Tuesday, November 11, 2008


The choice is whether or not to do it. Now may not be the time to replace your old mortgage. These are some of the things that could be advantageous to you if you refinance your mortgage.

Saving Money:

You can save money with the lower interest rate. You can save even more if you reduce the amount of time needed to pay on the mortgage. If you can keep the payments the same but shorten the time by five years, you can save thousands of dollars.

Lower Interest Rates:

The lower interest rate is what we all want. With the constant interest rate changes, it would be good to keep your eye on those changes. When the interest rate drops 1% lower than your current interest rate, then would be a good time to refinance. This way you are sure to lower your monthly payments.

Get the Equity:

When you refinance your mortgage, you can also get access to some of your equity. A cash out mortgage refinance will enable you to get your equity and provide cash you might need for emergencies or home projects.

Be sure to leave at least 20% of your home’s value in the equity, don’t take it out. Then you not need to get private mortgage insurance. You will have a reserve cash supply, just in case you need to move later.

Get level payments

If you choose to switch from and adjustable rate mortgage to a fixed rate mortgage, you need to do so as soon as possible. With the changing interest rates, if you wait too long to refinance, you could be stuck with the interest rates that the market will force upon you, regardless of the type of rate you have fixed or adjustable.

Calculate your Options

Once you have made the decision to refinance, you should calculate the different options available and see which ones are the most profitable. Some mortgage types will give you a good deal, but some you will need to look at more closely. Choose the ones that give you the greatest savings.

Get quotes from different lenders and compare. Refinancing your home is a huge decision; make sure you are getting the best deal for your money. To help you make profitable decisions you should consult The Home Buyer Defense Guide and Mortgage Secrets Exposed, before you make a final decision.

Happy Surfing,

Wednesday, September 17, 2008


Many of us today are trying to get the lowest rates possible to refinance our homes. This can be a simple process. Complete the applications, accept the best offer and that’s it. However, the wise thing to do is to do your homework before you accept a refinance loan offer. You want to make sure you check as many loan offers as possible and talk to as many mortgage loan brokers as possible. When refinancing, one of the most important factors is to pay close attention to the interest rate. To make sure you get the lowest and best interest rate possible. There are many loan options open to those who want to refinance their current home loans. You may find yourself faced with the option of an ARM (adjustable rate mortgage) or a fixed rate loan. Your personal situation and expectations will help determine which direction you follow to refinance your mortgage.A fixed rate mortgage is the type of home loan that is stated and the interest rate does not change for the entire term of the loan. If you want to refinance your loan over a thirty year period, the interest rates will not change over the life of the loan; unless you refinance again. Other fixed rate mortgages may run for a set number of years. After that, they become adjustable rate mortgages.A fixed rate mortgage differs from an ARM in that the adjustable rate mortgage has an interest rate that fluctuates during the term of the loan. The state of the current market and financial trends drive these rates. Therefore, the monthly payments on ARM loans are subject to change. Your monthly payment increases depending upon the increase in the prevailing interest rate.Borrowers seeking stability in their loan will most likely benefit from the fixed interest rate mortgage. Good credit ratings will prompt reasonable interest rates and terms on their loans. The ARM might have a lower initial rate, but that rate is subject to change depending on the current market.A fixed rate mortgage loan is among the safest type of loan you can take. You know you will be paying a stated amount over the term of the loan. The fixed rate mortgage will always carry a higher interest rate than a similar adjustable rate loan. With bad credit histories and lenders offering higher interest rate loans, some borrowers are choosing the adjustable rate mortgage over the fixed rate loan.Sometimes the interest rates drop drastically, when this happens, people with fixed rate loans can find themselves paying a much higher rate than others with an adjustable rate mortgage. The biggest risk of a fixed interest rate mortgage loan is borrowers finding they are paying a much higher rate than those who choose an adjustable rate. Apart from that, the fixed interest rate refinancing provides long term stability to borrowers who choose to use it; but always be prepared with research, try mortgage loan tips or mortgage secrets exposed. The information is sure to be very valuable in assisting you with your planning needs.Happy Surfing,

Monday, August 4, 2008


Let’s not get confused about mortgage interest rates. Let’s make this as painless as possible. A mortgage interest rate is the percentage you will pay on your loan. There are (2) kinds of mortgage interest rates, they are fixed and adjustable.

If the rate is fixed, then you pay that rate throughout the life of the loan, unless you refinance again at a later date. If the loan is adjustable, it changes with the national interest rate. If the national rate increases or decreases, the rate of the loan will change. This is usually a plus when the interest rates are falling. If they are rising it is best to accept a fixed rate loan.To locate current mortgage rates it is best to check the banking websites, and check the mortgage companies on line as well.

I suggest before you make any decisions you research and read; you will find plenty of help in mortgage loan tips and mortgage secrets exposed. You will find tons of information available on mortgage rates. Home mortgage interest rates change often watch the trends. Currently the interest rates are rising.If you are refinancing your current home, you should know mortgage interests rates tend to rise and fall depending on what the Chairman of the Federal Reserve Bank recommends. Everything hedges on the economy and inflation. Finding the best interest rate possible is imperative when refinancing a home.

It will be time and money well spent along with added value, as a result of your research to discover the best available interest rate. The choice is yours; whether the loan is fixed or adjustable make it wisely. The more knowledgeable the borrower is the more informed the borrower becomes, the greater the chances that you will get the best interest rate possible. Learn to negotiate with the lenders and mortgage holders they are more than willing to refinance loans provided they can be assured the individuals who request refinancing maintain a willingness to pay.Happy Surfing,

Monday, July 28, 2008


Even though your mortgage loan may be a 30 year term, not many of us stay with the same loan for that many years. On average we Americans refinance our homes every four years. Paying off your present mortgage and taking out a new one can mean big savings over several years. It’s important to consider both the costs and benefits before making your decision, because refinancing comes with a price in the short term.Why some people consider refinancing their mortgageWhen you want to save money. Say you have a fixed rate mortgage from several years ago and interest rates have since dropped, refinancing may lower your payments considerably. If you have a $150,000 mortgage with a 30-year term and a rate of 8%, the monthly now would be around $1,100; while the same mortgage at 6% will have a monthly payment of less than $900 a month.When the borrower wants to switch to a fixed or adjustable rate mortgage. Adjustable rate mortgages (ARMs) offer lower interest rates initially, but some borrowers find the fluctuations stressful. If the lending rate is on the way up, you may consider locking a fixed rate and consistent monthly payments. Conversely, if you want to reduce your monthly payments and are okay with the interest rate, then you may want the switch to an (ARM), it could save you money with the refinance.When you want to reduce monthly payments. Refinancing for a longer period will lower the amount of you monthly loan payments. You will end up paying more in interest charges over the life of the loan, but if you’re having difficulty making current payments, this could provide some relief.When you want to turn home equity into cash. Your may want to fund a major expense; therefore, you could take out a new mortgage with a larger principal, in order to turn some of your home equity into cash. This is cash-out refinancing. In this case you can get a lower rate of interest than you could with an unsecured loan or credit card. However, if the interest rate offered for your refinanced mortgage is higher than your current rate, then a home equity loan or line or credit might be a better choice.We need to remember when refinancing in order to pay less interest; you won’t see the savings right away. Lenders usually charge fees when you take out a new mortgage, you will also have to pay a penalty for getting out of the old one. You need to understand your reasons for refinancing. This way you can determine what is the best financial path for you in your future.As always research, start with the internet search, investigate mortgage loan tips andhome buyer defense guide for starters. Do what you need to become an informed borrower.
As always,

Happy Surfing,

Monday, July 21, 2008


When we refinance we are exchanging one set of terms and payments for another. We refinance home mortgage loans for several reasons. The mortgage payment is one of the largest monthly expenses for the family. Reducing the mortgage payments gives extra cash to the home owner to manage other expenses. One reason to refinance is to lower the monthly mortgage payments. Because of the movement in the economy the interest rate changes constantly. If the interest rate goes down drastically and the homeowner has a high interest rate it would be wise to refinance. This is one way to lower monthly expenses.There is yet another reason to refinance and that may be to change the mortgage loan from an adjustable rate mortgage to a fixed rate mortgage. The adjustable rate mortgage is used to pay lower monthly payments when the interest rates are low, but when the economy changes and the interest rates rise as a result, it may be better to refinance to the fixed rate mortgage to allow for lower more consistent payments.Still another reason could be to take equity out of the home to be used for other expenses, such as renovations, additions, debt consolidation, college, or other expenses as the borrower chooses.The homeowner may choose to pay the loan off earlier than stipulated. There may be penalties for early pay-off in the current mortgage and the borrower may want to get that changed as a means to invest more money toward retirement.Another reason may be to become exempt from PMI, when the loan is first financed the borrower may be charged 80% of the loan amount. The homeowner pays this amount with his mortgage payment. Once there is equity built up in the home it can be refinanced for less than 80% of the loan saving the homeowner the expense of the PMI. This will also reduce the monthly payment.Another plus is the cash saved from the reduced monthly payment can be used for other purposes its according to the wishes of the homeowner.No matter what your reason is for refinancing, you can find a number of reasons why refinancing may be the avenue for you. Think things out carefully, use research materials such as the home buyer defense guide, or mortgage secrets exposed, and refinancing will work out for you because you will be thoroughly informed.

Happy Surfing,

Thursday, July 17, 2008


Do you want to know what types of loans are available to you? Well let me start off telling you that there are many different types of loans. Some of the most popular loans are the FHA Federal Housing Administration and VA Veteran Affairs loans. These loans are backed by the Federal Government; generally they are lower interest rates, have lower mortgage refinancing rates, and lower mortgage fees, than other mortgage brokers. These are the Conventional loans: Fannie Mae, Federal National Mortgage Association, is the common name used for this type of loan. Fannie Mae is a shareholder-owned company and is congressionally chartered the company buys mortgages from lenders and resells them as securities on the secondary market. Fannie Mae looks at a number of factors to determine if the individual qualifies. They will use debt to income ratio, credit ratings, and employment history. Mortgages that are approved by Fannie Mae should qualify for better interest rates. Freddie Mac, Federal Home loan Mortgage Corporation, buys mortgages from lenders and resell them as securities on the secondary market. Freddie Mac like Fannie Mae looks at generally the same financial factors. You should still get a better interest rate with Freddie Mac approval. A mortgage company can help you find the best rate from various lenders for Freddie Mac Mortgage as well as Fannie Mae loans. The lenders can help you determine if you are eligible for a mortgage. AdvantagesFHA loans have some advantages over conventional mortgage loans. Because FHA loans are insured by the government, they generally have less stringent qualification and requirements, lower down-payment requirements, and they are assumable mortgages. The maximum mortgage amount for an FHA mortgage (single family) ranges vary depending on the city you live in. You can contact a mortgage specialist for these maximum amounts for your specific city. Government mortgages, including the FHA mortgage, make up 20 percent of residential mortgages in the U.S.VA mortgage carries many of the same advantages as an FHA home mortgage. There are other qualifications you must meet before being considered. You must be a Public Health Service Officer, an active-duty serviceman, an unmarried widow of a veteran, or a qualifying veteran. The maximum loan amount is $240,000. If you can make a large payment VA is now considering mortgage amounts above $340,000. Normally you would need to put down 20% of the value exceeding $340,000, and must not exceed the conventional mortgage limits. No down payment is required for most mortgages below the $340,000 limit. The Non-Conforming mortgage or jumbo mortgage conventional loan that is too large for governmental agencies are termed this way. At present any mortgage over $350,000 are classified as such. Jumbo loans have higher interest rates than conforming mortgages. From .5% to 1% higher. Jumbo mortgages also have higher down-payment requirements. You have all of these different loans to choose from but as usual make the right decision for you. Apply your research online, use the valuable information listed here, home buyer defense guide, mortgage loan tips, mortgage secrets exposed and become even more informed than you already are, be a smart borrower.

Happy Surfing,

Thursday, July 10, 2008


Refinancing your home’s mortgage is not the same as getting a second mortgage. Both allow you to cash out your home’s equity, terms and rates differ between the two types of loans. First learn the loans’ features before you refinance, to find out what’s the best option for you.

Your Mortgage

Replacing one mortgage loan with another is refinancing. Usually refinancing lowers mortgage payments through lower interest rates or longer loan terms. You can cash out part or all of your home’s equity while refinancing.

Refinancing requires paying closing fees. To recoup these costs, you usually need to stay in the house for at least five years. However, you will save money and can establish better terms than if you choose a second mortgage.

Second Mortgage Option

Second mortgages, or better known as home equity loans, have slightly higher rates than mortgages, but you have little or no closing costs. Second mortgages also only charge interest on the amount you borrow, not the total amount you are approved for. You can take out your equity over the course of several months or years. The lenders have different terms, so watch out for balloon payments or repayment fees.

If you want to use your equity to make some home improvements but plan to sell soon, then a second mortgage would be better than refinancing your mortgage. Second mortgages also are a better choice when your current mortgage interest rate is lower than those being offered by refinancing lenders.

Consider This

Consider the purpose of the loan, when deciding which financing option to choose. If you want to reduce monthly payments, then refinance. If you simply want to tap into your home’s equity, then apply for a second mortgage. Also consider how long you want to stay in your home. You can lose money refinancing your mortgage if you don’t stay in your home. However, if you sell your home or refinance, you will have to pay off your second mortgage. Always research, that’s how you will know and understand which loan best suites your needs.

Happy Surfing,