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Reasons for Refinancing
If you are looking for lower interest rates and monthly payments on your mortgage, then you need not be afraid because of poor credit. It is completely possible to refinance with bad credit, all you need is a bit of care and caution when selecting the lender. Getting refinanced is a relatively simple and painless procedure as the property or home itself secures the loan. However, as mentioned earlier, it is essential that you take your time to shop around for the best lender, especially if your credit history is particularly poor.
Remember that just because you have a bad credit history, it doesn’t mean that you will have to accept the brutally high loan-shark rates. There is absolutely no reason to pay rates that are three to four times higher than the normal subprime rates. Yes, you will have to pay somewhat higher than usual rates because of poor credit history but it won’t be all that bad. There are plenty of authentic mortgage institutes out there such as Houston refinance companies. They will demand higher payments but there is no reason that you will be turned down for a refinance. You will only have to pay a little extra in premiums.
Article Posted by Expert Author: 4 on 01/05/2014
Article Posted In: Refinancing Options in Your City
The Refinance Home Mortgage Guide
Our home mortgage refinance guide lets you know how to go about refinancing your home loan. And it is really easy too. For those who want to refinance to take advantage of lowering their monthly mortgage payments, the good news is that rates have come down radically since you got your original loan. This means that you will be able to reduce your payments to a large extent. But there are plenty of other reasons for everyone to refinance their mortgages. For example, you may turn in your old loan because this will cut down the period you'll be making payments, or perhaps you want to take advantage of the equity built up in your home for the past few years. Another reason may be to jump from an adjustable-rate mortgage (ARM) to a fixed-rate loan which guarantees set payment amounts no matter what happens to mortgage rates in the future.
It is important to list down all the assets that you may have before you apply for a refinance home mortgage. This means taking account of any retirement accounts, bonds, stocks, trust funds, mutual funds as well as whatever you have in savings and checking accounts. This is an important step because if you don’t do so, it’ll be hard to get an authorization on a loan without large reserves on your side.
Article Posted by Expert Author: 4 on 12/13/2013
Article Posted In: Refinance Home Mortgage
Refinance with Bad Credit: A How-To Guide
It is completely possible to refinance with bad credit, but chances are that you will not able to qualify for the low interest rates. But still it is not entirely impossible to get a good deal out of home mortgage refinancing. There are some things that can be done to ensure that your refinance is as beneficial as possible. First of all, start cleaning up your credit before even thinking about shopping for refinance rates. Commit yourself to paying all the bills on time, making more than the minimum payments on credit cards and any other debt.
In order to recover your credit score, it is important to ensure that there aren’t any errors on your credit report. Also, limit your spending on existing credit lines and don’t get any new ones, so no new credit cards or loans for at least 6 months before you refinance your mortgage. Additionally, work on reducing your debt-to-income ratio to make yourself more appealing to lenders. So make sure that all your debt payments and mortgage expenses are no more than 43% of your gross income. Just make sure that you have a stable income history as well as some liquid assets to demonstrate your ability to make additional payments if the need arises, and you will be able to easily swing morgage refinancing with bad credit.
Article Posted by Expert Author: 4 on 11/22/2013
Article Posted In: Refinance Home Mortgage
Refinancing Your Home Mortgage: Getting Ready
Refinancing your home mortgage means you will be starting the loan process all over again. So you will have to be put through basically the same route you did when you took out your existing mortgage. Initially, you will have to arrange all your accounts and savings records together and make sure your credit profile is good. This is important because you will have a benefit with refinancing if you have an excellent payment history with your current loan and a credit record to prove it. These will prove to your Lenders that you're a fine risk, who will pay on time and that makes the qualifying procedure a lot less painful.
Even if a mortgage refinance is just an idea in your head, get the copies of your credit reports from the three credit companies i.e. Equifax, Trans Union and Experian. Go over them to make sure they are correct and current. If you spot any credit-wrecking mistakes, take the required actions to have the errors corrected and ensure that the information gets up-to-date. Scrap the credit cards that aren’t currently in use and pay all your bills on time. The lender may also need to verify your employment and income records so keep them handy as well.
Article Posted by Expert Author: 1 on 11/01/2013
Article Posted In: Useful Articles
Use A Home Mortgage Refinance Guide To Help You Decide On Refinancing
Many homeowners find it very tempting to refinance their mortgages during times of historically low rates. But acting too quickly can mean that more money is spent on refinancing than expected. Being patient and tracking rates as they rise and fall can help ensure that you get the best rates possible. And taking advantage of online resources such as a home mortgage refinance guide can also help you to make an informed decision when the time comes to refinance.
Before refinancing, a few things will need to be considered. First, your credit rating will determine the rate you are able to get from your insurance company. How much time is left on your current home loan will also be a factor. If you are almost to the end of your current mortgage, then adding time to the end of your loan may not be the best move to make.
Article Posted by Expert Author: 4 on 09/27/2013
Article Posted In: Refinance Home Mortgage
Avoid Refinancing More Than Once?
Refinancing a mortgage can be a very wise plan when you are trying to save money on interest rates and terms. However, you never want your refinancing plans to ever prove self-defeating and end up costing you more money than what you would save. Among the most common ways people end up “cheating” themselves in the refinancing process would be to repeatedly refinance a mortgage with different lenders. Depending on the lender you choose, and especially if you are refinancing with your current lender, you may only be charged minimum to no closing costs, which can be very beneficial. However, there may be other fees and expenses associated with the process as well, like appraisals to determine the home's value.
Certainly, it would be more than a bit difficult to save money on your mortgage if you kept engaging in costly refinancing over and over again. If you have already refinanced once you may wish to avoid doing so again unless you have carefully discussed the matter with a Dallas refinance home mortgage expert.
Such an expert would advise you that if you continued refinancing every few years and resetting the terms at 30 years, you may end up paying so much in interest over the course of decades that any perceived benefit you may have gained from the refinance has essentially squandered your wealth. However, if you are smart about a refinance home mortgage, you may be able to take advantage of certain scenarios that become available to you at different times. For instance, right now interest rates are unprecedentedly low (and will remain so likely for the next few years). While you may have refinanced your loan say six years back, a refinance coupled with dropping the loan duration from say 20 years down to 15 years would save you substantially over the duration of the loan. That's a smart scenario for going through the process again.
Bankruptcy and Home Mortgage Refinance Options
Truthfully, it will not be easy to find a mortgage refinancing service willing to be amicable to those who find themselves in a bankruptcy situation. However, there are lenders out willing to work with troubled borrowers. Be forewarned though, the interest rates you might be required to pay might not exactly be the best or lowest rates available. This is just going to be the case when you have the dark cloud of bankruptcy looming over your head.
The Type Of Bankruptcy Matters To Your Mortgage
If you have filed for total bankruptcy, or Chapter 7 bankruptcy, then most of your debts will be eliminated. In addition, you may have to sell or liquidate some of your property so that some of the debt can be repaid.
A mortgage on any existing property will be designated as either non-exempt or exempt when Chapter 7 is filed. An exempt designation means that you can retain ownership of your property as you go through bankruptcy. If you have been deemed non-exempt, then you will have to surrender your property or pay the property's value in cash as a means to meeting the bankruptcy terms. But this isn't always cut and dried, because some cases have seen homeowners being able to keep their homes after having been deemed to be non-exempt. The designation received will depend on the individual trustee and how they decide to deal with the issue of property.
A Chapter 7 filing means that the homeowner is no longer legally obligated to pay the loan on their home. However, you may still be responsible for paying the lien on your home, which is a right or interest your mortgage company has on your property until the mortgage has been paid in full. And so while Chapter 7 may communicate you don't have to pay your mortgage, not doing so will likely result in the loss of property, as your lender can then move in and enforce the lien they have on your home.
If you have filed for Chapter 13 bankruptcy, then you will find that your debts are not completely eliminated, but instead are expected to be repaid. In this case, a plan must be filed which outlines how you plan to repay those you owe. Depending on what you can afford, you may be able to repay all, some or none of your outstanding debts.
Chapter 13 bankruptcy filings do not result in the loss of property. Instead, the homeowner formulates a plan for how they intend to repay their mortgage. Once Chapter 13 is filed, an automatic stay on the property is issued. This stay communicates to collections agencies that they must cease and desist all of their efforts to collect. This will also stop foreclosure temporarily.
For homeowners wondering how long after they file Chapter 13 to wait until they can get a new mortgage, at least one year must pass following the Chapter 13 discharge. If you are a veteran, you may be exempt from this rule. There are lenders who will likely consider you before one year has passed. However, they will also likely have a set of rules and regulations that have to be adhered to.
Very little can cause financial havoc on your life more than filing for bankruptcy. Granted, there are certain Washington DC refinance home mortgage lenders that will never work with anyone that has filed for bankruptcy. However, this is not the case with all lenders. Some might be willing accept a refinancing application under certain conditions such as three years having passed since the applicant filed for bankruptcy.
If bankruptcy is the only option, you may want to hold off on a refinance home mortgage while you sort out your financial house. There is life after bankruptcy, but there may be some habits that need to change in order to avoid this scenario again in the future.
How To Refinance to a Fixed Rate Mortgage
You may have realized you are better served refinancing to a fixed rate mortgage and eliminating your current variable (adjustable) rate mortgage. But there is a process involved that you might want to follow.
Many homeowners may have gotten their ARM loan when rates were low and banks were eager to help homeowners. But today has seen many interest rates becoming too much for homeowners to handle, along with their monthly payments. Refinancing to a fixed rate mortgage is something many homeowners consider when they need to be able to keep meeting their monthly mortgage payment obligations.
Before You Go For The Fixed Rate
First, it's best to determine if your mortgage has a window of opportunity where you can change from adjustable to fixed without refinancing. This is the convertible option and some adjustable rate mortgages do offer it although these loans may come with higher costs at closing time. If you do not have this option then you will need to follow another course of action - look for a reputable lender in your area.
Doing your homework is something many experts recommend before any homeowner refinances to a fixed rate. This will involve researching current rates for fixed mortgages and getting a good idea of the range of affordable rates. This can be done by getting in touch with local lenders. A mortgage calculator can also be used to compare your current payments to what you may pay with a fixed rate. You may also want to read local home mortgage reports to determine what is the average fixed interest rate for loans in your area. Clearly, you want to be completely sure that the fixed interest rates available are less than what your adjustable rate is or will be.
Although using a mortgage calculator may not be the most accurate method to crunching these numbers, it will be enough to help you determine whether switching to a fixed rate will save you money or not.
What To Ask Lenders
If your mortgage is of the adjustable rate variety, you may be able to refinance to a fixed rate. Ask your current lender whether it would be possible to discuss this possibility. You could ask another lender, but it may be more difficult for you to refinance, as they won't be nearly as familiar with you as your current lender will be.
If you do speak with other lenders, be sure to keep notes on what kinds of deals they have offered or what they told you they would be willing to offer. This will help you to keep each company separate and make a more informed decision at the end of the day. One thing to be sure to ask is whether or not each lender is willing to roll in your closing costs with your refinance. This will mean that you don't have to worry about putting any of your own cash forward.
Another thing to ask is how much you would be charged in interest points. Include this information in what you gather from lenders as well. When you buy points, you can reduce your interest rate. While you will have to put your own money forward to purchase points, this could benefit you in the form of a lower interest obligation, as well as lower monthly payments.
Challenges When Refinancing To A Fixed Rate
Timing is a significant challenge for homeowners trying to refinance to a fixed rate loan. This is because it's important both to lock in at the lowest rate possible, as well as not acting to soon and losing a deal on a variable-rate mortgage. It may help to have analyst or banker advice on your side while you try to do this properly.
If your mortgage payments are already hard for you to handle, refinancing may be your solution, provided that your home has not decreased so much in value as to make this option impossible.
Clearly, you want to be completely sure that the fixed interest rates available are less than what your adjustable rate is or will be. Apply for quotes from the reputable lenders and then review them in order to make the most appropriate selection. Once you have done this, you can begin the process of refinancing your mortgage.
Great Reasons Why You Should Refinance a Mortgage
Although refinancing your mortgage might seem like something to worry about, it shouldn't be. There are many terrific reasons to refinance.
The most obvious reason to do so is that you might be able to get better terms and conditions for your mortgage. That means lower interest rates and a preferred duration that is more agreeable to your current financial situation. Also, when you refinance, you could do so in a manner that helps you pay off your home more quickly. Remember, once you have paid off your mortgage, your home is yours and it cannot be taken away provided you keep on top of your property tax payments.
Lowering Your Monthly Payments
Lower monthly payments are the main reason why many people choose to refinance. Lowering payments means that you have some extra money in your bank account to cover other bills or put away for a rainy day.
Refinancing can also be a solution when there is debt from several sources that needs to be paid off. Many homeowners simply roll their debts into their refinance, and make their monthly payments as usual. This can save a lot of stress and frustration that can come with receiving multiple bills in the mail.
Shortening Your Loan
Refinancing when rates are low can mean a shorter time to pay off your home overall. The lower the rates, the more affordable it will be to do this. Many homeowners will refinance from a 30-year to a 15-year mortgage. Although this will result in higher monthly payments, at the end of the day, tens of thousands of dollars can be saved over the course of a mortgage.
Making Your Rates More Predictable
Those homeowners who are currently paying on a variable-rate mortgage can refinance to a fixed term. This provides the benefit of stability. With a fixed-rate loan, the homeowner always pays the same amount when they make their monthly mortgage payment.
When cash is needed for large or significant purchases, such as college tuition for the kids or home renovations, a refinance can work well. The cash-out refinance is what is done by many homeowners. A lump sum is received when the refinance is complete. Part of this money is used to pay off any existing mortgage, and the remaining money is the homeowner's to spend as they wish or need to.
Reasons Not To Refinance
Believe it or not, there are times when refinancing may not be a good idea. If you already are getting a good rate on your mortgage, then refinancing will only end up costing you more money.
The same is true if your credit score has dropped. What adds to this is the fact that the recent foreclosure crisis has made it more difficult and more expensive to refinance. Higher risk borrowers, such as those with low credit scores will pay more to refinance than those homeowners in good standing.
If you have almost paid your mortgage off, then refinancing will make no sense. In this case, doing so will only serve to restart your mortgage, putting you back to square one with your repayments. Instead, refinancing to a mortgage with a shorter term may make more sense.
If you find that your home's value has gone down over time, refinancing won't be a good idea, especially if your home's equity has been drastically reduced as well. However, a government program like HARP may help you if your loan was serviced or is owned by Freddie Mac or Fannie Mae.
When done at the right time and for the right reasons, refinancing your home can save you a lot of money. But take the time to ensure this is the case before you choose to refinance, because it could be too late to change anything once the papers have been signed.
Understanding home mortgage refinance terminology can really be of benefit while you are trying to answer various questions. For instance, does it make financial sense to refinance right now? If you get a better rate for the same duration you have left on your current loan, you will likely save a lot of money on the home over the long haul.
On the flipside, you may wish to extend the duration of the mortgage in order to pay lesser monthly premiums and have more liquid cash in your budget each month. Most importantly, you can now feel more confident that you can keep your home and avoid foreclosure because your actions to refinance home mortgage ended up securing you a better set of terms.
Benefits Going from 30 Year to 15 Year Mortgage
Many homeowners wonder whether it would be beneficial to refinance their existing loan from 30 years to 15 years. The answer depends on your personal situation. But there are many benefits that can be gained by switching to a 15 year mortgage. First, let's compare one to the other.
The 30 Year Mortgage
In a 30-year mortgage, your payments are spread out over that time period. As well, you are more likely to have lower monthly payments with this option. As well, this option allows for families to find the right home for their needs without costing them too much per month in mortgage payments. Those homeowners having concerns about their cash flow may benefit more from the 30 year loan.
The 15 Year Mortgage
The 15-year mortgage may actually result in less being paid over the life of the loan. As well, this length of loan allows for equity to be built, which can mean increased received value for the payments you make, and over a shorter amount of time. The reason for this is that your payments will pay more towards the principle as opposed to the interest. Unfortunately, the monthly payments can be much higher with the 15 year option.
The most obvious would be the fact that you are able to pay your mortgage off much quicker with the 15 year option. Once the mortgage is paid off, you own your home free and clear. You will also save on the interest paid on the mortgage. Commonly, the interest rates on a 15 year mortgage are lower than the rate on a 30 year mortgage. This allows you to save even more money as you pay off your loan.
An Alternative: Pay Off Your 30 Year Mortgage In 15 Years
Many homeowners are now taking advantage of the benefits that come with having a 30 year mortgage, but paying it off in half the time. Not only does the 30 year mortgage come with lower monthly payments, but there is a lot of flexibility with how much money can go toward the loan every month. Unless a prepayment penalty exists, homeowners can put as much toward their 30 year mortgage per month as they please.
In order to figure out how to pay a 30 year mortgage off in half the time, you will need to figure out how much it would cost you each month if you had a 15 year mortgage. Then, simply plan to pay that amount each month. However, it's important to make sure that any extra money be goes toward reducing the principal of your loan.
A big advantage to this alternative is that, when times are lean, you can simply make the lower, 30-year payment without the worry of falling behind. But one big potential disadvantage is that you could wind up having to pay the higher 30-year interest rate.
Refinancing From A 30 To A 15 Year Mortgage
If you have some equity left in your home and are already handling your monthly mortgage payments well, then it may make sense to refinance to a 15-year loan. But if you find you are basically living from month to month or don't feel as though you will be secure in your employment over the long term, then refinancing may not make sense.
A refinance home mortgage is in many cases a very good choice for homeowners to make. But making a decision can be difficult. Knowing all of the pros and cons associated with your 15 or 30 year mortgage can mean that making an informed decision is easier than ever before.
Affordable Mortgage Refinance Program for Home Owners
Sometimes the reasons for not getting accepted for a mortgage refinance are out of the control of a home owner. But that doesn’t mean that they don’t have any options available for them at all. HARP is Home Affordable Refinance Program and it is a god-send for those unable to qualify for a mortgage refinance program. The program aims to give dependable, conscientious homeowners the opportunity to go for a more affordable monthly loan payment. HARP does come attached with a couple of additional expenses such as closing costs and other fees just like any other loan and refinance program, but it is important to remember that these costs and the available interest rates may differ from place to place.
For those looking to opt into these programs, it is imperative that you do a little bit of homework to ensure the success of your application. Contact your current lender and ask them about HARP or other refinance home mortgage programs and how they apply to you. Ask around at different banks and lenders to make sure that you get the most affordable mortgage refinancing possible. The process may seem long and intimidating at first but it is pretty straightforward. Don’t hesitate to ask your lenders or the bank for helpful knowledge and resources.
Article Posted by Expert Author: 4 on 09/04/2013
Article Posted In: Refinance Home Mortgage
When to Seek Mortgage Refinancing
Deciding whether to refinance or not is a tough decision. It is important to remember that mortgage refinancing is not carried out to pay off the debt. Instead, the objective here is to restructure the debt in order to make it easier. The borrower often gets a lower interest rate and better loan terms than their current mortgage as a result of refinancing. The home owners can also get the ability to extend the life of their loans to up to 30 years thus significantly reducing their monthly payments. Another big advantage of refinancing is that of debt consolidation. For example, home owners with a first mortgage as well as a home equity mortgage can combine these into one fixed rate loan and pay out over the loan term without the stress of managing two separate mortgages.
Home owners should consider the number of months it will require for the lower payments to regain the closing costs of the new mortgage before deciding to refinance. But a home mortgage refinance may be potentially troublesome for borrowers who are already underwater and late on their mortgage payments. Their bad credit standings will not let lenders give them refinancing facility at good terms. But it is important to ask your current lender to find out the opportunities available in this condition as well.
Article Posted by Expert Author: 4 on 08/16/2013
Article Posted In: Refinance Home Mortgage
Should You Attempt a Refinance of Your Home Mortgage with Bad Credit?
If you are one of the many American homeowners struggling to meet their monthly mortgage payments, rest assured that it is completely possible to refinance your home mortgage even with bad credit. The refinancing process is relatively simple; you get a new loan with easier terms that pay up your current mortgage loans. In fact, it is great idea to get mortgage refinancing even with a poor credit rating. It can help you get right back on track with your finances and may just save you from going bankrupt.
When you are deciding to pursue a refinance home mortgage with bad credit, also factor in the additional costs required for paper work and assessments, etc. Interest rates charged on mortgage refinance denote borrower risk as well as credit score. Your bad credit may cause the refinancing interest rates to be higher than the usual and may also bring on some premiums on your mortgage. So it is important to figure out if the additional expenses are worth it, or if you will be able to keep on with the current mortgage payments. If your bad credit has been accumulated as a result of high credit card debt or some other factors that are not related to mortgage payments, then your refinance may be at slightly better terms and provide you with relatively lower interest rates. Otherwise, bad credit as a result of missed mortgage payments will mean that your mortgage refinance proceedings will be particularly painful and may result in high interest rates.
Article Posted by Expert Author: 4 on 07/09/2013
Article Posted In: Refinance Home Mortgage
What You Need To Know About Refinancing a Home Mortgage
The practice of seeking a mortgage refinance to reorganize existing home loans has actually been popular for very many years now. A lot of borrowers wind up securing a refinance despite the rates. For such consumers, it can be crucial to reorganize existing debts to balance their budget.
Such loans are in high demand right now after the mortgage crisis and shaky economy of the last several years. Most people are not sure how to go about seeking one of these loans. For you to be able to get the best out of a refinance you have to know a few things about them
If possible try to stay clear of incurring PMI or private home mortgage insurance. Typically, PMI is required if the homeowner owes more that 80% on the loan. Elminating PMI could translate to cost savings of a few hundred every year. In today's economy, every little bit helps.
The shorter the duration of the loan, the less in interest payments you will make. Obviously, you will need to be able to afford the monthly payment. But if you can afford a shorter repayment plan, you can save thousands of dollars in interest.
It is also very important to inquire about the cost of refinancing. Before taking out a loan, ask the lender about all the expenses involved in getting the loan. It's important to compare closing costs and fees from a variety of lenders to see who really is the best deal. A lower interest rate may be offset by some higher closing costs.
As you seek a Houston refinance home mortgage, if it is within your power to improve your credit score, do so. Lenders are very wary of lending money to people with questionable credit histories, so shoring up this area is one way of ensuring you will get a good deal later on when you take out a loan.
Article Posted by Expert Author: 4 on 06/14/2013
Article Posted In: Understanding the Refinance Process
How to Avoid Foreclosure on Your Home
Times are tough for many homeowners these days. Keeping up with mortgage payments becomes much harder or impossible when facing the loss of a job. But what many homeowners don't know is that mortgages are negotiable, and losing your home is not the only option when you discover you are falling behind on your mortgage.
The Importance Of Forbearance
Forbearance is something that every homeowner who is facing the possible loss of their home should investigate further. Forbearance is an agreement between you and your lender which is specifically designed to help you delay foreclosure. In this agreement, your mortgage payments can be reduced for up to six months, which can give you time to find new employment.
If forbearance isn't an option, don't give up. There are still several steps you can take to avoid foreclosure.
Get Policy Friendly
Every lender has a policy for loan modifications, and it's important to get to know each one of them. You will get valuable information from the details they contain that will help you to navigate the entire process more smoothly and with less stress.
Your lender should offer some kind of loan modification package. What you will need to do is request this package. Requesting it doesn't require you to provide any personal information that may flag your lender that you are facing any trouble.
If your lender is willing to send you an application, you can then review what information requirements they have at your leisure. You can also use this time to reflect on answers for the questions they will have without having to feel obligated to answer quickly.
Notifying Your Lender
Next, you will need to contact your lender and let them know that you want a modification on your mortgage. This will entail completing forms with your financial information, including any other outstanding debts you may have. You will also likely need to provide a written letter which details not only how you lost your employment, but what your plans are or what you are already doing to get a new job.
While you may not enjoy waiting during such an unstable time, you may not hear back from your lender for a couple of months. This could mean that the foreclosure process may be underway. But experts advise that homeowners who are in this situation remain in their home and ensure they are in regular contact with their lender.
Even if it's a one-sentence email from your lender, it's important to keep a record of all of your communication. The same is true for phone calls either outgoing or incoming. Keeping strict records of all communication will help you ensure that your lender delivers what they promised.
Along with communication, all of your expenses should be documented as well. This means, specifically, your monthly budget. This will tell your lender how much you can afford to put toward your mortgage payments.
It's important to be aware that not all lenders will work with homeowners in the situations listed above. To be more specific, your lender may be willing to assist you with lowering your mortgage payments, but only if you are a certain number of days behind. This will give you only a short amount of time to work things out with your lender. Once your mortgage defaults, it can leave you with fewer options, as your credit rating will suffer.
If a refinance home mortgage isn't an option, don't panic - this is the first and most important piece of advice for any homeowner who may be facing possible foreclosure. You will need to keep your cool throughout the process. Remember that ultimately, it is your lender's decision whether or not to assist you with keeping your home. Sticking to only those factors you can control will help you to be able to think more clearly as the process moves along.
Article Posted by Expert Author: 4 on 06/10/2013
Article Posted In: Useful Articles
Home Mortgage Refinance Terminology
Mortgage refinancing offers many benefits to home owners. Home mortgage tefinance yerminology can be a bit daunting for the uninitiated. But simply put, refinancing is the act of replacing an existing mortgage with a new one, and it comes with new terms, conditions and costs. But, like everything else, it is important to educate yourself with the process and important terms. A clear understanding of the refinancing process can help you avoid potential pitfalls and successfully take charge of your finances.
When refinancing your mortgage, you will have to select a lender to give you the loan in the first place. A lender can be a person, an institution or a firm. They might ask that your property be appraised before they can qualify you for a refinancing. Appraisal is a written analysis of the estimated value of your home. It is conducted by a qualified appraiser. Lenders provide home owners with a good faith estimate which is an approximation of the charges that the borrower is likely to incur when the settlement is achieved. Another thing you need to know is whether the mortgage is ARM i.e. Adjustable Rate Mortgage or a fixed one. The difference is that in an ARM, the interest rate fluctuates along with that of specified index. Understanding home mortgage refinance terminology is a good start to making the wisest choice for your budget and long-term financial outlook.
Article Posted by Expert Author: 4 on 06/04/2013
Article Posted In: Understanding the Refinance Process
Mortgage Refinance: Which Lender is Best for You?
When looking for the right lender to assist in home mortgage refinance, start with your current mortgage company. Chances are that your current lender will do just about anything, including give you favorable rates to keep your business from going anywhere else. This is because the high costs of initiating home loans mean that mortgages are profitable only after they've been on the books for some years. But it is important that you've proven yourself to be an excellent borrower by meeting all your payments on time.
If you absolutely must look somewhere else, start off with the local savings or community bank, a local or regional mortgage company or a commercial bank. Just about everybody these days is in the home loan business including local credit unions. You can also employ the power of the internet to hunt for the lowest rates in our area. Also go through the local newspaper and financial magazines. And if you don’t have the time and energy for this, you can also hire a mortgage broker to find a lender for you. Don’t just choose the one offering the lowest rates in the market as there are other important factors to discuss. Also ask the local estate agents for Los Angeles refinance home mortgage lenders who are reliable, affordable and honest.
Article Posted by Expert Author: 4 on 05/17/2013
Article Posted In: Refinancing Options in Your City
How To Refinance Home Mortgage- A Quick Primer!
Your house may very well be your most valuable asset. Therefore, it is extremely important to get all the help when it is time to refinance your home mortgage. But keep in mind that where there are many prospective benefits to refinancing a home mortgage, it also comes with a new line-up of costs. You can choose a different lender or broker or stay with your current one depending on the specific mortgage terms offered by them. Just make sure that you have considered all the options and shopped around for the best deal. Ask, compare and also negotiate to potentially save thousands of dollars.
Choosing your current lender to refinance home mortgage has some inherent advantages. They may eliminate or at least reduce some of the expenses associated with mortgage refinancing. If your current mortgage is only a few years old, they can also decide to not charge application or origination fees. This is because your paper work is already up to date and they won’t require any new documentation. Ask your lenders for facilities that let you combine multiple loans into a new one to ease up the payments and loan terms. The loan process isn’t difficult at all. With a little bit of understanding and negotiating you may just get a much better deal that you though you would.
Article Posted by Expert Author: 4 on 05/06/2013
Article Posted In: Refinance Home Mortgage
Mortgage Refinancing- A Quick Primer
It is becoming increasingly difficult for many Americans families to make timely payments on their home mortgage. For such families, Mortgage Refinancing may be the only way out of this dilemma. The high interest rates and unstable economy have made it mandatory for many to get a new mortgage that replaces the original. This is called mortgage refinancing. It is done to get better interest term and rates for the borrower. The procedure is quite simple. The previous loans are paid off by creating a second loan. It is a great way to convert a variable loan rate to a fixed rate while getting much better interest rates.
Mortgage refinancing is easier for those with a perfect credit history. Borrowers that have bad or even slightly less than perfect credit are considered risky and aren’t given the more favorable terms. Banks and lenders necessitate that borrowers maintain their original mortgage for a minimum of 12 months before they are allowed to refinance. But terms and conditions vary for each lender so it is a good idea to shop around for the best refinancing opportunity. Choosing the original lender for mortgage refinancing is a good idea in many instances, nonetheless. This is because borrowers have better odds of getting better loan rates with their original lenders.
Article Posted by Expert Author: 4 on 04/25/2013
Article Posted In: Understanding the Refinance Process
Mortgage Refinancing With Bad Credit: There Is Still A Way
Bad credit isn’t an obstacle to your living in a more financially responsible manner. It is completely possible to get mortgage refinancing with bad credit, provided you are ready to do your homework to find the best deals possible. When looking for the right lender, remember that there are some bad credit mortgage specialists out there who can provide you with a refinance program for those with bad credit. Refinance programs are meant to provide you with lower interest rates so you can make smaller payments. So it is good idea to consider home mortgage refinancing even with low credit scores.
It is advised that those with a bad credit history wait for at least two years after a bankruptcy before they think about refinancing home mortgage. This is because bankruptcy and repossession are serious credit problems and lenders may outright deny your appeal for a refinance based on these. So take at least 2 years to build up and re-establish your credit score which will ensure lenders that the bankruptcy was a onetime deal. But if there are other causes to your poor credit then rejoice because lenders often overlook the occasional late payments and even high credit card debt.
Article Posted by Expert Author: 1 on 04/15/2013
Article Posted In: Understanding the Refinance Process
The Two Point Home Mortgage Refinance Rule
Questions will frequently arise regarding what would be the minimum amount of interest points a new mortgage should present in order for you to refinance. A common suggestion is that a borrower should only accept a new mortgage if it is two points lower than the rate of the current mortgage. While procuring new mortgage that is two points lower is definitely a good thing, the homeowner should not be under the impression that a two point reduction is mandatory. Any serious San Jose refinance home mortgage professional will tell you exactly this. Refinancing to a new amount that is 1.5% less, for example, could prove to be a perfect new loan rate to acquire. Ultimately, the value of the amount of the reduction in the new mortgage to the homeowner will depend on individual circumstances such as need for a much lower rate, the amount of time one intends to stay in the home, and other factors. While 2% is a good rate drop, it is not mandatory when seeking to refinance.
Other scenarios that may make sense would be a 1% or less drop combined with a lower payment schedule. For instance, you may be able to drop 5 or 6 years off your loan if you refinance home mortgage at a slightly lower rate, but shave years of interest payments off the entire loan. And - your monthly payment may remain the same for your efforts.
Florida Experiences High Home Mortgage Refinance Requests
Those living in the Sunshine State are apparently very interested in refinancing their home mortgages. Based on available data, it has been reported by the Sun Sentinel that Florida is among the top states where home refinance applications are being submitted. In fact, the number of individuals applying for a new mortgage increased by roughly 152%. That is a staggering increase over the prior year and it has led to Florida being ranked third in the nation behind only Nevada and Michigan. Those two states, however, are dealing with far greater unemployment numbers than Florida. Yet, under the HARP program, many homeowners are looking to acquire a much lower rate of interest. The HARP program is intended to help people who find themselves "upsidedown" on their mortgage to refinance at a lower interest rate. Surprisingly, there are still quite a number of approvals of refinance applications submitted by people with underwater homes that do not qualify for HARP.
If you believe you may qualify for a refinance (meaning you are current on your mortgage payments, have maintained good credit, and want to take advantage of the historically low interest rates available) then visit http://www.refinancehomemortgageguide.com/ for more information. Education is key in this difficult economy to make financially savvy choices.
A Mortgage Refinance Consultant Can Be a Huge Help
No one would ever suggest that home mortgage refinancing is easy. There are quite a number of steps to the process and if you have never been involved with having to take part in a Chicago refinance home mortgage plan previously you probably will have a few gray areas to navigate. Perhaps it would be best if you did not try to navigate anything on your own. A far better option would be to discuss your situation with a professional mortgage consultant. A mortgage consultant with the right insight into the refinancing process can help you take the right steps required to refinance your mortgage in the most effective manner possible. Signing on to the a mortgage refinance agreement with less than desirable terms can prove to be a disaster. When you lack experience with refinancing you just might make a disaster situation unavoidable. Working with a reputable consultant may be the best way to avoid such problems and acquire the best refinancing terms.
However, there are some consumers who have been through the process a couple of times and may have a good grasp on what to expect. Leaning on online resources like The Refi Guide is a good way to steer the process yourself while double-checking what specific terminology mean, or what procedures may be required.
How to Approach a Meeting with a Mortgage Consultant
In a previous blog listing it was mentioned that working with a consultant can increase the likelihood of refinancing a mortgage in the best possible manner. However, you do need to know how to approach a meeting with a consultant. You need to be prepared. You cannot go into the meeting hoping the consultant will be the sole guiding light. You will be required to brainstorm prior to the meeting and make a list of the terms you are seeking in a new mortgage. You should point out to the consultant what the current problems are with your mortgage and why the mortgage should be refinanced. Performing research into the current mortgage landscape definitely is a “must do” step since it will allow you to be more informed during the meeting. You also should compile quite a number of questions for the meeting with the consultant since asking the right questions will further enhance your ability to get the most out of the meeting.
One good resource can be found at http://www.refinancehomemortgageguide.com/, a site that lists common industry terminology, helps consumers identify questions that they may not have thought of before, and provides useful tips and current industry information and news.
When Should You Refinance a Home Mortgage?
Refinancing a home mortgage can be a wise decision when it is timed properly and not done to excess. Homeowners should look into refinancing when they are capable of getting the best deal. They also should avoid trying to refinance repeatedly because of the time, effort and costs involved. As for the timing, it may be best to contact a Houston refinance home mortgage specialist when you believe the present time may be perfect for getting the lowest interest rate available. It also should be noted you should look to refinance if you will be remaining in the home for many more years. There are exceptions to this rule but they are rare. Why refinance a home mortgage if you will be moving out of your residence? If you are not sure about whether or not the time or circumstances is right for home mortgage refinancing then you should discuss things in depth with the refinance specialist. This way, you can tell if you are making the appropriate action at the right time.
One thing is certain - at the time of this writing, we are experiencing unprecedented historically low interest rates. For many people, now or in the next few years is definitely the right time to seek out a refinance home mortgage (as the Fed recently announced it won't be raising rates any time soon). Doing your homework now can help you prepare for perhaps one of the best financial moves you will ever make.
Blogs and Forums for Refinance Home Mortgage Info
Quite a number of blogs and message boards offer a lot of advice on the subject of home mortgage and Los Angeles refinance home mortgage topics. This is definitely a good thing because a person seeking a mortgage or to refinance a current mortgage should never be short on sources of good advice. Of course, the key word here is “good” because unhelpful advice does not exactly provide any real benefit to the person seeking info. Is there any way that a person skimming through a message board or blog can be sure he or she is receiving quality information? The answer to this question is pretty easy to arrive at. If the blog or message board features contributions from reputable sources, and is the recipient of a great deal of daily traffic and feedback from the community, the site is probably one you should bookmark and repeatedly visit. Good quality sites would reflect visitor interest. Poor quality ones would not.
There will be growing interest in engaging in a refinance home mortgage as we see the economy recover from the devastating housing and mortgage crisis that began five years ago. Many say that a "reset" was inevitable because housing values were inflated, and banks were operating on greed rather than sound business practices. An economic crisis is a difficult but necessary reality check sometimes that hopefully will serve us for many years to come.
Planning for Your Future Financial Security
No one knows what the future hold which is why it is best to take care of future planning as early as possible. One way to do this would be through mortgage refinancing. Taking part in San Antonio refinance home mortgage plans might not seem like a means of setting up financial security but it really does have value in this regard. Cutting down on cost expenditures by acquiring a lower rate of interest not only saves you money, it opens the door for you to put your money into investments that can work for you. Those that are currently in dire financial arrears could refinance a mortgage to facilitate debt consolidation. Of course, getting a new mortgage that pays off your home means you will always have an equity property contributing to your net worth. That alone sets the stage for financial stability since a home is the most important thing you could ever own from a financial stability perspective.
Useful information can be found at http://www.refinancehomemortgageguide.com/, a resource dedicated to educating consumers on all of their options to secure economic stability, a balanced budget, and future financial security. Terminology is covered, as well as the ability to get connected to reputable lenders in the industry.
Should You Wait for Interest Rates to Go Down Prior to Refinancing Your Mortgage?
No one wishes to spend more than they have to on a mortgage interest rate. This is why they will look towards less costly refinancing options. However, local and national interest rates can fluctuate. Most people would certainly prefer to wait until interest rates are down until they refinance. This may or may not be a wise strategy depending upon your current situation. That is to say, if you are paying a very high interest rate or are locked into very costly monthly payments, you could end up suffering from financial distress due to the burden it places on you. So, in such a situation, waiting for interest rates to go down might not be the wisest plan. Thankfully, quality Phoenix refinance home mortgage services can offer excellent interest rates with better terms regardless of what current interest rates may be on a national level. If you can procure a better interest rate through one of these brokers, you may wish to take advantage of their offers.
Getting helpful advice when you need it is worth it's weight in gold, and many people turn to the internet because of it's convenience as well as the many resources available. Make sure you use a trusted resource that is on your side, goes out of it's way to educate you, and help you make wide choices. At The Refi Guide we have sought to provide just such a resource.
Converting to a Fixed Loan Rate
One reason people will look to refinance a home loan is to go from an adjustable rate to a fixed rate mortgage. A Portland refinance home mortgage broker constantly will field questions about these different rates. On the surface, some might not consider a fixed rate to be the better option since the rate may be higher. However, the rate stays the same through the life of the mortgage. Adjustable rate mortgages can increase and this is not always a good thing. The adjustable rate mortgage’s interest could literally skyrocket. Among the reasons why so many have entered into foreclosure over the past few years is their adjustable rate mortgage ended up with an interest rate that was far beyond what they could afford to pay, while at the same time the housing market was rapidly depreciating. While it is possible that an adjustable rate mortgage’s life could average out to something better than the rates for a fixed term loan, there are no guarantees. Those wanting to ensure the stability of their mortgage interest rate should look towards fixed rate offers instead.
Today's interest rates are at an unprecedented low, and most people with decent credit can go through the refinance home mortgage process and end up with a better scenario than they had before. If you are current on your mortgage payments you may be eligible to secure an excellent fixed rate, and maybe even shave a few years off your loan.
How to Navigate the Loan Process
Acquiring a mortgage or refinancing one can be a complicated process to those that are new to it. However, effective navigation should not be all that hard as long as you take the proper steps to research the different facets of the process. By having an understanding of what is everything entails, you won't be overwhelmed when the time comes to actually apply for and close out a home loan. For those that still may be having trouble figuring things out, it might be best to ask someone in the know. Mortgage consultants offer their services to the public and you can discuss matters with these professionals, Their advice can guide you in the right direction. Properly navigating the loan process really is all about being properly prepared. Don't make any assumptions or take anything for granted. Get proper clarification on all aspects of the process.
Useful online resources such as at http://www.refinancehomemortgageguide.com/ can help answer your questions, identify any questions you may not have thought of, and help you with the research aspect of securing a new home loan. The Refinance Home Mortgage Guide is free to consumers who are seeking information.
Eminent Domain for Refinance Home Mortgage Plans?
A tremendous amount of controversy has arisen regarding the potential use of eminent domain for the purpose of home mortgage refinancing. Per the Los Angeles Times, regulators at Fannie Mae and Freddie Mac have gone on the record saying the use of eminent domain in this manner would be a bad idea. The controversy of seizing homes late on their mortgage payments for the purpose of restructuring loan agreements first reared its head in the financially troubled California city of San Bernardino. The concerns of regulators is seizing homes in this manner could lead to the devastation of the credit of homeowners and contribute to the further worsening of a very depressed housing market. It would seem that the economically challenged city of San Bernardino is attempting a total desperation tactic to address its fiscal woes. Pressure seems to be being placed on the city to dissuade it from taking such excessive actions.
Our economy really is dependent on all areas to seek stability and growth. That's where a refinance home mortgage program may benefit an area that may be struggling, as long as the program seeks to stabilize family units and preserve credit to the best of their ability.
Should You Remodel a Home through Mortgage Refinance?
Remodeling a home can be an extremely costly process and few have the liquidity or even the available credit to do so. Would refinancing a mortgage to perform remodeling be a wise idea? It can be as long as you go about the process the right way. Using a cash out Denver refinance home mortgage strategy, you can acquire the funding to cover the remodeling process. Once this to be aware of is that a quality remodeling job could significantly increase the equity of the home. So, whatever cash is borrowed on the refinancing might end up being exceeded by the eventual increase in the value of the property. Beware of the type of refinance agreement you would be signing onto though. It would not be helpful to acquire a new mortgage with less favorable terms and conditions. Doing so could undermine whatever equity benefits you otherwise would have gained from the process.
The best way to approach reviewing all of your options is through understanding how each scenario may impact you financially over the long haul. Most financial experts will tell you that debt consolidation is not the best way to utilize your equity. But a remodel, which often costly, has the benefit of increasing the value of your home in many cases.
What is the HARP Loan Program?
Refinancing is not always easy which is why anyone struggling to do so should look into the HARP loan program. HARP stands for Home Affordable Refinance Program and it is a government program designed to help homeowners currently unable to refinance their home. If you are current on your mortgage, and have a good payment history for the past 12 months, you may be eligible.
Many homeowners are finding that the value of their home has dramatically depreciated because of the housing and mortgage crisis of 2007. They find that they now owe more on their mortgage than the home is worth, which results in lenders not being willing to perform a refinance because there is inadequate equity. Many people looking for affordable Columbus refinance home mortgage find that this problem gets in the way of finding a more affordable mortgage.
The purpose of the HARP loan program is not only to help such troubled homeowners but also to stabilize the housing market. To be eligible, your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac and sold to either entity on or before May 31, 2009. The loan-to-value ratio must be greater than 80% and your payments must be current and the prior 12 months must reflect a solid payment history. There are refinance fees associated with this program but the fees might be worth the investment if you are able to gain a better and more agreeable mortgage.
It's crucial that you understand all of your options as you undertake the home mortgage refinance process. You have to protect yourself from bad scenarios by staying educated about your options, and understanding the ramification of moving forward with any given scenario.
Is This The Golden Age of Refinancing Home Mortgages?
Is this the golden age for refinancing home mortgages? According to MSNBC /Bloomberg Business Week, it seems that the past two years have seen the greatest booms in home mortgage refinancing in recent history. Shockingly, this has led to many refinancers becoming backlogged as they are unable to handle the huge surge in applications flooding into their offices. The stats really are eye-opening. Fairway Independent Mortgage reports a 20% increase in refinancing was experienced in 2011. Lenders do have to be mindful is this surge does not automatically mean approvals will be guaranteed. The underwriting has become a lot stricter and so have the disclosure requirements. Those wishing to refinance their home mortgage do need to take all this into consideration and realize they might not be able to get immediate processing of their application. However, the goal is always to be finding the best home mortgage refinance rate as opposed to the quickest one. As such, delays may be worth it if the delays lead to getting procuring better terms.
As the economy recovers, a balance will most likely be struck between stricter rules that protect the economy, the lending institutions and consumers, and venturing out into more lending that will generate growth. So stay tuned for the refinance home mortgage industry to become much more robust in the near future.
The Characteristics of a Helpful Mortgage Broker
Everyone looks for the mortgage broker that offers of best rates and terms, but are they looking for a helpful mortgage broker? The right mortgage broker is definitely someone that can make your home buying experience much more positive. A helpful Austin refinance home mortgage broker will be patient and willing to carefully walk you through the mortgage process and explain all the responsibilities required of the borrower, the lender, and the seller. The broker will also be reasonably accessible via phone or email. And certainly, a helpful broker will never try to pressure anyone into accepting a less than desirable mortgage. The broker will also take a number of responsibilities off your hands when it come to closing day by helping you to prepare for it. Quality brokers will also possess good ratings under the Better Business Bureau. As you can see, part of the strategy for finding a quality mortgage is to also find a quality mortgage broker.
A helpful broker will also help explain the pros and cons of various lenders and their programs as you seek understanding of the refinance home mortgage process. In a nutshell, you'll want to seek someone who is an advocate for you.
The Viability of Funding College with a Refinance & Cash Out
The cost of a college education can be quite prohibitive. This is why many will look towards a finance and cash out option as a strategy to pay for the tuition. How can you do this? The process is relatively simple. You would refinance your mortgage for the full value of your home even though a significant portion of it was already paid off. The remaining balance would be put towards your college expenses. For example, if your original mortgage amount was $100,000 and you have paid off everything but a remaining $50,000 balance, you would refinance not for $50,000 but for $100,000. The additional $50,000 would be used to cover your college tuition. This strategy might be a risky one because you now are paying more on the home than it is worth so you will be relying on the financial benefits from your education to recoup your investment. If you experience an increase in income of $15,000 more dollars per year after graduating, this would come out to $60,000 after four years. This would definitely be a successful outcome to the refinance and cash out strategy. For more information on how to budget for specific planned expenditures, check out http://www.refinancehomemortgageguide.com/.
Is It Time to Get Rid of PMI?
PMI stands for Private Mortgage Insurance and it is not always very popular with mortgage holders. This includes first time borrowers and home mortgage refinance borrowers. The concept of the mortgage has some merits though. It is designed to offer financial protection in case it is not possible to make mortgage payments. At some point, those with PMI may feel it would be best to get rid of it. This does raise questions regarding when it would be advisable to actually cease PMI. First, you must realize there are certain requirements that must be in place prior to eliminating PMI. Basically, you must reach 22% equity in the home based upon the original property value. This will yield and automatic cancellation of the policy. However, you can cancel the policy at your bequest when you have reached 20% equity based on the value of the original property. Be mindful of one thing: if you feel you may run into financial difficulties, you may wish to avoid canceling the insurance prior to the automated threshold.
Many borrowers find that when they refinance home mortgage with certain scenarios they may end up having to pay PMI every month. That is one expense you'll want to take into consideration before you make any specific plans to move forward.
What to Expect on Your Closing Day
Closing day has arrived and you have a few responsibilities to take care of. So, what should you expect on closing day? The main thing you should expect would be - not surprisingly -- to sign your name. Specifically, you and the various parties to the mortgage will be signing legal documents that agree to the terms and condition of said mortgage. In addition to agreeing to the terms and conditions, there will be an expectation of an agreement between yourself and the seller of the home regarding the transfer of the ownership. Yes, there are quite a number of steps with Charlotte refinance home mortgage steps. You also should have expectations regarding what the various costs of the closing will be. There will be fees involved with the process and payments or. at the very least, agreements for future payments will be made on closing day. To ensure that the entire process goes along smoothly, it is advised to prepare for your closing day as much as possible. This all starts with having a clear understanding of what is to be expected of you when that day arrives.
Prior to this landmark day, you should be spending time asking a lot of questions, analyzing your budget with your new loan estimates, and gathering all of the necessary documentation to make your big day happen. We can help with our free resources to help you educate yourself in this important subject.
Are You Shopping for Homeowners Insurance?
Homeowner’s insurance is vital for the protection of your property. All manner of calamities can arise that can devastate a home. With the proper homeowner’s insurance policy in place, it is possible to procure the right amount of protection required to safeguard your assets. This is only possible, however, when you invest in the right policy. Shopping for homeowner’s insurance is a deliberate process which cannot involve cutting corners in any way. Seeking quotes from reputable insurance providers is the obvious first step. (This should always be the first step in the home mortgage refinance process as well) Once you receive the quotes you will then be required to look at each quote line by line to make sure the policy you are examining truly does meet all your needs. You can look for quotes that have the lowest premiums but this might not be the best guiding factor. Rather, you will want to acquire the policy that offers the best possible coverage at a fair price. Acquiring a slightly more expensive policy that offers better coverage could be the best option to explore. No matter which policy at which price point you select, make sure that you budget this expense in when you refinance home mortgage.
Consolidating Debt Through Refinancing a Mortgage
No one likes to be mired under the crushing burden of mounting debt. However, various problems can arise that can cause a debt situation to spiral out of control. For many, mortgage refinancing may be sought as a way of consolidating debt. In such a process, two mortgages, mortgage related debt, and even non-mortgage related debt can be combined under such an umbrella. There are both positives and negatives to doing so. (CNN Money covers a few of the pros and cons of consolidation and mortgage refinance.) The main positive would be the ability to pay off debt quicker and at a lower interest rate. The main drawback would be consolidating debt is never always a guarantee for eradicating the problems you may be facing. Further debt issues could arise or, worse, increased irrational spending could undermine the potential to get your debt under control. However, with the right approach to addressing your debt situation, consolidating debt through refinancing a mortgage can prove to be a wise move.
The Refi Guide can help you answer a lot of questions regarding this important issue. You don't want to make poor decisions regarding your financial situation during this tough economic stretch in history.
The Top Bad Reasons to Refinance a Mortgage
There are quite a number of good reasons for refinancing a home but there are also reasons that are downright awful. One truly poor reason would be to refinance a mortgage in order to acquire cash for investing purposes. A risky venture such as this could lead to the loss of your home if the investment turns out to be a failure. Switching from an adjustable rate to a fixed rate may be a bad idea if you do so not based on any real facts but rather biased reports about problems with adjustable rates. Mortgaging for debt consolidation can be a seriously poor financial decision if it is not combined with a reliable plan to get out of debt. (Those that seek to refinance home mortgage with bad credit will probably be weighing these options.) Refinancing to cut down on the amount of your monthly mortgage payment might seem like a good idea on the surface but it has the costly result of extending your number of payments enormously. Keep all these factors in mind when you are thinking about a refinance home mortgage.
Refinance Home Mortgage Guide Site Launch
We are pleased to announce the launch of our new site, Refinance Home Mortgage Guide. One thing that makes the internet very valuable is the ability to target useful information by simply and efficiently conducting a search on questions you may have about a particular issue. These days, refinancing your home mortgage is a very hot topic for a variety of reasons. For starters, this tough economy has produced unprecedented low interest rates that make a refinance very attractive. People are able to reduce their monthly mortgage, or to reduce the amount of time left on the loan. If you are fortunate to have a great deal of equity in your home, you may want to take cash out to remodel, pay for college, or consolidate higher interest rate debt. Whatever your motivations for turning to the internet for help, we are confident that our guide can help answer your questions, educate you on jargon you may not be familiar with, and provide a useful checklist as you go through the motions of this important process. We also can connect you with mortgage companies eager to do business with you, and ready to quote you on a refinance of your existing mortgage.
The Various Fees Common with Mortgage Refinance
Refinancing a mortgage is commonly sought for the purpose of saving money. While you can definitely save money doing so, there are costs involved with the process. You might be a little annoyed at first once you actually discover the various fees for refinancing a mortgage but these fees are unavoidable. Closing can come with several costs including a loan origin fee (aka a pre-planning fee for the loan), an application fee, and legal costs. Mortgage insurance costs might also be weaved into the closing. You may also be required to cover home inspection and title search costs on the Philadelphia home mortgage refinance process as well. Points on the loan may be owed as well. Points refer to a nominal fee as low as 1% charged by the lender to cover the yield. To the chagrin of many, an early payment penalty may be charged on the loan which is certainly not something most people would prefer to pay but the initial contract requires. You need not worry about out of pocket expenses as all these fees may be included in the new mortgage.
If you are looking for online resources to help you make sense of the refinance process, check out The Refi Guide that addresses terminology and gives useful advice on how to proceed.
Home Mortgage Refinance: Associated Costs
Before you decide on a Los Angeles refinance home mortgage, it is important to find out if you can actually afford to do so. Mortgage refinancing is financially beneficial in the long run but it does come with a whole slew of costs that you need to be familiar with. When refinancing, it is completely usual to pay anywhere between 3 to 6 percent of outstanding principal as the refinancing fees. And then there are additional prepayment penalties and other costs associated with any other mortgages that you may have. If you are looking for a “no-cost” refinancing facility, remember that lenders define this term in completely different ways. So ask for a complete explanation of the specific term offered by your chosen lender.
Home mortgage refinancing charges differ by state and may also vary from lender to lender. When shopping around for the perfect refinancing deal, consider that you may have to pay charges in lieu of application, loan origination, appraisal, property inspection and survey. If you are working with your current lender, the initiation charges may be reduced or even eliminated completely. There might also be a title search and insurance fee that will pay for the cost of searching the property’s records to guarantee that you are the rightful owner.
Refinancing Your Home Mortgage: When to Do It!
Choosing a mortgage may be the most important financial decision you will make. But refinancing your home mortgage comes in at a close second as well. A couple of years ago, it was generally thought that a refinance was only worth it if the current rate is two percentage points lower than what you are currently paying. But current conventional wisdom has proven that theory wrong. The old precept isn’t valid any longer thanks to alternatives such as the “no- cost” refinancing options. “No- cost” means that at the time of closing nothing would be paid out of your own pocket. This is made possible when either the lender’s fees is rolled into your new loan balance or the rate is a bit higher than what you could get if you paid the lender's charges up-front.
The real question is if you do refinance your mortgage, how long it will take to recoup your costs. To find the answer, some compare monthly savings next to up-front costs. So for example, if you can save $100 a month on your mortgage payment by refinancing, but you end up paying $2,500 for the refinancing itself, then you have to stay with the new loan for 25 months to justify the difference. So if you are planning to move in that time, refinancing wouldn’t be worth it.
Home Mortgage Refinance: Costs Involved
A home mortgage refinance enables home owners to pay off their current mortgage and get a new one instead. The new mortgage comes with new terms that establish the long-term costs of home ownership. Yes, refinancing does minimize the long term costs, but it is important to weigh these savings against the costs of obtaining the refinancing itself. It may just end up costing just as much as it did to obtain the original loan. Charges include an application fee, loan origination fee, title search expenses, insurance binder and appraisal fee along with other sundry costs.
The amounts that you actually pay really depend on you being able to find a good lender offering great bargain deals on refinancing. There is absolutely no need to pay sky-high prices when there are deals pretty much everywhere you look. If you work with your existing lender to refinance your loans, chances are they will be able to waive off many of the fees for you. But at the same time, the other lenders may be willing to knock off a few charges as well just to get your business. You can also work with a Houston refinance lender to include the closing costs in the amount borrowed.
Quick Guide to Refinancing Terminology
It is important to familiarize yourself with refinancing terminology before going out looking for the right lender. The process is the same as the one you went through when getting your current mortgage. But you will hear some new words that might be confusing. Commonly used refinance home mortgage terms include words like foreclosure, short sale and reverse mortgage, etc. But there are also other mostly mysterious terms that might cause confusion and misunderstanding.
For example, there is the FHA or Federal Housing Administration. This is an agency under the U.S. HUD and its job is to insure all the residential mortgage loans made by private lenders. These are people who decide on the standard for construction and underwriting. Then there is the Fair Credit Reporting Act. This law was created to protect borrowers by regulating the disclosure of consumer credit reports by reporting agencies and setting up procedures for correcting inaccuracies on a person’s credit record. A bridge loan, also known as a swing loan, is a type of second trust that allows the proceeds to be used for closing on a new house before the present home is sold. The borrower’s current home is the collateral in this case.
Mortgage Refinancing With Bad Credit is a Possibility
It is completely possible to get mortgage refinancing with bad credit given that you are alright with paying a little more in interest and expenses than those with perfect credit. Bad credit isn’t the end of the line when it comes to refinancing choices. While there is no doubt that bad credit may make it a lot more difficult for you to get a favorable refinance deal, the fact remains that you still have opportunities available.
The worst news here would be that your bad credit score will definitely make it a lot more expensive to get a mortgage refinance. The bad credit may be due to a variety of factors. For example, lots of credit card debt doesn’t really affect your chances of getting a refinance. But if the bad credit is due to missing mortgage payments by 30 days or more than there aren’t many lenders who will be willing to refinance for you. In such cases, a loan modification seems to be the only choice. The secret to refinancing with a bad credit score is simple, shop around till you find a good deal. There are lenders out there that specialize in loans for people with bad credit. Contact at least 6 different lenders, ask them for the options they have for you. You can also choose to work with mortgage brokers who can find the lowest rates for refinancing in your case.
Mortgage Refinance Plans May Just Be Your Last Hope!
Everyone dreams of owning a home all of their own. But the current economic conditions aren’t really conducive to this dream. But thanks to the current mortgage refinance program introduced by the government, chances are that you may not lose your dream house just yet. This is why refinance activity has increased ten-fold in the last few months. Mortgage refinance share is at its highest level since 2009 and applications for purchase of property are also increasing steadily.
The stats clearly depict the excitement of consumers over the mortgage refinance rules. In fact, according to some estimates, out of America’s total mortgage application, 84 percent have already applied for a refinancing. And nearly 97 percent of these refinancing are those of fixed-rate mortgages. This is a good thing for the housing market as well as the economy, as the mortgage rates are being driven down steadily. The government’s refinancing program is rumored to also start considering the borrowers who are already underwater i.e. they owe a lot more than the actual worth of their homes. There is also a proposal to transfer the possibly riskier privately held loans to government sponsored mortgage entities i.e. Freddie Mae and Freddie Mac. This just may be the once in a lifetime opportunity for everyone to turn their home ownership dreams into reality.
Quick Home Mortgage Refinance Guide to Simplify the Process
Refinancing is paying off your existing mortgage by creating a new one in its place. Here is a quick home mortgage refinance guide to help you decide if you need one. These days mortgage rates are at an all-time low. Even those with perfect credit scores are looking to refinance their mortgages so they can avail the low interest rates and have smaller payments. This means that refinancing has become an essential option for those with poor credit scores as well. The process is essentially the same as the one you went through when getting the original mortgage. The costs for refinance also remain essentially the same.
Once you have found a good lender to refinance your mortgage, they will assess your income, assets, credit scores, others debts and the value of your property before signing on the amount that you need to borrow. Better credit scores can score you lower credit rates and vice versa. But it is still important to take your time when selecting a vendor as they can also vastly impact your refinance outcomes. Your local community savings centre and banks can guide you in the right direction and may just be the best lenders with the most affordable deals in your area.