgage.com.au/
2007-11-13
Tips for Bill Consolidation Loans
by Macky May
Think you already know what this subject is all about? Chances are that you don't, but by the end of this article you will!
Proposal consolidation finances can slash duty and help you pay of your debt sooner. However, you want to be surely that you feature in the figure of fees, find low duty, and prize concise phrase finance. These tips will guarantee that you don't end up overheads more by consolidating.
Reason in Fees
Depending on the class of finance you desire, fees can adjust from thousands to nothing. Refinancing a home finance and with the fairness to pay off bills is appealing to many. But the thousands that it figures to refinance should be considered, especially if you aren't receiving a better figure on your finance.
From now until the now until the end of this article, take the time to think about how all of this information can help you.
Home fairness finances and defenses of belief can be worn with little or no fees. Their duty is advanced, but for slighter amounts they can still be cheaper. Private finances are also a decision while they still beat high curiosity belief licenses.
Make duty Pay
Before consolidating your bills, make surely that your finance figure will be slash that what you are presently paying. This might mean that you don't consolidate all your finances. For example, scholar finances regularly have the lowly duty likely, better than a finance figure.
If you can only consolidate part of your debt, pay off the accounts with the peak curiosity duty for the most savings.
Go abrupt on language
Choosing concise phrases on your finance will bank you money on curiosity figures. While slighter payments are tempting, the long phrase curiosity payments can clearly be more than what you pay now. Believe license payments are set to pay off your weigh in five existences. So if you can financially lever your stream payments, prize five phrase finance.
Store Online
Store ping online for finance can also help you bank money in curiosity and finance figures. Many financing companies suggest more competitive duty online than in their conventional offices. Appeal quotes from numerous lenders and look at their phrases. Even a difference as little as an eighth of a percent can financially make a big difference.
Close salaried Accounts
To shield your belief slice, make surely to close accounts once they are rewarded off. This discount in your unfilled belief will set you up for better duty when you do desire to open a new account, such as finance.
Seeing believes, but sometimes we can't all experience every subject in life. This article hopes to make up for that by providing you with a valuable resource of information on this topic.
www.billconsolid.com
Think you already know what this subject is all about? Chances are that you don't, but by the end of this article you will!
Proposal consolidation finances can slash duty and help you pay of your debt sooner. However, you want to be surely that you feature in the figure of fees, find low duty, and prize concise phrase finance. These tips will guarantee that you don't end up overheads more by consolidating.
Reason in Fees
Depending on the class of finance you desire, fees can adjust from thousands to nothing. Refinancing a home finance and with the fairness to pay off bills is appealing to many. But the thousands that it figures to refinance should be considered, especially if you aren't receiving a better figure on your finance.
From now until the now until the end of this article, take the time to think about how all of this information can help you.
Home fairness finances and defenses of belief can be worn with little or no fees. Their duty is advanced, but for slighter amounts they can still be cheaper. Private finances are also a decision while they still beat high curiosity belief licenses.
Make duty Pay
Before consolidating your bills, make surely that your finance figure will be slash that what you are presently paying. This might mean that you don't consolidate all your finances. For example, scholar finances regularly have the lowly duty likely, better than a finance figure.
If you can only consolidate part of your debt, pay off the accounts with the peak curiosity duty for the most savings.
Go abrupt on language
Choosing concise phrases on your finance will bank you money on curiosity figures. While slighter payments are tempting, the long phrase curiosity payments can clearly be more than what you pay now. Believe license payments are set to pay off your weigh in five existences. So if you can financially lever your stream payments, prize five phrase finance.
Store Online
Store ping online for finance can also help you bank money in curiosity and finance figures. Many financing companies suggest more competitive duty online than in their conventional offices. Appeal quotes from numerous lenders and look at their phrases. Even a difference as little as an eighth of a percent can financially make a big difference.
Close salaried Accounts
To shield your belief slice, make surely to close accounts once they are rewarded off. This discount in your unfilled belief will set you up for better duty when you do desire to open a new account, such as finance.
Seeing believes, but sometimes we can't all experience every subject in life. This article hopes to make up for that by providing you with a valuable resource of information on this topic.
www.billconsolid.com
2007-11-12
What Are The Basics Of Home Refinancing?
by Alan Lim
The decision to take out a second mortgage to refinance your home should never be a frightening resolution to any mortgage holder. Home refinancing is worth the decision if and only if you follow the proper line of investigation. Here are some guidelines to take you through the transaction:
Carry out extensive research
Home refinancing is not just all about taking out a second loan with the mortgaged property as security. It goes beyond that to selecting the best deal that would not weigh on your ability to pay. The route to this is to shop extensively. All lenders are not the same. Do a lot of comparison shopping. Through this you might be able to come out with one or two deals that may prove advantageous to you than a prior transaction. Investigate on the current rates. At times it may be prudent to wait till rates fall particularly if your current rate is equal to or higher than the existing market rate, before resorting to home refinancing.
Deciding on a home refinancing lender
Most people are also not decided on what lender to look forward to home refinancing. As there are so many bad deals out in the market, so too there are mischievous lenders. If you are not inconsistent with your previous lender, the best choice will be to go back to that lender. He is best to understand your situation and you may work out a special deal with him which takes account of your particular needs. If you decide on taking an entirely new lender, make an appraisal of more than two lenders. Keep in mind that your present tight spot might have been as a result of the unfruitful deal that you entered into.
Honesty pays
Home refinancing may sometimes mean moving from a worst to a best situation. Therefore, it is wisdom to know your monetary habits. Keep in mind that home refinancing is not only meant for those who have a good financial record. The fact that your finances are in the red still qualifies you for refinancing. With this in mind, personally lay your problem to the lender. There are and will always be solutions carved out for people of your type. Hiding a poor record to him might lead you thinking of the feasibility of the existence of a third mortgage.
Are you refinancing for the first time?
If you are into home refinancing for the first time, I would advocate you to be cautious and reflect only on investment. The best solution for new comers will be to use the refinance to invest on the existing mortgage. This is one of the fastest ways to build up valuable equity in your home. Equity in the property always gives you an edge over the lender when thinking of home refinancing.
If you are still in doubts, do not hesitate to visit the link below for more information as we as the expert in this area could give you good advic
http://www.goarticles.com/cgi-bin/showa.cgi?C=679608
The decision to take out a second mortgage to refinance your home should never be a frightening resolution to any mortgage holder. Home refinancing is worth the decision if and only if you follow the proper line of investigation. Here are some guidelines to take you through the transaction:
Carry out extensive research
Home refinancing is not just all about taking out a second loan with the mortgaged property as security. It goes beyond that to selecting the best deal that would not weigh on your ability to pay. The route to this is to shop extensively. All lenders are not the same. Do a lot of comparison shopping. Through this you might be able to come out with one or two deals that may prove advantageous to you than a prior transaction. Investigate on the current rates. At times it may be prudent to wait till rates fall particularly if your current rate is equal to or higher than the existing market rate, before resorting to home refinancing.
Deciding on a home refinancing lender
Most people are also not decided on what lender to look forward to home refinancing. As there are so many bad deals out in the market, so too there are mischievous lenders. If you are not inconsistent with your previous lender, the best choice will be to go back to that lender. He is best to understand your situation and you may work out a special deal with him which takes account of your particular needs. If you decide on taking an entirely new lender, make an appraisal of more than two lenders. Keep in mind that your present tight spot might have been as a result of the unfruitful deal that you entered into.
Honesty pays
Home refinancing may sometimes mean moving from a worst to a best situation. Therefore, it is wisdom to know your monetary habits. Keep in mind that home refinancing is not only meant for those who have a good financial record. The fact that your finances are in the red still qualifies you for refinancing. With this in mind, personally lay your problem to the lender. There are and will always be solutions carved out for people of your type. Hiding a poor record to him might lead you thinking of the feasibility of the existence of a third mortgage.
Are you refinancing for the first time?
If you are into home refinancing for the first time, I would advocate you to be cautious and reflect only on investment. The best solution for new comers will be to use the refinance to invest on the existing mortgage. This is one of the fastest ways to build up valuable equity in your home. Equity in the property always gives you an edge over the lender when thinking of home refinancing.
If you are still in doubts, do not hesitate to visit the link below for more information as we as the expert in this area could give you good advic
http://www.goarticles.com/cgi-bin/showa.cgi?C=679608
Are You Thinking Of Home Refinancing? What You Need To Know
by Alan Lim
Recourse to home refinancing may sometimes be the last resort. But when such a situation arises, must you be desperate and go at all lengths? It may be wise to take the following tip to avoid falling into further trouble; it is said that, to be forewarned is to be forearmed.
Focus on the deal
There are varieties of reasons why people seek home refinancing. Yours may be worse than theirs. The essential thing should be to develop a calm mind and get a good deal. Directing your focus more on your plight than of the method of solving it may lead you into more problems. Thus when you meet a home refinancing lender or his agent, behave as if there is no problem. You may equally behave as if you are in no financial dilemma. When your mind becomes clouded with the complexities of your problems; or you are overtaken by the anxiety of getting more money, you may not see the trap. Keep in mind that there may be certain indiscernible technicalities in the document that you may not be able to see. Take note that the lender may not have the duty of care to explain them to you. He is equally seeking to have a better deal.
Must it be home refinancing?
It is rational to measure if refinancing would be the only resort to what you need. Thus, pay particular attention not on your present position, but to your future capacity to use the money wisely and to repay the loan. What do you intend to do with the money? Can it be possible that this new route will lead to a betterment of your situation? Will you eventually redeem the refinancing on time? These are all considerations you must bring to mind to determine if you must resort to home refinancing.
When is it best for home refinancing?
Refinancing your home should be done in a timely manner. Thus reflect on home refinancing when there is a wide-ranging increment in the worth of properties. Refinance when the rates of interests are at their barest. When rates fall, you equally pay smaller rates. Also refinance if this is the only avenue to consolidate your debts. While thinking of this, make sure you refinance for something more than the existing debt. This may possibly leave you with something at hand. Refinance when you think you no longer want to make use of the home. This is especially true to those who may be making a significant migration in their lives or who are in possession of more than one home. Whatever the case, I think yielding to the demands of necessity should be the ultimate reason and time for home refinancing.
What next?
If you are unable to redeem the home refinancing, what do you think will be the outcome? The best answer to this is to make sure there is enough equity in the value of your home.
If you are still in doubts, do not hesitate to visit the link below for more information as we as the expert in this area could give you good advice.
http://www.homemortgageloan-refinance.com/
Recourse to home refinancing may sometimes be the last resort. But when such a situation arises, must you be desperate and go at all lengths? It may be wise to take the following tip to avoid falling into further trouble; it is said that, to be forewarned is to be forearmed.
Focus on the deal
There are varieties of reasons why people seek home refinancing. Yours may be worse than theirs. The essential thing should be to develop a calm mind and get a good deal. Directing your focus more on your plight than of the method of solving it may lead you into more problems. Thus when you meet a home refinancing lender or his agent, behave as if there is no problem. You may equally behave as if you are in no financial dilemma. When your mind becomes clouded with the complexities of your problems; or you are overtaken by the anxiety of getting more money, you may not see the trap. Keep in mind that there may be certain indiscernible technicalities in the document that you may not be able to see. Take note that the lender may not have the duty of care to explain them to you. He is equally seeking to have a better deal.
Must it be home refinancing?
It is rational to measure if refinancing would be the only resort to what you need. Thus, pay particular attention not on your present position, but to your future capacity to use the money wisely and to repay the loan. What do you intend to do with the money? Can it be possible that this new route will lead to a betterment of your situation? Will you eventually redeem the refinancing on time? These are all considerations you must bring to mind to determine if you must resort to home refinancing.
When is it best for home refinancing?
Refinancing your home should be done in a timely manner. Thus reflect on home refinancing when there is a wide-ranging increment in the worth of properties. Refinance when the rates of interests are at their barest. When rates fall, you equally pay smaller rates. Also refinance if this is the only avenue to consolidate your debts. While thinking of this, make sure you refinance for something more than the existing debt. This may possibly leave you with something at hand. Refinance when you think you no longer want to make use of the home. This is especially true to those who may be making a significant migration in their lives or who are in possession of more than one home. Whatever the case, I think yielding to the demands of necessity should be the ultimate reason and time for home refinancing.
What next?
If you are unable to redeem the home refinancing, what do you think will be the outcome? The best answer to this is to make sure there is enough equity in the value of your home.
If you are still in doubts, do not hesitate to visit the link below for more information as we as the expert in this area could give you good advice.
http://www.homemortgageloan-refinance.com/
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