Home Mortgages: Up, Up And Away!
|
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.
|
|
|
What Is A Homeowner Loan?
If you are a homeowner, it couldn't be easier to apply for a Homeowner or Secured loan.Secured loans - i.e. where your home is used as security against the loan - are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. (Lenders are more flexible with their underwriting, making a secured loan possible when you may have been turned down for an unsecured loan).Homeowner loans are also worth considering if you need extra money to spend on a new car, home improvements, or that holiday of a lifetime.Benefits of Homeowner loans include lower monthly repayments than unsecured loans and the ability to borrow more money over a longer period of time.Some lenders will offer flexible repayment terms allowing you to take payment holidays or pay the ...(related: Mortgage Refinance)
What Is A Home Equity Loan?
A home equity loan is a loan that is guaranteed by your home. Are you in urgent need for cash and want to get the same without selling off your home or property? Getting a home equity loan is a good way to do so.Equity on your home is essentially the difference between the value of your home and the outstanding mortgage. Lot of finance companies today offer good deals on home equity loans, letting you borrow money based on the available equity on your home.This type of loans product basically works on the idea that you use the amount you own within your property as collateral against a loan. You put it up as a guarantee to your lender that you can repay any loans. This allows you to free up the amount you already own within your property and use it as hard cash.Most lenders will work out ...(related: Mortgage Refinance)
Home Loans And Mortgages ? The Selection Can Be Bewildering
For years, when someone wanted to purchase or refinance a home, the choices were simple. The buyer chose either a 15-year fixed-rate mortgage or a 30 year fixed-rate mortgage. That was it. Of course, those ...(related: Mortgage Refinance)
Real Estate Tip: Escrow Accounts -- Do You Really Need Them?
If you have a mortgage on your property, whether it's for your personal residence or a real estate investment, chances are you have an escrow account. But if you are working on building wealth through real estate, you may want to take a hard look at your escrow account (or accounts, if you own more than one piece of real estate) and decide if you really need it.Escrow accounts, also known as impound or reserve accounts, are often maintained by mortgage lenders on behalf of their borrowers. They typically work like this: the borrower's monthly payment covers the loan principal and interest, as well as a prorated amount that is deposited into the escrow account. The lender holds those funds and uses the...(related: Mortgage Refinance)
The Real Truth About Those: Online Get A Better Loan Web Sites - 6 Things To Look For
You have seen the Commercials on TV go this or that web Site and Refinance your Home and Save thousands. Tempting isn't it? Do they really save you money?
5 Things In Selecting The Best Mortgage - You Should Know
Your goal is not only to find the best rates and programs, by searching through a huge number of lenders products, and save yourself thousands of dollars on mortgage payments every year, but also, to save time and hassle by simplifying the loan process and reducing the paperwork. Here are some things you can keep ...(related: Mortgage Refinance)
Stop Foreclosure - 7 Tips To Save Your Home
Faced with the threat of a foreclosure on their home, with all the weight of the mortgage industry ...(related: Mortgage Refinance)
Va Loans, A Gift From Uncle Sam
Uncle Sam has a gift for the men and women who serve our country. It is the VA loan. The VA loan, short for Departmen...(related: Mortgage Refinance)
Stock Market, Bonds, Deposit Account, Cash, Equities, Unit Trusts - Few, Just Few Of The Ways Of Sav
Man has been known for continually simplifying things in his own interest. First he devised mortgages then several sub categories under it like buy to let mortgage, council right to buy, reverse mortgage. Then we devised remortgage. Then as the intricacies increased and the payment of interest and the loan amount became difficult, he devised interest only mortgage. Interest only mortgage is a very attractive term for someone who is just contemplating mortgage. Interestingly and very significantly an interest only mortgage requires you to pay the loan amount eventually. Individual savings account mortgage is a kind of interest only mortgage. H...(related: Mortgage Refinance)
Home Equity Line Of Credit ? Great For Remodeling Projects
Many homeowners are lucky enough to find a house that represents exactly what they want in a home. They buy it, make the payments on it, and live more or less happily ever after. Others are not so fortunate. Some buyers who live in a pricey market may have to settle for less house than they need, hoping to find a solution to their lack of space later. A third group of buyers may find that their housing needs ...(related: Mortgage Refinance)
Refinancing After Bankruptcy
Refinancing after a bankruptcy can seem like an especially difficult challenge, but it doesn't have to be. Six months after your bankruptcy has been finalized, you can find lenders willing to refinance your mortgage. In fact, refinancing your mortgage can help rebuild your credit to good standing in two year's...(related: Mortgage Refinance)
site-map - Copyright © 2006 | Contact Webmaster | All Rights Reserved. | Mortgage Refinance