In case you didn’t know, you can refinance an interest only loan. Because of online lenders, it is now easy to trade in your balloon payment and extended loan periods for better rates and payments. Make sure you get the best rates while you are searching for your loan deal and get in the know with mortgage secrets revealed.
While you are willing to refinance the interest only loan the one perk is that it allows you to reevaluate both your short and long term financial goals. If you are looking for minimum monthly payments you may want to get an adjustable rate loan for 30 years. Your initial payments will be low. To get a lower interest rate change your loan period to 15 years. If you want to keep your payments steady without making adjustments for rate hikes, opt for the fixed rate loan. If you want to pay closing costs you can reduce your rates even further.
Choose the lender that is willing to work for you. The object is to keep more money in your bank account while still being able to get the refinancing you are seeking. Research the recommended lenders and other mortgage companies until you find out the right fit for you. The market is competitive and the lenders are willing to make deals.
Request the same loan terms from different lenders, when asking for a quote. It takes very little time to find a good lender and minutes to start the application process. It could be a couple of weeks and you could get rid of your current high loan payments and get one that fits your budget and began to recognize your savings.
The idea is to save money, lower your monthly payments and get the best deal for you. Now is the best time to start managing your money. What can better be done than increasing your savings and decreasing your expenses?
Always complete your research and arm yourself to ensure you get the lowest rates with the home buyer defense guide and the best loan package.
Happy Surfing,
Friday, November 16, 2007
Thursday, November 15, 2007
HAVE INTEREST RATES DROPPED?
Since the interest rates have dropped, now maybe the time for us homeowners to refinance. The object of a refinance loan is to pay off an existing loan for the purpose of lowering your current monthly payments, or reducing the amount of interest you want to pay. Refinanced loans become more popular when interest rates drop significantly, though there may be good reasons for you to consider a refinance mortgage loan even if the general interest rates have remained the same or increased. How does refinancing your current mortgage lower monthly payments and when should you consider a refinance mortgage loan?
What if you bought your house 10 years ago with a mortgage loan from a local Mortgage Broker? Because of your lack of credit history and perhaps a Bankruptcy, but your didn’t know about bankruptcy mortgage deals, along with your decision to put down a small down payment, you ended up with an interest rate that was significantly higher than average. A few years later, the standard interest rates have dropped by nearly a full percentage point which puts them nearly 3 percentage points below the interest rate on your current mortgage. You have been with your current employer for 9 years, lived in the same house and have paid bills on time, mortgage loan tips, would let you know that your situation is ideal for refinancing your mortgage because of the following:
· Your original mortgage carries a higher interest rate than the market because of the previous credit history, With bankruptcy mortgage deals, you would have known how to get a better deal, but you have made it through that period.
· Because you have paid your bills on time your credit rating allows you the ability to get the lowest interest rate available on new loans.
· Although most experts recommend you consider refinancing when the interest rate drops at least a full percentage point, a drop of 3 percentage points is very significant, and will place you in a better position to negotiate the loan.
· You may also consider refinancing to shorten the term of your mortgage. Even if you took out a 20 year loan for the same percentage rate as your current 30 year loan, the payments will be higher, but if your financial circumstances are better than when you originally took out the loan you will gain in overall savings.
As always make sure this is the ideal time for you to refinance. Your current financial situation will dictate which route is best for you. The ultimate goal is your personal financial ability and stability.
Consider all the above reasons, and make an informed decision on whether to refinance. The decision is up to you.
Happy Surfing,
What if you bought your house 10 years ago with a mortgage loan from a local Mortgage Broker? Because of your lack of credit history and perhaps a Bankruptcy, but your didn’t know about bankruptcy mortgage deals, along with your decision to put down a small down payment, you ended up with an interest rate that was significantly higher than average. A few years later, the standard interest rates have dropped by nearly a full percentage point which puts them nearly 3 percentage points below the interest rate on your current mortgage. You have been with your current employer for 9 years, lived in the same house and have paid bills on time, mortgage loan tips, would let you know that your situation is ideal for refinancing your mortgage because of the following:
· Your original mortgage carries a higher interest rate than the market because of the previous credit history, With bankruptcy mortgage deals, you would have known how to get a better deal, but you have made it through that period.
· Because you have paid your bills on time your credit rating allows you the ability to get the lowest interest rate available on new loans.
· Although most experts recommend you consider refinancing when the interest rate drops at least a full percentage point, a drop of 3 percentage points is very significant, and will place you in a better position to negotiate the loan.
· You may also consider refinancing to shorten the term of your mortgage. Even if you took out a 20 year loan for the same percentage rate as your current 30 year loan, the payments will be higher, but if your financial circumstances are better than when you originally took out the loan you will gain in overall savings.
As always make sure this is the ideal time for you to refinance. Your current financial situation will dictate which route is best for you. The ultimate goal is your personal financial ability and stability.
Consider all the above reasons, and make an informed decision on whether to refinance. The decision is up to you.
Happy Surfing,
Wednesday, November 14, 2007
WATCH THE SCAMS!!!!!
When you make the decision to refinance your mortgage it may be the biggest decision you make. That’s why you should make it with your eyes open wide and take advantage of Mortgage loan tips, Mortgage secrets exposed, and Home buyer defense guide. Below is a list of things to watch out for:
· Watch out for good faith estimates. As we all know estimates can change.
· Ask the broker about the YSP (yield spread premium) if he seems unwilling to tell you. He is most likely not disclosing the amount of money the lender is giving in exchange for charging you a higher interest rate or utilizing a longer more severe prepayment penalty. If you have not requested a quote from a lender and they offer you refinancing, they may very well be predatory in nature.
· “RESPA (Real Estate Settlement Procedures Act, a federal consumer protection statute enacted in 1974) prohibits any settlement service provider from giving or receiving anything of value for the referral of business in connection with a mortgage or charging fees or markups when no additional services have been provided. Mention “RESPA” to your lender, ask for a list of fees (they cannot charge you $25 for a credit report that costs them less),” If you do not feel comfortable you can check with other lenders while you are trying to clear the current deal. If you do not show certainty and initiative in your research; it might send the wrong message to the lender. You want to keep him working to get the best deal for us.
· Do your research before you sit at the table with the lender, get online quotes, the market is very competitive. Make sure you keep the same terms with all the lenders to find out who is actually working in your favor. If you feel that you have made a mistake even after you have signed the loan papers, you have three days to cancel any loan agreement. You should only lose your appraisal money. Don’t be afraid to ask questions, question the online mortgage companies, question mortgage brokers and other loan affiliates, after all you are making a huge decision and it’s one you will have to live with.
Happy Surfing,
· Watch out for good faith estimates. As we all know estimates can change.
· Ask the broker about the YSP (yield spread premium) if he seems unwilling to tell you. He is most likely not disclosing the amount of money the lender is giving in exchange for charging you a higher interest rate or utilizing a longer more severe prepayment penalty. If you have not requested a quote from a lender and they offer you refinancing, they may very well be predatory in nature.
· “RESPA (Real Estate Settlement Procedures Act, a federal consumer protection statute enacted in 1974) prohibits any settlement service provider from giving or receiving anything of value for the referral of business in connection with a mortgage or charging fees or markups when no additional services have been provided. Mention “RESPA” to your lender, ask for a list of fees (they cannot charge you $25 for a credit report that costs them less),” If you do not feel comfortable you can check with other lenders while you are trying to clear the current deal. If you do not show certainty and initiative in your research; it might send the wrong message to the lender. You want to keep him working to get the best deal for us.
· Do your research before you sit at the table with the lender, get online quotes, the market is very competitive. Make sure you keep the same terms with all the lenders to find out who is actually working in your favor. If you feel that you have made a mistake even after you have signed the loan papers, you have three days to cancel any loan agreement. You should only lose your appraisal money. Don’t be afraid to ask questions, question the online mortgage companies, question mortgage brokers and other loan affiliates, after all you are making a huge decision and it’s one you will have to live with.
Happy Surfing,
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