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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
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.
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.
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
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.
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.
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.
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.
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.
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.
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.