Mortgage Refinancing is defined as the process wherein the borrower applies for a new loan usually at a lower interest rate in order to pay off an existing loan with a higher interest rate. The other common reason when a borrower opts for a mortgage refinancing is when the borrower wants to change the loan from a variable loan to a fixed loan. The lenders or the loan providing companies are attracting an ever-increasing number of customers by offering a lower interest rate. Majority of the masses prefer to avail a secured loan rather than opting for an unsecured loan as a secured loan can be availed more easily at a lower rate of interest.
A major benefit to avail a mortgage refinance is that it improves the credibility of the borrower. He or she might be facing difficulty in paying of the monthly installments that keep on varying if it is a variable mortgage loan. On the other side, the ability to pay back the loan in a shorter duration of time improves the credit rating of an individual. A mortgage refinance can be availed by an individual offering his or her property as a collateral security to the lender. Property is offered as a security to protect the individual interest of the lender who can claim rights of lien over it in case the borrower fails to pay back the entire amount of the loan or goes bankrupt.
However, it needs to be noted in the light of the above-mentioned benefits that before deciding whether or not to select mortgage refinancing, you must take into consideration various important factors.
These are: - the penalty clauses mentioned in the terms of agreement
- the degree of risk involved
- the mode of mortgage refinance
For instance, there have been reported situations wherein the borrower ends up paying an increased amount of installment over the periods of time after availing the inaugural discount.
Rest assured, it can be stated that mortgage refinancing is a boon for the borrowers who are bearing unusually higher interest rates charged by the lender and face a higher risk of losing the property they have offered as a collateral.
Joseph Then provides advices about Personal Finance and dealing with bad credits. You can visit the website http://www.BadCreditBin.com for more information
Tuesday, April 17, 2007
Sunday, April 15, 2007
Mortgage Refinance Information – Avoid Costly Mistakes Save Thousand
If you are considering refinancing your home mortgage you can save yourself a lot of money if you go about it correctly. Many homeowners refinance their loans to get a lower mortgage rate or cash out equity in their homes. If your financial situation has changed since you purchased your home you could qualify for a much better loan; here are several tips to help you decide if mortgage refinancing is right for you.
Depending on how long you’ve had your mortgage, you can borrow against the equity you have built in your home. Many homeowners build equity quickly due to rising property values and cash back refinancing is usually a more affordable option than a second mortgage or home equity line of credit. When you refinance your mortgage at a lower interest rate you will not only lower your monthly payment but pay significantly less to the lender over the life of your mortgage. If you are unable to qualify for a lower mortgage rate you can still lower you monthly payment by extending the term length of your mortgage.
The first step in refinancing your mortgage is to shop for a lender that offers competitive loan packages that do not include Yield Spread Premium. If you accept a mortgage that includes Yield Spread Premium you will pay a much higher rate unnecessarily. Yield Spread Premium is the retail markup of your mortgage rate to boost the loan originator’s commission at your expense. Homeowners who learn to recognize this markup of their mortgage interest rate can negotiate with the lender to avoid paying it. You can learn more about negotiating for the most competitive mortgage rate including costly mistakes to avoid with a free mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Click For More Information
By Louie Latour
Depending on how long you’ve had your mortgage, you can borrow against the equity you have built in your home. Many homeowners build equity quickly due to rising property values and cash back refinancing is usually a more affordable option than a second mortgage or home equity line of credit. When you refinance your mortgage at a lower interest rate you will not only lower your monthly payment but pay significantly less to the lender over the life of your mortgage. If you are unable to qualify for a lower mortgage rate you can still lower you monthly payment by extending the term length of your mortgage.
The first step in refinancing your mortgage is to shop for a lender that offers competitive loan packages that do not include Yield Spread Premium. If you accept a mortgage that includes Yield Spread Premium you will pay a much higher rate unnecessarily. Yield Spread Premium is the retail markup of your mortgage rate to boost the loan originator’s commission at your expense. Homeowners who learn to recognize this markup of their mortgage interest rate can negotiate with the lender to avoid paying it. You can learn more about negotiating for the most competitive mortgage rate including costly mistakes to avoid with a free mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
Click For More Information
By Louie Latour
Home Mortgage Refinancing Information - How You Can Save a Fortune!
Refinancing your current mortgage can be a terrific way to save a fortune on your home mortgage. Getting better terms can equal big savings over the life of your loan. Whether you secured your current mortgage in the last 12 months, or in the last 12 years or more, chances are things have changed that could allow you to refinance at better rate or terms.
Before deciding whether to refinance, it's important to understand how you can benefit from it. You'll want to know how much money you can save in the long run, the length of the new loan, your new monthly payment, and the cost for fees and closing the new loan.
All of this is going to take you some time and effort, but it could pay off handsomely.
Here's an example: If you have a $200.000, 30 year mortgage at 7.25 percent, your total interest would be just over $290.000. With even a slight drop in interest to 6.75 percent your total interest would decrease to just under $267.000. That's a savings of $23.000 over the life of your mortgage.
The first step in determining whether refinancing is worth it for you is to request several rate quotes from a range of mortgage lenders. By getting 3 to 4 rate quotes you can crunch the numbers and see how much money you can save. Most mortgage lenders will be more than happy to give you an analysis of your current mortgage versus a new one.
One thing you want to be sure to check for is a prepayment penalty on your current mortgage loan. Your mortgage may have a prepayment penalty built in to discourage you from refinancing, after all your original lender is making their money by you staying with their loan.
Having a discussion with a few mortgage lenders will cost you nothing but a little time. Sure, some may not be to your liking, but those are the guys you don't want to do business with anyway. If you're not totally comfortable, just say good-bye. The good news is... You could save a fortune!
If you liked this article and would like to read more refinance mortgage articles then stop in and take a look at what we have to offer. We have articles for refinance, mortgage, home equity, and credit scoring. And of course, you can always get a free rate quote while you're there. Thank you, Frank Ellis, U.S. Mortgage Quest
Before deciding whether to refinance, it's important to understand how you can benefit from it. You'll want to know how much money you can save in the long run, the length of the new loan, your new monthly payment, and the cost for fees and closing the new loan.
All of this is going to take you some time and effort, but it could pay off handsomely.
Here's an example: If you have a $200.000, 30 year mortgage at 7.25 percent, your total interest would be just over $290.000. With even a slight drop in interest to 6.75 percent your total interest would decrease to just under $267.000. That's a savings of $23.000 over the life of your mortgage.
The first step in determining whether refinancing is worth it for you is to request several rate quotes from a range of mortgage lenders. By getting 3 to 4 rate quotes you can crunch the numbers and see how much money you can save. Most mortgage lenders will be more than happy to give you an analysis of your current mortgage versus a new one.
One thing you want to be sure to check for is a prepayment penalty on your current mortgage loan. Your mortgage may have a prepayment penalty built in to discourage you from refinancing, after all your original lender is making their money by you staying with their loan.
Having a discussion with a few mortgage lenders will cost you nothing but a little time. Sure, some may not be to your liking, but those are the guys you don't want to do business with anyway. If you're not totally comfortable, just say good-bye. The good news is... You could save a fortune!
If you liked this article and would like to read more refinance mortgage articles then stop in and take a look at what we have to offer. We have articles for refinance, mortgage, home equity, and credit scoring. And of course, you can always get a free rate quote while you're there. Thank you, Frank Ellis, U.S. Mortgage Quest
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