Tag-Archive for ◊ Interest Rates ◊

Author: admin
• Saturday, April 02nd, 2011

Mortgage refinancing can seem confusing to many homeowners. Whether they are intimidated by lenders and banks, or just do not understand the process, many people have no idea how to go about refinancing the right way. Here are some general mortgage refinance tips that will help any homeowner looking for help with their mortgage.

Many people are very hesitant to try to refinance just due to the costs and confusion. However, the costs are often offset by the savings, and the confusion exists only due to lack of research. Getting a proper, beneficial, and money saving mortgage refinancing approval is not difficult to do. Here is some advice for homeowners looking to refinance:

-Always compare different mortgage lenders or banks. This is not as easy as it may sound, but it is not that hard either. When refinancing, you will be presented with multiple options. Some of the options will be better for you than others. Always compare different choices you have with offers that are similar. While each lender or banks offers are different, compare the core of the loan. Take into consideration the closing costs, time to repay, and interest rates. It will be easy to spot the best deal when comparing the main elements of different refinancing options.

-Get your mortgage interest rate written down on paper. Mortgage rates change daily, and just because you can get a low interest rate now does not mean that the rate will be available when you actually refinance. You must ask the lender or bank to write down the interest rates you qualify for, and have them sign it. While this offer will not be valid for a long time, it can often lock in your rates for at least 3 days. This should give you enough time to compare different offers.

-Know what you expect from refinancing your mortgage. Many homeowners just want lower monthly payments. However, there are other options. Lowering interest rates, changing the length of the mortgage, or getting cash back from refinancing is all possible. However, each homeowners situation is different and will require different loan options. Know what you want to get out of refinancing a mortgage, and pursue it. This will also save you some time, and ease the whole refinance process.

While these tips seem obvious, many homeowners forget the basics when they are in the process. Always remember that you are a customer, and there are other providers who are happy to work with you. If you have any doubts, or unanswered questions, do not hesitate to look for a different mortgage lender or bank.

Author: admin
• Monday, February 28th, 2011

Do you currently find yourself owing more than what your actual loan is worth? This is probably one of the best times to consider refinancing options. Only recently, the FOMC had lowered to less than 1% the target lending rate. This is the first time in a very long time something like this happened in many years. But first, you must understand what refinancing is and later on learn the tips you should know before you commit to refinancing.

Refinancing your loan means replacing your existing mortgage loans into new mortgage loans bearing different terms. If you have a good credit rating and score, your lender might consider this option. When this happens, there is a big possibility that your interest rates will drop so you could afford to make your payments again. So if you’re the one to take this option into consideration, follow the mentioned tips in the article that could help you get started.

1. Close credit card accounts – Why do you have to do this? This is simply because closing other credit card accounts, can actually improve your credit score by a mile. This will now be a factor for lenders to lower the interest rate on your mortgage loans. It is wise to send a letter to the credit card issuer stating your intent to close your account with them. After doing this, you can now check your credit report after 30days just to be certain that a comment is added to it saying that you closed these cards by request. When the other lenders see this, it will be a factor for consideration for them that you yourself took the initiative to close the account and not the issuer of the card.

2. Do your homework – Do some calculations on your own. See the possibilities of you making a payment to your mortgage loans and know what works for you. Use mortgage calculators that are available online for free to calculate your mortgage payments. After doing this, you are now ready to shop around and look for the best and most reputable lenders who could refinance your mortgage loans. Shop for the same exact programs and terms with at least three different lenders. Compare them and make notes to see who can offer you the best deals that you can actually commit to.

3. Avoid hidden costs like Private Mortgage Insurance – This insurance can hit you, if you are not aware of how to do refinancing right. There are about 30 % of those who will choose to refinance their mortgage loans by taking a portion of their equity to pay other bigger costs like home improvements. If you borrow more than 80% of the equity, you will be paying private mortgage insurance which will cost you hundreds of cash every year

4. Avoid paying cash upfront – There is only one fee you should be asked when you are about to close your new mortgage agreement. That fee is what you call Appraisal fee. And this is only done after you have decided which lender will be refinancing your mortgage loans and only given if your lender asked you to.