Refinance NOW-before it's too late
If you haven't found the time to refinance your existing home mortgage, it's time to take action-like yesterday! Every time Alan Greenspan, Federal Reserve Board Chairman, opens his mouth, you can bet that the federal funds rates will rise by at least a quarter of a point, or by 25 basis points in investorese. What that means to you is that home mortgages will rocket as well.
A quarter of a percentage point may not seem like much, given that the federal funds rate currently stands at 2 ¾ per cent, but a reality check quickly reveals that you, personally, have probably never seen 2 ¾ per cent interest on anything in your lifetime. Take a look at your credit card statements. Are you paying 2 ¾ per cent on your credit? What about your home mortgage? Without getting technical, there's little correlation between the federal funds rate and home mortgage rates except the direction in which they travel, and right now that direction is headed to the sky.
You've already missed the opportunity of a lifetime to lock in the lowest rates you'll see for the foreseeable future, but you have a little more time to get your hands on relatively cheap money. The window of opportunity is rapidly closing, so if you're going to refinance, you must do it as soon as possible.
Things you may not know about refinancing:
A small rate cut can pay off handsomely in smaller monthly mortgage payments.
Smaller monthly mortgage payments will decrease your tax deduction, because you will no longer be paying as much interest as you've been paying. Factor this in, because it's the total savings that matters.
You can and should ask to have fees waived or reduced: application fees, origination fees, appraisal fees, legal fees, points, and closing costs.
If you don't have cash on hand to pay fees, you can get them tacked on to the mortgage, paying nothing out of pocket for your refinanced home mortgage.
If you refinance and shorten the term of a home mortgage, you will pay a higher monthly payment, but you'll save a significant amount of money over the term of the mortgage in addition to paying off your home and building equity faster.
Standard mortgage terms run 15 years or 30 years. If you'd prefer a term somewhere in between the standard terms, ask for a custom loan and designate a term that works better for you. Find a term that strikes a balance between a term shorter than 30 years and monthly payments lower than those of a 15-year mortgage.
If you cannot get a custom term, settle for a 30-year mortgage and pay more than the monthly payment to pay off the loan sooner. You must also negotiate no pre-payment penalty.
Where to go from here
1. Review your credit record with each of the three credit bureaus: Equifax, TransUnion and Experian. Mistakes are common in credit reports, and you may be surprised at what you find: accounts that do not belong to you, balances that do not match your statements, an identity mistake or worse. Correct any bad information.
2. Compare mortgage rates and fees online among several finance companies.
3. Use a good mortgage calculator. Using refinance calculators is the only way to determine which loan is the better all-around deal.
Work fast, but negotiate hard to make a deal that works for you. The loan company wants your business as badly as you want a better rate.
M J Plaster is a successful author who provides information on home loans and home equity loans. M J Plaster has been a commercial freelance writer for almost two decades, most recently specializing in home and garden, the low-carb lifestyle, investing, and anything that defines la dolce vita.
You're considering refinancing your home mortgage loan to save money.... Read More
Anyone who borrows money is always looking for the cheapest... Read More
I continue to see the same For Sale signs in... Read More
When looking for a mortgage to meet your needs, consider... Read More
Before you consider taking out an interest-only mortgage, you should... Read More
We live in a society where people are losing their... Read More
If you've got a few things around the house that... Read More
Home equity loans and home equity lines of credit continue... Read More
An Interest Only Mortgage is one where the repayments are... Read More
We're all entitled to the opportunities and benefits of home... Read More
When applying for a mortgage loan when you have a... Read More
Imagine this: you've found the perfect house, and feel lucky... Read More
Figures from the Council of Mortgage Lenders show that in... Read More
When it comes to getting money, you have two basic... Read More
Refinance home loan lenders are eager to lend money to... Read More
Outlined below is a useful guide to flexible mortgages. Flexible... Read More
Many people choose to take out home improvement loans so... Read More
A Self-Certification mortgage is a mortgage designed for people who... Read More
When it comes to firsttime home buyer loans, a little... Read More
Property website Rightmove has released its latest house price index... Read More
When it comes to a reverse mortgage, wise consumers weigh... Read More
A home equity loan is a loan based on the... Read More
There are several reasons why you might be in the... Read More
Mortgage cycling is a system that relies on solid budgeting,... Read More
A house is just that, a house, until someone lives... Read More
Home mortgage interest rates hit record lows in 2004 and... Read More
Finding a good lender to help you with refinancing your... Read More
Refinancing can be a very simple process. You fill out... Read More
While most multi family properties are designed to allow the... Read More
The housing market has been buoyant over the past few... Read More
When you're looking for a home loan, you might work... Read More
Choosing a home loan has never been tougher. Yes, with... Read More
Wanna know a little secret? There is an ingenious method... Read More
Home is the place you inhabit. It is the place... Read More
Almost two thirds of first time buyers accept the first... Read More
Many people fret the rising tide of interest rates. You'll... Read More
What's the most efficient way to secure a US Commercial... Read More
If you have a recent bankruptcy on your credit and... Read More
If you are considering a new home loan anytime soon,... Read More
Home equity loans or lines of credit have increased dramatically... Read More
Perhaps you're a homeowner in need of some quick cash.Maybe... Read More
When it comes to American spending habits, the sad truth... Read More
A few years ago, if you had a bankruptcy or... Read More
If you fall behind in your mortgage payments, you face... Read More
Home equity loans are often touted as being the solution... Read More
Buying your first home will likely be the biggest and... Read More
There are many mortgage products available on the market today.... Read More
The purchase of a new home is one of the... Read More
Lots of articles have appeared recently about the booming real... Read More
Mortgage rates typically are based off the current rates of... Read More
Buying a home with bad credit is possible with the... Read More
If you're thinking about applying for a new mortgage or... Read More
In previous decades, when a borrower missed a payment on... Read More
Filing bankruptcy is a stressful time in a person's life.... Read More
Bridging finance, also referred to as "bridge loans" and "bridging... Read More
There are at least two types of home equity loans.The... Read More
Searching for a mortgage refinance company can be a daunting... Read More
Whether you are just moving out on your own for... Read More
Refinancing your mortgage is one way to rebuild your credit,... Read More
Self-employed mortgages, as the term implies are mortgages designed for... Read More
Texas was one of the last states to allow homeowners... Read More
Chances are you may need a little extra money to... Read More
When you go to the bank to get a mortgage,... Read More
Refinancing online is a great opportunity to find low interest... Read More
More and more of use are signing up for limited... Read More
Man has been known for continually simplifying things in his... Read More
Mortgage Refinance |