| |
| |
|
Mortgage & Refinancing Information |
|
|
|
6 Things to Consider Before Refinancing
Perhaps you're a homeowner in need of some quick cash. Maybe you want to consolidate your debts so you have better control of your money. Perhaps a lender is urging you to refinance because interest rates are low, and he has a too-good-to-be-true deal that will shorten your current loan's term. Here are 6 essential questions to ask yourself before making the decision to refinance. 1. What's My Motive-and What Will It Cost Me? Before you even consider a refinance, ask yourself this fundamental question: "Why do I need it?" "Many times, people take out a new, larger loan to pay off credit cards, automobiles or even to purchase another home," says Norm Bour, host of the nationally syndicated U.S. radio program The Real Estate & Finance Show, and an experienced mortgage lender. "Sometimes they need the money to do home improvements or renovations." If, however, you want to lower your current loan payments or switch to a different type of loan, you must calculate the benefits before going the re-fi route. "If someone is going from a fixed loan to another fixed loan, my general benchmark is to see a 1% reduction of interest rates to justify it," says Bour, who also teaches money-management classes in Southern California. "Sometimes the borrower goes from a fixed-rate loan to an adjustable to lower his payments. Sometimes he does just the opposite-maybe to get away from interest-rate volatility. These are very personal decisions, specific to each individual client." 2. How Long Will I Be in the Property? You may already know-or suspect-that you will not live in your current home beyond a certain timeframe (perhaps 5 years). If this is the case, why would you even consider a 30-year loan? "Sometimes, an adjustable-rate loan or a 'hybrid'-say, a 5-year fixed, then converting to an adjustable-makes the most sense," Bour says. 3. What Am I Worth? Do your homework before trying to qualify for a new loan. You should know: ? The approximate market value of your property, as "loan to value (LTV) is one of the primary factors that control interest rate," Bour says. ? Your credit score, which will affect your overall ability to secure a loan, as well as the interest rates offered and the options available to you. 4. Do I Have a Competent Loan Officer? In certain cases, refinancing may not yield "a monetary savings, per se," Bour says. This means there must be "compelling reasons" to secure a new loan, he emphasizes. "A good loan officer will ask a series of questions to help the borrower identify his best option," Bour says. The officer should: ? Assess your current monthly cash flow and potential future risks. ? Calculate your monthly savings if you were to refinance. ? Determine how long it will take you to break even. ? Fully explain the different types of loans and interest structures. ? Disclose all closing costs and "hidden" fees (origination fees, escrow, title, underwriting, interest, taxes, insurance, prepayment penalties, etc.). ? Treat you with respect and as an individual-not come up with a one-size-fits-all, cookie-cutter approach to your financial future. 5. Do I Need a Second Opinion? Because lenders have an interest (pun intended) in having you sign on the dotted line, it's often worthwhile to seek advice from a certified financial planner or other expert who has no investment or agenda when it comes to your refinancing decisions-especially if you're a first-timer who lacks fluency in real estate issues. Accept your limitations, and have enough smarts to ask for help. A lot of money is riding on this decision, so never let pride get in the way of making the right choice. 6. Will This Hurt My Credit Rating?"While refinancing, in and of itself, will do very little damage to credit scores, what will cause harm is excessive shopping amongst too many lenders," Bour says. "Each time a credit report is pulled by a 'potential grantor of credit,' it shows up as an 'inquiry'-and each inquiry drops the credit score by a little bit. "In the United States, the laws have changed over the past few years, and inquiries do not have the same negative impact as they used to. Most credit bureaus will now look at a 'cluster' of inquiries over a short period of time as being one inquiry." -------- Mortgage Relief specializes in assisting Australian families with mortgages by making their monthly repayments more manageable and decreasing their overall debt and total interest paid over the life of their mortgage. Mortgage Relief is a mortgage refinance provider that it part of Australia's largest Debt Relief? organization. Visit Mortgage Relief on the web at http://www.mortgagerelief.com.au or contact them directly on 1300 789 014.
MORE RESOURCES:
Google News |
 |
|
|
RELATED ARTICLES
Home Equity Loan Considerations In other words, the benefit of the loan must outlast the loan period. Taking a loan for financing that elusive vacation is a strict no-no. Think You Cant Get a Mortgage? You've finally found that dream home that you have always been searching for, but you are afraid to apply for a mortgage because you have bad credit or less than perfect credit.Before you give up entirely, there are many mortgage programs that are geared towards people just like you. Bad Credit Mortgage Refinance - Should I, Shouldnt I? It is a common financial scenario across households in the Western world. Multiple debts have started to build up: a car loan here, a department store loan there; a bank loan here and several credit cards there. How to Save Money by Using an Independent Commercial Mortgage Broker Being a creature of habit can cost you plenty when it comes to applying for a commercial mortgage instead of going through an independent commercial mortgage broker. Let me tell you why. Home Loans - Would You Buy a Home Without an Inspection? The housing market has exploded, with home prices rising beyond all reason in some markets. Home prices have doubled or tripled during the last five years, and in some cities, the asking prices for homes are considered only to be suggested opening bids. Home Mortgage Interest Rates: How to Compare Whether you are looking to purchase your first home, sell your current home and purchase a new one, or you are wondering whether or not you should refinance your existing mortgage, it is beneficial to compare current home mortgage interest rates from several companies to be sure you get the best deal possible. They can be researched very easily online, and you can tailor your search to give you accurate rates based on the state that you will live in, whether you are buying or refinancing, and the amount of the loan. Guide to Remortgages Here is a useful guide to remortgages. What is a remortgage? A remortgage is when the terms of the original mortgage are renegotiated, and usually means that the borrower increases the amount that they are borrowing, which is often possible due to a rise in the value of the property. Home Mortgage Lenders - How to Find A Good Mortgage Broker Online Mortgage lenders have set up shop online, but they aren't all reputable mortgage brokers. To find a good mortgage lender you need to compare rates and research to find reputable companies. 10 Questions To Ask Your Mortgage Rep or Banke This post is a must read for anyone considering purchasing a home be it today, tomorrow or next year. It is sound advice. Fixed Rate Mortgage vs. Adjustable Rate Mortgage The most basic distinction between types of mortgages that are available when you're looking to finance the purchase of a new home is how the interest rate is determined. Essentially, there are two types of mortgages - fixed rate mortgage and an adjustable rate mortgage. Carolina Mortgage Loans You're selling your home and are looking to relocate to the Carolinas. While researching homes in your new community you discover that you do not know of any mortgage lenders in the area. The Debt Test: Are You Making Out a Mountain Out of Your Mortgage? According to the Council of Mortgage Lenders, first-time buyers are the most susceptible group of homeowners to debt, as they are more likely to have higher loan-to-value ratios and commit a higher proportion of their income to mortgage repayments. Despite their susceptibility to debt, there is evidence which indicates that insurance take-up and employee benefits provide recent first-time buyers with a safer foundation than the general population of mortgage borrowers. How to Find the Lowest Rate Possible! The quest is on! You're in the market for a new home loan, a refinance, or a consolidation and you absolutely insist on finding the lowest rate possible! So what better place to do your research, then here on the internet, late at night, with your coffee in hand, and your family fast to sleep!We'd like to help you on your quest, so here are 3 free tips that we think will speed up your journey, and move you to success:1. Benchmarks 2. The Best Tactics for Getting a Quick Homeowner Loan Trying to find a quick homeowner loan can seem difficult at times, especially considering the days or even weeks that it can take for some banks and other lenders to approve or deny a loan.The worst part is that if you're denied your loan, then you have to start over at another bank and go through the same wait again!Luckily, there are other options available that speed up the process of getting a quick homeowner loan? you just have to know where to look for them. Florida Refinance - Refinancing in Florida The decision to buy a home in Florida can be one of the best you will ever make. If you own a home in Florida you may be considering refinancing. Need a Mortgage, Refinance or Equity Loan? Learn What it Takes, Before Applying Do you know what it takes to qualify for mortgage and refinance loans? There are several factors involved with qualifying for a purchase, refinance or equity line of credit, and having an in-depth understanding of these could make the difference in you being accepted or turned down by a bank loan officer.Here are some things loan underwriters use in seeing if you qualify for a loan: your credit rating; your income; the amount you wish to borrow vs. Mortgage Tips For The Frantic It is a curious fact of human nature that people will haggle over the price of an umbrella, but buy a house on impulse.We understand small amounts of money; we know what they can buy. Home Loan Applications Made Easy You have finally found the home of your dreams. You have searched all over and are ready to purchase it. Finding the Best Home Improvement Loans When the time comes to do work around the house, finding good deals on home improvement loans can be vitally important.Home improvement loans can be used to help you improve any part of your house or other real estate, providing you with the money to get the materials that you need and to hire the professionals that can get the job done. Repayment Remortgages is The Cure For Outdated Endowment Policy If bulls and the bears of the stock market have no effect on your mortgage plan then you must apply for endowment to repayment remortgage. An endowment mortgage is a financial product offered mainly in the UK.
|
| home | site map |
| © 2007 |
